Section 1.1 Flashcards
Licensing Process (34 cards)
Producer
an insurance agent, broker, consultant, reinsurance intermediary, excess lines broker, any other person required to be licensed to transact insurance.
License Qualifications
-18 years old
- apply to the Superintendent
- fulfill licensing requirements
- pass a written examination
- pay an application fee
Home State
any US state or territory, including the District of Columbia in which a producer is licensed to act.
Negotiation
the act of conferring directly with or offering advice directly to a purchaser about the particular contract of insurance
Sell
the exchange of contract insurance for compensation (money)
Solicitation
attempting to sell or asking a person to obtain a particular kind of insurance from a particular party.
Who can be licensed?
any individual or entity that acts as an insurance producer, agent, broker, consultant, adjuster, reinsurance intermediary, or excess lines broker.
Agent
a person employed to sell insurance policies.
Broker
a person that solicits, negotiates, or sells insurance for an insurance in exchange for commissions.
Consultant
any person who receives a fee for providing insurance counseling or advice.
Independent Adjusters
any party who, for compensation, investigates and adjusts claims arising under insurance contracts on behalf of the insurer.
Public Adjuster
any party who, for compensation, negotiates or settles claims for loss or damage to property on behalf of the insured.
Reinsurance Intermediary
a broker who acts as an intermediary between reinsurers and ceding companies
Excess Lines Broker (Surplus Lines Broker)
A licensed professional who procures insurance policies from non-admitted insurers for high-risk clients.
Nonresident
an individual who qualifies to be licensed due to holding a similar license in another state or foreign country. The applicants home license must be reciprocal.
Reciprocal
grants a nonresident license to residents of NY on the same basis.
Business Entity
a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity
When does a Business Entities license expire?
June 30 of odd numbered years for life insurance, variable life and variable annuity insurance, or accident and health insurance and sickness lines of authority,
June 30 of evened numbered years for accident and health or sickness, property, casualty, or personal lines
When is a Temporary Licensed issued?
when the original producer dies or becomes disabled, it is issued for up to 90 days with a renewal term of additional 90-day terms not exceeding 15 months.
Who may receive a Temporary License?
- an executive or administrator
- the surviving next of kin
- an officer or director
- any surviving member of a firm or association who is a licensed producer
- the designee of a licensed producer
License Expiration
licenses to individuals born in odd numbered years will expire on their birthday in each odd-numbered year, and vice versa for even numbered years.
How to Renew a License
File a renewal application, prove continuing education requirements, pay required fees.
How many continued education points are required every 2 years?
15
How many days does a licensee have to notify the Department of Financial Services of a change of address? (including email)
30 days
