Market Regulation - section 4 Flashcards
The insurance code
main body of laws that regulate the business of insurance in CA
enacted in 1935
California Code of Regulations
rules and regulations = California Code of Regulations (CCRs)
Insurance commissioner
elected by the people in the same time, place and manner as the Governor not to exceed two four-year terms
Unfair practices
- defining practices in CA that constitute unfair methods of competition and unfair or deceptive acts or practices in the business of insurance and by
- prohibiting all such trade practices
Gramm-Leach-Billey Act
The financial modernization act of 19999, GLB act, includes provisions to protect consumers personal financial information held by financial institutions. There are three principal parts to the privacy requirements: The financial privacy rule, safeguards and pretext provisions
unfair methods of competition
leading a client to expect dividends; stating an insurer is a member of the guarantee association in sales or advertisement; boycott, coercion or intimidation which is restraint of trade
Unfair claims practices
settling for less than what a reasonable person would expect by referring to printed or advertising material; telling client not to obtain the services of an attorney, misleading the claimant as to the applicable statute of limitations, delaying an investigation by requiring a preliminary report then a formal report requiring the same information
violation of a cease and desist order
$5000 to $55,000 in addition to the penalty for violation
CA insurance guarantee association (CIGA)
pays contractual obligations/claims of insolvent members
Every insurance company in CA is required to report its financial condition to the commissioner ever year on or before ____
march 1
The estate of a deceased person is considered a __ Family is not
Person
