Producers Licensing Insurers And underwriting Flashcards
Life Analyst Rules
They cannot charge a fee for soliciting or servicing insurance contracts written by the analyst or contracts for which the licensee receives compensation from the insurer. If the analyst is also licensed as a life and disability agent, A WRITTEN STATEMENT MUST DISCLOSE THIS INFORMATION AND STATE THAT THE INDIVIDUAL RECEIVES COMMISSIONS FOR THE SALE OF PRODUCTS.
ANALYSTS CANNOT RECEIVE A FEE UNLESS:
Unless it is based on a written agreement signed in advance of the sale, by the party being charge. This agreement must state:
- The policy owner info and services may be obtained directly from the insurer without cost.
- The service is being performed for a fee
- The amount of the fee
The licensed must retain a copy of each agreement for 3 years
If a person is licensed to act as a broker/agent, he or shall be deemed to be acting as an agent in all transactions with insurers for whom
A notice of appointment of that licensee as its agent has been filed with the Commisioner.
Long Term Care Training Requirements
- Long term care training is required when an agent is transacting accelerated death benefit provisions or riders that REQUIRE services to the chronically ill insured.
- Long Term care training is NOT required when transacting accelerated death benefit provisions or riders that do not require services.
Accident and health agent Licensed to Sell 24 Hour Coverage
24 hour care is the joint issuance of a Disability policy and a Worker’s Compensation policy.
An accident/health insurance agent who passes the exam criteria of Covered California can represent the products of the California health Exchange
Rights Under Agency Law
The authority of insurance agents is contained in a contract between the agent and the principal. Under this authority, the agent, and the insurance company are considered to be one in the same (“the principal”) and are governed by “agency law”.
What are the 4 major rules that are part of the Agency Law relationship
- The agency legally represents the principal
- Contracts made by the agent are contracts of the principal
- Payment made to the agent is considered to be payment made to the principal
- Agent knowledge is assumed to be principal knowledge. The agent is legally, morally an ethically required to disclose any material info discussed or acquired during the application precession to the insurer.
Notice of Appointment
Every life only/and or accident and health licensee who is acting in an agent capacity for an insurance company must have this with the Department of Insurance. The authority to transact insurance under an appointment by an agent or broker becomes effective as of the date the notice is signed.
Solicitation by Life Agent prior to Appointment
A licensed life agent may present a proposal for insurance to a prospective insured on behalf of an insurer and/or submit an application to an insurer without an appointment so long as the insurer submits a Notice of Appointment to the commissioner within 14 days of the receipt of the application
AN organization is no longer eligible to hold a license if
- A partnership dissolves or changes in structure
- An association is terminated
- A corporation is dissolved.
Life agents and Life-Only agents
Those who sell annuity products must satisfactorily complete 8 hours of training in an approved annuity course. In each subsequent renewal period, an additional 4 hour course must be completed
Long term Care Education
Those selling LTC must complete 8 hours of education in CA long term care prior to soliciting individual consumers for the sale of LTC. Insurance, each year for the first 4 years of licensure.
Agency Name, use of name
The commissioner reserves the right to approve any fictitious name other than the bond-file natural name of any insurance agent or broker. Insurance agents and brokers DO NOT NEED the approval of the commissioner to use any earned professional designation. The use of the name Underwriter by agents or brokers in any other context is prohibited.
