Michigan State Laws (Chapter 8)

Question 1

Within how many days do you have to send a Notice of Appointment from Insurer to Commissioner?

Answer 1

Within 15 days after contract is executed or application for insurance is submitted

Question 2

Within how many days do you have to send a Notice of Termination of Appointment to Commissioner?

Answer 2

Within 30 days after effective termination date

Question 3

How much is an Adjuster’s License Fee?

How much is a Surplus Lines Agent License?

Answer 3

$5 Annually

$100 Annually

Question 4

How much is the application fee for licensees/applicants?

Answer 4

$10

Question 5

Limited Lines Insurance includes which kinds of insurance?

Answer 5

Marine
Credit
Surety/Fidelity
Legal Expense
Livestock
Malpractice
Plate Glass

Question 6

Must complete prelicensing course no more than ___ months prior to taking picensing exam

Answer 6

12 months

Question 7

Commissioner can provide exemption for Michigan state insurance producer license under what 2 circumstances?

Answer 7

1) Must be currently licensed in the originating state, or

2) Have applied for a Michigan license within 90 days of cancelling previous license

Question 8

Change of Address/Name or Report of Disciplinary Actions must be sent to Commissioner within how many days?

Answer 8

30 Days

Question 9

An insurance producer doing business under any name OTHER than producer’s legal name is required to notify the commissioner prior to using the ____ name.

Answer 9

Assumed Name.

Question 10

Continuing Education Requirements require how many credit hours?

How many credit hours must be in Ethics?

How often must CE be done?

How many days grace period?

Answer 10

24 credit hours, 3 credit hours must be in ethics, every 2 years (90 day grace period, cannot sell new policies)

Question 11

How much is the penalty for violating Cease and Desist (unfair method of competition or unfair/deceptive act or practice) orders?

Answer 11

If a person knowingly violates this order, fines up to $20,000, or suspension of license, (fines not to exceed $100,000) or both.

Question 12

How much is the fine for violation of Rebating and Misrepresentation (both misdemeanors)?

Answer 12

$100 Fine per rebating or inducement violation.

$2,000 Fine per misrepresentation violation.

Question 13

What is Twisting?

Answer 13

Making misrepresentation of policies for the purpose of inducing an insured to take out another policy while on another policy

Question 14

How much is the fine for False Statements?

Answer 14

$1,500 per violation for insurers for providing false or misleading info

Question 15

What is Boycott, Coercion, Intimidation?

Answer 15

Unfair practice that results in restraint of trade/monopoly in insurance business

Question 16

What is Rebating/Inducement?

Answer 16

Offer benefits or favors outside of the policy to induce an insured for purchasing a policy.

Question 17

What is the penalty for Insurance Fraud?

Answer 17

Is a felony, imprisonment up to 4 years, fine up to $50,000

Question 18

What is the penalty for Conspiracy to Defraud a Health Care Provider?

Answer 18

A person who enters into an agreement to defraud punishable by imprisonment 10 years, or $50,000 or both

Question 19

What is the penalty for a False Report of Death or Sickness?

Answer 19

Agent/physician/insured/person who presents a false certificate of death/sickness/disability is guilty of misdemeanor, $1,000 fine or 3 months or both

Question 20

What is the penalty for Fraud statement or misrepresentation in an application?

Answer 20

Guilty of misdemeanor, subject to imprisonment 30 days to 1 year, or fine of $100 to $500, or both

Question 21

What is the purpose of Michigan Property and Casualty Guaranty Association?

Answer 21

Purpose is to establish a method to pay claims that are unpaid as a result of an insolvent Insurer
Workers Comp
Auto
Title
Fire
NO LIFE/DISABILITY

$5 million max per claim

Refund unearned premiums max $500

Question 22

What is the Michigan Casualty (liability) Insurance Cancellation notice requirement?

Answer 22

At least 10 day’s written notice
Minimum earned premium pro rata or $25, whichever is greater (EXCEPT Auto which is 20 days for policies 55 days or longer)

Question 23

What is the purpose of Michigan Essential Insurance Act?

Answer 23

To make personal auto and home insurance available to all Michigan citizens.

Question 24

Michigan Senior Discount

Answer 24

55 years or old, if the plan is uniformly applied throughout the state.
50 or older who successfully complete a traffic accident prevention course for 3 years after completion.

Question 25

How many days must the insurer provide in advance of nonrenewal (termination?) in Michigan?

Answer 25

30 Day’s (except for nonpayment or premium).

During the first 55 days after issuance of a policy, termination may be made effective by providing 20 days notice.

Question 26

Michigan Dwelling/HO Losses Are Payable ___ days after insurer receives proof of loss

Answer 26

30 Days not 60 Days.