INSURANCE REGULATION (Chapter 1) Flashcards
15% Chapter 1 (36 cards)
What are the minimum requirements to become a license producer in South Carolina?
Be at least 18 yrs old Be of good moral character No convictions Pay licensing fee Pass state examination
The what documents are required by the SC department of insurance to process your application for license
Take and pass the state exam
Criminal background check
Apply for license and pay fees
How long is your exam status report good for?
1 yr
How does a producer become an agent?
They must be appointed by an authorized representative of an insurance company (insurer)
Name 4 types of individual licenses issued by the director
Producer
Non resident
Temporary - granted for upto 180 days, no exam
Brokerq
Who does the broker represent?
They represent citizens (the insured)
How long is your insurance license valid for?
Indefinite period of time unless it is revoked or suspended
What must you do to keep your license from being suspended?
Renew by the last day of the producer’s birth month
Satisfy the continuing education requirements
Pay the renewal fee
How does the director of insurance get the job?
Appointed by the governor
The director must be bonded with a surety bond = how much?
$50,000 paid for by the state
How often can the director examine books and records of any insurer?
As often as necessary but at least once every 5 years.
How often does the DOI have to Examine books and records of an insurer?
At least once every 5 years
Which insurers must be examined by the SC director of insurance?
An insurer domiciled in South Carolina
When must the insurer Notify the department of insurance and the agent when they terminate a producer terminates
The insurer must notify the department within 30 days of termination
The insurer must mail notice to the producer within 15 days
How long do producers have to maintain records of every insurance transaction?
At least 5 years from the date of contact.
When can the DOI review insurance transactions of producers?
Anytime
When can a producer share a commission?
When a person has a license to transact insurance and the same licensed line of authority
If you attempt to replace an existing policy by lying to your customer it is called…..
Misrepresentation –making false statements
If you misrepresent information to the public via any form of media it is called…..
False advertising
What is the primary purpose of the insurance fraud act?
To address the problem of insurance fraud
When does the producer get an opportunity to reply to their appointment being terminated?
Hearing within 30 days
What method does the director of insurance used to prevent a producer from performing certain acts associated with the business of insurance?
Cease and desist order
Fine $2500 or $5000 willful
How long is a temporary producer’s license valid for?
Upto 180 days
How many CE credits must a producer take to maintain their license?
24 hours every 2 years
