Idaho Statutes, Rules, and Regulations common to all lines
important dollar amounts: maximum fine for each conviction for violating the insurance code or a cease and desist order?
$1,000
important dollar amounts: maximum fine for violation of unfair claims settlement practices by insurer?
$10,000
important dollar amounts: maximum fine for transacting insurance without a license?
$15,000
if a standard fire policy premium is not paid and going to be canceled, what is the required notice?
10 day notice
for a standard auto policy, cancellation for non-payment of premium is how much notice?
10-day notice
for commercial insurance non-payment premium requires how much notice?
10-day notice
Idaho department of insurance regulations : written notice of the hearing?
14 days
miscellaneous producer regulations: remit funds payable to policy owners?
14 days
licensing and appointment requirements: to notify director of agent appointment?
15 days
licensing and appointment requirement: what is the age to apply?
18 years
licensing an appointment. requirements: temporary license period?
180 days
licensing and appointment requirements: to submit a license application after passing exam?
180 days
licensing and appointment requirement: license renewal period?
2 years
after insurer receives an itemized bill related to the valid motor vehicle policy claim, it must be paid within ?
20 days
for a standard auto insurance, how long must the notice be for a cancellation other than non-payment?
20-day notice
in Idaho, what is the age requirement for a counter signature?
21
miscellaneous producer regulations: remit funds payable to insurer?
21 days
licensing and appointment requirements: continuing education every two years?
24 hours
miscellaneous producer regulations: place large funds under a producer in a fiduciary fund account over $2,000?
3 business days
licensing an appointment requirements: continuing education required in ethics?
3 hours
for a commercial insurance for any other reason besides non-payment, how much notice must be given?
30 day notice
for a standard auto policy, how long is the notice for non-renewal?
30 day notice
Idaho department of insurance regulations : to hold a hearing after receiving a demand?
30 days
licensing and appointment requirements: to notify director of termination of appointment?
30 days
miscellaneous producer regulations: to notify the director of change of address?
30 days
a standard fire policy besides non-payment of premium if maybe canceled what is the required notice?
30-day notice
Idaho department of insurance regulations : Term of the director of Insurance?
4 years
for a commercial insurance getting a non-renewal how much notice should be given?
45 day notice
Idaho department of insurance regulations :Examine domestic insurers?
5 years
if a producer's license has been revoked, what is the maximum amount of time that producer may be prohibited from reapplying for a new license?
5 years
miscellaneous producer regulations: producer must keep records?
5 years
miscellaneous producer regulations: maximum imprisonment for violating the insurance code?
6 months
miscellaneous producer regulations : to send suspected fraudulent claims to director?
60 days
licensing and appointment requirements: after license laps to reinstate it by submitting proof of education requirements and paying penalty?
90 days
binders are rendered invalid either when the policy is issued or ?
90 days from the binders effective date
what are the most common penalties for violations of insurance statutes?
A cease and desist order, a fine, and license suspension or revocation
who is an insurance agent?
A person authorized to sell, solicit and negotiate insurance contracts
what are producers required to do in order to renew their license?
Complete continuing education hours and pay a renewal fee
What is the term for the entity that an agent represents regarding contractual agreements with third parties ?
Principal
who must be notified of a producer's change of address?
The Department of Insurance (Commissioner/Director/Superintendent)
who is responsible for the cost associated with the examination of insurers?
The insurer who's being examined
what is the purpose of a cease and desist order?
To prevent a producer or insurer from further violating laws for transacting insurance
when can the commissioner or director examine insurers?
Whenever deemed necessary, but at least once every few years (please check your state regulations for specific time requirement)
All the following lines of authority are considered limited lines except? accident and health insurance pet insurance guaranteed automobile protection credit disability insurance
accident and health insurance
who is considered a non-resident agent?
an agent who resides and is licensed in another state, but who is authorized to transact insurance in this state
All documentation pertinent to underwriting must be maintained by the insurer for?
at least 5 years
how much commission should a counter signing resident agent make?
at least 5% of premium paid or one third, whichever is lesser but no more than $250
when must insurable interest exist in property and casualty policies?
at the time of loss
if an insurer holds a certificate of authority, it is known as what type of 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 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
a state issued document empowering an insurance company to become an admitted insurer is called what?
certificate of authority
what document is required for an insurance company to transact insurance?
certificate of authority
If a producer makes maliciously critical statements about another insurer what is this illegal practice called ?
defamation
although the director does not set rates for insurance director can?
disapprove of any rate filed that is excessive, inadequate, or unfairly discriminatory
two individuals who are in the same risk and age class are charged different rates for their insurance policies due to an insignificant factor. what is this called ?
discrimination
Insurers are classified according to their domicile. What are the three types of insurers?
domestic, foreign, and alien
the requirement that agents must account for and promptly remit. all insurance funds collected is known as what type of agent responsibility?
fiduciary
insurance rates are regulated to prevent all the following except ?
fluctuating rates
what type of insurer is formed under the laws of another state?
foreign
what is a fraternal benefit society?
fraternal insurer is operate on the basis of a Lodge or charitable organization but also sell formal insurance plans for the benefit of their members
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 (usually, they're responsibilities include administrative, executive or clerical).
what is a controlled business?
insurance on the producers own life or property, or the lives or property of the producer's family or business associates
on its advertisement, a company claims that it has funds in possession that are, in fact, not available for the payment of losses or claims. what is the 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
on participating insurance policy issued by an mutual insurance company, dividends paid to the policy holders are?
not taxable since the IRS treats them as a return portion of the premium paid
who may share in the commission from the sale of an insurance policy?
only producers properly license for the type of insurance transaction
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
which type of insurance is based on mutual agreements among subscribers?
reciprocal insurance
what is a reciprocal insurer?
reciprocal insurers are also associations that provide insurance for the members but are formed only for the purpose of providing insurance
who owns stock companies?
stockholders
what type of licensee represents the insurance company?
the agent
which of the following is an agreement between an insured and an insurer, where the insurer agrees to indemnify the insured for a specific loss in exchange for a premium?
the insurance contract
to whom may certificate of authority be issued?
to an insurer authorized and transact business in this state
which type of misrepresentation persuades an insured, to their detriment, to cancel, lapse, or switch policies from one to another?
twisting
when is controlled business legal?
when commissions from controlled businesses do not exceed the aggregate commissions on all the other business (specific limits may vary from state to state)
when would a misrepresentation on an insurance application be considered fraud?
when it is intentional and material