7.2 Chapter Recap Only

Question 1

Commissioner of Insurance

Answer 1

• Regulates the internal affairs of the Department of insurance
• Elected for 4 years
• Does not write laws
• Examines all authorized insurers

Question 2

Producer Regulation

Answer 2

• Only one license of the same type is allowed per agent
• Must be licensed in the line of authority for which the agent transacts insurance
• Avoid unfair trade practices

Question 3

Insurance Guaranty Association

Answer 3

• Protects policy owners, insureds, and beneficiaries against insolvent insurers
• All admitted insurers must be members of the association
• Unfair trade practice: stating that the insurer’s policies are guaranteed by the existence of the Association

Question 4

Licensing Process

Answer 4

Pass examination
Submit application and fees
Be of good character

Question 5

Types of Licenses

Answer 5

Individuals: resident and nonresident agents

Temporary license - valid for 180 days; issued to maintain the existing business

Question 6

Maintenance and Duration

Answer 6

-Must be renewed every 2 years
-Continuing education - must be completed every reporting period
-License is not required if a person does not receive commissions
-Disciplinary actions:
Denial of license
Cease and desist order
Suspension, revocation or refusal to renew
Monetary fines