State Laws - Insurance Regulation Flashcards
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?
Home State
The attempt to sell insurance or to ask or encourage a person to apply for a particular type of insurance.
Solicit
The exchange of insurance for money or its equivalent on behalf of a licensed insurer.
Sell
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
NYS Licensing Requirements to become an Agent
The process of one individual discussing with another person a specific insurance contract and its major benefits, terms and/or conditions.
Negotiate
To sell, solicit, or negotiate insurance in NY - including an insurance agent, insurance broker, reinsurance intermediary, or excess lines broker.
Insurance Producer
Types of Licenses:
Works for their clients and is paid a fee by their client
Broker License
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.
Temporary License
Types of Licenses:
Is an individual, firm, or corporation offering advice for a fee.
License is renewed yearly and expires on March 31st.
Consultant License
Types of Licenses:
Acts on behalf of an insurance company in investing and adjusting claims.
Adjuster License
Types of Licenses:
FILL IN
Agent License
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.
Non-resident
Maintenance and Duration:
What is the amount of time you have to report disciplinary actions?
30 days
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
License Renewal
Maintenance and Duration:
A name other than the licensees legal name = ____________
The name change needs to be approved by the Superintendent
Assumed Names
Maintenance and Duration:
You must complete this every 2 years and it is a 15 hours of instruction
Continuing Education (CE)
Maintenance and Duration:
All licensees are required to notify the Superintendent of a __________ ___ _____________ within 30 days of the change.
Change in Address
Disciplinary Actions:
The Superintendent must give a non-resident licensee a _____ ______ __________ __________ before revoking a license.
30 days written notice
Disciplinary Actions:
Instead of revoking or suspending an insurance license, the Superintendent may require a licensee to pay a penalty of $___________ per offense.
$500
Disciplinary Actions:
Failure to pay the penalty within ______ days results in revoking or suspending the license.
20 days
Disciplinary Actions:
The penalty for violating a cease and desist order is up to $________ per violation.
$5,000
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.
1 year
Disciplinary Actions:
Before a resident license can be revoked or suspended, the Superintendent must give the licensee and all sublicenses a hearing with ____ ______ __________ __________.
10 days advance notice
Disciplinary Actions:
How many days of written notice must the Superintendent provide to the licensee before holding a hearing?
10 days
Disciplinary Actions:
What is the MAXIMUM penalty amount for all offenses?
$2,500
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
Department of Insurance
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
Exclusions of the Superintendent
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
The Superintendent
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?
Appointment of Agent
Company Regulation:
Authorized insurers must file annual financial statements for the past years with the Superintendent by March 1st. What is this called?
Solvency
Company Regulation:
Allows insurers to sell in the state making them admitted and authorized. What is this called?
Certificate of Authority
Company Regulation:
Knowingly misrepresenting to claimants pertinent facts or policy provisions relating to claims. What is this called?
Unfair Claim Settlement Practices
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?
Termination of Agent Appointment
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.
Unfair Discrimination
Unfair and Prohibited Practices:
The act of making false statements or spreading damaging information about a person or entity that harms their reputation.
Defamation of Insurer
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
Rebating
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.
False Advertising
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?
Controlled Business
Licensee Regulation:
Means the agent submits premium collected to the insurance companies.
Funds = __________ ______________
Fiduciary Responsibility
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
Fair Credit Reporting Act
Federal Regulation:
Interstate transactions are subject to fines and imprisonment for up to 10 years. What is this?
Fraud and False Statements
