Ch 1 - Insurance Regulations - 15% of exam Flashcards

1
Q

PA bond requirement

A

$20,000

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2
Q

NJ bond requirement

A

$10,000

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3
Q

PA # of days to cancel (rescind)

A

3 days

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4
Q

NJ # of days to cancel (rescind)

A

4 days

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5
Q

Must all NJ Contracts be written?

A

Yes (PA ALSO?)

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6
Q

Where are the various methods listed top the insured that show them ways they can cancel, and what are they?

A

On the contract. They may email, call, leave a vm, fax.

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7
Q

Where are all records kept?

A

Bensalem

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8
Q

2 days to send to ins. carrier, relates to what?

A

The # of BUSINESS days the P.A. firm has to notify the insurer of a contract.

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9
Q

If someone comments or asks about other companies, what do you do?

A

We’re not allowed to comment.

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10
Q

What is the amount that fines can be issued for per item to a P.A. under the PUBLIC ADJUSTER ACT?

A

$1,000 per item.

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11
Q

What’s the purpose of the Unfair Insurance Practices Act?

A

To regulate trade practices in the business of insurance by defining practices that constitute unfair methods of competition, or unfair practices.

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12
Q

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?

A

$1,000 per item, not to exceed $10,000 over six mos.

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13
Q

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?

A

$5,000 per item, not to exceed $50,000 over six mos.

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14
Q

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?

A

$10,000 per item.

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15
Q

List the 9 examples in the Study Guide that fall under unfair or deceptive trade practices? (under Unfair Ins. Prac, Act)

A

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

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16
Q

Within how many days must an insurer complete an investigation? If they need more time what must they do?

A

30 WORKING days to complete the investigation. If more time needed, insurer must send a written notice within 30 days of notification of the claim, stating reasonable explanation for delay and state when a decision of the claim may be expected. They have 45 days to do this, and must repeat every 45 as needed.

17
Q

If a P.A. happens to also be a contractor, what are the rules to be followed around repairing his own house while waiting for a decision from an insurer?

A

He’s not allowed to repair prior to: 1) A written decision or 2) Payment of settlement is received. Whichever happens first enables him to begin repair. (IS THIS THE CORRECT POINT OF THE QUESTION?)

18
Q

Notes: 10 days to notify..REFERS TO WHAT?

A

?

19
Q

After a cancellation, the P.A. has how many days to return “negotiable instruments”, and what are examples of them?

A

15 days. Examples: pictures, contracts, deeds.

20
Q

How many days does a P.A. have to notify an insurer of an executed contract?

A

2 BUSINESS days.

21
Q

Who are checks made out to, and in what order does the check go?

A

P.A. firm, then Mortgage co., then the insured. (CHECK THIS)

22
Q

Notes: “Re-read Misreps of Policy Provisions pg. 7, is wordy.”

A

NEEDED FOR EXAM??

23
Q

What do I have to know about “The Declarations Page”?

A

??

24
Q

Name the 4 responsibilities of the insured under “Duties in the Event of a Loss?”

A

1) Notify of loss 2) Protect property from further damage 3) Separate damaged from undamaged property 4) Assign a value (The P.A. re-assigns an adjusted value though right? IS INSURED REQUIRED TO ASSIGN AN ESTIMATED VALUE IN THE INITIAL PHONE CALL SUBMITTING THE CLAIM? If yes, can this affect payout?)

25
Q

What are the 2 types of adjusters an ins. co generally assigns?

A

1) Company ins. adjuster 2) Independent ins. adjuster (2 usually handles overflow claims)

26
Q

of days ins. co. have to acknowledge receipt of a claim? (unless payment is made within this period)

A

10 WORKING. (ASK IF pg 10 is accurate…ins. co. timetables are “working” days, whereas P.A.’s are “calendar” and “business”???

27
Q

of days ins. co. has to provide claims forms and reasonable assistance?

A

10 WORKING days.

28
Q

of days ins. co. have to respond to an ins. dept. inquiry?

A

15 WORKING days.

29
Q

of days ins. co. has to accept/deny a claim after proof of loss is executed?

A

15 WORKING days.

30
Q

of days insured (or P.A.) has to cancel a contract?

A

3 CALENDAR days in PA. (In NJ: 4 CALENDAR days.)

31
Q

of days P.A. has notify insurer of contract?

A

2 BUSINESS days.

32
Q

After a cancellation, the P.A. has how many days to return payments to the insured?

A

15 BUSINESS days. (WHAT SSENARIO WOULD WE TAKE A CHECK FROM THE INSURED, DONT WE GET PAID BY THE INSURER?)

33
Q

ANY OTHER CH1 PAGES TO READ?

A

CHECK THIS.

34
Q

Do Ch. 1 Practice Test.

A

Done.

35
Q

How many Ch. 1 Exam Q’s?

A

?