Illinois Statutes and Regulations common to All Lines Flashcards
(32 cards)
What type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
Twisting
Who may share in the commission from the sale of a life insurance policy?
Only producers properly licensed for the type of insurance transaction
What document is required for an insurance company to transact insurance?
Certificate of Authority
Two individuals who are in the same risk and age class are charged different rates for their insurance policies due to an insignificant factor. What is this called?
Discrimination
Who must be notified of a producer’s change of address?
The department of insurance (Commissioner/Director/Superintendent
What are producers required to do in order to renew their license?
Complete continuing education hours and pay a renewal fee
If an insurer meets the state’s financial requirement and is approved to transact business in the state, it is considered what type of insurer?
Authorized or admitted
Who can usually be granted a temporary license?
Producers spouse or designee in case the licensed producer dies or becomes disabled—– Can renew Temp. Licence up to 2 times
To whom may a certificate of authority be issued?
To an insurer authorized to transact business in this state
Who is responsible for the costs associated with the examination of insurers?
The insurer who is being examined
An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?
Rebating
What is controlled business?
Insurance on the producers own life or property, or the lives or property of the producers family or business associates
What is the purpose of a cease and desist order?
To prevent a producer or insurer from further violating laws for transacting insurance
In the agent/insurer relationship, who is considered the principal?
The insurer
When can the Commissioner or Director examine insurers?
Whenever deemed necessary, but at least once every few years
Can insurers advertise the existence of the guaranty association during solicitation and sale of insurance policies?
No, advertising of the existence of the guaranty association for the purpose of solicitation and sale of insurance policies by insurers is an illegal business practice
If a producer makes a maliciously critical statement about another insurer, what is this illegal practice called?
Defamation
What type of licensee represents the insurance company?
The agent
Who must be a member of insurance to guarantee associations?
All insurers authorized to write insurance within a state
In its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?
Misrepresentation
For what reason can a temporary license be issued?
For continuation of business in case the licensed producer dies or become disabled
If the Commissioner/Superintendent finds a licensee engaging in an unfair method of competition or an unfair practice, what order will be issued?
Cease and desist order
What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is?
Misrepresentation
Who is an insurance agent?
A person authorized to sell, solicit and negotiate insurance contracts
