State laws

Companies without a certificate of authoriry are subject to what ?

1st degree felony

fraudulent conduct in committing twisting or churing

1st degree misdemeanor

the premium cannot exceed how much each year ?

2%

New agents must take a course for how long ?

24 hours of continuing education every 2 years (includes a 5-hour law and ethics courses pecific to the license held

how long does record of business needs to be kept ?

3 years

misrepresensation

An agent failing to make the prospect aware of relevant facts A sales person who knowingly makes a false statement can be found guilty of a 2nd degree misdemeanor.

Agents who do business with nonadmtted carriers are subject to what ?

3rd degree felony

willyfully submit fraudulent signatures

3rd degree misdemeanor

what is the limit an agent can have in her controlled business ?

50$ within a 12 mon period

Public adjuster

A person hired for a fee on behalf of an insured or third-party claimant to negotiate and settle a claim.

Personal Lines Agent

A general lines agent who is limited to transacting business related to property and casualty insurance sold to individuals and families for noncommercial purposes.

customer service representative may be appointed by ?

A person holding a Florida general lines agent license A general lines insurance agency A surplus lines agent

All-lines adjuster

A person who is self-employed or employed by an insurer or an independent adjusting firm and determines the amount of a claim and settles the claim.

which forms need approval ?

Insurance policy or annuity contract form Printed application Group policy certificates Printed rider, endorsement, renewal certificate

e State Judicial System

Decides conflicts between companies and policyholders Enforces the code by administering criminal penalties Decides if new laws are constitutional

Failure to answer a subpoena or order

$1000 fine

admitted

Admitted carriers are those that have been issued a license (certificate of authority) by conforming to Florida standards for transacting business.

rebating

An agent may not offer or extend anything of value to a client that is not already a part of the contract, as an incentive to purchase insurance.

premium accountability

An agent, as a fiduciary, accepts premiums, return premiums, or other funds on behalf of the insurer and offers advice about financial security. As a fiduciary on behalf of the insurer, the payment of premiums to the agent by the insured is the same as giving the money directly to the insurer. The agent's fiduciary responsibility is to turn that money over to the insurer immediately.

separate account requirements

An agent/agency must keep funds belonging to each insurer in a separate account so it can be properly audited. An agent must not commingle the insurer's premium with personal funds, or otherwise use it for personal purposes.

Insurance contract

An agreement enforceable by law in which the insurer agrees to pay a certain amount of money upon the death of the insured, and the policyholder agrees to pay the premium

Financial Service Regulation

Chief Financial Officer (CFO), Financial Services Commission and Director of the Office of Insurance Regulation. The CFO: Is elected and is part of Governor's Cabinet Acts as head of Dept. of Financial Services Is a member of the Financial Services Commission Oversees Divisions of Insurance Agents, Insurance Fraud, Consumer Services and Office of Consumer Advocate

churning

Churning is the practice whereby policy values (such as cash value) in an existing life insurance policy, annuity contract, and/or any riders, are used to purchase another insurance policy or annuity contract with that same insurer for the purpose of earning additional premiums, fees, commissions, or other compensation.

CPCI Canons of the code of professional ethics

Clearly communicates the minimum standards of conduct expected for CPCUs and for those who are candidates for this designation. Disciplinary process includes investigation of violations of the Code. The 3 requirements of the CPCU designation are education, experience, and ethics

A bank or credit union will not give a loan unless the borrower buys insurance from a specific company. This is known as ___________.

It is an unfair trade practice to enter into any agreement to commit, any act of boycott, coercion, or intimidation resulting in an unreasonable restraint of, or monopoly in, the business of insurance.

defamation

It is deemed unethical for an agent to make any statement (oral or written) or promote any statement that is designed to be malicious or critical about any person or company in the insurance industry.

twisting

Knowingly making any misleading representations or incomplete or fraudulent comparisons or material omissions with respect to any insurance policy for the purpose of inducing a person to lapse a policy. A valid replacement based on accurate data and resulting in an improvement to the client is not twisting.

The State Legislature

Makes and amends laws that comprise the Insurance Code

agency

Must complete an application for an agency license, which must be renewed every 3 years. Must have a licensed and appointed full-time agent in charge of each agency location. That fails to file an application for licensure may be levied an administrative penalty of up to $10,000.

Nonadmitted (unauthorized) Carriers

Nonadmitted companies are not state licensed, so they are not regulated by Florida except ERISA

division on consumer services

Receive and compile inquiries and complaints the DFS deems necessary to assist consumers Provide direct assistance and advocacy for consumers who request such services Report alleged violations of law by persons licensed by the DFS, OIR, or OFR to the appropriate regulator

sliding

Representing to the applicant that a specific coverage or product is: Required by law in conjunction with the purchase of insurance when such coverage or product is not required. Freely included in the policy when in fact there is a charge required. Charging an applicant for a specific coverage or product, in addition to the cost of the insurance coverage applied for, without the informed consent of the applicant.

insurance transaction

Solicitation or inducement Preliminary negotiations Effectuation of a contract of insurance Transaction of matters subsequent to effectuation of insurance contract and arising out of it

The Florida Insurance Guaranty Association will assume the contractual obligations of an insolvent insurer up to _________ for any one policy.

The Association's liability for the contractual obligations of the insolvent insurer does not exceed $300,000 for any one policy and an additional $200,000 for the portion of a covered claim for damage to the structure and contents.

Florida Insurance Guranty Assocation

all insures must be a part of this nonprofit legal entity

recordkeeping

an agent must keep records for 5 years after payment

controlled business

an agent selling policies himself/herslef or family memebrs Officers, directors, stockholders, partners, or employees of a business in which he or a family member is engaged. The debtors of a firm, association, or corporation of whom he or she is an officer, director, stockholder, partner, or employee.

How many times a year does a carrier need to be audited ?

atleast once every 3 yrs

An agent for 6 years or more can take which course ?

complete only 20 hours.

bureau of financial investigations

functions as criminal justice agency

The Office of Insurance Regulation

headed by the Commissioner of the Office of Insurance Regulation. Regulating the following: Banks, credit unions, savings association, international bank agencies Financial service companies Securities industry

The Department of Financial Services Division (together with the Office of Insurance Regulation

implements rules for enforcement of laws called "quasi-legislative or quasi-judicial power."

willful violation of insurance code

misdemeanor of 2nd degree improsnment for 60 days

division of rehabilitation and liquidations

monitors the financial condition of insurers and rehabilitates or liquidates insurers as needed.

prior approval

rate or change need 30 days to file

what are some examples of unfair trade and marketing practices ?

twisting, rebatng, defamation, and misrepresentation

violation of cease and desist order

up to $50,000

If you change your address, phone, email you must contact the department of financial services

within 30 days