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Life > Life State law > Flashcards

Life State law Flashcards

1
Q

director of insurance has the following powers

A

-make reasonable rules and regulations as necessary to implement the insurance code
-conduct investigations as needed to determine whether any person has violated any insurance law or regulation
-conduct examinations, investigations and hearings as necessary for administering the insurance laws efficiently
-institute any actions or proceedings as necessary to enforce Illinois insurance laws and regulations

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2
Q

cease and disorder

A

requires the person or insurer to immediately discontinue practices or transactions. violation: fine of up to $1000

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3
Q

director must issue and serve upon the person or insurer a notice of hearing to be held between _________ after service of the notice.

A

20 and 30 days

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4
Q

the subject of an examination may request a hearing in writing within _________ after receipt of the examination report

A

10 days

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5
Q

any company or person who violates a written order under the Market Conduct and Nonfinancial Examinations section of the Insurance code will be in violation of a business offense and may be fined up to ___________

A

$5000

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6
Q

A person may request in writing a hearing within ____________ after they receive the duplicate of the examination report

A

14 calendar days

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7
Q

regulatory examinations

A

examining persons applying for or holding an insurance producer license, limited line producer license or temp insurance producer license or any business entity

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8
Q

violation of a written order under the regulatory examinations section of the insurance code

A

in violation of a business offense and may be fined up to $20,000, along with a license suspension or revocation

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9
Q

insurance producers

A

a person may not sell, solicit, or negotiate insurance for any class of insurance unless that person is licensed that line of authority. A person may not offer advice, counsel or opinions with respect to insurance, for a fee, unless that person is
-a licensed producer
-an attorney to practice law
-a trust officer of a bank
-an actuary or CPA employed in a consulting capacity
-licensed public adjuster acting within the scope of their license

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10
Q

A person who knowingly violates the insurance producer regulation….

A

is guilty of a Class A misdemeanor. In addition, any person who misappropriates any funds collected while violating this regulation is guilty of a Class 4 felony

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11
Q

nonresident license criteria

A

-holds a valid license in good standing in their home state
-submits proper request for license and pays all required fees
-submits either original, home-state license app, or completed Uniform App to the director
-applicant’s home state issues nonresident producer licenses to residents of IL

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12
Q

Address changes must file change of address and provide certification from the new resident state within ___________ after change of legal residence

A

30 days

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13
Q

business entity

A

sole proprietorships, corporations, limited liability companies, associations, partnerships, mutual funds

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14
Q

business entity acting as an insurance producer

A

must obtain insurance producer license using Uniform Business Entity App. must pay $150 every 2 yrs

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15
Q

if an applicant meets all requirements for a license but has not taken the exam, the director may grant that person a ___________________________

A

temporary insurance producer license for a period of 90 days

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16
Q

The director may issue a temp insurance license for up to _________

A

180 days and may choose to renew the temp license for an additional 180 days without requiring an exam

17
Q

a temp license is necessary for the servicing of an insurance business in the following cases

A

-to the surviving spouse or personal rep of a deceased or disabled producer
-to a member or employee of a business entity licensed as an insurance producer, upon death or disability of an individual designated in the business entity application or the license
-to the designee of a licensed insurance producer who enters active service in the armed forces of the US

18
Q

an insurance producer may receive qualification in the following lines of authority

A

-life
-variable life and variable annuity products
-accident and health or sickness
-property
-casualty
-personal lines

19
Q

before approving the app, the director must ensure that the individual…

A

-is at least 18 years of age
-has not committed any act that is a ground for denial, suspension, or revocation
-has completed a prelicensing course
-paid fees
-passed exams
an individual who meets these requirements will be issued a 2-year insurance producer license

20
Q

license fees

A

-$50 app fee to process a request to take the written exam for an insurance producer license.
-every 2 years:
-$180 for a resident insurance producer license
-$250 for a nonresident insurance producer license
-$150 for a business entity
-$50 for a self service storage facility limited line license
-$200 for a limited lines license other than those listed in the limited lines producer section
-$50 for issuance of a temp license
-$50 annual fee for a limited lines producer license
-$50 certificate fee for each certified prelicensing/continuing ed course, and $20 annual fee for renewing and certification of the course

21
Q

minimum of __________ for Life, accident and health, fire, casualty, or personal lines/property and casualty

A

20 hours. 7.5 which must be in a classroom.

22
Q

prelicensing for a motor vehicle insurance producer is ________

A

12.5 hours, 5 of which must be in a classroom

23
Q

An insurance producer who places business with an insurer with whom they do not have a producer contract must maintain a bond in favor of the people of IL. the bond….

A

-must be executed by an authorized surety company and payable to any party injured under the terms of the bond
-must be in continuous form and in the amount of $2500 or 5% of the premiums brokered in the previous year, whichever is greater, but not to exceed $50,000
-will be conditioned upon full accounting and due payment of funds to the entitled person or company

24
Q

the surety may cancel the bond and be released from further liability upon _______ advance written notice to the principal

A

30 days

25
Q

if a party injured under the terms of the bond requests the producer to provide the name of the surety and the bond number, the producer must provide the info within __________ after receiving the request

A

3 working days

26
Q

before each license renewal, an insurance producer must complete at least _________ of continuing education, including _______________ of classroom ethics instruction

A

24 hours; 3 hours

27
Q

an insurance producer who allows his license to lapse can be issued a license without having to pass a written exam if he renews it within ______________ after the renewal fee was due

A

12 months

28
Q

in addition to any applicable denial, suspension, or revocation of a license, a person may, after a hearing, be subject to a _______________

A

civil penalty of up to $10,000 for each cause for denial, suspension, or revocation with a max of $100,000

29
Q

a person whose license is revoked or whose app is denied is ineligible to apply for any insurance producer license for _____________

A

3 years

30
Q

an insurance company that delivers an insurance policy to any insurance producer in the state authorizes the producer to collect and receive payment of any premium that is due at the time of issuance or delivery and any premium that becomes due on the policy or contract in not more than ____________

A

90 days

31
Q

licensees who hold any premiums for ________ or more before remitting it to the insurer, or who deposit premiums into a financial institution account, must establish a fiduciary ______________

A

15 days; Premium fund trust account (PFTA)

32
Q

books and records for each fiscal or calendar year must be maintained for at least __________

A

7 years

33
Q

return premiums must be paid or credited to the insured’s account within _______ after receipt from the insurer

A

15 days

34
Q

controlled business is defined as the insurance written on the interests of and covering….

A

-the licensee themselves and their property/risks
-the licensee’s spouse and their property/risks
-the licensee’s employer’s or own business’ life, property or risks

35
Q

an insurance producer license may not be granted or extended if the director believes the aggregate amount of premiums on insurance represented by controlled ____________

A

business exceeded the aggregate amount of premiums(more than 50%) on all other insurance business of the licensee during:
-12-month period immediately following the issuance or extension of the license
-2 calendar years immediately preceding the extension date of the license

36
Q

misrepresentation penalty

A

minimum of $200 and max of $10,000

37
Q

rebating

A

any inducement offered to the insured in the sale of insurance products that is not specified in the policy

38
Q

rebated may include

A

-rebated of premiums payable on the policy
-special favors or services
-advantages in the dividends or other benefits
-stocks, bonds, securities, and their dividends or profits

Life (8 decks)

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