Michigan Flashcards
Licensed to sell, solicit, negotiate insurance
Producer
Provides advice about benefits, coverage, policy terms
Counselor
Subject to licensure when acting as a producer.
- Corporation, association, partnership
- LLC, LLP, other legal entity
Business Entity
Includes marine, credit, surety/fidelity, etc.
Limited Lines
Insurer must notify Commissioner within how many days after:
Agency contract executed, or
First application submitted?
15 days
Commissioner has how many days to determine agent’s eligibility?
(How many days must the insurer notify an ineligibility determination?
30 days to determine agent eligibility.
Must notify 5 days of ineligible determination.
Who pays appointment fee and annual renewal fee?
Insurer
Within how many days must the insurer notify commissioner of termination?
30 to notify commissioner,
must mail copy notice to agent within 15 days
The producer may continue to service existing policies until
It is cancelled, replaced, or expired.
Who can issue a cease and desist order?
The commissioner
How much is the license application fee?
$10
How much is the examination fee?
$10
How much is a solicitor’s license?
$10 per year
How much is an insurance counselor license?
$10 per year
How many days notice must an insurer provide before cancelling an auto policy that has been in effect for longer than 55 days?
30 days
How much is the adjuster license fee?
$5 per year
How much is surplus lines license?
$100 per year
4 reasons the Commissioner may waive exam and or prelicensing for applicants:
- Apply for limited lines only
- Were previously licensed as a producer within the last 12 months
- Have the CPCU, CLU, CIC or other designation
- Have an insurance degree
What 3 things must be stated in the written agreement between counselor and client?
- Nature of work to be performed and counselor’s fee
- That the fee cannot be waived
- That the counselor will receive commission on insurance sold
How long must an insurance counselor keep records for after completion?
2 years
How many days do you have to notify commissioner of a name, address, or email change?
30 days
How many days do you have to report disciplinary action, judgments, or injunctions involving fraud, deceit, misrepresentation, or other violations of insurance law?
30 days
Failure to report may result in fines and or license disipline
What are the continuing education requirements?
24 credit hours, (3 of which must be in ethics)
2-year renewal period
Commissioner may waive continuing education for:
- Military service
- Severe hardship
- Limited lines credit, travel, baggage, etc.
How many days in the grace period for continuing education beginning on your license expiration date?
90 days
During the 90 day grace period to complete continuing education, what must the agent refrain from doing?
Soliciting or selling any new policies
Bind coverage
What penalties could you face for violating a cease and desist order?
Up to $20,000 fine per violation ($100,000 maximum)
and
license discipline
Misrepresentation made with specific intended to induce the lapse or termination of an existing policy
Twisting
Withhold, or give false or misleading information to any insurance agency or organization.
False Statements
Any false/maliciously critical statement about the financial condition of any person or insurer
Defamation
Act resulting in monopoly or unreasonable restraint of trade
Boycott, Coercion, Intimidation
