Insurance regulation flash cards

Rebating

An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of?

For continuation of business in case the licensed producer dies or becomes disabled

For what reason can a temporary license be issued?

defamation

If a producer makes maliciously critical statements about another insurer what is this illegal practice called

Authorized and admitted

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?

cease and desist order

If the Commissioner/Superintendent finds a licensee engaging in an unfair method of competition or an unfair practice, what order will be issued?

Misrepresentation

On its advertising a company claims that it has funds in its possession that are in fact not available for the payment of losses or claims what is the company guilty of

To an insurer authorized to transact business in this state

To whom may a certificate of authority be issued?

Discrimination

Two individuals who are in the same risk and age clas are changed are charged different rates for their insurance policies due to an in significant factor. What is this called

Complete continuing education hours and pay a renewal fee

What are producers required to do in order to renew their license?

A cease and desist order, a fine, and license suspension or revocation

What are the most common penalties for violations of insurance statutes?

Misrepresentation

What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is

To prevent a producer or insurer from further violating laws for transacting insurance

What is the purpose of a cease and desist order?

The agent

What type licensee represents the insurance company

Broker

What type of licensee represents the insured

Twisting

What type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?

Whenever deemed necessary, but at least once every few years

When can the Commissioner or Director examine insurers?

Producer's spouse or designee in case the licensed producer dies or becomes disabled

Who can usually be granted a temporary license?

A person authorized to sell, solicit and negotiate insurance contracts

Who is an insurance agent?

An agent who resides and is licensed in another state, but who is authorized to transact insurance in this state

Who is considered a nonresident agent?

The insurer who is being examined

Who is responsible for the costs associated with the examination of insurers?

Only producers properly licensed for the type of insurance transaction

Who may share in the commission from the sale of a life insurance policy?

The department of insurance

Who must be notified of a producer's change of address?