Chapter 7 Flashcards Preview

Getting Licenced > Chapter 7 > Flashcards

Flashcards in Chapter 7 Deck (38):
1

How many days does it take to effectively raise premium rates

30

2

What violations will result in an agents imprisonment?

1. Knowingly obtaning information under false pretenses
2. Engaging in buisness after a breach of trust
3. Embezzling funds from the insurer

3

Describe an insurance broker

Not a direct representative of the insurer
Cannot bind coverage
Must have a written agreement before getting paid

4

What's it called when 2 people gaffe the sane life style but one is more finacially suited so they get charged more

Discrimination

5

If a producers licence lapsed how long do they need to wait to get reinstated

1 year

6

How many hours per license period must one continue education to renew licence

24 hours

7

Do not call registry was made to regulate

Telemarketing

8

Describe a misrepresentation

Issuing sales material with exaggerated statements about policy benefits

9

What report provides the underwriter with the applicants credit info

Consumer report

10

To become a consultant how many years do you need to prepare

3 of the last 4

11

How often can a producer renew their license

2 years

12

Applicants for producers, brokers, ir consultants must show they are

Trustworthy
18 or older
In good faith for the buisness

13

What's the diff between consumer reporters and investigative consumer reports

In investigative the customers associates, friends, and neighbors provide the reports data

14

The federal fair credit report act

Regulates consumer reports

15

Exceptions to the national do not call list

No commercial or unsolicited advertisements
On behalf of a non profit organization
Prior written permission was given

16

Insurance guaranty association

1. Non profit legal entity
2. Protects insured against insolvent insurers
3. Funded by member insurers
4. Pays up to specified limits

17

Violations and penalties steps

Violation
Hearing
Other penalties

18

Violation

Agent is suspected of being in an unfair trade practice

Department is notified and issues a statement

19

Hearing

Aggrieved party may insist a hearing
Advance Bruce of hearing
Hearing held promptly
Has a chance to be heard

20

Other penalties

Cease and desist order
Established by state laws
Imposed based on hearing outcome
Liscence denial, suspension, revocation
Monetary fines

21

Commission

Producers must be licenced at time of transaction

22

Unfair trade practices

Misrepresentation
Debating
Defamation
False advertising
Twisting
Unfair discrimination

23

Misrepresentation

False or misleading statements about policy terms or benefits

24

Rebating

Offering benefits or services not in the policy

25

Defamation

Damaging reputation of person or company

26

False advertising

Untrue or deceptive statements in insurance advertising

27

Twisting

Misleading comparisons to get insured to switch polices

28

Unfair discrimination

Discrimination in rates, premium, or benefits

29

To maintain a license

Continue education every license period
Renewal fees
Current name and address
Reinstatement rules

30

Agent licensing

At least 18
Pass license exam
Complete application and pay fees
Be of good character

31

License types

Producer/ agent
Buisness entity
Non resident
Temporary

32

Producer/ Agent

Represents insurer
Appointed to transact on behalf of insurer

33

Buisness entity

Corp/ association/ partnership

Must have designated agent

34

Nonresident

Different home state
License to transact in resident and non resident states

35

Temporary

Issued for continuation of existing buisness
A short period of time
Approved by the department
Not renewable

36

Examination of insurers

Applies to all authorized insurers
Insurers pay for examination

37

Department of Insurance powers and duties

Supervise insurance buisness in the state
Enforce insurance laws
Issue licenses and certificates
Approve policy forms
Conduct examinations, investigations, hearings
Impose penalties

38

What does department of insurance not do

Set premium rates
Establish fines and penalties