Rules & Regulation Flashcards
What is an insurance Contract?
Policy & App, agreement Between policy owner and insurer; for consideration, indemnify insured at loss
Acts considered Transacting Insurance?
Solicitation, negotiations preliminary, execution of insurance contract, transaction matters, insuring
Consequence: Issue ins. Contract under an unauthorized insurer
Held personally liable, suspension or revoke license, max fine of $2500
Commissioner order replacement of policies
Days foreign or alien insurer has to plead, answer to commissioner if suit is brought against?
40 Day
Wa Life & Disability Ins Guaranty Association
Protects, $500,000 max
Wa Life & Disability ins guaranty Assoc Two Accounts ??
Disability, Life Ins and Annuity
What’s a Fraternal Benefit Society?
Charitable not ins, Ins Benefits for member w lodge religious org, fraternal org.
No property or liability
Commissioners Gen Powers ?
ACMIIDA
Adopt Rules
Conduct Exams
Maintain Confidentiality
Issue cease and desist order
Issue insurance license
Disseminate information
Appoint Chief Deputy Commissioner
Purpose of the Commissioners ability to exam insurance companies ? How often?
Ensure companies remain SOLVENT, following state laws
As often as necessary, every 5years
Days to respond after notice of hearing?
90 Days
Days Commissioner has to hold hearing for temporary suspension?
30 Days
Days in advance filings should be made before issuance? Disapprove?
30 Days
15 days Disapprove
Max Days for temp license?
180 Days
Temp license for who?
Spouse of producer who dies for prod recovery, sale of business, training
Member or employee
Designee for producer enter active service
Insurer must file a notice of appointment in how many days?
Will receive verification?
Days to be deemed ineligible?
15 Days
30 Days
10 Days
License Renewal Period ?
Initial: last day of birth month plus a year
After: 2 Years
Late Renewal Fees
First 30: 50%
31-60 Days: 100%
61-12 months: 200%
DRLP
Designated Responsible Licensed Person serves what purpose to an insurance company ?
Responsible to ensure insurer is in compliance with Laws
Suspension notice for Felonies ?
15 days
Suspension period for felony?
No longer than 12 months
Consequences for transacting insurance
w/o a license?
Class B Felony
Cease and desist
Suspend or revoke
No more than 25,000$
Fines for licensed found guilty of violating insurance code?
1,000$ for each offense
Paid fully within 15 - 30 Days
Receipt should contain ?
Prod. Name and address
Insurers full name
Name of person who paid
Amount received
Identity of contract and discript
Commingling constitutes?
Each willful violation is a misdemeanor
Days to reply to Commissioner for inquiry regarding business of ins?
15 Days
If compensation includes a fee producer must disclose?
Full Amt paid, full Amt of commission, explanation, full name of insurer
Commission Disclosure must be maintained for how long?
5 Years
What is the Fair Credit Reporting Act?
Establish procedures consumer reporting agencies must follow,
Protects consumers
Consumer Report
Credit, character, reputation, habits
Investigative Consumer Report
obtained thru investigation and interviews w friends and associates
Must advise client 3days of report made
How many years for willfully obtaining info on a client under false pretenses?
2 years
$2500
Unlawful insurance fraud punishment.?
Embezzlement?
10-15 Years
+5k
Federal Law 18 USC Section 1033
Anyone who violates the Violent Crime Control
need LETTER OF CONSENT
Felony conviction = 5 Years
Federal Law 18 USC Section 1034
Anyone who violates 1033,
Civil Action
50,000$ per violation
What is Can Spam?
Set rules for commercial email and right to reject them.
Can Spam must contain ?
Opt out
W/in 10 business days
Can spam violation subject to?
Each violation 16,000$
$250 per non compliant email
What is the Gramm Leach Bailey Act
Can’t disclose no public personal info to third party
Gramm Leach Bailey Requires what 2 disclosures?
Policy purchased
Disclosure of protected info
National Do Not Call List time period ?
Must consult the registry how often?
8am - 9pm
Every 31 Days
Affordable Care Act (ACA) Patient Protection and Affordable Care Act (PPACA) serve what purpose ?
Make sure us resident have affordable access to health care
The ACA provides what and for who?
Premium tax credits
Lower health care costs for Lower Income
ACA is protection for who ?
Individuals with pre existing conditions
