Laws & Regulations [Health] Flashcards
What type of licensee represents the insured?
broker
An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?
Rebating
What is the purpose of insurance guaranty associations?
To protect policy owners, insureds and beneficiaries from financial losses caused by insolvent insurers
Who must be notified of a producers change of address?
The Department of Insurance (Commissioner/Director/Superintendent)
Who can usually be granted a temporary license?
Producer’s spouse or designee in case the licensed producer dies or becomes disabled
Who is an insurance agent?
A person authorized to sell, solicit and negotiate insurance contracts
For what reason can a temporary license be issued?
For continuation of business in case the licensed producer dies or becomes disabled
Who is responsible for the costs associated with the examination of insurers?
The insurer being examined
What is the purpose of a cease and desist order?
To prevent a producer or insurer from further violating laws for transacting insurance
What are agents/producers required to do in order to renew their license?
Complete continuing education hours and pay a renewal fee
If a producer makes maliciously critical statements about another insurer, what is this illegal practice called?
Defamation
Who is considered a nonresident agent?
An agent who resides and is licensed in another state, but who is authorized to transact insurance in this state
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
Twisting
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?
misrepresentation
If the Commissioner/Superintendent finds a licensee engaging in an unfair method of competition or an unfair practice, what order will be issued?
Cease and desist order
Who many share in the commission from the sale of a life insurance policy?
Only producers property licensed for the type of insurance transaction
What type of licensee represents the insurance company?
The agent
if you have a name or address change how long do you have to notify the department of insurance to change it?
30 days
what type of insurer is formed under the laws of another state?
foreign
A temporary license in this state is valid for a maximum of
180 days
What are the pre-license education requirements?
20 hours of pre-license education per line of insurance with 7.5 in classroom and 12.5 self-study
What are the producer continuing education requirements?
24 hours of continuing education every two years
what are the penalties for not being properly licensed?
Class A Misdemeanor ($1000 and/or up to 1 year in jail) 1&1
Class 4 Felony ($5000 and/or up to 5 years in jail)
5&5
