1.0 Insurance Regulation (Types of Licenses) Flashcards
Types of Licenses
National Insurance Producer Registry
In SC agents will be issued an insurance license # by TSCDOI which will be the same as your national producer # from the National producer registry.
What is NIPR?
a central repository for info regarding licensing. use the website NIPR.com to acquire a resident or non-resident license and notify all insurance departments of a change of address at a single location.
Producer
A producer must be licensed in a particular line of authority by the director of insurance BEFORE performing acts that constitute transactions of insurance.
A transaction of insurance includes:
*selling, soliciting, or negotiating insurance for an insurer
*Taking an insurance application or delivering a policy
* Advertising insurance applications and policies
* Receiving or delivering insurance policies
*Performing acts of insurance like contacts for or with an Insurer.
How long is a producer license issued for?
Indefinitely unless suspended or revoked.
A producer license must be renewed when?
on a biennial basis by the last day of the birth month, on an even or odd year basis, depending on the year you were born.
*Producers must also comply with the continuing education requirements. (complete the online license renewal application and pay the renewal fee before the complience deadline)
A nonresident of SC may be licensed as an insurance producer in SC IF:
- The person is a licensed prod. in good standing in his home state
- The person applies for license and pays the required fees at NIPR.com
- The person provides the Director w an original uniform application
- The person’s home state grants nonresident producer licenses to SC residents on the same basis known as a reciprocal agreement (SC has one with every state).
How can a Temporary Producers License (allows service but does not sell insurance) be obtained?
By a person who needs an temporary prod. it is valid for up to 180 days. *no examination is required.
A temporary license can be granted to:
- The spouse or court-appointed personal representative of a licensed producer who dies or is mentally or physically disabled in order to sell the business or allow enough time to train people to run the business
- A member or employee of an agency that is licensed as an insurance producer
- A person designated by a license producer who is entering active millitary or other circumstances deemed necessary by the Department of Insurance
- A temporary license will not be issued for the purpose of of continuing education.
The Director may do what to a temporary license?
- limit the lines of authority for the purpose of protecting the public
- suspend or revoke the license if the public is endangered by the actions of a person who as a temp license.
The Temporary license must be terminated when:
When the business is disposed of
In order to continue a license, the producer must”
- Renew the license by the last day of the producers birth month
- satisfy the continuing education requirements
- Pay the required fee for renewal.
Reporting of Actions:
A producer shall report to the director any administrative action taken against the producer in another jurisdiction or by another gov agency in SC within *30 days of the final disposition of the matter.
For reporting actions, the report must include what?
- A copy of the order
- consent to order
- or any other relevant legal documents
If you are convicted of something, you are to report within 30 days to:
The insurance director any criminal conviction taken in any jurisdiction. The report must include 1. A copy of the order, 2. a sentencing document or plea agreement, and any other legal documents.
Change of Address (even if youre within the state)
You must give the department a name, business email, mailing address, and resident address. To change any of these, you must notify the department within *30 days of the change.
Failure to notify the director of a change in a legal name or addy subjects the producer to:
- A fine of up to 2,500 or 5,000 if the act is willful
- License suspension or revocation
- both
Assumed Names:
If you do business under a name other than your legal name, you must notify the director BEFORE using the assumed name.
*Continuing Education
Every producer licensed person in SC is required to complete 24 hours of CE. Every 2 years in order to renew his license.
Failure to complete the continuing education results in:
Suspension of the producers license.
Falsely reporting the number of CE hours earned results in
a fine up to 2,500$ or 5,000$ if the act is willful, suspension or revoktion, or both.
Producers who are licensed in life and health AND property and casualty must complete 24 hours of CE as follows:
- A minimum of 8 hours in each licensed line
- A minimum of 3 hours in ethics
- And the remaining hours in any approved category (LA&H,P&C,Ethics).
A producer can repeat a continuing education course, BUT:
cannot receive credit for the same course but once every 24 months.
The provider of CE course is responsible for:
reporting the completion of continuing education hours to the CE administrator.
