General rule of Idaho Flashcards
Every violation of the insurance code for a natural person results in what repercussion?
$1,000 fine
6 months in prison
Every violation of the insurance code for any other person or entity results in what repercussion?
$5,000 fine
6 months in prison
Administering insurance in Idaho without a license?
$15,000 fine
Domestic company
Incorporated within the state
Foreign company
Incorporated in another state or territory
Fraternal Benefit Society
Org formed to provide insurance benefits for members of an affiliated lodge, religious org, or fraternal org with a representative form of government
Who can fraternal benefit societies insure?
Only members of their group
Nonparticipating stock policy
Don’t pay dividends to policyowners
Taxable dividends are paid to stockholders
Mutual companies
Owned by policyowners
Issue participating policies
Mutual companies and dividends
Entitled to non-taxable dividends
Generated when premiums and earnings combined exceed cost of providing coverage creating a surplus
Reciprocal insurance
Resulting from reciprocal agreement of indemnity among people known as subscribers
Who manages reciprocal insurance?
Attorney-in-fact, common to all
What is a certificate of authority?
What’s needed to transact business and meet any financial requirements.
What is Limited lines Producer Insurance?
Restricts authority of the license to less than total authority prescribed.
Limited Lines Producer
Authorized by director to sell, solicit, or negotiate limited lines insurance
If a producer is ineligible to work as an agent, within how many days must he be notified?
5 days
After how many days of not submitting the continued education requirements is an agent required to file for a new license?
91
After how long must an individual file as a new applicant?
1 year
How long must the records of insureds must be kept?
5 years
Motor vehicle claims must be paid how many days after the insured receives a bill related to the loss?
20 days
what is twisting?
Misrepresentation/ incomplete/ fraudulent comparison of insurance policies that persuades the owner to cancel, lapse, or switch policies.
