Insurance regulations

Question 1

Name of federal law that requires insurers to disclose their privacy policy to a consumer before any nonpublic personal financial or health info is shared with a non affiliated third party

Answer 1

Gramm-Leach-Bliley Act

Question 2

An insurer can not do business under any name other than their legal name

Answer 2

Unless they have notified the Director of Insurance prior to using the assumed name

Producer may not do business under any assumed name unless he notifies the Director first

Question 3

If the Director determines the producer has committed fraud on the licensing application

Answer 3

The Director can suspend the license immediately if the determine the applicant got license by fraud or misrepresentation

Question 4

The Certificate of Authority is a document issued by the Director to

Answer 4

Insurance companies

The Certificate of Authority is issued to insurers as their license to operate

Question 5

How long can the Director issue a temporary license for

Answer 5

A period of upto 180 days

Question 6

In order to sell Long Term Care insurance in SC producers must

Answer 6

° Be licensed in LA&H
° Take an 8-hr approved LTC Partnership course
° Provide proof of training to their insurer(s)
° Every 24 months thereafter take a 4-hr refresher course

Question 7

The license Exam Status Report is valid for a period of

Answer 7

The Exam Status Report is valid for a period of 1yr

Question 8

What is the application fee when a prospective agent applies to the DOI

Answer 8

The producers license fee of $25 must be submitted with the application

Question 9

What is the maximum fine levied against a producer who doesn’t change their address within 30 days to the DOI?

Answer 9

The maximum fine is $5000 if the violation was willful

Question 10

An insurer must do the following to renew a producer’s appointment

Answer 10

° Complete 24 CE hours by the deadline
° Complete at least 8 CE hours in each line licensed in
° Complete at least 3 Ethics hours

NO record keeping fee!

Question 11

Unfair claims settlement practices

Answer 11

°Refusing to respond to written correspondence timely
°Failing to promptly provide a reasonable explanation of any claim details
°Offering low amounts to force insured to institute litigation