Life State law Flashcards
director of insurance has the following powers
-make reasonable rules and regulations as necessary to implement the insurance code
-conduct investigations as needed to determine whether any person has violated any insurance law or regulation
-conduct examinations, investigations and hearings as necessary for administering the insurance laws efficiently
-institute any actions or proceedings as necessary to enforce Illinois insurance laws and regulations
cease and disorder
requires the person or insurer to immediately discontinue practices or transactions. violation: fine of up to $1000
director must issue and serve upon the person or insurer a notice of hearing to be held between _________ after service of the notice.
20 and 30 days
the subject of an examination may request a hearing in writing within _________ after receipt of the examination report
10 days
any company or person who violates a written order under the Market Conduct and Nonfinancial Examinations section of the Insurance code will be in violation of a business offense and may be fined up to ___________
$5000
A person may request in writing a hearing within ____________ after they receive the duplicate of the examination report
14 calendar days
regulatory examinations
examining persons applying for or holding an insurance producer license, limited line producer license or temp insurance producer license or any business entity
violation of a written order under the regulatory examinations section of the insurance code
in violation of a business offense and may be fined up to $20,000, along with a license suspension or revocation
insurance producers
a person may not sell, solicit, or negotiate insurance for any class of insurance unless that person is licensed that line of authority. A person may not offer advice, counsel or opinions with respect to insurance, for a fee, unless that person is
-a licensed producer
-an attorney to practice law
-a trust officer of a bank
-an actuary or CPA employed in a consulting capacity
-licensed public adjuster acting within the scope of their license
A person who knowingly violates the insurance producer regulation….
is guilty of a Class A misdemeanor. In addition, any person who misappropriates any funds collected while violating this regulation is guilty of a Class 4 felony
nonresident license criteria
-holds a valid license in good standing in their home state
-submits proper request for license and pays all required fees
-submits either original, home-state license app, or completed Uniform App to the director
-applicant’s home state issues nonresident producer licenses to residents of IL
Address changes must file change of address and provide certification from the new resident state within ___________ after change of legal residence
30 days
business entity
sole proprietorships, corporations, limited liability companies, associations, partnerships, mutual funds
business entity acting as an insurance producer
must obtain insurance producer license using Uniform Business Entity App. must pay $150 every 2 yrs
if an applicant meets all requirements for a license but has not taken the exam, the director may grant that person a ___________________________
temporary insurance producer license for a period of 90 days
The director may issue a temp insurance license for up to _________
180 days and may choose to renew the temp license for an additional 180 days without requiring an exam
a temp license is necessary for the servicing of an insurance business in the following cases
-to the surviving spouse or personal rep of a deceased or disabled producer
-to a member or employee of a business entity licensed as an insurance producer, upon death or disability of an individual designated in the business entity application or the license
-to the designee of a licensed insurance producer who enters active service in the armed forces of the US
an insurance producer may receive qualification in the following lines of authority
-life
-variable life and variable annuity products
-accident and health or sickness
-property
-casualty
-personal lines
before approving the app, the director must ensure that the individual…
-is at least 18 years of age
-has not committed any act that is a ground for denial, suspension, or revocation
-has completed a prelicensing course
-paid fees
-passed exams
an individual who meets these requirements will be issued a 2-year insurance producer license
license fees
-$50 app fee to process a request to take the written exam for an insurance producer license.
-every 2 years:
-$180 for a resident insurance producer license
-$250 for a nonresident insurance producer license
-$150 for a business entity
-$50 for a self service storage facility limited line license
-$200 for a limited lines license other than those listed in the limited lines producer section
-$50 for issuance of a temp license
-$50 annual fee for a limited lines producer license
-$50 certificate fee for each certified prelicensing/continuing ed course, and $20 annual fee for renewing and certification of the course
minimum of __________ for Life, accident and health, fire, casualty, or personal lines/property and casualty
20 hours. 7.5 which must be in a classroom.
prelicensing for a motor vehicle insurance producer is ________
12.5 hours, 5 of which must be in a classroom
An insurance producer who places business with an insurer with whom they do not have a producer contract must maintain a bond in favor of the people of IL. the bond….
-must be executed by an authorized surety company and payable to any party injured under the terms of the bond
-must be in continuous form and in the amount of $2500 or 5% of the premiums brokered in the previous year, whichever is greater, but not to exceed $50,000
-will be conditioned upon full accounting and due payment of funds to the entitled person or company
the surety may cancel the bond and be released from further liability upon _______ advance written notice to the principal
30 days
