Insurance Regulation
consumers must be notified within ______ of the repeat being requested
3 days
What type of licensee represents the insurance company?
the agent
who is responsible for paying producer appointment fees?
the appointing insurer
suspension, revocation, and non-renewal
the director may suspend, revoke and refuse to renew a producer license for any reasonable cause
producer
Individuals and organizations that are required to be licensed to sell, solicit, and negotiate
producers are not allowed
to represent an insured or claimant
Cease and desist
to stop or discontinue
insolvent
unable to meet financial obligations
cases acceptable to receive a temporary license
when a producer becomes deceased, disabled, enters the active service, or the commissioner deems it is in the best interest of the public
how soon after the due date should the insurer pay the agent appointment fees
within 30 days
reporting of actions
you must report any actions taken against you by a government agency within 30 days
to correct the violation if a person failed to respond to the Department's inquiry within 30 days
15 days
how long does a temporary producer's license last?
180 days
civil penalty for violation of the PA insurance fraud prevention act
1st - $5,000 2nd - $10,000 3rd - $15,000
Change of address must be reported within
30 days
penalty for unintentional acts of engaging in unfair methods of competition or practice
$1,000 each violation not exceeding $10,000 in any 6 month period
penalty for intentionally engaging in an unfair method of competition or practice
$5,000 each violation not exceeding $50,000 in any 6 month period
what is needed to apply for a resident insurance license
- a complete pre-licensing course - must be 18 years of age - a completed application - finger prints - paid fee
hearing on rate filing after the insurer is informed of disapproval
10 days
written notice of a hearing for a person suspected of prohibited behavior
10 days
for claims settlements, after receiving notification of a claim, provide the necessary claims forms within
10 working days
for claims settlements, insurers must acknowledge the receipt of claims or any other pertinent communication within
10 working days
for claims settlements, accept or deny claims within _______ of their receipt
15 days
for claims settlements, insurers must respond to inquiries from the department within
15 working days
days to provide a response to the Department's inquiry
30 days
for a commissioner to approve or disapprove changes to a form
30 days
waiting period before rate filings go into effect
30 days
penalty for acting as a agent without proper licensing
3rd degree misdemeanor and a fine up to $1000 for each day of their offense
how long does the insurer or reporting agency have to comply if a consumer requests additional info concerning an investigative consumer report?
5 days
false advertising
Advertisements cannot include any untrue, deceptive, or misleading statements that apply to the business of insurance or anyone who conducts it.
Exclusive general agent
a licensee which has been granted sole authority to act directly or indirectly as an insurance producer for a domestic insurer
twisting
a misrepresentation, or incomplete or fraudulent comparison of insurance policies that persuades an insured/owner, to his or her detriment, to cancel, lapse, switch policies, or take out policy with another insurer
line of authority
a type of insurance a producer or a business entity is authorized to transact
rebating
an inducement offered to the insured in the sale of insurance products that are not specified in the policy
Gramm-Leach-Bliley Act
an insurance company may not disclose nonpublic information to a nonaffiliated 3rd party
inducement
an offer that attempts to influence the other party
what type of licensee represents the insured?
broker
do not call registry
can call between the hours of 8am - 9pm and was established by the Federal Trade Commission
violation of the laws of the common wealth
commissioner may suspend or revoke the insurance company's certificate of authority, refuse to issue a new COA for up to 1 year, and/or impose a penalty between $5,000-$25,000 for each violation
termination of appointment
commissioner must be notified within 30 days
Unfair Claims Settlement Practices
committed openly and consciously in disregard of the rules and regulations
commissioner will examine insurer
every 5 years
coercion
forceful act or threat aimed to influence a person to act against his/her will
Fair Credit Reporting Act Penalty
if knowingly - $2,500 if unknowingly - the amount equal to the loss
certificate of authority
indicates that the commissioner has examined the business and found it to be financially stable and organized in accordance with the insurance code
aggrieved
injured party
producers do NOT have the authority to
issue policies
Misrepresentation
issuing, publishing, or circulating any illustration/sales materials that is false, misleading, or deceptive that is considered illegal
Fraud and false statements penalty
may be fined, imprisoned up to 10 years or both
improper fiduciary responsibility penalty
misdemeanor, $5000 fine for each violation or 6 month imprisonment
Fair Credit Reporting Act
protects consumers against the circulation of inaccurate or obsolete personal or financial information
investigative consumer reports
reports to provide information on the consumer's character, reputation, and habits obtained through associates, friends, and neighbors of the consumer
Fiduciary Responsibility
requires that all premiums received by a producer must be accounted for and maintained in a trust account separate from all business and personal funds