KY Laws and Regulations Pertaining to Property and Casualty Insurance Flashcards
Under KY law, an insurer formed under the laws of Michigan is consider to be
a foreign insurner
An insurance producer violated the state insurance code causing multiple insureds to lose $25,000. If required by a final order issued by the commissioner, the producer may be required to pay
restitution
Who is the Commissioner of insurance appointed by
the Governor with the consent of the Senate
An applicant for a resident agent license must be at least
18 years old
An applicant for a license as an insurance consultant must be at least
18 years old
Insurance written on an agent’s own life, child’s life, or partner’s life is considered to be
controlled business
An agent who allows his license to lapse must reinstate the license within
12 months from the due date of the renewal fee
An agent must notify the Commissioner of a change in the agent’s legal name or address within
30 days of the change
A producer sending an unfairly disparaging email regarding a competitor’s policy may be guilt of
unlawful advertising
Resident agents must keep records of all business transactions under their licenses for at least
5 years
Individual producer licensees whose birth dates are in even-numbered years must submit the license renewal request
by the last day of the producer’s birth month in even-numbered years
A notification filed with the insurance department that an insurer has established an agency relationship with a producer is
an appointment
If an applicant provides misleading information in the application for a license the Commissioner may
Refuse to issue the license; suspend the license if it has already been issued; impose a civil penalty
If a person’s license has been revoked twice, when may the person be issued a new license?
NEVER
Surplus lines insurance may be written
only when the desired coverage CANNOT be obtained from authorized insurers
To be licensed as a surplus lines broker, an applicant must file a bond in the amount of
$50,000
Intentionally making false statements on an insurance application is an example of
insurance fraud
Premiums collected by an agent must be held in a
fiduciary capacity
The maximum duration for a binder, unless extended by the Commissioner, is
90 days
An insurer must acknowledge receipt of a notice of claim within
15 days
What is the youngest age at which a person can purchase an insurance policy on his own property interests
15 years
An insurer must generally offer any payment due on a claim within how many days after receiving proof of loss
30 days
An insurer that cancels a property or casualty insurance policy for nonpayment of premiums must provide notice to the insured at least how many days before the effective date of the cancellation?
14 days
A licensee must report to the Commissioner any administrative action taken against the licensee within how many days?
30 days
