Insurance Regulation (LAW) Flashcards
To stop or discontinue
Cease and desist
Forceful act or threat aimed to influence a person to act against hos or her will
Coercion
Payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium
Commission
The head of the state Department of Insurance and Financial Services (DIFS)
Commissioner
Revealed info to help someone make an intelligent and educated decision
Disclosure
An offer that attempts to influence the other party
Inducement
Restoration to the original condition or repayment
Restitution
A formal written law enacted by legislature; insurance statutes can be found in the state Insurance code
Statute
An order for someone to appear as a witness or submit testimony or evidence
Subpoena
Insurance not available from authorized insurers; placed with nonadmitted insurers who specialize in offering insurance to the high risk market
Surplus line
Means a Corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity
Business Entity
An insurance counselor is a person licensed to perform the following duties:
- Audit or abstract insurance policies or annuities;
- Provide advice, counsel, or opinions concerning benefits, coverage, terms and advantages and disadvantages of a policy or annuity; and
- Advertise and solicit business as a insurance counselor
When can a Temporary license be issued and for how long?
For 180 days or 6 months and issued to:
1. A surviving widows spouse of a deceased producer
2. Produced mentally or physically disabled
3. In the army in active service
If any person is found guilty of misrepresenting terms of a policy or inducing a policyholder to lapse, forfeit, surrender, or replace insurance will be found guilty of a
__________, and will be fined up to $2,000 for each violation, or at the discretion of the court, be i.prisoned in a county jail.
Misdemeanor
Insurance law that states it’s illegal to issue, publish, or circulate any illustration or sales material that is false, misleading, or deceptive as to policy terms or benefits, the payments of dividends; etc.
Misrepresentation
Any untrue, deceptive, or misleading statements that apply to the business of insurance or anyone who conducts it.
False Advertising
Statements that are intended to deceive public officials or the general public about the financial condition of an insurer.
False Financial Statements
Defined as any inducement offered to the insured in the sale of insurance products that is not specified on the policy.
Rebating
It is u lawful to pay, offer or accept any of the following as an inducement to bu insurance:
*Any special favor or advantage in dividends or benefits
*Any stocks, bonds, securities, or accrued dividends or profits; or
*Anything of value not specified in the insurance contract
Occurs when an oral or written statement is made that is intended to injure a person engaged in the insurance business.
Defamation
No ________ may be made on the basis of an individual’s marital status, race, national origin, gender identity, sexual orientation, creed, or ancestry unless the distinction is made for a business purpose or required by law.
Discrimination
Age to apply for license
18 years of age
Prelicensing education requirement for a single line license
20 hours prelicensing class
Prelicensing education requirement for combined licenses
40 hours
File certificate of completion of the prelicensing education
12 months
Continuing education required every 2 years
24 hours
Continuing education required in Ethics
3 hours
of days for insurer to file notice of producer appointment
15 days
of days to notify commissioner of appointment termination
30 days
Length of temporary license
180 days
of days you have to reinstate lapsed license without having to take written examination
180 days or 6 months
of days you have to report changes of name or address
30 days
of days you have to report administrative action or criminal prosecution
30 days
Maximum allowed value of articles of merchandise a producer may gi e to applicant or insured without violating unfair trade practice of rebating.
$5 (life)
$10 (property & casualty)
