LA INSURANCE lll
If a person fails to obey the commissioners subpoena or fails to produce records as required without reasonable cause, the person will be fined at least $_____ and no more than $______ at the discretion of the court. A person who fails to appear and testify as ordered by the court is subject to ____________________
$100 --- no more than $2,000 a person who fails to appear and testify as ordered by the court is subject to fine and imprisonment.
an individual who willfully violates the fair credit reporting act enough to constitute a general pattern or business practice will be subject to a penalty up to $______________
$2,500
If the license renewal application is received after the stated deadline (last day of the producers birth month) then a $___ late fee will be charged.
$25
NFIP consist of 3 ,main components.
1. insurance 2. floodplain management 3. floodplain mapping
Up to _____of excess CE credits may be carried forwar to the next renewal period.
10 hours
anyone engaged in the business of insurance whose activities affect interstate commerce and who knowingly makes false material statements may be subject to a fine, imprisonment for up to ___years or both. If the activity jeopardized the security of the accompanied insurer, the punishment can be up to ___years.
10 years 15 years
To appoint a producer as its agent, the appointing insurer must file a notice of appointment within _____days from the date the agency contract is executed. The insurer is responsible for paying any producer appointment fees. The commissioner, upon receiving this notice, has ___to make sure that the producer is suitable for appointment. If the producer is determined ineligible for appointment, the commissioner must notify the insurer within ___ of making the determination.
15days 30 days 15 days
As defined by NFIP a flood is a general and temporary condition of partial or complete inundation of ____ or more acres of normally dry land are, or of ____ or more properties.
2 2
If during any 12 month period, the aggregate commissions earned form controlled business have exceeded _____ of the aggregate commissions earned on all business written by a producer during the same period, then the commissioner will determine that the license has been used solely for writing controlled business.
25%
Producers licenses to write property, casualty, property and casualty, or personal lines insurance must also includ __________CE hours on ___________
3 credit CE hours on flood insurance
any person who knowingly commits insurance fraud will be guilty of a felony and will be subject to a prison term of up to ____ years or a fine of up to $________ for each count. However if the benefit pursued odes not exceed $______, the term of imprisonment cannot exceed________or $________for each count.
5 year $5,000 $1,000 6 months or $1,000
At a minimum all records must be maintained by the insurer for a period of ____ years or until the commissioners next examination-whichever is later. Any directors, officer, agent, or employee of the insurer who destroys any books, records, without the commissioners authority may be fined for up to $__________
5 years $5,000
any person who suspects that insurance fraud is being committed must report the fraud to the departments insurance fraud division with ___Days
60 days
a person who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses may also be fined and/or imprisoned for up to ______
2 years
TRIA defines an act of terrorism as an act certified by the?
secretary of the treasury, in concurrence with secretary of state, and the attorney general of the US
the residential condominium building association covers?
the entire building UNDER 1 POLICY, including all units, improvements with the units, and personal property owned in common.
What is the primary goal of the Commissioners general duties and powers?
to protect public welfare
an individual who _____ violates the fair credit reporting act is liable in the amount equal to the loss to the consumer, as well as any reasonable attorney fees incurred in the process.
unknowingly
Producers who allow their license to lapse may reinstate the same license _________________ years upon proof of fulfiling all continuing education requirements through the dat of reinstatement, and by paying all over due fees.
within 2 years *if its more than 2 years producer must apply for new license
An insurance producer using a name that has not been approved will be fined up to $______. If, 10 days after being notified by the commissioner to stop using the unapproved name, the producer continues to use the name, the producer will be subject to a fine of up to $_________.
$250 $5,000
RCBAP residential condominium building association limits of coverages are up to _____________________times the number of units in the building for building coverage up to ______ in personal property per building.
$250,000 $100,000
Failure to file an address change within the required time will result in a $____ penalty per violation
$50 (30days)
The following producers may be exempt from CE requirements in this state:
-A producer 65 or older and has atleast 15 years of experience as a licensed producer, and who is either no longer actively engaged in the insurance business or who represents a licensed insurer in this state. -a producer who is currently serving a term as a member of the legislature -nonresident producers who have met CE requirements in their home state -individuals renewing their resident producer licenses for the first time after initial issuance.
The commissioner is in charge of the following.
-conducting legal hearings regarding suspected violations of the insurance code -issuing cease and desist orders -examining insurers for solvency -issuing, renewing, suspending, and revoking licenses
The federal government passed the Flood disaster protection act of 1973 which mandated flood insurance in the following situations
1. flood insurance is required in certain flood prone areas for a federal loan 2. property owners who fail to purchase flood insurance within 1 year after it becomes available will not be eligible for full disaster relief funding -- the amount will be reduced.
investigative consumer reports cannot be made unless the consumer is advised in writing about the report within _____days of the date the report was requested. The consumers must be advised that they have a right to request information concerning the report, and the insurer or reporting agent has ___ days to provide the consumer with the additional information.
3 days 5days `
An insurance producer must report to the commissioner any administrative actions taken against him/her in another jurisdiction or by another governmental agency in LA within ____days of the final disposition of the matter.
30 days
If an insurer terminates a producer's appointment, the Commissioner must be notified within how many days? If However the reason for termination is fraud, the commissioner must be notified within? The insurer then must mail a notice to the producer within ____days after the notification is sent to the commissioner. The producer has the right to send comments to the commissioner regarding the termination within ____days after receiving the notice.
30 days 15 days 15days 30 days
HEARINGS if a person aggrieved by the alleged violations demands a hearing, the hearing must be conducted within ___days of the demand. The hearing may be postponed by mutual consent of the parties but may not be held more than___days from the date of the original demand for the hearing unless all parties agree to that.
30 days 60days
to keep in compliance with the do not call rules, organizations must consult the registry every_____ days. Any phone numbers on the registry must be dropped from the organizations call lists.
31 days
At the commissioners discretion a licensed agent or broker who is a member of and actively participates in a state or national insurance association may be granted ____ce credits
4 CE CREDITS
The commissioner may examine newer insurers more frequently every ____for the first_____,and _____ for years ____through____.
6 months for the first 3 years, and once a year for years 4-6
is insurance that covers the producer or the producers immediate family or employer.
Controlled Business **It is illegal to use a producers license for the sole purpose of writing controlled business.
In 2003 the ______________and ___________________worked together and created the national do not call registry.
FEDERAL TRADE COMMISSION FTC FEDERAL COMMUNICATIONS COMMISSION FCC
established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant, and properly used. The law also protects the CONSUMER against the circulation of inaccurate or obsolete personal or financial information.
Fair credit reporting act
The ____________________ stipulates that in general, an insurance company may not disclose nonpublic personal info to a nonaffiliated third party.
GRAMM LEACH BLILEY ACT
_________________are individuals or business entities that are licensed to sell, solicit, ore negotiate insurance.
Producers
Every authorized insurer is required to file a ____________________________________-with the commissioner, quarterly and annually. In addition, insurers must file the same statements electronically with _________________________________
Statement of its financial condition the National Association of Insurance Commissioners NAIC
is responsible for making sure that the provisions in Louisiana Insurance Code are enforced properly.
The Commissioner
If producers or business entities conduct business in Louisiana, but are not properly licensed in this state, it is illegal to accept commission, money related to the insurance that was transacted. Violators of this rule are subject to a fine ______________________and/or___________________
a fine btw $2,000-$50,000, and /or imprisonment for a max 3 years their license may also be revoked/ suspended
Individuals engaged in the sale of any annuit products must complete what?
a one time 4 hour training course *separate and distinct from the CE requirements for a licensee
any persons who violates the state statutes pertaining to sharing of commissions, upon conviction, may be fined __________________and/or_________________________-
an amount btw $1,000-$5,000, and/or imprisoned for a max of 2 years The producers license will also be revoked or suspended.
An insurance license is usually not required if a person does not receive _______________________for transactions.
any commission
floods cause more property damage in the united states that any other type of natural disaster. The national flood insurance program NFIP was created by the ____________to fill the gap left by the private insurance industry, and is administered by the _____________________, a part of the FEDERAL EMERGENCY MANAGMENT AGENCY FEMA.
federal government federal insurance mitigation administration FIMA
the _____________________ is used for other residential (more than 4 units) and nonresidential structures and their contents. up to $_________for building and ________for personal property for other residential structures up to __________for building and ________for business property for nonresidential structures
general property policy form $250,000 building;$100,000 personal $500,000 building $500,000 personal
The residential condominium building association policy does not protect the _____________ from loss to personal property owned exclusively by the unit owner.
individual owner
all policy forms issued in this state must conform to the standards set forth by the ___________, and must clearly identify the following information in the policy.
insurance code -the name of the parties, name of insurer -the subject of insurance and risk insured against -the time the insurance takes effect and is expected to terminate -a statement of the premium, and the premium rate if other than life annuit, health or title insurance -the conditions pertaining to the insurance
______files notice of agent appointment, pays appointment fees to department of insurance
insurer
_____appoints producer to act as agent
insurer
What is the purpose of licensing?
is to ensure that a producer meets educational and ethical standards to fulfill producers responsibilities to the insurer and to the public.
The following definitions do not meet the definition of flood there excluded
landslide, backup sewer unrelated to a flood, windblown rain, snow, or sleet. *flooding that is in the insureds control is not covered
Who do producers represent?
producers represent their respective insurance companies, NOT their customers