Insurance Regulations Flashcards
Inducement
An offer that attempts to influence the other party
Insolvent
Unable to meet financial obligations
Moral turpitude
Conduct that is contrary to community standards of justice, honesty or good morals
Reciprocity
A mutual interchange of rights and priveleges
Restitution
Restoration to the original condition or repayment
Statute
A formal written law acted by legislature; insurance statutes can be found in the state’s Insurance Code
Statutory
Enacted or regulated by a statute
The superintendent may issue a temporary agent license for a maxium of _____ , without requiring examination to the following individuals in special circumstances:
180 days
- to the surviving spouse, a court-appointed personal representative or a member of a business entity, in case of death or disability of a licensed agent
- to a designee, in case of a licensed avent’s entering active U.S. military service
- to any other person when the public interest would be best served by issuing such a license
Applicants for an agent license must complete ___ hours of prelicensing education in the line of authority for which the applicant is applying. The certificate of prelicensing course completion is valid for _______ from the completion date
20 hours of prelicensing education
Prelicensing course completion is valid for 180 calendar days from the completion date
A licensee who failed to renew a license may be eligible for license reinstatement within ____ following the renewal date
12 months
How many hours of continuing education every 2 years? And how many of those have to be approved ethics training?
How many hours can rollove to the next biennial period?
24, and at least 3 ethics training hours
12 hours can rollover to the next period
Licensed agents must notify the Superintendent within __ days of any change in residential or business address, email address or phone number
30 days
An insurance agent must notify the Superintendent of any administrative actiontaken against the agent in another jurisdiction or by another government agency having professional, occupational, or financial licensing authority within __ days after the final disposition of the matter. The notice must also include what?
Within 30 days. Must also include any relevant legal documents
Agent must provide notice of any criminal prosecution ov the agent bu any jurisdiction (other than misdemeanor traffic) within __ days after the agent’s initial appearance in court. Notice must also include what?
Within __ days after the disposition of the criminal prosecution, the agent must provide the Superintendent with either the court’s entry or order that reflects the final disposition of yhe prosecution
30 days for both
Superintendent of Insurance duties
Aka head of the Ohio Department of Insurance
Aka Chief Executive Officer and Director of the Department of Insurance
- Adopting, amending and rescinding rules
- conducting investigations regarding violations of the insurance laws
- conducting examinations of insurers to ensure the solvency
- enforcing and administering laws regarding the licensing of agents
- approving policies and rates
- imposing penalties for violations of the insurance laws
Domestic insurers must be examined at least once every __ years, and cannot be deferred for more than __ years
3, 5
The examination expenses must be paid by the insurer
Certificate of authority
Indicates that the Superintendent has examined the business and found it to be financially stable and organized in accordance with the Insurance Code
An insurer is considered insolvent if for a period of _____ the insurer is unable to pay its obligat8ons when due, or has fewer assets than liabilities, plus any required capital contributions order by the Superintendent
3 years
To appoint an insurance agent, an insurer must file a notice of appointment with the Superintendent no later than ___ days after the date the agency contract is executed for the first insurance application is submitted, whichever is earlier
30
When an appointment is terminated, the insurer must notify the Superintendent within __ days after the effective date of the termination. Within __ days of notifying the superintendent, a copy of the notification must be mailed to the agent at his or her last known address. The agent then has __ days after receiving a copy of notification to file any written comments concerning the notification with the Superintendent.
30 days
15 days
30 days
All rate filings are subject to a __ day waiting period before they become effective
30 day
The Superintendent can send a cease and desist order notice by mail that sets a date for a hearing, withing __ days of the order to decide whether the order should be continued or revoked. The Superintendent will issue a final order continue or revokinh the cease and desist order within __ days after receiving objections to the hearing officer’s report. The Superintendent’s final order is appealable
15 days, 15 days
Once a hearing is requested, The notice of the hero will be served at the person‘s last own address by certified mail at least __ days prior to the hearing
15 days
Misrepresentation
Issuing, publishing, or circulating any illustration or sales material that is false, misleading, or deceptive as to policy benefits or terms, or the payments of dividends. This also refers to verbal statments
Insurers are required to maintain claim data for at least ___ after the claim was closed, or until the neqxt financial examinatinon by the department, whichever is later
3 years
A fraudulant insurance act is an act committed by a person who, knowingly and with intent to defraud, does any of the following
- Prepares an insurances application that contains materially false information
- conceals any material fact for the purpose of misleading the insurer; and
- prepares or submits any claim that contains false information
