ID Statutes, Rules and Regulations Flashcards
Insurance transaction includes?
Negotiations
Advising an individual concerning coverage or claims
Sale
Solicitation
(NASS)
To offer advice to and communicate directly with a prospective purchaser of an insurance contract regarding contract benefits, terms and conditions defines what term?
Negotiate
An agreement between a policyowner (insured) and an insurer, where the insurer agrees, for a consideration, to indemnify the insured for loss caused by specified events defines what term?
Insurance Contract
What defines the company or organization that issues a policy of insurance?
Insurer (or principal)
An insurance company that is incorporated in the state of Idaho is a ____________ insurer.
Domestic
___________ insurer is an insurance company that is incorporated in another state or territorial possession.
Foreign
An insurance company that is incorporated outside the United States is called?
Alien insurer
Company that is owned by the stockholders who provide the capital necessary to establish and operate the insurance company and who share in any profits or losses is what type of company?
Stock company
Officers are elected by the stockholders and manage stock insurance companies.
__________ policies are a type of policy that policyowners do not share in profits or losses.
Nonparticipating policies A nonparticipating (stock) policy does not pay dividends to policyowners; however, taxable dividends are paid to stockholders.
Owned by the policyowners and issue participating policies
Mutual companies
_______________ policies, policyowners are entitles to dividends, which, in the case of mutual companies, are a return of excess premiums and are nontaxable.
Participating policies
Dividends are generated when the premiums and the earnings combined exceed the actual cost of providing coverage, creating a surplus. Dividends are not guaranteed.
An organization formed to provide insurance benefits for members of an affiliated lodge, religious organization, or fraternal organization with a representative form of government
Fraternal benefit society
Fraternals sell only to their members and are considered charitable institutions, and not insurers.
Insurance resulting from an interchange of reciprocal agreements of indemnity among persons known as subscribers, collectively known as a?
Reciprocal Insurance Company or Exchange
The company is put into effect and administered through an attorney-in-fact common to all persons.
The Director can examine the accounts, records, documents, transactions and affairs of all authorized insurers as often as necessary, but at least once every_____ years.
5 years
If the Director receives a request for a hearing, the hearing must be held within ____ days.
30 days
The Director must give WRITTEN notice of a hearing at least ____days in advance.
14 days
If a person is found guilty of violating the Insurance Code in Idaho, the violation can result in a fine of up to ________ for a natural person and _______ for any other entity, imprisonment for up to ___ months, or both
$1,000 for a natural person
$5,000 for any other entity
up to 6 months imprisonment
The Director may impose an administrative penalty of up to ___________ upon anyone who transacts insurance in Idaho without a license.
$15,000
Change of address must be filed within ____ days.
30 days
A person, who on behalf, of the insurer, for compensation as an independent contractor or as the employee of such an independent contractor, or for a fee or commission, investigates and negotiates settlement of claims arising under insurance contracts.
Adjuster
To appoint a producer as its agent, the appointing insurer must file a notice of appointment within _____ days
15 days
Upon notice of appointment, the Director has 30 days to verify that the insurance producer is eligible for appointment. If ineligible, the Director has 5 days to notify determination.
Termination of appointment, employment, contract or other insurance business relationship with a producer must notify the Director within ___ days
30 days
After passing state insurance exam(s), within how many days must you submit an application for licensure?
180 days
The Director will not issue a license for ____ year after the date of license denial.
1 year
If a producer’s license has been revoked or nonrenewed, a new license may be denied for a period of:
1 to 5 years
License renewal term is:
2 years
Licensed producers must complete ______ hours of continuing education credits during each 2 year licensing period.
24 hours
At least 3 hours must be in ethics.
Any hours in excess of the requirement cannot be carried over to the next licensing period.
Records must be kept available for inspection by the Director for at least _____ years.
5 years
The Director has the authority to suspend a license without a hearing for up to______?
12 months
The relationship between the principal (insurer) and the agent/producer defines what term?
Law of agency
In this relationship:
An agent represents the insurer, not the insured
Any knowledge of the agent is presumed to be knowledge of the insurer
If the agent is working within the conditions of his/her contract, the insurer is fully responsible
When the insured submits payment to the agent, it is the same as submitting a payment to the insurer
Funds payable to the insurer must be remitted to the insurer within how many days?
21 days
Funds payable to policyowners must be remitted within 14 days.
Funds must be collected within ____ days if in the form of cash under $2,000. ____ days if in the form of cash over $2,000. ___ days if in the form of check or other negotiable instruments.
7 days in in the form of cash under $2,000
3 business days if in the form of cash over $2,000
7 days if in the form of check or other negotiable instruments
A retail producer must provide to the consumer a written statement that describes the services the retail producer will perform and the fees the retail producer will receive:
A) Before charging a fee to a consumer
B) After charging a fee to a consumer
Before charging a fee to a consumer
Producers are required to report to the Director any administrative action taken against them in another jurisdiction or by another governmental agency within _______days of the final disposition of the matter.
30 days
Report must include a copy of the order, consent order, or other relevant legal documents.
Criminal prosecutions of the producer must be reported within 30 days of initial hearing.
Payment by check or draft from the insurer for the repair of damage to a covered vehicle must by made no later than____ days.
20 days
True or false, committing the act of misrepresentation in the business of insurance is illegal?
True
Any insurer that has evidence that a fraudulent claim has been made has ____ days to send a form to the Director.
60 days
Any violators found guilty of a felony will be subject to a term of imprisonment not to exceed ____years or a fine up to _____ or both.
15 years
$15,000
Violation of the Unfair Claims Settlement Practices may have a penalty of up to ______ imposed by the Director.
$10,000
In addition or alternatively to being fined, the Director may suspend or revoke an insurer’s certificate of authority.
_____________________ established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant and properly used.
Fair Credit Reporting Act
This law protects consumers against circulation of inaccurate or obsolete personal or financial information.
These type of reports includes written and/or oral information regarding a consumer’s credit, character, reputation, or habits.
Consumer reports
These type of reports are similar to consumer reports, but differ because information is obtained through an investigation and interviews with associates, friends and neighbors of the consumer.
Investigative Consumer Reports
Consumer must be advised within 3 days of the date the report was requested.
Reporting agency as 5 days to provide consumer with additional information.
A person who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses may also be fined and/or imprisoned for up to____ years.
2 years
An individual who _________ violates the Fair Credit Reporting Act is liable in the amount equal to the loss to the consumer, as well as any reasonable attorney fees incurred in the process
Unkowingly
An individual who ________ violates the Fair Credit Reporting Act enough to constitute a general pattern or business practice will be subject to a penalty of up to $___________.
Willfully
$2,500
True or False: Bankruptcies more than 10 years old, civil suits, records of arrest or convictions of crimes, or any other negative information that is more than 7 years old is prohibited information.
True
Anyone engaged in the business of insurance whose activities affect interstate commerce, and who knowingly makes false material statements may be fined, imprisoned for up to ______ or both.
10 years
If the activity jeopardized the security of the accompanied insurer, the punishment can be up to 15 years.
Insurable interest must exist:
at the time of loss
3 requirements to prove insurable interest:
- Have a legitimate financial interest in preserving the property to be insured
- Have no potential for gain
- There is a potential for loss
Names of the parties to the contract Subject of the insurance The risks insured against The effective and expiration dates The premiums Conditions
The above information must be contained in every________
Policy
The insured must be given written notice _____ days in advance for the cancellation of an auto policy for nonpayment of premium or _____ days for any other reason for cancellation.
10 days
20 days
The required notice for nonrenewal is 30 days in advance.
The New York Standard Fire policy listed the applicable conditions in what format?
165- line format
True or false: Accounts, currency, deeds, bills and evidence of debt money or securities are included in coverage under the standard fire policy.
False
They are all EXCLUDED.
The Standard Fire Policy (SFP) is a _________ perils contract.
Named perils
These named perils are:
- Fire
- Lightning
- Removal of property from premises endangered by the perils insured against. Removal coverage applies automatically for 5 days.
True or false: The following are specifically excluded losses in the Standard Fire Policy-
Any act of war
Ordinances of civil authority
Insured’s neglect to reasonably save or preserve the property
Theft
Loss occurring while the hazard is increased within the knowledge or control of the insured
Any loss occurring when building is vacant or unoccupied for 60 days or more.
True
