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Insurance Illinois Exam > General Laws & Regulations > Flashcards

General Laws & Regulations Flashcards

1
Q

The insurance producer license will have what kind of number on it

A

NPN.

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2
Q

An insurance producer license is required of an individual to do. 5 things

A

Solicit
Negotiate
Sell
Give advice for
Receive commissions

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3
Q

A insurance producer has a duty to provide service to insured customers by what 6 things

A

Keep coverages current and keep insured informed
Analyze customers risk and needs
Sell a policy which suits their needs
Help with claims
Help with premium collection and policy renewal
Keep records

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4
Q

Acting as a producer without a license and misappropriating premiums punishment

A

Class 4 Felony 5 and 5
5000 5 years

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5
Q

The state attorney general may file in court a request for what against an individual acting as an insurance producer without a license

A

An injunction

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6
Q

For continued education records of proof need to be kept for

A

3 years.

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7
Q

An insurance producer must report to the insurance Director a change of resident address within how many days?

A

30 days

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8
Q

Define business entity

A

The business entity is a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity who employees individuals to act as insurance producers. It is the same as an insurance agency.

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9
Q

The business entities licensed authorized individual must complete a what and pay what?

A

They must complete a uniform business entity application and pay $150 as a two-year fee

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10
Q

The insurance company makes the application for a limited line producer and pays what?

A

A $50 per year fee

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11
Q

If the insurance company terminates a producers contract or removes the limited line producers license, how long is it until they have to alert the insurance Director? When do they have alert the producer?

A

30 days
15 days after they alerted the Director

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12
Q

What is a fine?

A

A fine is a monetary penalty, which must be prosecuted through the courts by state attorney or state Attorney General

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13
Q

An insurance company must apply for a temporary license and it costs

A

50 dollars

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14
Q

An Illinois non-resident producer or limited lines producer license is needed so they can sell in Illinois. And Illinois says no exam needed this arrangement is called

A

Reciprocity

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15
Q

Applicants who moved to Illinois and become residence of Illinois or exempt from the producer exam if they meet three requirements

A

They must submit to the Illinois insurance Director, a certificate from the state they were living in showing they did have a license there to show a letter of clearance and must apply for their residence producer insurance license within 90 days of becoming a resident of Illinois

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16
Q

If an individual had to surrender their insurance license because of some public office conflict of interest, they are exempt from examination requirements for up to how many years

A

Four years

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17
Q

What is the surplus lines producer license?

A

This is a special additional license required to sell policies issued by insurance companies, which are non-admitted in the state in which is sale is made

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18
Q

What is required to finance premiums ? Financing premiums is loaning customers the premium money

A

He premium finance company license is required

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19
Q

The penalty for financing customers premiums without a premium finance company license is

A

Civil penalty charges by the director of up to 1000.00 per violation

20
Q

If person fails to give director all files in an audit or is caught lying fine is

A

Fine up to $2000.00

21
Q

An agency contract is the same

A

As an agency agreement

22
Q

The person or Business Entity examined has how many days to request a hearing regarding issue examination reports

A

14 days

23
Q

Insurance director has how many days prior to hearing to mail the notice of hearing. Within how many of the issue examination report being filed or the hearing is completed must the director issue an order
The order can be appealed to the courts under the

A

Not less an 20 but not more than 30 days
Within 90 days
Administrative Review Law

24
Q

Penalties of unfair methods of competition, deception, and misrepresentations what is the fine

A

Not less than 100 not more than 5000

25
Q

What prohibits insurance companies from delaying unreasonably in settling insurance claims.

A

The unfair claims practices act

26
Q

What 4 things must happen for a rebate to happen
Fine type of crime

A

Illegal to give something of material value before they are an insured
Offer something
Reduce premium
Accept something
Class b misdemeanor 1/2 and 1/2
Can be prosecuted through the courts

27
Q

Penalties which can be assessed by the director. Civil penalty amount

A

Up to 5000 per offense not to exceed 20,000

28
Q

A notice of suspension , revocation or civil penalty must be issued to the licensed person by the director how many days prior to its effective date

A

20-30 days

29
Q

All premium monies collected must be deposited into a special separate bank account called

A

Premium Fund Trust Account

30
Q

Six types of supporting document needed in regards to disbursements.
How long must they be kept

A

Receipts
Disbursements
Receivables
Payables
Returned premiums
Bank records must be reconciled monthly
7 years

31
Q

Return premiums in how many days

A

15

32
Q

Financing premiums without a premium finance company license is subject to

A

A civil penalty of up to 1,000 per violation

33
Q

Failing to provide documents requested in a subpoena or lying under oath

A
  1. Fine of up to 2,000 and or
    Jail penalties
34
Q

Violating an order issued by the State Insurance Director as a result of an examination or hearing. 3 things happen

A

License could suspend or be revoked
Fine up to 10k
Be held guilty if a business offense

35
Q

Unfair methods of competition
2 things

A

Fine of not less than100 not more than 5000
May be ordered a cease and desist

36
Q

Unfair methods of competition
2 things

A

Fine of not less than100 not more than 5000
May be ordered a cease and desist

37
Q

Prohibited activities 4 things can happen

A

Suspend
Revoke
Civil penalty 5000 per offense not to exceed 20k

38
Q

Misappropriation of premiums

A

Prohibited activity penalties
Class a misdemeanor
Class 4 felony less than150 repeat offense
Class 3 felony 150 or more

39
Q

Rebating punishment

A

Class b misdemeanor

40
Q

All license and exam fees collected by the director are deposited to a special state fund called

A

The insurance Producer Administrative Fund.

41
Q

Six basic qualities needed to be a professional.

A

Unselfish
Professional societies
Code of ethics
Formal body of specialized technical knowledge
Broad or general education or background
Qualifying examinations

42
Q

What is the Illinois Insurance Guaranty fund

A

IIf an insurance company runs out of money an assessment is made to guarantee payments of claims and benefits

43
Q

The Illinois Insurance Fund will either 2 things

A

Pay up to 500,000 in benefits per claim
Refund premiums of up to 10,000 per policy less a 100.00 deductible

44
Q

An insurance company must renew policies written by terminated producers for at least how long?
2 exceptions

A

1 year
The producer had insured the property issued by another policy
The property does not meet the company’s underwriting standards

45
Q

Insurance company managements contracts rule

A

Companies may contract with outside organizations to perform part of their functions. Contracts must be filed with the director

46
Q

State director must issue order within how many days of completion of the hearing

A

90 days

Insurance Illinois Exam (5 decks)

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