Licensing Process Flashcards
To qualify for a license an applicant must …
- Be ____ years old
- Submit application
- Complete ____ hr pre-licensing course
- Be trustworthy and competent
- No history of license suspension
- Pay fees
- Pass state exam
- Be 18 years old
- Submit application
- Complete 20 hr pre-licensing course
- Be trustworthy and competent
- No history of license suspension
- Pay fees
- Pass state exam
List 9 types of people who does NOT have to take written exam?
- Limited lines agents (travel, baggage) other than a major line of insurance
- Revoked licenses
- Fraternal benefit society agents
- Non-resident agents
- Licensees representing assessment corporations
- Agents reapplying within 2 years of license expiration
- People licensed before 1957
- Agents previously licensed in another state
- People with CLU or CPCU professional designations only need to take Rules and Regulations.
What is a producer?
And insurance producer is an insurance agent, broker, reinsurance intermediary, excess lines broker, or other person required to be licensed in New York to sell solicit or negotiate insurance.
You do not have to be licensed if …
- If you do administrative, managerial, or clerical work.
- If you engage in underwriting, lost control, or claim processing or settlement.
- If your activities are limited to providing technical advice that does not include selling insurance
- An employee of an insurer who rates or classifies risks or trains insurance producers and who does not sell insurance
- An agent of a fraternal benefit society who spends less than 50% of his time soliciting, negotiating, or selling insurance
- An agent of a title insurance company
- A service contract provider or administrator who sells or administers service contracts
- A person who takes enrollments or performs administrative services for a group insurance plans and does not receive commissions
- A person who performs administrative services related to massed marketed property and casualty insurance
- A person who administers a companies employee benefits program and who is not compensated by the company issuing the insurance contracts
- A person whose activities are limited to advertising insurance policies
- A non-resident who sells commercial property and casualty insurance to insured’s with risks located in more than one state, provided the person is licensed in that state
- A full-time employee who advises his employer about insurance matters and does not receive commissions.
What does negotiate, sell and solicit mean?
Negotiating insurance involves discussing or offering advice to prospective purchasers regarding the benefits, terms, or conditions of an insurance policy by a person who sells insurance.
Selling insurance involves exchanging an insurance policy for money on behalf of an insurer. Soliciting insurance involves attempting to sell insurance or urging a person to apply for a specific type of insurance from a particular insurer.
What are the different types of licenses agents can hold?
- Life
- Variable Life
- Accident and Health Insurance
- Legal Services (what?)
- Property
- Casualty (vehicle insurance, liability insurance, theft insurance and elevator insurance)
- Personal Lines
- Other line approved by the Superintendent
Who is an insurance broker? And who qualifies?
- Must be ____
- Must complete a pre-licensing course.
- Must be employed by an insurer, agent or broker for at least ____ year during the preceding three years.
- Must submit an application.
- Must pass a written exam.
- Must be 18.
- Must complete a pre-licensing course.
- Must be employed by an insurer, agent or broker for at least one year during the preceding three years.
- Must submit an application.
- Must pass a written exam.
Individuals exempt from the written broker exam are …
- Chartered Property Casualty Underwriter (CPCU)
- Chartered Life Underwriter (CLU)
- Chartered Financial Consultant (ChFC)
- Master of Science in Financial Services (MSFS)
What is an insurance consultant?
An insurance consultant provides advice and recommendations about the terms, benefits, and coverage of insurance policies.
- They may not be an executive or employee of insurer They may not own shares that give them a significant ownership interest in an insurer.
A consultant license expires every two years on their birthday.
Where do insurance consultants come in? Do they work for the insurer? And support the agents? What is the difference between agents and consultants?
Who are adjusters?
To qualify
- you must be ____
- submit application with ____ individuals attesting to your confidence and good character,
- submit ______________
- have not been convicted of a _______
- pass _______
- maintain $_______ bond
- and have at least ______ year’s experience in the insurance industry
- or complete _____ hours of training
An independent adjuster investigates and settles claims arising under insurance contractors on behalf of an insurer for a fee. A person may be licensed as an independent adjuster or a public adjuster. To qualify
- you must be 18,
- submit application with 5 individuals attesting to your confidence and good character,
- submit fingerprints,
- have not been convicted of a felony,
- pass exam,
- maintain $1000 bond,
- and have at least one year’s experience in the insurance industry
- or complete 40 hours of training
When does an adjuster’s license expire?
On December 31 of even numbered years
What are the non-resident licensing rules?
A non-resident of New York may be licensed if …
- their license is in ____________ in their home state,
- they apply for licensure and ______ ______,
- they submit a ______ of the license application from home state and
- the persons home state grants nonresident producer licenses in reciprocity with New York.
And non-resident who moves to New York must submit an application to become a resident producer within ____ days of establishing legal residence.
A non-resident of New York may be licensed if …
- their license is in good standing in their home state,
- they apply for licensure and pay fees,
- they submit a copy of the license application from home state and
- the persons home state grants nonresident producer licenses in reciprocity with New York.
And non-resident who moves to New York must submit an application to become a resident producer within 90 days of establishing legal residence.
Can a business entity hold a licensed as an agent?
Yes, if the business entity
- pays the required fees and
- appoints a person to be responsible for the businesses compliance with state insurance laws.
Who can obtain a temporary license and for how long?
The next of kin or executor or administrator of a licensed producer who dies or is mentally or physically disabled or a member or employee of an agency that is licensed as an insurance producer.
A temporary license is valid for up to 90 days and maybe renewed for an additional 90 days but not more than 15 months total.
No examination is required.
Who is a life settlement broker?
A life settlement broker is a person who is paid to solicit and negotiate life settlement contracts.
The insured.
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