Ch 1 - Insurance Regulations - 15% of exam Flashcards
PA bond requirement
$20,000
NJ bond requirement
$10,000
PA # of days to cancel (rescind)
3 days
NJ # of days to cancel (rescind)
4 days
Must all NJ Contracts be written?
Yes (PA ALSO?)
Where are the various methods listed top the insured that show them ways they can cancel, and what are they?
On the contract. They may email, call, leave a vm, fax.
Where are all records kept?
Bensalem
2 days to send to ins. carrier, relates to what?
The # of BUSINESS days the P.A. firm has to notify the insurer of a contract.
If someone comments or asks about other companies, what do you do?
We’re not allowed to comment.
What is the amount that fines can be issued for per item to a P.A. under the PUBLIC ADJUSTER ACT?
$1,000 per item.
What’s the purpose of the Unfair Insurance Practices Act?
To regulate trade practices in the business of insurance by defining practices that constitute unfair methods of competition, or unfair practices.
What are the amounts that fines can be issued for per item to a P.A. under the UNFAIR INS PRACTICES ACT if the P.A. did NOT know, or should have reasonably known, was a violation?
$1,000 per item, not to exceed $10,000 over six mos.
What are the amounts that fines can be issued for per item to a P.A. under the UNFAIR INS PRACTICES ACT if the P.A. DID KNOW, or should have reasonably known, was a violation?
$5,000 per item, not to exceed $50,000 over six mos.
What’s the amount a fine can be issued per item to a P.A. under the UNFAIR INS PRACTICES ACT for violating a Cease & Desist Order while it’s in effect?
$10,000 per item.
List the 9 examples in the Study Guide that fall under unfair or deceptive trade practices? (under Unfair Ins. Prac, Act)
1) Publishing false illustrations/sales presentations. 2) Misrep of policy benefits, condition or dividend projections. 3) Misrep the name/title/class of a policy. 4) Circulate false/malicious info about a competitor. 5) Deceptive Advertising 6) Making false/derogatory statements of the finances of a person. 7) Entering into an agreement to boycott, coerce, intimidate, or monopoly. 8) Filing false statements of the financial condition of any person. 9) Rebating and inducements