Insurance Regulation

Question 1

LICENSING REQUIREMENTS

Answer 1

Minimum age requirement (18 years old)
Complete required prelicensing education and pass
examination
Submit application and fees
Be of good character, competent, and trustworthy
Have not committed any violations that are grounds for
license denial

Question 2

Types of Licenses

Answer 2

Individual producer: resident, nonresident
Temporary license maybe be issued for the continuation of
business in case of agent’s death, disability, or military
service (180 days)

Question 3

Maintenance and

Duration

Answer 3

Must be renewed every 2 years
Continuing education - must be completed every licensing
period
Report changes of address, phone number, and
administrative actions
License is not required if a person does not receive
commissions
Disciplinary actions:
License denial, suspension, revocation or refusal
to renew
Monetary fines and/or imprisonment

Question 4

Superintendent
(Director) of
Insurance

Answer 4

Supervises operations of the Department of Insurance
Enforces Insurance Code
Examines all authorized insurers (domestic insurer must
be examined once every 3 years)
Issues, renews, suspends and revokes licenses

Question 5

Producer Regulation

Answer 5

Must be licensed in the line of authority for which the
agent transacts insurance
Must be appointed by insurer to transact on the insurer’s
behalf25/25
Commissions and compensation: may only be paid to or
shared with properly licensed producers
Fiduciary duties: act in a trust capacity in handling of
premiums
Must avoid unfair trade practices

Question 6

Insurer Regulation

Answer 6

Must obtain Certificate of Authority
Responsible for agent appointments
Must meet solvency requirements
Avoid unfair trade practices or unfair claim settlements

Question 7

Fair Credit

Reporting Act

Answer 7

Protects consumers from circulation of inaccurate and
obsolete information
Consumer reports and investigative consumer reports

Question 8

Insurance

Fraud

Answer 8

Act of fraud: willfully, and with the intent to deceive, making false
statements or omitting material facts
Fines and imprisonment for fraud that affects interstate commerce
1033 waiver - written consent from an insurance regulatory official to
allow someone convicted of a crime involving dishonesty to work in the
business of insurance

Question 9

Do Not Call List

Answer 9

National Do Not Call Registry
Strict telemarketing rules
Insurers must consult the current registry every 31 day