Section G Flashcards
(45 cards)
fwhat happened in 1752
first american property insurer in philadelphia
what happened in 1792
pennsylvania was the first state to chrater insurers
3 things about New York as a leader in regulating insurance
10% retaliatory premium tax
required insurers to maintain reserves for unearned premiums
1859 created first DOI
what happened in 1871
national insurance convention formed (NIC)
early 1900s insurers also started writing auto, but
DOIs did not allow multiline insurers until after 1945
in 1923 NCIC passed
resolution to bring about repeal of state anticompact laws, trying to deal with ineffective competition leading to insolvencies
amendment of the Clayton act requiring price differences to be justified by reduced operating costs
Robinson-Patman Act
6 state surplus lines laws
- surplus lines broker is accountable for placing business with eligible nonadmitted/unauthorized companies
- set forth the rqeuirements for nonadmitted/unauthorized companies
- domiciliary jurisdiction reviews insurers for solvency
- licensicng only available to producesers who already have PC licenses
- licensee must place business with insurer with adequate capital and surplus
- diligent search
GLB prohibits national banks from
forming subsidiaries to underwrite insurance
What case says that licensing of insurance companies and agents is part of the business of insurance
Robertson v California (1946)
What case says that selling and advertising of insurance policies is part of the business of insurance
FTC v National Casualty co (1958)
NFIP established in ___ as ____
1968 as a federal response to a private insurance industry uninsurable risk
ERISA was enacted to
curb abuse in private pension system and in employee benefit plans
3 federal agencies that affect the insurance industry
FBI (detect and prosecute fraudulent activities)
Environmental Protection Agency
Interstate Commerce Commision (minimum policy limits, forms & endorsement layout, thirty days’ written notice before canceling)
a couple examples of additional requirements for the commissioner’s annual report
annual report of fraudulent claims
annual report on the profitability of a specific line of insurance
Role of the NAIC
coordinate the regulation of insurers operating in multiple jurisdictions
day to day regulation of insurance is done by
the executive branch, either by a separate department/division or buy a unit that is responsible for more than just the admin of insurance laws
9 regulatory departments and functions
licensing regulating coverage and pricing conducting examinations licensing producers regulating claim adjusters fraud determining the need for insurer receivership providing consumer services monitoring the investment activities of insurers
most states have prior approval for
coverage filigns
about half of the states have prior approval for
rate filings
two examples of statistical agents and their services
ISO (insurance services office) : auto, HO, commercial fire & FL
NCCI (national council on compensation insurance) : WC
statistical agent/ prospective loss filings / actuarial services
interstate compacts
binding agreements among states that subordinate individual state lawmaking
how many states have taken some action limiting use of credit scoring
48 states (transparency, prohibiting use for cancel, banning use for existing costumers)
how many states have banned the use of credit history info
4
