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Insurance Exam > Section 1.1 > Flashcards

Section 1.1 Flashcards

Licensing Process

1
Q

Producer

A

an insurance agent, broker, consultant, reinsurance intermediary, excess lines broker, any other person required to be licensed to transact insurance.

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2
Q

License Qualifications

A

-18 years old
- apply to the Superintendent
- fulfill licensing requirements
- pass a written examination
- pay an application fee

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3
Q

Home State

A

any US state or territory, including the District of Columbia in which a producer is licensed to act.

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4
Q

Negotiation

A

the act of conferring directly with or offering advice directly to a purchaser about the particular contract of insurance

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5
Q

Sell

A

the exchange of contract insurance for compensation (money)

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6
Q

Solicitation

A

attempting to sell or asking a person to obtain a particular kind of insurance from a particular party.

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7
Q

Who can be licensed?

A

any individual or entity that acts as an insurance producer, agent, broker, consultant, adjuster, reinsurance intermediary, or excess lines broker.

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8
Q

Agent

A

a person employed to sell insurance policies.

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9
Q

Broker

A

a person that solicits, negotiates, or sells insurance for an insurance in exchange for commissions.

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10
Q

Consultant

A

any person who receives a fee for providing insurance counseling or advice.

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11
Q

Independent Adjusters

A

any party who, for compensation, investigates and adjusts claims arising under insurance contracts on behalf of the insurer.

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12
Q

Public Adjuster

A

any party who, for compensation, negotiates or settles claims for loss or damage to property on behalf of the insured.

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13
Q

Reinsurance Intermediary

A

a broker who acts as an intermediary between reinsurers and ceding companies

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14
Q

Excess Lines Broker (Surplus Lines Broker)

A

A licensed professional who procures insurance policies from non-admitted insurers for high-risk clients.

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15
Q

Nonresident

A

an individual who qualifies to be licensed due to holding a similar license in another state or foreign country. The applicants home license must be reciprocal.

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16
Q

Reciprocal

A

grants a nonresident license to residents of NY on the same basis.

17
Q

Business Entity

A

a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity

18
Q

When does a Business Entities license expire?

A

June 30 of odd numbered years for life insurance, variable life and variable annuity insurance, or accident and health insurance and sickness lines of authority,
June 30 of evened numbered years for accident and health or sickness, property, casualty, or personal lines

19
Q

When is a Temporary Licensed issued?

A

when the original producer dies or becomes disabled, it is issued for up to 90 days with a renewal term of additional 90-day terms not exceeding 15 months.

20
Q

Who may receive a Temporary License?

A
  • an executive or administrator
  • the surviving next of kin
  • an officer or director
  • any surviving member of a firm or association who is a licensed producer
  • the designee of a licensed producer
21
Q

License Expiration

A

licenses to individuals born in odd numbered years will expire on their birthday in each odd-numbered year, and vice versa for even numbered years.

22
Q

How to Renew a License

A

File a renewal application, prove continuing education requirements, pay required fees.

23
Q

How many continued education points are required every 2 years?

A

15

24
Q

How many days does a licensee have to notify the Department of Financial Services of a change of address? (including email)

A

30 days

25
Q

Assumed Names

A

Every licensee must notify the Superintendent upon changing a legal name.

26
Q

If the Superintendent decided to conduct a hearing, how long do they have to provide written notice?

A

10 days

27
Q

Who may conduct a hearing?

A

The Superintendent, or any designated salaried employee of the Department authorized by the Superintendent.

28
Q

How many days does an individual have to pay a civil penalty?

A

120 days

29
Q

What is the penalty for violation of insurance laws?

A

up to $500 per violation, unless state law provides a different amount, with a maximum of $2,500.

30
Q

How long does a licensee have to pay a penalty? What happens if not?

A

20 days, or their license may be suspended or revoked.

31
Q

What is the maximum fee for a willful violation?

A

$1,000 per offense.

32
Q

When can the Superintendent revoke a license?

A

after giving notice, and holding a hearing within 10 days after giving written notice.

33
Q

Who does the revocation or suspension of a license also affect?

A

the sublicensee’s

34
Q

How long must someone wait after revocation of a license to apply for a new one?

A

one year

Insurance Exam (7 decks)

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