7- Idaho Statutes, Rules, and Regulations Common to All Lines

Question 1

Cease and desist

Answer 1

to stop or discontinue

Question 2

Coercion

Answer 2

forceful act or threat aimed to influence a person to act against their will

Question 3

Commission

Answer 3

Payment to the agent by insurance company for placing insurance, usually a percentage of policy premium

Question 4

Director

Answer 4

head of the State Department of Insurance

Question 5

Excempt

Answer 5

not subject to an obligation

Question 6

Home office

Answer 6

insurer’s headquarters, principal place of business

Question 7

Inducement

Answer 7

an offer that attempts to influence the other party

Question 8

Promulgate

Answer 8

to make public, to put into actions

Question 9

Reciprocity

Answer 9

mutual interchange of rights and privileges

Question 10

Solvency

Answer 10

ability to meet financial obligations

Question 11

statute

Answer 11

a formal written law enacted by legislature

Question 12

Statutory

Answer 12

enacted or regulated by a statute

Question 13

Subpoena

Answer 13

an order for someone to appear as a witness or submit testimony or evidence

Question 14

Negotiate

Answer 14

to offer advice to and communicate directly with a prospective purchaser

Question 15

Certificate of Authority

Answer 15

a document authorizing a company to start conducting business and specifies kinds of insurance a company can transact

Question 16

How long is the director of insurance’s term?

Answer 16

4 years

Question 17

How often can the director examine accounts, records, and documents?

Answer 17

Once every 5 years.

Question 18

How soon must a hearing be held from when the director receives a request?

Answer 18

30 days, unless postponed by mutual consent.

Question 19

The director must give written notice of a hearing at least how many days in advance?

Answer 19

14 days

Question 20

Orders from the director may be delivered by what methods?

Answer 20

• Personal service upon the individual to be notified
• Mailed through U.S. mail with a return receipt requested
• Fax or email if the individual has greed to that delivery method

Question 21

What is the fine for a natural person who violated the Insurance Code?

Answer 21

$1,000 and/or up to 6 months in jail

May also revoke or refuse to renew a license

Question 22

What is the fine for any entity that is not a single person who violated the Insurance Code?

Answer 22

$5,000 and/or up to 6 months in jail

Question 23

What is the penalty for transacting insurance without a liscence in Idaho?

Answer 23

Up to $15,000

Question 24

Producer

Answer 24

A person required to be licensed under laws of Idaho to sell, solicit, or negotiate insurance

Question 25

Limited Lines Producer

Answer 25

A person authorized to sell, solicit, or negotiate limited lines of insurance.

Question 26

Examples of Limited Lines Insurance

Answer 26

- Credit life; - Credit disability; - Credit unemployment; - Mortgage life; - Pet Insurance

Question 27

Surplus Lines Producer

Answer 27

Individual licensed for property & casualty insurance with at least 2 years' experience toward the lines they will

Question 28

Public Adjuster

Answer 28

A person who investigates and negotiates settlement of claims arising under insurance

Question 29

Requirements to receive an adjuster's license

Answer 29

- At least 21 years old - Trustworthy and of good character - A salaried employee of a licensed adjuster or have experience in claims settlement - May need to pass a written exam

Question 30

Qualifications for insurance license

Answer 30

- At least 18 years old - Has submitted fingerprints as required - Not committed any act that it ground for denial/suspension - Has successfully passed exam

Question 31

If license has been previously denied, how long will it be before a license may be issued?

Answer 31

1 year from the date it was denied

Question 32

If a license has been revoked or nonrenewed how long may a new license be denied?

Answer 32

1-5 years

Question 33

How long does a license remain in effect?

Answer 33

Continually as long as it isn't revoked or suspended and the producer pays required fees and meets continuing education requirements.

Question 34

What is the renewal terms for a license?

Answer 34

2 years.

Question 35

What are the continuing education requirements to maintain a license?

Answer 35

At least 24 hours of credits during each 2-year licensing period. At least 3 hours must be ethics.

Question 36

Change of address

Answer 36

The director must be informed within 30 days

Question 37

How long must records be kept available for inspections?

Answer 37

5 years.

Question 38

Funds payable to the insurer must be remitted within

Answer 38

21 days

Question 39

Funds payable to the policyholder must be remitted within

Answer 39

14 days

Question 40

What needs to be done before a retail or wholesale producer can charge fees to consumers?

Answer 40

They must provide a written statement of services that will be performed and feels the producer will receive.

Question 41

In Idaho, what is the legal age to purchase insurance or an annuity?

Answer 41

15 years old

Question 42

When must claims be paid to an insured?

Answer 42

Within 20 days of itemized bill or invoice being sent in

Question 43

False advertising

Answer 43

Ads cannot include untrue, deceptive, or misleading statements that apply to insurance or those who conduct it.

Question 44

Rebating

Answer 44

Any inducement offered to the insured that is not specified in the policy. Both offer and acceptance are illegal.

Question 45

Rebates may include

Answer 45

- Rebates of premiums payable - Special favors or services - Advantages in dividends - Stocks, bonds, securities, and their dividends

Question 46

Twisting

Answer 46

a misrepresentation that persuades insured to take out a policy with another insurer

Question 47

Defamation

Answer 47

Oral or written statement is made that is intended to injure a person engaged in business.

Question 48

Unfair discrimination includes dicriminating because of what?

Answer 48

- Marital status; - Race; - Color; - National Origin; - Creed; - Ancestry

Question 49

What will those guilty of felony fraud be subject to?

Answer 49

Imprisonment to not exceed 15 years and/or a fine up to $15,000

Question 50

Fair Credit Reporting Act

Answer 50

Consumer-reporting agencies must follow procedure to ensure records are confidential, accurate, and relevant. Protects consumers against circulation of inaccurate or obsolete information

Question 51

1033 Waiver

Answer 51

A waiver to allow those previously convicted of a crime involving dishonesty to work in insurance

Question 52

McCarran-Ferguson Act

Answer 52

Bill that keeps insurance regulation in the hands of the states

Question 53

Gramm-Leach-Bliley Act

Answer 53

An insurance company may not disclose nonpublic personal information to a nonaffiliated third party

Question 54

What reasons may an insurance company disclose nonpublic personal information?

Answer 54

- Insurance company discloses to the consumer that information may be disclosed to a third party. - Consumer is given opportunity to direct information not to be disclosed - Consumer is given an explanation of how the consumer can exercise on nondisclosure option

Question 55

G-B-L Act requires 2 disclosures to a customer

Answer 55

1. When a customer relationship is established | 2. Before disclosing protected information

Question 56

Terrorism Risk Insurance Act of 2002 (TRIA)

Answer 56

Requires all commercial insurers offer insurance coverage for acts of terrorism