MA P & C Law Flashcards
What are the requirements for a apd appraiser?
Work experience letter(worked for appraiser for 3 months),
board approved course,
exam
What are the requirements for a public adjuster (fire)?
21 years age.
Pass exam,
submit letter of interest,
competent and trustworthy.
What do you need to call yourself an insurance consultant, counselor, specialist, analyst or policy holder adviser (unless CPA or attorney)
Advisers license. (Cannot work for insurer or be producer for insurer)
An individual who places insurance with unauthorized companies.
Special broker/surplus lines broker.
What are the requirements for a special broker license?
Full age
Deemed suitable by commissioner.
Surety bond
What does a special broker have to report to the state?
Affidavit staying full amount of insurance was not profitable with standard insurer.
All transactions, premiums collected and returned. Subject to $100-$500 fine and/or imprisonment up to a year
What are the requirements for a reinsurance intermediary?
Licensed producer (for at least 3 years in each line transacting business) w/ MA office OR licensed in another state with reciprocity.
May require surety bond and e&o
State all business affiliations for last 10 years
Written exam
Trustworthy and competent
License term for reinsurance intermediary
3 years (1 year for firm or partnership)
Punishment for acting a intermediary without license.
Up to $1k and/or up to 6 months jail
A nonresident reinsurance intermediary has ___ _______ to bond coverage on behalf of the ceding company.
No power
This person works on behalf of a viator (life insurance policyholder) and attempts settlement between viator and “viatical settlement providers” or “viatee.”
Viatical settlement broker
Term of viatical settlement broker license
1 year
How long is temporary license good for?
180 days, no exam.
Restrictions on temporary license.
No new business
What are requirements for producer license? (Resident)
- MA resident
- 18 years
- pass exam
- competent, honest, trustworthy
- pay fees
How long does a nonresident ha to submit an application after moving to MA?
90 days
Requirements for business entity license.
-pay fees
-submit articles of incorporation or organization with business entity name (must contain insurance)
-application
-list of members covered by license
/designate produce responsible for compliance with insurance laws
Requirements got advisers license
- Letter of interest
- background
- resume
- credentials & work history (10 yrs)
- written contact describing advising services
- 18
- exam
- no prior suspension or revocations
- honest, trustworthy, competent (3 references)
Requirements for resident producer license
- MA resident
- age 18
- exam
- competent honest trustworthy, no act grounds for denial suspension or revocation
- pay fee
Notice of licenses renewal send?
30-45 days prior to renewal date (birth date)
Fee for producer license.
$225 3 years
Fee if license not renewed within year
Penalty of double the fee
What happens if license not renewed in 12 months.
Pass exam again
Who is exempt from license fee and lead paint surcharge?
Ma resident who is veteran
Blind
Widow/widower of licensee
What is deadline to file a notice of appointment?
15 days from date the contract is executed or first application is submitted. Commissioner verifies in reasonable time (<30 days) if not eligible insurer is notified within 5 days of determination.
When does carrier have to notify commissioner if producer is terminated?
30 days after effective date of termination
What are requirements to notify producer of termination ?
Within 15 days of notifying commissioner. Send to last know address by certified mail, return receipt, postage prepaid or by overnight with fedex
How long does producer have to appeal termination?
30 days after receiving notification.
How long does a producer have to report administrative action taken against producer in another jurisdiction or by another governmental agency to the commissioner?
30 days
How long do business entity licenses last and what is fee?
1 year/$75 per covered member
What is cost of adviser license?
$200
What is fine for advising without advisers license?
$50-$500 and/or <= 6 mos
Does adviser have ce requirements?
No
How many credit hours does licenses have to complete in first 3 years?
60
Each following 36 month period, a licensee must complete ___ credit hours.
45
How do excess credit hours carry over.
Only to next 36 month period.
Penalty acting as producer without license.
$50-$500
What does the commissioner do?
Administer and enforce insurance laws,
issue licenses or certificates of authority,
suspend license or place in probation.
Approve policy forms and premium rates.
Examine books and records of insurers (financial condition)
Public hearings to review illegal acts by insurer and licensees
Require financial condition affidavit every 5 years
Determine set or compute reserves of life insurers
Regulate insurance advertising
Issue cease and desist when producer engages in unfair practice
What notice does the commissioner have to give when a person is suspected of committing an unfair trade practice?
Hearing notice stating charges against by registered mail to last known address. Hearing is no later than 21 says after the notice
An insurer may use policy forms wihin ___ days of the commissioner receiving them if no response.
30
What is penalty for violating cease and desist?
Up to $10k per violation and license suspension or revocation.
What is fine for failure to appear after receiving a summons from the commissioner?
$1,000
What is penalty for unfair or deceptive act or unfair method of competition
<=$1000 + restitution
How much are punitive damages due to violation of ma law in claim?
<= 25% of claim
Punishment for larceny/commingling
$1k and/or prison
What constitutes larceny by producer
If premium isn’t paid in 30 days and agent ignores demand letter
Failing to send refund
Lying about which coverages a policy provides is _____________.
Misrepresentation
Making an illegal or unfair comparison of policies in order to persuade a person to lapse it surrender his current insurance plan in force and purchase a new one from the producer.
Twisting
Punishment for material misrep
<= $1k/6 mos
How long does a consumer have to take action agains a twisting agent or insurer. What happens?
2 years.
Insurer must return all premiums paid and all benefits of lapsed contract are reinstated at the expense of the twisting insurer.
Offering anything of Value to a prospective insured or policy owner that is not specified in the contract in return for the purchase of an insurance policy. (Share commission, offer stocks bonds season tickets, jacket, briefcase.
Rebating
Agent making rebate offer is the ______ and the person receiving is the _______.
Offeror / offeree
Who is guilty for rebating. Only offeror or both offeror and offeree?
Both.
Punishment for rebating.
Fine and/or prison 1 month to 1 year
Penalty for fraud
$100-$500 and/or 1 mo-1 yr
Penalty for perjury (includes claim forms as they are sworn statements)
$100-$1000 or up to 1 year
What is using a name other than that appearing on license considered?
Impersonation
Fine for impersonation
$10-$100 and suspension/revocation
Making untrue statements about a competing insurer.
Defamation
Embezzlement sentence
Up to 5 years
If a lender tells a borrower he must go to a certain agency for insurance if he wants a loan what is this?
Coercion or intimidation
Telling an applicant dividends are guaranteed is?
False advertising
How much notice does an insurer have to give to cancel or alter agency agreement?
6 months or 180 days
How does nonrenewal work for home & auto?
45 days notice to agency
Agency notifies insured within
15 days to make sure insured received
An agent can only share commission with another producer, company, corporation
as long as they are licensed in the same line.
Penalty for sharing commission with unlicensed.
$50-$500
How long does entity have to notify division of change of residence, business or email name or address?
30 days
How long does non-resident producer have to notify division, cancel home state license and apply for ma license? What else is needed
90 days / certification letter/letter of clearance showing license is relinquished.
How long does producer have to report administrative action taken against him by another State or govt agency?
30 days or disposition / 30 days of pre-trial hearings if criminal
How many days can a binder be extended on a fire policy if there is a delay in issuance?
30 days
How much notice must an insurer give for nonpay on a HO?
10 days
How many days does a HO insurer have to cancel a policy for any reason? How much notice must be given?
60 / 5 days
What can a HO carrier cancel for after 60 days with 5 days notice?
Misrep obtaining policy
Willful/reckless acts which increase hazard
Physical changes in property (vacancy 60 days)
Conviction of crime which increases chance of loss.
Determination by commissioner that continuation of the policy will violate or place the insurer in violation of the law.
How much notice does an insurer have to give the insured on a property policy for nonrenewal?
45
How much notice to mottgagee on cancellation?
20 days
How much notice to mottgagee on nonrenew?
10
What is vacancy clause?
Not liable for for or lightning after vacant more than 60 days (residential) 30 days if > 3 units
Once an insurer receives a proof of loss, it must pay legitimate claims in how man days?
30
How many days after proof of loss received does insurer need to notify insured if using llq materials for repair?
15
The fair plan will not provide coverage for ….
Vacant, empty, damaged, or structurally inferior buildings.
What is the initial coverage provided by a Fair plan policy during which the inspection is usually done?
5 days
How does appraisal process work?
Disagreement over value
Three referees – binding
Insurer has up to 10 days to pay
When canceling a liquor liability policy how much notice does the insurer give? For nonpay? For any I the legit reason?
30 / 60
How long does entity have to be in business to self insure for wc?
5 years
How much notice does insurer have when canceling a wc policy?
10
Statute of limitation for wc?
4 years
What is the waiting period before wc benefits are payable?
5 days
What is amount paid under wc based on?
Previous 26 month salary
When is an employer eligible or assigned risk pool?
When wc declined by 2 insurers within 5 days of applying.
Employer applies for ARP and makes deposit. How long before coverage is effective?
Within 5 days
