Producer Licensing, and Other Regulations

Minimum amount of time LTC coverage lasts

12 consecutive months

term of producer appointment

2 years

LTC education requirement

8 hours one-time. 4 hours ongoing every 24 months.

Required producer education for annuity suitability training

One-time, 4-hour course

allowed value for prizes, goods or merchandise not to be considered rebating

$25 per 12 month period

If payment of an additional premium is required to provide coverage for a newborn, the agreement may require that notification of newly born child and payment of required premiums must be be furnished to the HMO. The notification period for this is

60 days

In a Medicare supplement policy, issuers must pay commissions no later than how many days following the premium period

60 days

Commissioner will send appointment renewal notification within

60 days (45 days if not enrolled in online notification system)

Reinstatement process w/ fee & timeframes for health policies

60 days' worth of payment w/ reinstatement application If insurer does not respond to application in 45 days, automatically reinstated 10-day waiting period due to losses relating to sickness

The policyowner must wait how many days after submitting proof of loss before initiating legal action

60 days; must begin litigation within 3 years after proof of loss

Grace period for paying premium

7 days for weekly premium 10 days for monthly premium 31 days for any other premium mode

after receiving notice from the Commissioner, for a producer to request a hearing

90 days

within how many days of receipt of proof of death must the insurerer pay the death benefit to the beneficiary without an interest penalty

90 days

The owner of the policy must provide the insurer with a written proof of loss within

90 days of loss if reasonably possible; but no later than 1 year from the loss

How long must the health insurance coverage for the newly born be the same for the mother?

At least 3 weeks

Punishments for not conforming to requirements of policy delivery

Cease and desist order, a fine, or license suspension or revocation

Maximum punishment for false claims or concealed information under Health Care False Claim Act

Class C felony; 5 years imprisonment, $10,000 fine, or both.

Small employer:

any person, firm, corporation, or partnership with 2-50 employees; and at least 2 employees on the first day of the plan year

Minimum non-forfetiture interest rate under an annuity contract

lesser of 3% or the stated rate

Limitation of liability on a life policy to an amount not less than the full reserve of the policy in the event of death occurred as:

result of war, act of war/military service, aviation, or suicide within 2 year from policy issue

Normal fine for violating Insurance Code

up to $1000

What rate of interest might be applicable to underpayments on a disability insurance policy because of a misstatement of age or sex

up to 6% per year

For producers to maintain records of compensation disclosures

5 years

Producers must maintain compensation disclosures for

5 years

A company may use the current Buyer's Guide after approval by the NAIC for how long?

6 Months

Life insurance disclosures regulations do not apply to:

-Annuities -Credit Life -Group Life -Variable Life -Policies issued in connection with pension/welfare plans

Annuities disclosure regulation does not apply to:

-Variable/investment annuities -Immediate annuities -Group annuities -Contracts issued in connection with employee benefits

Punishment/results of a policy issued by an unauthorized insurer

-producer may be held personally liable for claims -suspension/revocation of a license -maximum fine of $25,000 -Commissioner may order replacement of policy

Grace period for life policies

1 month; but may be subject to interest charge up to 6%

when an insureer receives notification of a LIFE INSURANCE claim, it must acknowledge the receipt of such notice within

10 working days; 15 working days for group contracts

Period of time that the expense of a court-ordered chemical dependency assessment or treatment expense is the burden of the enrollee

10-30 days before treatment begins

License reinstatement period after a lapse

12 months

maximum duration of producer license suspension

12 months

for a licensee to reply to an inquiry from the Commissioner regarding the business of insurance

15 days

To appoint a producer, the insurer must file a notice of appointment with the Commissioner within how many days fromt he date the agency contract is executed/first insurance application is submitted

15 days Commissioner will verify the appointment within 15 days, or deny it within 10

license may be revoked or suspended by the Commissioner by an order delivered to the licensee within

15 days prior to the effective date, or 10 days after the date of a the order of a hearing

time frame that fines are payable for producer noncompliance with Insurance Code

15-30 days

Minimum required age for producer licensing

18 years old

Maximum length of temporary license

180 days

Time period to complete continuing education (CE) requirements

2 years

Producer licensing period

2 years beginning from the date of application

Time Limit on Certain Defenses

2 years from the policy issue

Free-look period for replacement

20 days starting from policy delivery date

Notice of disability claim

20 days, or as soon as reasonably possible

CE credit hours required each licensing period

24 hours

All individual and group health care service plans that are not grandfathered and that provide coverage for the children of the insured or subscriber must offer the option of covering any child under the age of

26 years old

CE credit hours required in ethics

3 hours

A Medicare supplement policy or certificate could not exclude or limit benefits for losses incurred more than what period of time

3 months

Amount of time an insurer must maintain disclosure documents

3 years

Cash value life insurance policies must include a policy loan provision that entitles policyowner to a policy loan after

3 years, with a maximum interest rate of 8% per annum.

an approved CE course for which a licensee has previously claimed credit may be repeated for credit after a period of

3 years; they maintain this certificate for 3 years

insurerer must complete the investigation of a claim

30 days

to notify Commissioner of termination of producer appointment

30 days

Insureres are obligated to pay the proceeds of any benefits under a group life insurance policy within how many days after insurer receives proof of death?

30 days, after which the higher of 8% or some other interest rate is payable; after 90 days, an additional 3% is added onto this rate.

Free look period for Medicare supplement insurance policy

30 days. 10% penalty added to any premium amount that is not refunded within 30 days of return (paid by insurer).

How long does an insurer have to refund premium for a life insurance policy

30 days. after which, a 10% penalty is added to premium refund due

Group life grace period

31 days

To obtain a conversion contract from group to individual coverage, a person must submit a written application and the first premium payment no later than

31 days after the eligibility for group coverage terminates; coverage is in effect immediately following termination of initial group coverage