Licensing (Law Ch. 2) Flashcards Preview

Property and Casualty Insurance > Licensing (Law Ch. 2) > Flashcards

Flashcards in Licensing (Law Ch. 2) Deck (11)
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1
Q

Temporary License

A

Goes to surviving spouse or legal representative. Valid for 180 days

2
Q

Expiration of License

A

Expire every 2 years on the last day of the Licensee’s birth month

3
Q

License Renewal

A

A producer may reinstate a license within 12 months of its expiration date without taking an exam by paying twice the unpaid renewal fee and satisfying any continuing education requirements.

4
Q

Continuing Education

A

Required. Must complete 24 hours of coursework including 3 credit hours in OR and 3 credit hours in professional ethics for producers.

5
Q

Premium Funds

A

Any consideration received from or for an insured to obtain insurance.

6
Q

Fiduciary Capacity

A

Takes care of money or other assets for another person.

7
Q

Deposits and Payments

A

Required deposits within 7 days after funds are received.

Pay any premiums funds owed to an insured within 30 days.

8
Q

Termination

A

cancellation of the relationship between an insurance producer.

9
Q

Claims

A

Pay claims within 30 days after receipt.

Respond to director within 21 days

10
Q

Capitalization

A

The minimum combined paid-up capital and surplus required of a stock insurer or the minimum surplus required of an insurer without capital stock

11
Q

Required Capitalization

A

Most insurer’s need capital and/or surplus of at least $2,500,000, WC needs $5,000,000. To apply for an original certificate of authority, a domestic insurer will need an additional $500,000.
The size and risk an insurer may keep on any one subject of interest which is limited generally to 10% of the insurer’s surplus to policy holders.