Insurance regulations/laws (UTAH)

¡Supera tus tareas y exámenes ahora con Quizwiz!

When cant the commissioner or director examine insurers ?

Whenever deemed necessary, but at least once every few years *Please check your state regulations for specific time requirements*

Who is an insurance agent ?

A person authorized to sell, solicit and negotiate insurance contracts

Who is considered a nonresident agent ?

An agent who resides and is license in another state but who is authorized to transact insurance in this state

Who must be a member of insurance guaranty associations?

Any authorized insurer within a state

What type of licensee represent the insured ?

Broker

If the commissioner/ superintendent finds a licensee engaging in an unfair method of competition or an unfair practice, what order will be issued ?

Cease and desist order

What are agent/producers required to do in order to renew their license ?

Complete continuing education hours and pay a renewal fee

Two individuals who are in the same risk and age class are charges different rates for their insurance policies due to an insignificant factor. What is this called ?

Discrimination

The requirement that agents must account for and promptly remit all insurance funds collected is known as what type of agent responsibility ?

Fiduiciary

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is this company guilty of ?

Misrepresentation

What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is ?

Misrepresentation

Can insurers advertise the existence of the guaranty association during solicitation and sale of insurance policies ?

No, Advertising of the existence of the guaranty association for the purpose of solicitation and sale of insurance policies by insurers is illegal business practice

Who may share in the commission from the sale of a life insurance policy ?

Only producers properly licensed for the type of insurance transaction

What type of license represents the insurance company ?

The agent

Who is responsible for the cost associated with the examination of insurers ?

The insurer who is being examined

To whom may a certificate of authority be issued ?

To an insurer authorized to transact business in this state

What is the purpose of a cease and desists order ?

To prevent a producer insurer form further violating laws for transacting insurance

What type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another ?

Twisting

If an insurer holds a certificate of authority, it is known as what type if insurer ?

Authorized or admitted

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer ?

Authorized or admitted

If a producer makes maliciously critical statement abut another insurer , what is this illegal practice called ?

Defamation

For what reason can a temporary license be issued ?

For continuation of business in case the licensed producer dies or becomes disabled

In general, who can be excluded from producer licensing and examination requirements ?

Insurance company officers, directors or any other employees who do not transact insurance and who do not receive commissions for their services

Who must be notified of a producer's changed of address ?

The department of insurance

What is the purpose of insurance guaranty associations ?

To protect policyowners , insured and beneficiaries from financial losses caused by insolvent insurers

When is controlled business legal ?

When the commissions from controlled business do not exceed the aggregate commissions on all the other business *specific limits may vary from state to state

What are the most common penalties for violation of insurance statues ?

A cease and desists order, a fine, and license suspension or revocation

What is controlled business ?

Insurance on the producers own life or property, or the lives or property of the producers family or business associates

Who can usually be granted a temporary license ?

Producer's spouse or designee in case the licensed producer dies or become disabled

An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of ?

Rebating


Conjuntos de estudio relacionados

MCITP Chapter 6 Review Questions

View Set

All of the following statements are correct regarding credit life insurance EXCEPT Benefits are paid to the borrower's beneficiary. The amount of insurance permissible is limited per borrower. Premiums are usually paid by the borrower. Benefit

View Set

Nomenclatura compuestos inorgánicos

View Set