Chapter 5 - Laws and Regulations Flashcards
Domicile
Location where an insurer is incorporated.
Nonadmitted nonauthorized
An insurer who has not applied or been rejected from the certificate authority.
Director of state department of insurance
Appointed by the governor and must be in the governors cabinet.
What is it called if an agent offers a client free tickets to a sporting event in exchange to purchase insurance?
Rebating
Insurance director must examine each insurer every how many years?
At least every 5 years or as often as the director deems appropriate.
What is the most the insurance guarantor association pay for cash surrender?
$300,000
What are fines for nonwillful and willful insurer violations?
$15,000 and $30,000
Insurer must file a notice of agent appointment within how many days of a producer filing a claim with them?
15 days.
How much continuing education must be completed every 2 years?
24 hours, 3 of which must be ethics, with 8 hours for the type of license the producer holds.
Who does a producer represent if not appointed to an insurance company?
The client
When do insurers have to renew appointments?
September 30th of every even numbered year.
How long do you have to report a change of address?
30 days
How often do you have to pay the license renewal fee?
Biennially
Fines for non willful and willful violations for a producer?
$2,500 and $5000
How long does the state insurance director have to notify an insurer that a producer is ineligible for appointment?
5 days
How long do insurers have to provide claim forms?
20 days
To attain insured status under social security you must earn how many credits during the last 13 quarters?
6 Credits
How often must continuing ed be completed?
Biennially (Every two years)
How long do you have to comply with cease and desist?
30 days
How many credits to be considered fully insured for disability benefits under social security?
40 credits
Official name for social security?
Old age survivors disability insurance
What happens in death by suicide?
If it occurs within 2 years of policy, insurer must refund all premiums. If after 2 years, insurer must pay death benefit.
What does guarantor association cover?
life insurance, annuities, health insurance and supplemental policies.
