Insurance Regulations - A. Licensing

Maintaining a License

-CE every 3 years -Renewal fees -Current name, address -Reinstatement within 12 months

Temporary license

-may be issued for a period not to exceed 180 days without requiring an examination if the Commissioner determines that the temporary license is necessary for the servicing of an insurance business in the following cases: (see notes)

Public adjuster contracts

-must give insureds the right to cancel the contract w/o recourse w/in 3 calendar days of receipt.

Obtaining a License

Education and examination Age and residency Good Character Application and Fees

Insurance Adviser license

- issued by the Commissioner -submits a written application on a form provided by the Commissioner -is deemed trustworthy and competent -license expires 3 years from the effective date -adviser w/o a license can be fined $50-500 and/or 6 months in prison

Public Insurance Adjuster License Requirement:

-Be at least 21 years old -Be a resident of Commonwealth -Successfully complete a written examination -Submit a written application with all required components -Have 2 years of experience performing services in connection with adjusting of property losses -Be trustworthy and competent

Reporting of Actions

-Producer must report any administrative action and any criminal prosecution against him/her to the Commissioner w/in 30 days.

Address change

-must inform Commission w/in 30 days

Business Entity must do the following:

-pay the fees prescribed -designate a licensed producer responsible for the business entity's compliance with the insurance laws, rules and regulations of the commonwealth

Continuing Education is not required for the following:

-persons holding resident licenses, for which an examination is not required -persons holding a nonresident license, who also hold an equivalent resident license in their home state -any limited or restricted license which the Commissioner may exempt.

Reinsurance Intermediary Brokers

-place reinsurance cessions or retrocessions on behalf of a ceding insurer, w/o the authority to bind insurance on the insurer's behalf

Nonresident Producers License can be granted

-surplus lines producer and receive nonresident surplus lines producer licenses -limited line credit insurance can receive nonresident producer licenses if the same scope of authority is granted as the producer's home state.

Assumed name

-use of assumed name other than producer's legal name is required to notify the Commissioner

Insurance producer license

-will remain in effect unless revoked or suspended, as long as the licensing fee is paid and continuing education requirements for resident individual producers are met by the state. -should a producer allow his/her license to lapse upon renewal, license can be reinstated w/in 12 months w/o passing exam. A penalty of double unpaid renewal fee. -Penalties for lapse of renewal can be waived due to military service or other extenuating circumstances. -renewal is lasts for 3 years

The following are not considered Insurance Advisers:

1. Officers or regular salaried employees of any company 2. Licensed insurance brokers or producers 3. Attorney-at-law; and 4. Certified Public Accountants

2 kinds of Reinsurance Intermediaries

1. Reinsurance Intermediary brokers 2.Reinsurance Intermediary managers

Nonresident Producer can receive license upon meeting the following requirements:

1. the person is currently licensed as a resident and in good standing in his/her home state 2. the person has submitted the proper request for licensure and has paid the fees perscribed 3. the person has submitted or transmitted to the Commissioner the application for licensure that the person submitted to his home state, or in lieu of the sam, completed uniform application 4. the person's home state awards nonresident producer licenses to residents of the commonwealth on the same basis

Reinsurance Intermediary managers

bind and/or manage the assumed reinsurance of a reinsurer and act as the reinsurer's agent

Special Brokers

-are licensed to negotiate, continue, or renew insurance contracts with nonadmitted, foreign insurers. -Such a insurance can only be procured if he required amounts of insurance for the specified risks cannot be obtained in the market of admitted insurers. -within 20 days of procurement, an affidavit must be filed with the Commissioner. -Affidavit need not be filed if insured is a commercial account -A special broker's license must be renewed annually

Insurance Advisers

-is any person who, for a fee, to examine any insurance, annuity, or pure endowment contract for the purpose of giving advice, counsel, recommendation, or information in respect to the contract's terms, conditions, benefits, coverage or premium.

Life Settlement Broker-fraudulent penalties

-a civil penalty of up to $10,000 for each violation; or -The revocation of his or her license for at least a year -licenses are renewable as the same basis as a producer's license

Business Entity Producers

-acting as an insurance producer is required to obtain an insurance produce license. -application must be made using the uniform business entity application.

Licensing Requirements

-applicant must pass a written exam on lines of authority, duties and responsibilities and insurance laws and regulations of the state -when required by the Commissioner, applicant must show proof of completion of a prelicensing course of study for the lines of authority

Licensing

-applicants must apply to the Commissioner on the uniform application and declare under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct and complete to the best of their knowledge and belief.

Public Insurance Adjusters

-is a person who is paid by the insurer to assess damages, negotiate, settle, appraisal for the following policies: -Fire -Homeowners -Commercial multi-peril -Business interruption -Fidelity bond or crime -Inland or ocean marine -Other property damage

Producer

-is a person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance -must be at least 18 years of age -have not committed any act that is a ground for denial, suspension or revocation based on state insurance law. -have completed any required prelicensing course of study -have paid the required fees -have successfully passes all required exams.

Public Insurance Adjuster License

-license is good for 3 years -license can be renewed without additional written exam, but 15 hours of approved continuing education is required before renewal date. -no license or suspended license will result in fines less or equal to $10,000 or prison for less than 6 months.

Continuing Education Requirements, Exemptions and Penalties

-licensee must do continuing education every 36 months -During the first licensing period, 60 hours (including 3 hours of ethics) -After the initial period, 45 hours (including 3 hrs of ethics) -excess hours may be carried forward to the next period.

Nonresident Producers

-must file a change of address and provide certification from the new resident state within 30 days of change of legal residence. -No fee or license application is required -the Commissioner may verify the producer's licensing status through the producer database maintained by the NAIC, it's affiliates or subsidiaries