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Flashcards in Insurance Regulation Deck (19)
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1

Who may share in the commission from the sale of a life ins policy?

Only producers properly licensed for the type of ins transaction

2

What are producers required to do in order to renew their license?

Complete continuing education hours and pay a renewal fee

3

For what reason can a temporary license be issued?

For continuation of business in case the licensed producer dies or becomes disabled

4

Most common penalties for violations of ins statutes?

Cease and desist order, a fine, and license suspension or revocation

5

Who is considered a nonresident agent?

Agent who resides in a diff state but is authorized in your state

6

Who must be notified of a producers change of address?

Department of Insurance (commissioner, Director, superintendent)

7

What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is?

Misrepresentation

8

What type of licensee represents the insurance company?

The agent

9

What is the purpose of a cease and desist order?

To prevent a producer or insurer from further violating laws for transacting insurance

10

To whom may a certificate of authority be issued?

To an insurer authorized to transact business in the state

11

Who can usually be granted a temporary license?

Producers spouse or designee in case the licensed producer dies or becomes disabled

12

If a producer makes maliciously critical statements about another insurer, what is this illegal practice called?

Defamation

13

Who is responsible for the cost associated with the examination of insurers?

The insurer who is being examined

14

When can the commissioner or director examine insurers?

Whenever deemed necessary but at least every few years

15

2 individuals who are in the same risk and age class are charged diff rates for their ins policies due to an insignificant factor is called what

Discrimination

16

Who is an insurance agent?

A person authorized to sell, solicit, and negotiate ins contracts

17

An agent offers 2 tix to a basketball game in return for buying a life ins contract, what is this called?

Rebating - it’s illegal

18

What type of misrepresentation persuades an insured to, to his or her detriment, to cancel lapse or switch policies from one to another?

Twisting

19

In general, who can be excluded from producer licensing and examination requirements?

Ins co officers, directors, or any other employees who do not transact insurance and who do not receive commissions for their services (usually, their responsibilities include administrative, executive or clerical)