Illinois Statutes & Regulations All Lines Flashcards

Question

Examination of Producer Records - Director of Insurance 1) How many days do violators have to request a hearing after an examination report? 2) How many days does the Director have to issue a written order after a hearing? 3) what is the maximum penalty for violating an order?

Answer 1

1) 14 Days 2) 90 Days 3) $20,000

Answer 2

1) name 2) address 3) license number and national producer number 4) date of issuance 5) lines of authority 6) expiration date of license

Answer 3

1) greater of $2,500 or 5% of premiums brokered in the previous year

Answer 4

1) Insurance producer who just issues insurance licenses for his/her own benefit (self, spouse, own business). 2) Limits 1. Director will not grant a license if two years prior all controlled business exceeded general public insurance business 2. 12 months following insurance license issuance total premiums on controlled business exceeded General insurance business

Answer 5

1) within 12 months of renewal fee due date 2) paying double the unpaid renewal fee * no re-testing needed

Answer 6

1) Provided incorrect misleading incomplete or material untrue information in the license application 2) Violated any law rules and regulation subpoena or order of the director or of another state director 3) Obtained a license to by fraud or misrepresentation 4) Cheated on a licensing exam 5) Failed to pay child support 6) Failed to pay federal or state income tax 7) Misappropriated funds or properties 8) Intentionally misrepresented terms of an insurance contract or application 9) Felony conviction 10) Committed any insurance unfair trade practices 11) Was fraudulent coercive or diss honest and demonstrated incompetence on trustworthiness or financial irresponsibility 12) Had an insurance license denied or suspended in another state 13) Forged another person’s name 14) Knowingly excepted insurance business from an unlicensed individual

Answer 7

1) Applicant or licensee must receive a written notice of reasons to renew suspend or revoke her license 2) Hearings may be requested within 30 days of the notice and it must be held between 20 to 30 days of the mailing of the notice of hearing 3) Civil penalties of up to $10,000 per cause and $100,000 of all causes may be levied 4) A person is in ineligible to apply for any license for three years following revocation suspension or denial

Answer 8

1) $150 or less class a misdemeanor 2) $150 or less repeatedly class four felony 3) More than $150 class III felony

Answer 9

1) Knowingly misrepresenting relevant facts or policy provision 2) Failing to acknowledge communications regarding claims 3) Feeling to implement procedures for the prompt investigation and settlement of claims 4) Refusing to pay claims without conducting a reasonable investigation 5) Failing to affirm or deny coverage within a reasonable time after completing a claim investigation 6) Not attempting in good faith to bring up route prompt fair and equitable settlement of claims submitted in which the liability has become reasonably clear 7) Compelling insured’s to institute suits to recover amounts due under their policy by offering substantially less then the amounts ultimately recovered in suits brought by then 8) Attempting to settle claims for less than the amount the insured was reasonably led to believe in what she was entitled 9) Attempting to settle claims on an application that was altered without the insured’s knowledge and consent 10) Making claims payments without indicating the coverage under which each payment is being made 11) Denying a claim or offering a compromise settlement without a prompt explanation for such actions 12) Unreasonably delaying the claim investigation or payment by requiring both a formal proof of loss and subsequent verification that duplicates the information 13) Feeling to settle claims promptly were liability has become reasonably clear under one portion of insurance coverage in order to influence settlement under other portion of the insurance policy 14) Feeling to promptly provide a reasonable explanation for the basis for the denial of the claim

Answer 10

1) Revocation of a company certificate of authority for six months 2) A civil penalty of up to $250,000 3) Or a combination of both

Answer 11

Offering valuable consideration other than that which is offered in the contract as a motivation to get someone purchase a policy. -Forms of rebating include kickbacks of commission, extraordinary gifts, payment of consulting fees or offering to pay the insurance premium

Answer 12

1) Defamation is the illegal practice of making statements written or oral that are false or maliciously critical of the financial condition of an insurance company or a producer representing the company 2) Fines are between $200 and $10,000

Answer 13

1) Discriminating between individuals of the same class and equal life expectancy in the rates dividends benefits or terms of any life or life annuity contract 2) Discriminating between neighbors with an a municipality of an essentially same hazard potential 3) Using sex orientation in the underwriting process or in the determination of insurability

Answer 14

A group that avoids a certain company or producer to see your business to another company or producer

Answer 15

1) Forcing a person to buy insurance through a particular company or producer

Answer 16

Use of words or actions to make a consumer buy insurance from the producer a company

Answer 17

To provide for the payment of covered claims of an insult and insurer Absolutely cannot be used for marketing purposes to sell insurance

Answer 18

1) life insurance benefits $300,000 2) net cash surrender and withdraw values $100,000 3) present value of annuity benefits $250,000 4) health insurance benefits $300,000 5) 5 million and benefits irrespective of the number of contracts with respect to the contract owner or plan sponsor

Illinois Statutes & Regulations All Lines Flashcards

(42 cards)