Unit 38: All Licensing Candidates Flashcards
Page 624 (Note says these will be on the test)
What does “Commissioner” mean?
The Commissioner of Insurance of KY (duh :-)
What does “Department” refer to?
Dept of Insurance of KY (unless otherwise indicated)
What are the 3 Types of Insurer Authority and what do they mean?
- Domestic insurer (an insurer formed under the laws of KY)
- Foreign insurer (an insurer formed under the laws of any state besides KY)
- Alien insurer (an insurer formed under the laws of any other country other than US)
What is a “certificate of authority?”
certificate issued by commiss showing that insurer can transact insur in KY
What is an “authorized insurer?” (aka “admitted” per a note)
an insurer that holds a current cert. of authority issued by commiss.
What is an “unauthorized insurer?” (aka “non-admitted” per a note)
an insurer that does NOT hold a current cert. of authority
Page 629
What is “reinsurance?”
A contract where originating insurer gets insurance for itself (called assuming insurer or reinsurer).
- Note: This was Bampa’s career, reinsurance. He explained it as when an insurance policy was going to be bigger than what his company could cover, his insurance company would have to get “reinsurance” to help carry the load in case of a claim.
Insurance commissioner.
Note says there could be 4 questions out of this.
What is the insurance commissioner? Duplicate ?
Head of KY Dept of Insur.
How is the Commissioner chosen?
Appointed
Who appoints the commiss?
Governor (with consent of senate)
How long is the appointment for?
No more than 4 years
Page 630
What happens if you are a licenses insurer and you move or change your name?
Must inform commiss in writing of any change (address/name) within 30 days of change.
What could happen to people who willfully violate rules, regs, subpoenas, orders from commiss?
- suspension
- revocation of license/cert of authority
- fined
Commiss can do ALL these EXCEPT send someone to jail
Page 634
Define agent
Indiv or business entity appointed by an insurer to sell or solicit applications for insurance
(seems like you outta know this by now :-)
Page 637
What are the qualifications to be a licensed agent?
- 18 years at least
- fulfilled residency requirement
- trustworthy, reliable, good reputation (uh oh :-)
- competent to use the license he/she has:
- completed 20 hours of course study per line of insurance (except for limited lines licenses)
- passed exams required by commiss for licenses you’re seeking except for limited lines licenses)
- paid fees
- financially responsible to use the licenses he/she has:
DAVID, look at page 637 bottom. I don’t know how to word this or what they are trying to say
Page 639
What is an [insurance] consultant?
one who, as an independent contractor in relationship to his client, for fee or compensation other than from an insurer, advises people looking for insurance
Page 645
What is “controlled business?”
Insurance business that you write for people you know, only to serv your own interests, covering yourself or members of your family
Page 646
Who has to pass a written exam?
Someone applying for any license a line of insur, unless exempt
Page 647
Who is exempt from prelicensing classes and exams?
Any applicant for a license covering any law of authority who already has a similar license in KY (other than a temp) “within the 12 months next preceding date of application.” (Huh? Word vomit.)
Page 648
LOOK at page. I have NO idea what the heck to ask?
English please!!
Page 653
Handwritten note, but not highlighted:
“Must be in compliance by the last day of your birth month in the year your license renews odd or even”
What must a licensed insur agent do every two years?
complete a minimum of 24 hours of continuing ed courses. 3 of the 24 hours must be on “ethics.”
Page 655
What are temporary licenses and how do you get one?
Commiss can issues a temp license for max of 180 days without requiring an exam or pre-licensing course if commiss deems the temp license necessary
Page 656
What must indiv and business with a KY insur license do regarding place of business?
maintain a place of business in the state of KY that is accessible to public where licensee principally conducts transactions
