Chapter 16 keypoints Flashcards
Who is the Commissioner?
Commissioner of Banking and Insurance is the main head.
What are Domestic, Foreign, Alien insurance companies?
- Domestic is the state one and the insurance company resides.
- Foreign is when the company is in another state and one resides in another.
- Alien is when the company is in another country.
What can a license help with?
Allows one to sell major lines of insurance except travel insurance.
Define fiduciary?
involving trust, especially with regard to the relationship between a trustee and a beneficiary.
What is the relation of a Producer and policy owners.
Producers act as fiduciary when you handle monetary transaction with policyowners.
What must a Producer be aware of?
Producers must be fair and not willingly participate in unfair acts. They must also maintain discretion of policyowners personal information.
What would fraud changes bring?
Fraud charges would results in fines, restitution and loss of ones license.
What happens when an insured assumed business name will not pass?
They will have to speak with the Commissioner.
What are Trust Fund?
It is what one needs to in order to hold a clients fund (more than five days) before turning it over to the insurance company.
- fund consisting of assets belonging to a trust, held by the trustees for the beneficiaries.
What must a producer do for each transactions.
They must keep all receipts of everything and from at least 5 years.
What are needed requirements of licensing?
- There is a need 20 hour for prelicensing, total of 40 hours for Property and Casualty.
- 18 years or older for Producer license
- Needs to be at 2 years between license renewal
- 10 days before license expiration renewal is when the renewal application is due
- Less than one year is how long needs to wait to apply if late for renewal
- 24 continuing educational credit required for renewal
- 3 CE credits are required in ethics to be included in the 24 credits.
- Fees for license or renewal are required (Price varies depending on state.
- Within 30 days the Commissioner must be informed of any changes of address, email, or other relevant info.
- $20 is top service fee for Producer can charge for auto insurance applicants.
Fines & penalties for unfair trade practice of a producer.
- If they didn’t know - $1000
- If they did know - $5000
Fines & penalties for Unfair Competition and Deceptive Act of insurance companies
- Didn’t know what they were doing - $5000
- Knew what they were doing - 25000
Fraud Violations have set fines depending on circumstances, which are:
- $5000 for first violation
- $10000 for second violation
- $15000 for each subsequent violation
When it comes to failing time-related deadline, there are penalties.
- $250 for not informing Commissioner of new address within 30 days
- $500 for a check bouncing after paying for State fees.
- $250 to $100 per contract for any time violations regarding to insurances and businesses entities
