Insurance Regulation Flashcards
Who may share in the commission from the sale of a life ins policy?
Only producers properly licensed for the type of ins transaction
What are producers required to do in order to renew their license?
Complete continuing education hours and pay a renewal fee
For what reason can a temporary license be issued?
For continuation of business in case the licensed producer dies or becomes disabled
Most common penalties for violations of ins statutes?
Cease and desist order, a fine, and license suspension or revocation
Who is considered a nonresident agent?
Agent who resides in a diff state but is authorized in your state
Who must be notified of a producers change of address?
Department of Insurance (commissioner, Director, superintendent)
What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is?
Misrepresentation
What type of licensee represents the insurance company?
The agent
What is the purpose of a cease and desist order?
To prevent a producer or insurer from further violating laws for transacting insurance
To whom may a certificate of authority be issued?
To an insurer authorized to transact business in the state
Who can usually be granted a temporary license?
Producers spouse or designee in case the licensed producer dies or becomes disabled
If a producer makes maliciously critical statements about another insurer, what is this illegal practice called?
Defamation
Who is responsible for the cost associated with the examination of insurers?
The insurer who is being examined
When can the commissioner or director examine insurers?
Whenever deemed necessary but at least every few years
2 individuals who are in the same risk and age class are charged diff rates for their ins policies due to an insignificant factor is called what
Discrimination
