Kelly Cards - Insurance regulation and licensing Flashcards
Laws by the state legislature
Ohio Revised Code (broader)
What is the list of rules created for the dept of insurance called?
Ohio Administrative Code
No title insurance company (UW) shall be incorporated under the laws of the state until a sum of $____________has been paid in capital
$30,000
No title insurance company (UW) shall be incorporated under the laws of this state until a sum of $_______ is contributed in surplus
$45,000
After incorporating a title insurance company (UW) (evidence of mgmt experience, filing of rates, etc.), company must obtain a final capitalization of at least $____________paid in capital
$120,000
After incorporating a title insurance company (UW) (evidence of mgmt experience, filing of rates, etc.), company must obtain a final capitalization of at least $_________contributed to surplus
$180,000
How much should a surety bond be?
$150,000
What is the purpose of the surety bond?
any transaction that does not involve the issuance of title insurance shall have a bond in place to protect all parties against theft, fraud, or failure to properly disburse
authority issued by the superintendent to a person to act as an insurance agent for the lines of authority specified
License
Explain what the superintendent is
director of dept of insurance
What is lines of authority?
Type of insurance license an agent carries (ex: auto insurance, title insurance, casualty insurance, etc.)
If a person is not licensed in this line of authority, what are they not allowed to do?
No person shall sell, solicit, or negotiate insurance unless they are licensed for that line of authority
What does OAC say about agent licensing and appointment for resident and non resident licensees?
Must report any change to name, address, email, etc within 30 days of change
What does the ORC say about agent’s use of assumed name?
an agent that intends to do business in this state under any name other than the agents legal name, shall notify the superintendent PRIOR to using the assumed name.
What does the OAC say about agent continuing education?
(page17)
Agents must complete 12 credits of CE during each cycle, 10 of which are directly related to title insurance and 2 of which must be approved as ethics
What does the ORC Disciplinary Action say?
superintendent may suspend, revoke, or refuse to issue or renew any license of an insurance agent
Review ways you can be punished for violations commited, page 26
page 26
Can a title insurance underwriter engage in any other types of insurance?
No. They can only engage in title insurance
What does the ORC say about prohibited services in regards to mortgages?
Title insurance company can’t guarantee payment of notes or other mortgage obligations (can’t act as a bank)
What type of escrow account needs to be established and what type of funds can be deposited?
An interest bearing trust account for the deposit of all non-directed escrow funds
What does IOTA stand for
Interest on Trust Account
What happens to the interest earned on the escrow account?
Needs to be transmitted to the treasurer of state for deposit in the Ohio legal aid fund (OLAF)
According to OAC, what needs to happen in regards to annual reviews of escrow accounts?
Each agent needs to file an independent annual review on or before January 15th for the preceding 12 months, ending on Aug 31.
How much should E&O insurance be?
$250,000
In regards to E&O, if a subcontractor is not covered, how much insurance do they need to carry?
$50,000
“Malpractice” insurance for the agent or anyone acting on agent’s behalf?
E&O insurance
If a person holds the power to vote or holds proxies representing 50% or more of the voting securities or interests of any other person, this is known as what?
Controlled Business
Unfair trade practices: review pages 57-69 (24:40 on slides)
MANY PAGES BETWEEN THE MID 50S AND MID 80S OF THE GUIDE ARE REPRINTED ACCIDENTALLY AND DO NOT NEED TO BE REVIEWED AGAIN!!!!!!!!!!!!
If a false or deceptive claim is made that is between $1000 and $7500, insurance fraud is a felony of the ________degree
fifth
If a false or deceptive claim is made that is between $7500 and $150,000, insurance fraud is a felony of the __________degree
fourth
If a false or deceptive claim is made that is between $150,000 or more, insurance fraud is a felony of the ____________degree
third
If a false or deceptive claim is made that is less than $1000, insurance fraud is what degree?
first degree MISDEMEANOR
What is the Fair Credit Reporting Act?
governs how credit reporting agencies behave and the businesses that report info to credit reporting agencies
If a person is denied credit, the Fair Credit Reporting Act requires what to happen?
the client must be given notice of the decision, a copy of their report, and have the right to dispute it
In a Disciplinary action when investigation and court costs are collected, where do those funds get sent?
The state treasury’s dept of insurance operating fund
