State Supplement Flashcards
Insurance is an enterprise deemed to be
Vested in public interest
DFS stands for
Department of financial services.
The fair credit reporting act mandates
Confidential, fair and accurate reporting of info on consumers
What are the two types of credit reporting acts
Consumer report
Investigative report
conducting insurance business after previously being convicted of a felony without prior authorization from state commissioner
A fine
Minimum 5 years imprisonment
1033 form is?
Waiver form to apply for insurance licensure when having being convicted of a crime
TRIA
Terrorism risk insurance Act
-reinsurance govt sponsored to ensure property causality programs available for acts of terror
Gram Leach Bliley act or GLBA was enacted to
Enact privacy legislation For clients Personal identity, financial status, health information
Compensation disclosures must be provided to the insured within five days by insurer and retained for a minimum of ?
3 years after
The superintendent of financial services has broad powers to regulate insurance law but cannot
Enact or create insurance or banking law
Examination of insurers records occur every ___ years with the state
3
Insurers found guilty of Freud fined ____ per offense up to _____ aggregate
$500
$2500
Agents represent _____
Brokers represent _____
Insurers
Insured
A binder is
A temporary contract of insurance until the insurer can evaluate the insureds risk
Express authority
Verbal agreements or “binding authority”
Implied authority
A licensed agent has the implied authority to purchase necessary materials to complete business without having to “ask” permission
Apparent authority
From the view of consumer
- agent has the express and implied authority to bind a contract to provide immediate coverage. If a loss occurs a client needent wonder about coverage
Insurance waiver
Voluntary relinquishment or abandonment of a known right
Estoppel
Legal bar preventing an insurer to change an agreement after committed to a course of action
Recession
Cancellation of a contract
A representation is
A statement of present or past fact issued to the insurer to obtain insurance.
Misrepresentation
A false representation of the facts
Warranty
Any provision of an insurance contract that guarantees a condition before contract takes effect
Ex, fire suppression or Alarm systems
Insurers should carry professional liability insurance know as
E&O
Errors and Liability insurance
What is the maximum commission allowed prior to gaining a license in NYS?
What is this known as?
10% of aggregate
Writing controlled business
Regarding “diligent effort” to seek authorized insurance
How many placement attempts must occur?
3
What type of license must be held in order to sell “excess lines?”
NY brokers
If excess lines need to be established what is critical for documentation within 45 days?
A certificate of non-availability filed with insurance department.
An insurance consultant represents
The insured
An independent adjuster is
Any person, firm, association, or corp that represents the insurer
Needn’t be licensed
A public adjuster is
Association or corporation on the behalf of insured
Authorized insurance agents receive a “ “
Indicating their authority to do business in NY
Certificate of authority
The superintendent sat any time may revoke or suspend license for a specific cause for ?
The suspension will not exceed the unexpired term of the license
Farm owners coverage E and F scheduled cover
Grain Hay Farm machinery Vehicles and equipment Poultry and livestock
Farm owners coverage F unscheduled provides blanket protection on covered farm personal property and property used in the business of Farming.
It doesn’t cover
Personal property usual to a dwelling (under C)
- animals other than”livestock”
- poultry, bees and fish
- race or show horse
