Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

LA Property & Casualty Insurance > Louisana Insurance Regulations > Flashcards

Louisana Insurance Regulations Flashcards

1
Q

A person licensed to quote insurance policies, market, & sell insurance products, & consult.

A

Individual Producer (Insurance Agent)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

A legal business entity, coporation, partnership, LLC, etc.

A

Business Entity Producer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Requirements for Louisiana Insurance Code for a producer’s license…

A
  1. Be at least 18 years of age.
  2. Reside or work mainly from an office located in Louisiana.
  3. Complete pre-licensing education required to prepare for the state required exam.
  4. Paid fees & submitted application (Form 1546A).
  5. Successfully pass exam with 70% or higher.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How many times is a license issued?

A

Once

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Final approval determined by…

A

The Commissioner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

When does license expire?

A

Every 2 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Where are renewals sent?

A

Louisiana Department of Insurance (LDI)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

When does the Department need to be notified of an address change?

A

within 10 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What form is required to officially change address?

A

Change of Address

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

organization in charge of insurance laws for all states and pay their fees

A

National Association of Insurance Commisioners

NAIC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How long does a producer have after moving from one state to another to become a resident license?

A

90 days after establishing legal residence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is valid for 180 days and may be granted under the following 3 circumstances…

A

Temporary license

Death
Disability
Active Military

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Who can revoke, non-renew, suspend, or refuse to issue any producer’s license, as well as charge fines?

A

The Department of Insurance and the Commissioner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What needs to happen prior to the producer selling insurance products?

A

The insurer eeds to appoint a producer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How much is renewal of company appointments?

A

$20 per appointment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

When an insurer terminates an appointment, how long does the insurer have to notify the Department?

A

30 days from the termination date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Someone solicits insurance, they need a license according to whom?

A

Licensing Model Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Who is NAIC?

A

National Association of Insurance Commissioners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What organization in charge of insurance laws for all states & pay their fees?

A

NAIC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Producers with a Property & Casualty license must submit how many hours of continued education?

A

24 hours

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How many hours of continuing education must be on Ethics and flood?

A

3 hours on ethic & 3 hours on flood

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Leagal term for STOP

A

Cease & Desist

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What makes the insurer an admitted company and proves that the Department of Insurance finds the company financially sound and structured well enough to meet the requirements of the state insurance code to conduct insurance business in Louisiana?

A

Certificate of Authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

A company is unable to pay debts owed

A

Insolvent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Who is the Louisiana Department of Insurance Commissioner?

A

James Donelon

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is the Commisioners primary goal?

A

Protect the public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

In protecting the public, what are the duties of the Commisioner?

A

Issuing/revoking licenses & Certificates of Authorities.
Hire employees and examiners.
Examine the records of any insurer or producer.
Subpoena witnesses.
Conduct hearings for alleged violations of the Insurance Code.
Give out cease and desist orders.
Impose penalties for violations of the Insurance Code.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Who regulates the marketing and advertising of insurance policies?

A

The State

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Who is responsible for the content of advertisements?

A

The insurer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

How long do advertisements need to be kept on file?

A

Until the state examines the insurer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

How long is the Commissioner in office?

A

4 years

32
Q

What is it called when someone gets into the insurance business in Louisiana to sell only to themselves, their family, & employer?

A

Controlled Business

33
Q

Is it legal to acquire an insurance license for the purpose of writing controlled business?

A

No

34
Q

How does the Commissioner determine a controlled business?

A

By looking at a producer’s book of the business for a 12 month period.

35
Q

When is a business considered a controlled business?

A

When commissions earned from policies sold to themselves, their family, & members of their employer is more than 25% of the total commissions for that year.

36
Q

What are the consequences of somone paying or accepting commissions without an insurance license?

A

Fine between $1,000 and $5,000
and/or
Maximum of 2 years in jail

37
Q

What are the consequences of any unlicensed business entity paying or accepting illegal commisions?

A

Fine between $2,000 and $50,000
and/or
Maximum of 3 years in jail

38
Q

Distributing misleading or false information and orally deceiving the public with regard to a policy’s terms and benefits is illegal

A

Misrepresentation

39
Q

Any advertising, print, multimedia, internet or otherwise, cannot deceive the public in anyway and misrepresenting terms, benefits, advantages, dividends, financial strength, or misrepresenting the intent of a policy, loans or assignments, or saying an insurance policy is the same as a share of stock are all prohibited acts

A

False advertising

40
Q

oral or written statements trying to injure a person or entity is prohibited, especially when it is critical of the financial status of a person or insurer

A

Defamation

41
Q

illegal acts intended to stop fair trade or monopolize insurance business are prohibited

A

Boycott, Coercion, or intimidation

42
Q

intentionally deceiving the public or a regulator as to the financial standing of an insurer is prohibited

A

False Financial Statements

43
Q

changing rates based on marital status, race, color, national origin, creed or ancestry within the same mortality class is illegal

A

Unfair Discrimination

44
Q

Offering and accepting any incentives for buying a policy, including money, unauthorized discounts or money back, special favors or personal services, are all illegal acts

A

Rebates

45
Q

When can the Commissioner examine a business of insurance?

A

Anytime

46
Q

What are the 9 unfair trade practices?

A
  1. Misrepresentation
  2. False Advertising
  3. Twisting
  4. Churning
  5. Defamation
  6. Boycott, coercion, or intimidation
  7. False financial statements
  8. Unfair Discrimination
  9. Rebates
47
Q

When will the Department review insurance companies for financial stability?

A

At least once every 5 years

48
Q

The intent to deceive by providing materially false information to someone in a business transaction.

A

Fraud

49
Q

What states that no information can be accessed by the insurers without the person’s consent & prevents insurers releasing this information to anyone without consent from the insured.

A

Privacy Regualtion

50
Q

States that anyone has committed a felony must receive written authority from a regulatory official, Commissioner, Deputy Commisioner before working in insurance that affects interstate commerce.

A

The Violent Crime Control & Law Enforcement Act of 1994

51
Q

Said the federal government had the right to regulate insurance only to the extent it is not regulated by state law.

A

McCarran-Ferguson Act

52
Q

Removed the barriers between commercial banking, investment, and insurance

A

Gramm-Leach-Bliley Act (GLBA)

53
Q

Administered by the Federal Trade Commission to protect consumers against the circulation of inaccurate or obsolete information & to ensure that consumer reporting agencies are fair and equitable in their treatment of consumers.

A

Fair Credit Reporting Act

54
Q

What are the 2 categories of the Fair Credit Reporting Act?

A

Consumer Reports & Investigative Consumer Reports

55
Q

___ includes written and/or oral information regarding a consumer’s credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources

A

Consumer reports

56
Q

___ include written and/or oral information on the consumer’s character, reputation, and habits.

A

Investigative Consumer Reports

57
Q

Age to apply for a producer’s license

A

18

58
Q

Temporary license period

A

180 days

59
Q

Producer license valid

A

2 years

60
Q

Fee for late license renewal application

A

$25

61
Q

To report change of address

A

10 days

62
Q

To report administrative action or conviction

A

30 days

63
Q

CE required for property and casualty producers every 2 years

A

24 hours

64
Q

Fine per violation of insurance licensing laws

A

$500

65
Q

Total fine for all violations of insurance licensing law in 1 year

A

$10,000

66
Q

Fine per violation for unintentional violations of Insurance Code

A

$1,000

67
Q

Aggregate fine for unintentional violations of Insurance Code

A

$100,000

68
Q

Fine per violation for willful violations of insurance Code

A

$25,000

69
Q

Fine for all willful violations of insurance code

A

$250,000

70
Q

Commisionser’s term of office

A

4 years

71
Q

to file notice of appointment with Commissioner

A

15 days

72
Q

to notify Commissioner of termination of appointment

A

30 days

73
Q

Length of time Commissioner to examine Insurances

A

5 years

74
Q

Fair Credit Reporting Act passed

A

1970

75
Q

Fine for willful noncompliance with Fair Credit Reporting Act

A

$5,000

76
Q

Bankruptcies-Prohibited information in consumer reports

A

10 years

77
Q

Negative Information- Prohibited information in consumer reports

A

7 years

LA Property & Casualty Insurance (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions