Insurance Regulation
How much is the late fee for renewing your license?
$10
Requirements for License Applicant
-resident of NYS -at least 18 years old -submit a standard application for licensing on a form approved by superintendent -fulfill prelicensing education requirement (20 hr single line, 40 hr for personal lines, 90 hrs for property/casualty agent) -pay application fee -pass exam
The written exam is not required for the following individuals:
-ticket-selling agent -individual with license revoked -nonresident licensee currently licensed in another state -applicant who has already passed the written exam
If a license is revoked how long must a person wait to re-apply?
1 year
If any business is transacted while not authorized, a penalty of $_______ will be levied on the first violation, and $_______ for each subsequent violation
1,000, 2,500
Hearings for disciplinary actions will be held at least ____ days after notice is served
10
The superintendent may refuse to issue, suspend, or revoke a license if an applicant or licensee received more than ___% of the aggregate commissions during a ____ month period from controlled business
10, 12
a personal convicted of a felony may apply for a ____ to transact insurance business.
1033 waiver
Every insurer writing private or commercial insurance must file a fraud prevention plan for the detection, investigation, and prevention of fraudulent insurance activities within _____ days
120
To appoint an agent, a notice of appointment must be filed and approved by the Superintendent within ___ days from the date the agency contract is executed
15
To renew a license, any resident agent must complete ____ hours of instruction by an approved provider of continuing education biennially
15
Insurance licenses need to be renewed every ____ years, and must be renewed ____ days before expiration. It will expire on your birthday depending on the year
2, 60
There can be a penalty of up to $____ per day of delay of annual statement of financial conditions, not exceeding $_____ for each failure
250, 25,000
Domestic property/casualty insurance company will be examined one every ___ years
3
A licensee must report to the Superintendent of Insurance any administrative action taken against the licensee in another jurisdiction or by another governmental agency in this state within _____ of the final disposition of the matter.
30
The Department of Financial Services must be notified within ____ days of any changes of address: resident, business, or email
30
Domestic life insurer must be examined at least once every ___ years
5
A person who violated a cease and desist order is liable for penalties up to $_____ for each violation
5,000
Penalties for violation of insurance licensing laws may be up to $____ for each offense, up to $_____ aggregate for all offenses
500, 2,500
Insurers must keep records of their insurance transactions for how many years after the transaction was completed?
6
After a cybersecurity event has been discovered, an insurer or its agents must report the event to the Department of Financial Services within ____ hours
72
If a person licensed in another state moves to NY and wants to become a resident agent or broker, he/she must apply within _____ days of the cancellation of the applicants previous license
90
Fair Credit Reporting Act
A federal law that established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant and properly used.
cease and desist order
An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.
Investigative Consumer Report
An extensive report that includes information on an individual's character, general reputation, personal characteristics, and mode of living through investigation. These reports cannot be made unless the consumer is advised in writting within 3 days
exemption from licensing
An insurance producer license is not required of any officer, director or employee of an insurer or organizations employed by insurers, provided they are not directly or indirectly involved with the actual sale of an insurance contract and do not receive any commission.
controlled business
Any coverage written on a producer's own life, health or property, and/or that of the producer's immediate family or business associates
rebating
Any inducement offered in the sale of insurance products that is not specified in the policy. Articles of merchandise are not considered rebates if valued at $25 or less
public adjuster
Any person, firm, association or corporation, who for a commission acts on behalf of the insured in negotiating a settlement of a claim for loss or damage to property.
Every entity transacting insurance in this state must file with the office of the Superintendent an annual statement on or before ______ ___ of each year showing its financial condition
March 1st
The insurer must provide notice to individuals about its privacy policies and practices,
No later than the time an insurance policy is delievered
refuse to issue a license
The Superintendent may refuse to issue any insurance agent's license if the proposed licensee is found not to be trustworthy and competent, or has not complied with any prerequistes.
Consumer Reports
Written and /or oral statements regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources.
business entity
a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity
agents
a person authorized by an insurer to solicit, negotiate, and obtain insurance contracts; represents the insurer, not the insured
false advertising
advertising that is misleading in some important way, including the failure to reveal facts about possible results from using the advertised products
cybersecurity policy
an approved written document that identifies the policies and procedures in place to keep the information system safe
nonresident insurance agent
an individual who is a resident of another state, who is licensed to act as an agent in the state of NY
producer
an insurance agent, title insurance agent, insurance broker, reinsurance intermediary, excess lines broker, or any other person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance
inducement
an offer that attempts to influence the other party
information system
an organized system that collects, maintains, and transmits electronic Nonpublic Information
Nonpublic Information
any business-related information that is not publicly available information that if misused could jeopardize a covered entity's security and operations
cybersecurity event
any effort to obtain unapproved access to an information system whether successful or unsuccessful
covered entity
any person operating under a license, registration, certificate, or similar authorization under the Banking Law, the Insurance Law, or the Financial Services Law
brokers
any person, firm, association, or corporation who solicits, negotiates, or obtains insurance for an insured in exchanged for a commission; represents the inured, not the insurer
independent adjuster
any person, firm, association, or corporation who, for a commission, acts on behalf of an insurer in the work of investigating and adjusting claims
home state
any state, district, or territory of the United States in which an insurance producer maintains his/her principal place of residence or principal place of business, and is licensed to act as an insurance producer.
At the hearing, the aggrieved party has the opportunity to:
appear in person and by counsel give evidence why an order should not be made inspect all documentary evidence and witnesses obtain witnesses on the person's behalf
solicit
attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular licensed insurer
discrimination
discrimination of rates, premiums, or policy benefits for persons within the same class or with the same life expectancy is illegal
continuing education (CE) rules
established to protect the public by maintaining high standards of professional competence in the insurance industry, and to maintain and improve the insurance skills and knowledge of licensed producers
sell
exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurer
guaranty association
formed to protect policy owners from the incompetence and insolvency of insurers
insurance fraud prevention act
intended to permit the Superintendent and the department to utilize their expertise to investigate and discover insurance fraud
Commissions may be split among agents/brokers provides that they are ____ with the _____ insurer
licensed, same
Any violations of the Insurance Code provisions will be considered a _______ unless specifically categorized as a felony
misdemeanor
defamation
occurs when an oral or written statement is made that is intended to injure a person engaged in the insurance business
consultants
offer advice to the public about the benefits, advantages and disadvantages of insurance policies for a fee.
Superintendent Duties
supervise insurance business, licensing, approve policies and forms, enforce insurance laws and impose penalties for violations, and conduct examination, investigations, hearing
embezzlement
taking for one's own use in violation of trust; stealing (of money placed in one's care)
negotiate
the act of directly conferring with or offering advice to a purchaser or prospective purchaser of a particular insurance contract concerning any of the substantive benefits, terms or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from licenses insurers
Reciprocity
the obligation to return in kind what another has done for us
cybersecurity programs
these identify cybersecurity risks, monitor and recognize cybersecurity events, and recover/report
solvent
to have the assets to meet its financial obligations
Temporary License
used to serve existing business; issued in the case of death, disability, or military service; lasts for 90 days