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NY Property and Casualty > State Laws - Insurance Regulation > Flashcards

State Laws - Insurance Regulation Flashcards

1
Q

The U.S. location where the person maintains a principal of residence or business, in which the person is licensed to act as an insurance producer. What is the term to describe this?

A

Home State

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2
Q

The attempt to sell insurance or to ask or encourage a person to apply for a particular type of insurance.

A

Solicit

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3
Q

The exchange of insurance for money or its equivalent on behalf of a licensed insurer.

A

Sell

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4
Q

You must be the following to obtain what?
- be at lease 18 years old
- pay the fee
- pass the test
- pass the pre-certification

You DON’T need:
- a college degree
- high school diploma

A

NYS Licensing Requirements to become an Agent

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5
Q

The process of one individual discussing with another person a specific insurance contract and its major benefits, terms and/or conditions.

A

Negotiate

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6
Q

To sell, solicit, or negotiate insurance in NY - including an insurance agent, insurance broker, reinsurance intermediary, or excess lines broker.

A

Insurance Producer

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7
Q

Types of Licenses:
Works for their clients and is paid a fee by their client

A

Broker License

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8
Q

Types of Licences:
If a licensed agent or broker dies the following can take over:
- next of kin
- admin of the estate

The purpose of this license is to wrap up business and keep operations going and renewals coming.

It only lasts 90 days.

A

Temporary License

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9
Q

Types of Licenses:
Is an individual, firm, or corporation offering advice for a fee.

License is renewed yearly and expires on March 31st.

A

Consultant License

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10
Q

Types of Licenses:
Acts on behalf of an insurance company in investing and adjusting claims.

A

Adjuster License

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11
Q

Types of Licenses:
FILL IN

A

Agent License

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12
Q

A ___________ insurance agent or broker is an individual who is not a resident of NY and who is licensed or authorized to act as an insurance agent or broker in the state where they reside.

A

Non-resident

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13
Q

Maintenance and Duration:
What is the amount of time you have to report disciplinary actions?

A

30 days

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14
Q

Maintenance and Duration:
- must be submitted no fewer than 60 days before the expiration of the license to avoid a $10 late fee
- 24 months/2 years
- birth month
- also called “continuing eduction (CE)”
- replacement license fee = $15

A

License Renewal

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15
Q

Maintenance and Duration:
A name other than the licensees legal name = ____________

The name change needs to be approved by the Superintendent

A

Assumed Names

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16
Q

Maintenance and Duration:
You must complete this every 2 years and it is a 15 hours of instruction

A

Continuing Education (CE)

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17
Q

Maintenance and Duration:
All licensees are required to notify the Superintendent of a __________ ___ _____________ within 30 days of the change.

A

Change in Address

18
Q

Disciplinary Actions:
The Superintendent must give a non-resident licensee a _____ ______ __________ __________ before revoking a license.

A

30 days written notice

19
Q

Disciplinary Actions:
Instead of revoking or suspending an insurance license, the Superintendent may require a licensee to pay a penalty of $___________ per offense.

A

$500

20
Q

Disciplinary Actions:
Failure to pay the penalty within ______ days results in revoking or suspending the license.

A

20 days

21
Q

Disciplinary Actions:
The penalty for violating a cease and desist order is up to $________ per violation.

A

$5,000

22
Q

Disciplinary Actions:
Once a license has been revoked, the licensee cannot obtain any type of insurance license in this state for at least ___ ________ from the date of revocation or from the date of a final determination resulting from any judicial review.

A

1 year

23
Q

Disciplinary Actions:
Before a resident license can be revoked or suspended, the Superintendent must give the licensee and all sublicenses a hearing with ____ ______ __________ __________.

A

10 days advance notice

24
Q

Disciplinary Actions:
How many days of written notice must the Superintendent provide to the licensee before holding a hearing?

A

10 days

25
Q

Disciplinary Actions:
What is the MAXIMUM penalty amount for all offenses?

A

$2,500

26
Q

State Regulation:
The place does the following:
- runs insurance
- handles all insurance laws within the state
- enforces all rules and regulations are dealt through this department

A

Department of Insurance

27
Q

State Regulation:
The following are exclusions of who?
- cannot put someone in jail
- cannot put someone’s license on probation
- does not write insurance laws

A

Exclusions of the Superintendent

28
Q

State Regulation:
This person can:
- be appointed by the Govenor
- can enforce rules and regulations as needed to carry out this states insurance laws

This person CANNOT:
- create insurance laws

A

The Superintendent

29
Q

Company Regulation:
The insurer must file a certificate of appointment with the Superintendent within 15 days from the date the agency contract is executed, or submitted. What is this called?

A

Appointment of Agent

30
Q

Company Regulation:
Authorized insurers must file annual financial statements for the past years with the Superintendent by March 1st. What is this called?

A

Solvency

31
Q

Company Regulation:
Allows insurers to sell in the state making them admitted and authorized. What is this called?

A

Certificate of Authority

32
Q

Company Regulation:
Knowingly misrepresenting to claimants pertinent facts or policy provisions relating to claims. What is this called?

A

Unfair Claim Settlement Practices

33
Q

Company Regulation:
A state acknowledged, through the Superintendent, cessation of the business relationship between a producer and an insurer in a given state,

The insurer must notify within 30 days. What is this called?

A

Termination of Agent Appointment

34
Q

Unfair and Prohibited Practices:
When similar risks are treated differently and premiums are not based on relative risk, but factors like race, national origin, or disability.

A

Unfair Discrimination

35
Q

Unfair and Prohibited Practices:
The act of making false statements or spreading damaging information about a person or entity that harms their reputation.

A

Defamation of Insurer

36
Q

Unfair and Prohibited Practices:
Bribing the customer to buy their policy by offering the customer something extra.

Also called illegal inducement

Examples: offering cash or a guaranteed dividend

A

Rebating

37
Q

Unfair and Prohibited Practices:
An insurance corporation - including its officers, directors and agents - cannot issue or circulate any illustration or statement indicating the corporation is permitted to transact business that is not authorized by a certificate of authority.

A

False Advertising

38
Q

Licensee Regulation:
A licensed agent cannot earn more than 10% commissions in a 12-month period on family and people under your control. What is this called?

A

Controlled Business

39
Q

Licensee Regulation:
Means the agent submits premium collected to the insurance companies.

Funds = __________ ______________

A

Fiduciary Responsibility

40
Q

Federal Regulation:
- Insurance companies are allowed to pull our credit
- pulls our credit and then uses that to judge us and determine our premium

The customer can challenge the report

A

Fair Credit Reporting Act

41
Q

Federal Regulation:
Interstate transactions are subject to fines and imprisonment for up to 10 years. What is this?

A

Fraud and False Statements

42
Q
A

NY Property and Casualty (10 decks)

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