Insurers - Section 3 Flashcards
No free insurance as an inducement to complete transaction of a sale
T/F
True
An agency name cannot end with:
Insurance, underwriter, or company
Producer must display:
Their license so that clients can inspect it
Violation of Display of License rules are subject to a fine of $__
$200
Producers must make records available to the commissioner at all times
T/F
True
Producers must keep info records for how many months?
18
Producers must keep bank records __ years
5
Resident agent or broker must maintain an office in the state and that address must be on their license and renewal. This does not apply to non-resident agents or brokers
T/F
T
Must notify the DOI immediately in writing for any change of address:
Mailing, residence or business
Commissions received for arranging premium must be disclosed to the insured and records kept for __ years
3
Producers have until the last day on their license to renew. Can transact up to __ days after expiration
60
All agency names must be approved before usage. Commissioner can disapprove of any person’s name
T
Nolo contendere is considered
convicted
Inactive license means
no appointment on file however fees and education are current
expired license means
fees are not current
Fiduciary means
handling funds in a trust capacity. Cannot comingle funds. Diverting or misappropriating funds = theft
Continuing Education
need to complete 24 CE hours per license term, which must include 3 hours of ethics each renewal period
Personal lines
24 CE per license term. 3hrs of ethics
Ethical behavior
answer questions the first time they are asked, putting clients interest first
Insolvency
incapable of meeting financial obligations when due. Must have enough assets to cover liabilities, reinsurance and paid in capital or the insurer is considered insolvent
