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Fred Loya Definition > Chapter Fred Loya > Flashcards

Chapter Fred Loya Flashcards

1
Q

TDI may deny suspend or revoke agents license he/she has committed any

A

Guilty of fraudulent acts of dishonest practices
Misrepresentation of terms and conditions of policy

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2
Q

Elements of Insurable Risk

A

Loss Definite and Definable Risk as to time and place to prevent claims loss must be measurable as represented
Hardship and costs: Lost must be great enough
Loss must be accidental: not insurable if caused by intentional acts

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3
Q

Certificate of Authority

A

Insurance must be issued certificate to transact insurance business in TX
Dept may inquire carrier affairs and may refuse to issue certificate is not worthy of public confidence
TDi refuses to issue a certificate carrier the time and place for hearing which be no sooner than 10 days no later than 20 days after not given

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4
Q

Commissioner of Insurance Duties

A

Administer, enforce and may levy fines up to 25,000 per violation
May issue and carry provisions of insurance code in laws

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5
Q

Commissioner of Insurance

A

State Regulations
Appointed by governor for 2yr terms
Subject to d=advice and consent of senate
2yr term will end February each odd number year business or government/practicing practicing attorney or CPA at least 5 years
Office the commissioner must furnish a 50,00 bond

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6
Q

Change of Address

A

Agent must update TDI of current address at all times
Address must be included in each license application and renewal forms

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7
Q

Probation for Disability

A

After notice and opportunity, TDI may plate such person on probation
Agent is suffering from physical, mental, or emotional disability which renders to carry out duties

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8
Q

Agent Responsibilities
Responsibility to the Insurer (company)

A

Responsible to handle responsibility and ethically
Remit payments timely when due
Keep accurate records
Adhere to terms of insurer contract
Not exceeding binding authority
Furnish insurer w/ complete and accurate application

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9
Q

Responsibilities to the insured (costumer)

A

Services customer ethically, professionally at all time
Handle customers trust has been places
Failure to do so may lead to lawsuit
Responsibility which is developed when person’s actions, advice, partially. Accepts premiums and issue binder

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10
Q

Type of authority an agent may have

A

Express written and oral authority
Implied the public may believe agent to have
Apparent- created when an action or inaction of insurer creates the impression

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11
Q

Federal Law- Fair Credit Reporting Act

A

Credit reports to obtain info about application through consumer agency
Explore personal, character, reputation, habits, and lifestyle of applicant
Public reaction to misuse of personal information led federal credit reporting act in 1971
Protects consumers by requiring notification removing outdated incorrect info
Act was designed to insure credit reporting agencies responsibly respected customer privacy right

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12
Q

Federal Law- Fair Credit reporting Act
1.regular
2.Investiagtive

A

Usually prohibited more than 14 yrs old
Notice to costumers must be in writing no later than 3 days after report is ordered
Notice to costumers

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13
Q

Unfair Trade practices

A

Representation-written/oral statement made by insured, agent or insurer
Misrepresentation- a false written/oral statement

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14
Q

False Advertising

A

Making, publishing, or circulating in any matter information, which is untrue

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15
Q

Defamation

A

To publish/circulate any oral/written statement which is false or derogatory to financial statement

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16
Q

Boycott, Coercion, Intimidation

A

No one may commit or agree to commit with others any act will result in monopoly or unreasonable trade

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17
Q

False Financial Statement

A

NO person may publish, circulate false financial condition. Illegal act to make false entries in any book

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18
Q

Course must be approved by TDI

A

Any person already licensed as an LRA on effective date any person applying for emergency LRA
Any person applying for emergency LRA
Any person holding CPU character property and casualty underwriter
CIC certified insurance consumer
AIA accredited adviser in insurance
Any person holding a bachelor degree from 4yrs college/bachelor w/ major insurance
Any person within the 2 years preceding application was licensed in a different state
Any person seeing a license under which authority to transact business will be exclusively to the solicitation and writing coverage

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19
Q

Emergency License without examination

A

Upon death or disability of licensed agent local recording agent found to be insolvent and unable to remits premiums
Emergency license are period of 90 days in 12 month period

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20
Q

Expiration and License renewal

A

License will exp 2 yrs after date unless renew exp date
Renewal notice will mail 30 day prior
Agent shall renew by filling application and paying $ every 2 years
If licensed expires but is renewed if expired more than 90 days agent must reapply and take exam and other requirements
License cannot be renewed if expired more than 90 days agents must reapply and take exam and other requirements
At least 30 hrs of education must be completed within ea period every 2 years

21
Q

Joint Advertising

A

Two or more advertise
Jointly present their agency name to public
each agent must hold on active license
ea agent must be authorize by insurer

22
Q

Examination of Records

A

Commissioner may examine carriers financial condition at any time but at least every 3 yrs
New companies are audited every 1 yr for 1st 3yrs after 1 every 3 yrs

23
Q

Type of agents: Solicitors

A

Ask for business
Duties are limited within office

24
Q

Type of insurer : Admitted (authorized)

A

Has been granted a certificate of authority from state

25
Q

Non-authorized (unauthorized)

A

do not qualify for certificate of authority. They do not meet required

26
Q

Exception to license requirements

A

Upon death once family member passed away family may get $ to profit as long as they preform duties

27
Q

Type of License: Individuals

A

will offer license offered the business as partners

28
Q

Type of License: Partnership

A

each must have license under partnership

29
Q

Financial Responsibility

A

Deposit of cash securities w/ fair market value of 25,000

30
Q

Non Resident MAY NOT

A

Maintain office in state
ask for insurance in state by any method

31
Q

Elements of legal contract: Consideration

A

Ea party must give value of ea other
Insurance contract the premium paid by the insured
Promise to pay covered loss

32
Q

Elements of legal contract: Agreement

A

Results only when 1 party makes offer and other parties accept
In property and casualty insurance
Company either accepts the risk, rejects it, or modifies it through underwriting

33
Q

Elements of legal contract: component parties

A

Each must be legally component
Minors, insane under the influence of drugs and alcohol are not considered.18 is legal age in TX

34
Q

penalty for assisting after license is revoked or suspended

A

Anyone acting as an agent/solicitor after license has suspended/revoked may be fined 5,000 could be inprissioned up to 2yrs
Anyone helping shall be guilty and fined 1,000 or be placed up to 6 months
anyone giving insurance without authority may be fined up to $100

35
Q

Examinations and Exceptions

A

Applications will 1st submit an exam testing center
Applications for long recording who previously held such license not required

36
Q

Temporary Local Recording Agents License

A

Upon passing local recording agent exam issued temporary license
License will expire 2 years from date
Has same laws and regulations as permanent LRA

37
Q

Education Requirements for permanent LRA

A

within a year must meet requirements to receive permanent LRA
Classroom course in insurance at school
Correspondence course in insurance

38
Q

Non Resident Insurance

A

Meet all requirements of dept may waive requirements who has valid license from another state
Same privileges’ and right of local recording agents

39
Q

Financial Responsibility

A

Errors and omissions policy against errors at least 100,000 w/ no more than 10,000 deductibles or coverage of 300,000 w/ no more than 25,000 dedcutibles

40
Q

Financial Responsibility

A

Sponsor bond executed by coporation as principal sum of 25,000 payable to TX dept of insurance

41
Q

Qualification for License

A

Texas Resident
Passed exams
Good Character
Helps w/public and doesn’t apply for purpose of law at least 18 years of age

42
Q

Type of agent
Local Recording Agent

A

Agent writes insurance as authorized by company also forward application to the home office maintains office responsibility
DOES NOT EXECUTE RECORDS OF THE COMPANY

43
Q

Unfair claims settlement practices

A

Not attempting to make prompt fair claim
Misrepresentation pertinent information relating to coverage
Failing to provide claims
Delaying under 1st party coverage under basis 3rd parties responsible for damage
Attempting to enforce full and financial release
Failing to respond promptly to reg for contract
Pay, asking for federal tax returns9Unless by court for examination by company
Failing to maintain complete record of complaints during last 3 yrs or since last date

44
Q

Denial and Revocation of Licensing

A

TDI shall refuse to issue license or revoke to renew license and may asses a penalty (fine) or revoke a license holder for any violation
License will automatically cancel if agent does not have valid appointment
Solicitor license will automatically if such individual doesn’t have appointment from agent

45
Q

TDI may deny suspend or revoke agents license she/he has committed any

A

guilty of rebating
found guilty using agents license sole purpose of controlled business
not bale to carry professional duties (TDI may placedisabilty probation)

46
Q

TDI may deny, suspend or revoke agent license he/she has committed any

A

Misappropriated/converted his/her own use or illegally withheld money belonging to a carrier, agent, insured, or beneficiary
Misrepresenting/Making incomplete comparisons regarding terms and conditions of policy to induce the owner to surrender policy to lapse and break contract
Convicted of felony

47
Q

TDI may deny, suspend or revoke agent license she/he has committed any

A

Willfully violated insurance law
Made a misrepresentation in the application
Obtain/tried to obtain license by fraud or misrepresentation

48
Q

Agent Licensing Requirements

A

Must have license to sell insurance>it must be filled at the Texas Department of Insurance if not following the law it could be revoked

Fred Loya Definition (2 decks)

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