Michigan State Laws (Chapter 8) Flashcards
Within how many days do you have to send a Notice of Appointment from Insurer to Commissioner?
Within 15 days after contract is executed or application for insurance is submitted
Within how many days do you have to send a Notice of Termination of Appointment to Commissioner?
Within 30 days after effective termination date
How much is an Adjuster’s License Fee?
How much is a Surplus Lines Agent License?
$5 Annually
$100 Annually
How much is the application fee for licensees/applicants?
$10
Limited Lines Insurance includes which kinds of insurance?
Marine Credit Surety/Fidelity Legal Expense Livestock Malpractice Plate Glass
Must complete prelicensing course no more than ___ months prior to taking picensing exam
12 months
Commissioner can provide exemption for Michigan state insurance producer license under what 2 circumstances?
1) Must be currently licensed in the originating state, or
2) Have applied for a Michigan license within 90 days of cancelling previous license
Change of Address/Name or Report of Disciplinary Actions must be sent to Commissioner within how many days?
30 Days
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.
Assumed Name.
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?
24 credit hours, 3 credit hours must be in ethics, every 2 years (90 day grace period, cannot sell new policies)
How much is the penalty for violating Cease and Desist (unfair method of competition or unfair/deceptive act or practice) orders?
If a person knowingly violates this order, fines up to $20,000, or suspension of license, (fines not to exceed $100,000) or both.
How much is the fine for violation of Rebating and Misrepresentation (both misdemeanors)?
$100 Fine per rebating or inducement violation.
$2,000 Fine per misrepresentation violation.
What is Twisting?
Making misrepresentation of policies for the purpose of inducing an insured to take out another policy while on another policy
How much is the fine for False Statements?
$1,500 per violation for insurers for providing false or misleading info
What is Boycott, Coercion, Intimidation?
Unfair practice that results in restraint of trade/monopoly in insurance business
What is Rebating/Inducement?
Offer benefits or favors outside of the policy to induce an insured for purchasing a policy.
What is the penalty for Insurance Fraud?
Is a felony, imprisonment up to 4 years, fine up to $50,000
What is the penalty for Conspiracy to Defraud a Health Care Provider?
A person who enters into an agreement to defraud punishable by imprisonment 10 years, or $50,000 or both
What is the penalty for a False Report of Death or Sickness?
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
What is the penalty for Fraud statement or misrepresentation in an application?
Guilty of misdemeanor, subject to imprisonment 30 days to 1 year, or fine of $100 to $500, or both
What is the purpose of Michigan Property and Casualty Guaranty Association?
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
What is the Michigan Casualty (liability) Insurance Cancellation notice requirement?
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)
What is the purpose of Michigan Essential Insurance Act?
To make personal auto and home insurance available to all Michigan citizens.
Michigan Senior Discount
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.
How many days must the insurer provide in advance of nonrenewal (termination?) in Michigan?
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.
Michigan Dwelling/HO Losses Are Payable ___ days after insurer receives proof of loss
30 Days not 60 Days.
