insurance regulation
temporary insurance producer license to
-The surviving spouse, next of kin, or a personal representative of a deceased or disabled producer -Disability may be the result of sickness, injury, and mental or physical disability
6 CE hours
All other licensees transacting insurance must complete ___ for each line
nonresident agent or broker
An examination is required of applicants for similar licenses in the other state.
30 days of either the date of arraignment or final disposition of the action
Any agent, broker, or agency that has violated an insurance law and as a result has an action taken against them in another jurisdiction or by another governmental agency in the state must report such action to the Director
insurance consultant
Any corporation, partnership, or limited liability company (LLC) engaged in the business of insurance consulting may become licensed as
$500 fine
Any person failing to provide the required notification may be subject to a fine of up to ____ per violation, suspension of the person's license, or both
fine up to $500
Any person violating the Insurance Code regulations pertaining to licensing, after notice and hearing, may be subject to an administrative
24 CE hours
Licensees are not required to complete more than
nonresident agent or broker
The state in which the person resides accords the same privilege to residents of Nebraska (Reciprocity)
30 days
This hearing must occur within ___ of the Directors receipt of the demand
consultant
counsels or advises people, for a fee regarding the advantages and disadvantages, insurable risks, benefits, coverage, or provisions of any insurance policy that could be issued in the state
life insurance
coverage on human lives, including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income
personal lines property and casualty insurance
coverage sold to individuals and families for primarily noncommercial purposes
Examinations
developed and conducted under the rules and regulations established by the Director
purpose of licensing
ensure that a producer meets educational and ethical standards required to fulfill producer's responsibilities to the insurer and to the public
business entity licenses issued under the Insurance Producers Licensing Act
expire on April 30 of each year
all producer licenses
expire on the last day of the month of the producer's birthday in the first year after issuance in which his or her age is divisible by two
Coercion
forceful act or threat aimed to influence a person to act against his or her will
1 year
good cause extension won't exceed
individual is required to
have a producer's license in order to sell, solicit, or negotiate insurance in the state of Nebraska
surplus lines department
in consideration of the payment of the license fee, may issue a surplus lines license, revocable at any time, to any individual who currently holds an insurance producer license or to a foreign or domestic corporation
accident and health or sickness
insurance coverage for sickness, bodily injury, or accidental death and may include benefits for disability income
variable life & variable annuity products
insurance coverage provided under variable life insurance contracts, and variable annuities
licenses
may be renewed within the 90-day period before their expiration dates
The Director
may make arrangements including: •contracting with an outside testing service •for administering examinations •collecting a nonrefundable fee from those who apply to take the examination
Deliberately false statements on the application
may result in: •denial •suspension •revocation of the license
agents/producers
must be appointed by each company they represent and licensed to sell the insurance companies products
3 hours of study
must be completed in courses related to insurance industry ethics
insurance consultant
must designate an individually licensed consultant who is an officer of the corporation or a member of the partnership or LLC and has substantial interest in or is an active participant in the management of the licensee, and who will have full responsibility for all insurance consulting transactions of the licensee
individual applicant for a consultant license
must submit the application to the Director, pay the required fees, and meet requirements
Exempt
not subject to an obligation
Commission
payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium
the Director may issue a statement of charges and hold a hearing for any purpose deemed necessary
practices, if the Director suspects that an insurer or its agent has committed a violation or is engaged in an unfair trade practice
surplus lines licensee
procures insurance on behalf of an insured from a qualified unadmitted insurer
property and casualty insurance
property covers the direct or consequential loss or damage to property of every kind; casualty covers legal liability, including that for death, injury, or disability or damage to real or personal property
Surplus lines insurance coverage
provides risk protection for parties who have sought insurance through authorized insurers and who, after diligent efforts, have been unable to procure such insurance
public adjuster
refers to any person who, for compensation, prepares property claims and negotiates settlements on behalf of an insured
All business entity and producer licenses
renewed within the 30-day period after their expiration dates will be deemed to have been renewed before their expiration dates
producer
represents one or more insurance companies (insurers)
Each insurer
sells, solicits, or negotiates any form of limited line credit insurance must provide a program of instruction approved by the Director to each individual whose duties will include selling, soliciting, or negotiating limited line credit insurance.
disposes of the business
temporary license cannot continue if the owner or the representative
within the scope of the Insurance Code
the Director may issue a statement of charges and hold a hearing for any purpose deemed necessary
if the Director denies an application for a license or does not renew a license
the Director must notify the applicant in writing of the reason for denial
p&c agents
can usually bind coverage for their clients
every 2 years
continuing education (CE) requirements
unfair trade practice
-Any person who is charged with engaging in an _____ will be subject to a cease and desist order -may be required to pay a monetary fine of $1,000 per violation, not to exceed the aggregate penalty of $30,000
applicant for a resident producer's license requirement
-Be at least 18 years of age Has not committed any act that is a ground for denial, suspension, or revocation -Has completed a prelicensing course of study for the lines of authority for which the person has applied -Has paid the required fees -Has successfully passed the examinations for the lines of authority for which the person has applied
applicant for agent requirements
-Have attained the age of majority -Be competent, trustworthy, financially responsible, and of good personal and business reputation -Have been licensed as an agent, broker, or consultant in Nebraska or another state for the 3 years immediately preceding the date of application or have successfully completed a specific program of study which has a broad national or regional recognition as determined by the Director
insurance producer license
-are subject to renewal and must be renewed every 2 years, by the last day of the month of a producer's birthday -may be renewed within the 90 days prior to expiration.
obtaining a license requirements
-education & examination -age & residency -good character •application & fees
types of insurance producer licenses
-life insurance -accident and health or sickness -property and casualty insurance -valuable life and variable annuity products -limited line credit insurance -any other line of insurance permitted under Nebraska laws, rules, or regulations
crop insurance
-limited line insurance for damage to crops from unfavorable weather conditions, fire, lightning, hail, or any other peril subsidized by the Federal Crop Insurance Corporation (FCIC) _including multi-peril crop insurance
business entity acting as an insurance producer
-required to obtain an insurance producer license -must pay the required fees and designate a licensed producer responsible for the business entity's compliance with Nebraska's insurance laws, rules, and regulations
Licensing regulations set out
-requirements -procedures -fees relating to the qualification, licensure, and appointment of insurance producers
temporary insurance producer license to
A member or employee of a business entity (licensed as an insurance producer) upon the death or disability of an individual designated in the business entity license
uniform application
A person applying for a resident insurance producer license must submit a ___ to the Director
$1,000 per violation
Any person who violates the Insurance Producers Licensing Act may be subject to a fine of not more than
A person will not be deemed to be acting as an insurance consultant
If any attorney, actuary, certified public accountant, teacher of insurance, or trust officer of a bank consults during the normal course of his or her usual business, and only incidental to such business
3 CE hours
Crop insurance licensees must complete
temporary insurance producer license to
In any other circumstance approved by the Director in the best interest of the public
CE requirements
Every licensed producer in this state is required to complete
30 days
Every producer licensed in Nebraska must notify the Director, in writing, within ___ days, of any change of legal name, email address, or residential and business address
CE requirements do not apply
For whom an examination is not required
A person will not be deemed to be acting as an insurance consultant
If a licensed agent gives advice incidental to the normal course of the agent's insurance business and does not charge a fee other than the commissions received from the insurance written
A person will not be deemed to be acting as an insurance consultant
If a person employed as a risk manager consults during the normal course of his or her full-time employment to the company by which such person is employed
$15,000 per violation, up to $150,000 total
If a violation is willful and flagrant, the fines are
21 CE hours
Licensees who are not insurance producers will be required to complete
21 CE hours
Life, accident and health or sickness, property, casualty or personal lines property and casualty insurance licensees must complete
12 months
Producers who allow their license to lapse may reinstate the same license, without passing a written examination, within ____ of the due date of the renewal fee.
180 days
Temporary producer licenses may be issued for the maximum
good cause is shown
The Director may grant an extension of the 2-year licensing period if
National Association of Insurance Commissioners
The Director may utilize the national insurance producer database or any other equivalent uniform national database, for the licensure of an individual or an entity as a surplus lines producer and for renewal of such license
nonresident agent or broker
The applicant otherwise complies with all provisions of the licensing requirements
nonresident agent or broker
The appropriate official in the other state certifies that the applicant holds a currently valid license as agent or broker and has either passed the written examination or held a license prior to the time such examination was required, and that license is in good standing.
temporary insurance producer license to
The designee of a licensed producer who enters active service in the armed forces of the United States
cease and desist order
The person who receives a _____ is legally required to stop the act in violation
separate producer license
The sale or solicitation of crop insurance requires a
cease & desist order
Whenever it appears that any person is violating an insurance law of Nebraska or any rule or regulation made by the Director, the Director may issue a
CE requirements do not apply
Who hold any exempt limited licenses
CE requirements do not apply
Who only transact -credit life or credit accident and health insurance -travel insurance -self-service storage facility insurance
Statute
a formal written law enacted by legislature; insurance statutes can be found in the state Insurance Code
Reciprocity
a mutual interchange of rights and privileges
Solvency
ability to meet financial obligations (e.g. an insurance company maintains enough assets to pay claims)
public adjuster
also applies to any person who directly or indirectly solicits the business of investigating or adjusting losses or advises an insured about first-party claims for loss or damage to real or personal property of the insured
Business entity and producer licenses
also may be renewed within the 30-day period after their expiration dates upon payment of a late renewal fee in addition to the applicable fee otherwise required for renewal of business entity and producer licenses
To secure a crop license
an applicant must pass an examination related to the specifics of crop insurance.
surplus lines applicant
an individual, the application for the license must include the applicant's social security number
Inducement
an offer that attempts to influence the other party
Subpoena
an order for someone to appear as a witness or submit testimony or evidence
Class IV misdemeanor
any person violating the insurance code
public adjusters
are employed by an insured to protect the insured's interest, usually in respect to property damaged by fire, wind, or other covered perils
life & health agents
authorized to solicit, receive, and forward applications for insurance to their companies, but they generally do not have authority to bind coverage or to alter or modify coverage
Director
the head of the state Department of Insurance
the Director must refuse
to issue nonresident licenses to those whose state or national laws prohibit them from holding those licenses
insurance code
to provide counsel, a person must hold a license as an insurance consultant under the
Cease and desist
to stop or discontinue
Insolvent
unable to meet financial obligations
Insurance producer licenses remains in effect perpetually
unless revoked or suspended and as long as the renewal fees are paid and the continuing education requirements are met
The Director may grant a licensed insurance producer
who is unable to comply with license renewal procedures due to military service or some other extenuating circumstance, such as a long-term medical disability, a waiver of those procedures.
30 days
within ____ the applicant may make written demand to the Director for a hearing on the matter of denial