Kansas Personal Lines State Law 2022 Flashcards
Which of the following penalties can the Commissioner impose for committing an unfair method of competition or an unfair trade practice?
A. A cease and desist order
B. A fine not to exceed an aggregate of $100,000 in any 6-month period
C. Imprisonment for up to 5 years in prison
D. A fine not more than $200 per violation in any 6-month period
A. A cease and desist order
***The Commissioner has the power to issue a cease and desist order. Fines are capped at $1,000 per violation with an aggregate limit of $10,000 in any 6-month period. The Commissioner does not have the power to imprison.
What is a domestic insurance company? (KS)
A domestic company is an insurance company or risk retention group licensed and incorporated in Kansas.
What is a foreign insurance company? (KS)
A foreign company is an insurance company or risk retention group not incorporated in Kansas, but licensed and registered to do business in Kansas.
It is unlawful for any insurer to transact insurance business in Kansas without a ________ __ _________.
Certificate of Authority
All of the following CE requirements are correct, except:
A. 12 hours for property, casualty, or personal lines
B. 12 hours for life and/or health
C. Continuing education courses are required every 4 years
D. 4 hours for title
C. Continuing education courses are required every 4 years
***CE is required biennially (every 2 years)
The Commissioner of Insurance must examine the financial condition of each producer or insurer at least once:
A. Every 2 years
B. Every year
C. Every 10 years
D. Every 5 years
D. Every 5 years
To do business in Kansas, foreign companies must possess the required amount of surplus and paid-up capital (money not borrowed) and also must do the following:
Must have been in operation at least ___ years.
a. 5
b. 1
c. 2
d. 3
d. 3 years
Who is an individual or business entity required to be licensed under Kansas law in order to sell, solicit, or negotiate insurance.
A Producer
***The term producer also includes broker unless otherwise specified.
Who is an individual or business entity that is licensed to act as an insurance agent and maintains a principal place of residence or business in Kansas.
A Resident Producer
For an ______________ a $15 registration fee must be paid at license application and again at renewal, by May 1st once every 2 years
Auto Club Producer
An auto club must notify the Commissioner within __ days after terminating a producer’s appointment.
a. 90
b. 30
c. 180
d. 120
b. 180 days
To transact excess lines insurance and place business with nonadmitted carriers, a property/casualty licensed producer must also have an _____ lines license.
excess
Anyone at least __ years of age who wants to transact business as an insurance producer must submit a license application to the Commissioner of Insurance.
a. 21
b. 18
c. 25
d. 19
b. 18 years of age
A producer appointed by an auto club to sell its memberships is a _________.
Auto Club Producer
A producer may not transact insurance without a certification (appointment) from at least 1 insurer. Insurers must notify the Department within __ days of the appointment.
30 days
Producers may not transact insurance business in Kansas unless:
A. The Commissioner is notified within 90 days of the appointment
B. There is reciprocity
C. There is a certification from at least 1 insurer
D. The licensee has an endorsement by another producer
C. There is a certification from at least 1 insurer
The Commissioner can waive the licensing examination if the applicant:
a. Is applying for a travel insurance producer license
b. Was previously licensed in Kansas and the license lapsed less than 2 years before the current application
c. Passed the licensing exam, but due to a clerical error by an insurance company, was not properly certified (appointed)
d. Is currently licensed in good standing in another state for the same lines of authority, or was licensed for the same lines of authority in another state and that license expired or was cancelled in good standing within 90 days prior to the Kansas application
A, B, C & D
***The most important thing to remember is that a license exam can be waived if the license lapsed less than 2 years before the current application and was licensed in KS or was cancelled in good standing 90 days prior to the KS application
A _________ in good standing must not be revoked, suspended, denied renewal, or otherwise under disciplinary action.
License
If a Producer License is in good standing, it renews ________so long as continued education is reported to the Commissioner by the producer’s renewal date.
biennially
***every 2 years
When a producer lives in Missouri and wants to do business in Kansas, they must first:
A. Obtain a nonresident license in Kansas
B. Relinquish their Missouri resident license
C. Open an office in Kansas
D. Obtain permission from the Commissioner of Insurance in Missouri
A. Obtain a nonresident license in Kansas
The Continuing Education (CE) requirements for Crop is ___ hours.
a. 12 hours
b. 3 hours
c. 2 hours
d. 1 hour
C. 2 hours
The Continuing Education (CE) requirements for Title is ___ hours.
a. 2 hours
b. 4 hours
c. 6 hours
d. 1 hour
B. 4 hours
The Continuing Education (CE) requirements for life, health, property, casualty, variable contracts, personal lines are ___ hours.
a. 12
b. 8
c. 20
d. 16
a. 12 hours
***These lines are also subject to additional stipulations:
🔘At least 1 hour must be an ethics course
🔘Only 3 hours of agency management courses will count toward the requirements
An agent who has been licensed for more than 1 year must file on or before their ______ due date a report with the Commissioner certifying that CE requirements have been met.
biennial
If the Commissioner does not receive the required report for renewal, the producer’s corresponding license(s) will be suspended and a $____ fine assessed for each suspended license.
a. $300
b. $100
c. $25
d. $500
b. $100
In cases involving medical hardship or military service, the Commissioner may extend the time within which to complete CE requirements for a period up to __ days.
a. 30
b. 365
c. 180
d. 90
c. 180 days
Each producer must notify the Department of Insurance within ___ days of change of information.
a. 30
b. 90
c. 14
d. 180
a. 30 days
The Continuing Education (CE) requirements for Pre-need is ___ hours.
a. 2
b. 1
c. 0
d. 3
c. 0 hours
***No CE hours are required to renew a limited lines license for selling pre-need funeral insurance or annuity products.
During the first 60 days of an auto policy, an insurer may cancel the policy for what reasons?
The insurer can cancel an auto policy within the first 60 days for any reason.
After a producer has a change of residence, they must:
A. Notify the Department of Insurance within 90 days
B. Notify the Department of Insurance within 20 days
C. Notify the Department of Insurance within 60 days
D. Notify the Department of Insurance within 30 days
D. Notify the Department of Insurance within 30 days
______ is offering any rebate of premiums payable, any special favor in dividends or other benefits, or any valuable consideration or inducement not specified in the policy.
a. twisting
b. rebating
c. coercion
d. subrogating
b. rebating
***This is defined by statute as unfair methods of competition and unfair or deceptive acts or practices
_______ is making, issuing, or circulating any statement that misrepresents the benefits, advantages, conditions, or terms of any policy or any person’s or insurer’s financial condition.
a. twisting
b. coercing
c. misrepresentation
d. false advertising
C. Misrepresentation
________________ is publishing or disseminating any untrue, deceptive, or misleading statement about how a person or entity conducts business.
a. misrepresentation
b. false advertising
c. defamation
d. rebating
b. false advertising
When an insurer delivers a property or casualty insurance policy in Kansas, any of the following would be acceptable methods of delivery, except:
A. Oral communication that can be reliably stored and reproduced B. Posting an endorsement on the insurer's website as long as the endorsement contains no personally identifiable information C. Electronic delivery without needing the insured's consent D. First-class mail
C. Electronic delivery without needing the insured’s consent