Chapter 1- VA Insurance regulations Flashcards
SCC
State Corporation Commision
General Powers of SCC
Regulates insurance transactions
Issues rules and regulations
Certificates of Authority
Enforced and administers laws
When can the SCC examine any licensed person
Anytime with no prior notice.
At least once every 5 years
3 types of insurance licenses
Agent/Producer
Consultant
Business Entity
Resident Agent/Producer
Licensed to act as an insurance agent and lives in Virginia
Nonresident Agent/Producer
Agent doing business in VA but licensed in another state.
Requirements:
Must submit an application
Be in good standing in home state
Home state must also award nonresident licenses
No examination is required
Agent/Producer
Sell, solicit, and negotiate insurance contracts.
How much notice must SCC give if an agents license is to be suspended or revoked?
10 days
Requirements to share commission?
Must be a set amount and agents must have the same license
Requirements to be an agent/producer
GRAPE
Good character and honesty Residency compliant Application evaluated Pass the state exam Eighteen or older
Consultant
For a fee, provides insurance advice
Must renew license on or before 06/01 each year
Prior to beginning a transaction an insurance consultant must
Enter into a written contract which:
Discloses fee and any additional compensation
Business Entity
Not a sole proprietorship
Only Partnership Limited partnership Limited liability company Corporation
How long does an agent have to report a felony conviction or administrative action to the SCC?
30 days
How long does an agent have to report a name or address change to the SCC?
30 days
How many ethics credits does an agent need biannually?
3 credits
How many continuing education credits are needed for an agent with only one license?
16 biannually
How many credits are needed for an agent with more than one license type?
24 credits biannually
At least 8 in each type of license
Who approves all continuing education courses?
The Virginia Continuing Education Board
Consequences of failing to complete continuing education requirements
Termination of license
Effective 30 days after written confirmation from SCC
The insurer has how long to file a notice of appointment with the SCC from the day of the agents 1st sale?
30 days
How long does the SCC have to notify the insurer of an agents appointment is valid or invalid?
5 days
How long does the insurer have to notify the agent that their appointment is invalid?
5 days
Contract vs. Appointment
Contract- an agents power is restricted to only what is expressed in the contract. They are only protected by the contact.
Appointment- all encompassing, agent is always protected by the business entity
