New York State Property and Casualty Licensing Exam
in order to qualify for an insurance license:
1. submit an application to the superintendent and declare that all statements are true, accurate and complete to the best of the applicants knowledge and belief 2. resident of NY 3. at least 18 4. fulfill the pre- licensing education requirement of classroom work or equivalent in correspondence work or similar instruction (90 hours for Property/ Casualty agent or broker) 5. pay the applicable fees 6. pass the applicable examination for each line of authority
licensing examination exemptions (don't have to take the written examination)
1. ticket selling agent or representative (airline, bus, train, or sea) for one-time issuance of baggage or accident insurance 2. any individual who's license has been revoked or suspended (at the discretion of the superintendent) 3. an individual seeking to be a rep of a fraternal benefit society as its agent 4. in connection with any certificate of appointment for an additional insurer, as long as it is under the same line of authority already licensed 5. a non resident licensee currently licensed in another state with reciprocity 6. at the superintendents discretion, applicants who are chartered life underwrites (CLUs). all or part of the examination may be waived as well as the pre-licensing requirement 7. Fraternal benefit representatives do not have to be licensed if 50% or less of their time is addressed to life sales
the continuing education requirement in New York requires________ hours of continuing education every ______.
15 ; biennium (specified period of two years)
Medical Payments coverage under a Homeowner policy are available for expenses resulting from an injury to:
A residence employee.. This could be someone who mows the lawn. However, if a residence employee is covered under Workers Compensation Coverage then the Medical Payments Coverage would not apply. Coverage does not apply to the insured or member of the household. Roomers, boarders and tenants are not covered as well
George Wilson has a personal auto policy. What coverage that would apply when a deer leaps onto Mr. Wilson's car and causes extensive damage?
Comprehensive (other than collision). Contact with a bird or animal is considered to be an "other than collision" loss.
Pro Rata Liability Clause is included in an insurance policy to deal with the problem of
Duplicate insurance policies The purpose of this clause is to illustrate the method to determine each insurer's liability in case of a loss. Each insurer pays its fair share determined by the percentage that the carrier's limit bears to the total coverage carried.
establishes procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant, and properly used
Fair Credit Reporting Act
formed to protect policy owners, insureds, beneficiaries, and anyone entitled to payment under an insurance policy from an incompetence and insolvency of insurers
Guarantee Association
pro rata liability
If a loss occurs that is covered by more than 1 insurance policy that was purchased by the insured, then each policy pays a portion of the loss that is proportional to the amount of that policy over the total amount of all policies for the loss—each policy pays its pro rata share.
What does automobile insurance Supplementary Payments refer to?
Payment of defense and other expenses by the insurance company beyond the limits of liability.. Any expense the insurance company wishes to incur in the processing of a claim is outside the limits of coverage. The insured is not penalized.
What is meant by Res Ipsa Loquitur?
Res ipsa loquitur means, roughly, "the thing speaks for itself." Courts developed the concept of Res Ipsa Loquitur to deal with cases in which the actual negligent act cannot be proved, but it is clear that the injury was caused by negligence.
what does Homeowners - Coverage C exclude?
The Homeowners forms exclude certain types of property. Pets are not covered for loss by an insured peril. The policy also excludes coverage for property that is more specifically insured. Property of tenants is also excluded.
What territories are covered by commercial auto insurance?
The coverage territory granted in commercial auto insurance is the United States, its territories and possessions, Puerto Rico and Canada.
a person authorized by an insurer, fraternal benefit society or health maintenance organization (HMO) to solicit, negotiate and obtain insurance, HMO or annuity contracts . REPRESENTS THE INSURER NOT THE INSURED
agent
who represents the insurer in an insurance transaction?
agent
insurance producer
an insurance agent, insurance broker, reinsurance intermediary, excess lines broker, or any other person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance
when is it not necessary to have an insurance producer license?
any officer, director, or employee of an insurer or organizations employed by insurers, provided they are not directly or indirectly involved with the actual sale of an insurance contract and do not receive any commission
continuing education rules
any residnent or non resident agent must complete 15 hours of instruction by an approved provider of continuing education every two years. this continuing education requirement applies to agents licensed all lines of property and casualty insurance
prohibited information on consumer reports
bankruptcies more than 10 years old, civil suits, records of arrest or convictions of crimes, or any other negative information that is more than 7 years old
any person, firm, association or corporation who solicits, negotiates, or obtains insurance for an insured (other than herself) in exchange for a commission. represents the insured no the insurer
broker
a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity
business entity
certificate that states that the appointed agent is trustworthy and competent to transact insurance business
certificate of appointment of agent
no person, firm, association, corporation or joint stock company may conduct insurance business unless authorized by who?
certificate of authority
offer advice to the public about the benefits, advantages and disadvantages of insurance policies for a fee.
consultant
written and or oral information regarding a consumers credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources
consumer reports
any coverage written on a producers own life, health, or property, and/or that of the producers immediate family or business associates ( cannot be above 10%) .
controlled business
the superintendent of insurance does not have the power to perform what activity?
create insurance law
reporting of actions
either taken against them or another jurisdiction or another state must be reported within 30 days
what is the purpose of licensing?
ensure that the producer meets educational and ethical standards required to fulfill producer's responsibilities to the insurer and the public
how often does each domestic insurer be examined in detail?
every three years
a unit of measurement used to determine rates charged for insurance coverage
exposure
the intentional misrepresentation or intentional concealment of a material fact used to induce another party to make or refrain from making a contract, or to deceive or cheat a party
fraud
conditions or situations that increase the probability of an insured loss occuring
hazards
any state, district, or territory of the united states in which an insurance producer maintains his/ her principal place of residence or principal place of business, and is licensed to act as an insurance producer
home state
a large number of units having the same or similar exposure to loss
homogeneous
when can the superintendent refuse to issue any insurance agent license?
if the proposed licensee is found to not be trustworthy or competent, or has not compiled with any prerequisites
any person, firm, association or corporation, who, for commission, acts on behalf of an insurer in the work of investigating and adjusting claims
independent adjuster
transfers the risk of loss from an individual or business entity to an insurance company, which in turn spreads the costs of unexpected losses to many individuals
insurance
intended to permit the superintendent and the department to utilize their expertise to investigate and discover insurance frauds, halt fraudulent activities more effectively, and receive assistance from federal and state law enforcement agencies
insurance frauds prevention act
an insurance agent, insurance broker, reinsurance intermediary, excess lines broker, or any other person required to be licensed under the laws of this state to sell, solicit or negotiate insurance
insurance producer
who do independent adjusters work on behalf of?
insureds
provides information on the consumer's character, reputation, and habits but the information is obtained through an investigation and interviews with associates, friends, and neighbors of the consumer
investigative consumer report
set out the requirements, procedures, and fees relating to the qualification, licensure, and appointment of insurance producers
licensing regulations
the reduction, decrease, or disappearance of a value of the person or property insured in a policy, caused by a named peril
loss
when must an agent renew?
must file an application for renewal to the superintendent at least 60 days before the license expires . if it is late the applicant will have a $10 filing fee
the act of directly conferring with or offering advice to a purchaser or prospective purchaser of a particular insurance contract concerning any of the substantive benefits, terms or conditions of the contract, provided that the person engaged in the act either sells insurance or obtains insurance from licensed insurers, fraternal benefit societies or health maintenance organizations
negotiation
an individual who is a resident of another state, who is licensed or authorized to act as an agent or broker in the state of NY
non resident
who can get a temporary license
only be used to service existing business, not to solicit, negotiate, or procure new business. only can be used for a total of 90 days unless the superintendent allows it to be extended and therefore can only be extended until 15 months
the causes of loss insured against in an insurance policy
peril
the money paid to the insurance company
premium
any person, firm, association or corporation, who for commission, acts on behalf of the insured in negotiating a settlement of a claim for loss or damage to property
public adjuster
situations that can only result in a loss or no change
pure risk
any inducement offered in the sale of insurance products that is not specified in the policy
rebating
the uncertainty or chance of a loss occuring
risk
exchange a contract of insurance by any means, for money or its equivalent, on behalf of a licensed insurer, fraternal benefit society or health maintenance organization
sell
attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular licensed insurer, fraternal benefit society or health maintenance organization
solicit
state regulation promotes the public welfare by monitoring what aspects of insurer activities?
solvency (the ability of a company to meet its long-term financial obligations.), policy forms, rates
has assets to meet its financial obligations
solvent
involves the opportunity for either loss or gain (gambling)
speculative risk
appointed by the governor and continues in office until the end of the governors term has very broad powers, both expressed and implied with the business of insurance,that extend to all financial service providers can recommend, withdraw, or amend regulations
superintendent
home state
the District of Columbia or any state or territory of the United States in which an insurance producer maintains his, her or its principal place of residence or principal place of business and its licensed to act as an insurance producer
every license must contain
the name of the licensee home office address the state or country under whose laws it was organized the kinds of insurance business it will provide and term of license
when do property and casualty agents' licenses expire on?
their birthdays
federal law makes it illegal for any individual convicted of a crime involving dishonesty, breach of trust or violation of violent crime control and Law Enforcement Act of 1994 to work in the business of insurance affecting commerce unless what ?
there is a written consent from an insurance regulatory official (1033 waiver)
insurance agent insurance broker business entity consultant adjuster non resident temporary
types of licensees
change of address
within 30 days
