.

Rebating

Any inducement offered to the insured in the sale of insurance products that is not specified in the policy. Both offer and acceptance are illegal.

may 1st

Annual appointment renewal date, pay annual fees

2 years

CE compliance period

3 hours

CE required in ethics

24 hours

CE required per compliance period (doesn't apply to credit insurance line)

Rebating

Includes money, reductions in commissions, stock, bonds, securities, and their dividends or profits, special favors or advantages of benefits, and personal services. An insurance producer may give a gift, prize, promotional article, logo merchandise, meal, or entertainment activity, but may not give cash, a cash card, or any form of currency, or refund, or discount in premium.

Misrepresentation

It is illegal to issue, publish, or circulate any illustration or sales material that is false, misleading, or deceptive as to policy benefits or terms, the payment of dividends, etc. This also refers to oral statements.

$50,000

Maximum fine for willful violation of the insurance code

180 days

Temporary license valid

Coercion

The practice of persuading someone to do something by using force of threats. Entering into any agreement to commit any act of _____ or intimidation resulting in unreasonable restraint of, or monopoly in, the business of insurance. It is prohibited to advertise or circulate any materials that are untrue, deceptive, or misleading. False or deceptive advertising specifically includes misrepresenting any of the following: 1) terms, benefits, conditions or advantages of any policy 2) any dividends to be received from the policy or previously paid out 3) financial condition of any person or the insurance company 4) true purpose of an assignment or law against a policy.

Offer & Acceptance

There must be a definite, unqualified offer by one party, and the other party must accept this offer in its exact terms. In insurance, the applicant usually makes the offer when submitting the application. If the first premium payment accompanies the application, acceptance takes place when an insurer's underwriter approves the application and issues a policy. If the first premium does not accompany the application, acceptance by the applicant occurs when the policy is delivered and the applicant pays the first premium.

30 days

To report change of address

18

age to apply for license

$100-$1,000

civil penalty for insurance code violation

4years

commissioners term of office

Legal purpose

contract must be for a lawful reason, and not against public policy

5 years

examine domestic insurers (also foreign & alien)

30 days

for insurer to file notice of appointment

30 days

for insurer to notify the Commissioner of the termination of an appointment

Boycott and Intimidation

it is illegal to be involved in any activity that is intended to restrict fair trade or to create a monopoly

10 days

time a hearing must be held following an application

30 days

time given to request a hearing

Discrimination

in rates. premiums, or policy benefits for persons within the same class or with the same life expectancy is illegal. Unless the distinction is made for a business purpose or required by law you cannot base anything on marital status, race, color, national origin, creed or ancestry.

$25

license renewal fee

$10,000

maximum fine for violation of the insurance code (cease & desist order)

Defamation

occurs when an oral or written statement is made that is intended to injure a person engaged in the insurance business. This also implies to statements that are derogatory or maliciously critical of the financial condition of any person or company

Insurance Fraud Department

1) Initiate independent inquiries and conduct independent investigations when the insurance fraud unit has cause to believe that a fraudulent insurance act may be, is being, or has been committed 2) Review reports or complaints of alleged fraudulent insurance activities from federal, state, and local law enforcement and regulatory agencies, persons engaged in the business of insurance, and the public to determine whether the reports require further investigation and to conduct these investigations 3) Conduct independent examinations of alleged fraudulent insurance acts and undertake independent studies to determine the extent of fraudulent insurance acts

Twisting (life & accident/health only)

Knowingly making any misleading representation or incomplete or fraudulent comparison of any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance with another insurer

Controlled business

insurance written on the interest of the licensee, licensee's immediate family, or licensee's employer, or insurance covering the licensee, the members of the licensees immediate family, a business entity, or the officers, partners, or employees of such a business entity of which the licensee or a member of the licensee's immediate family is an officer, partner, associate, or employee. This does not include insurance written in connection with credit transactions (title insurance). If during any 12-month period, the aggregate commissions earned on this business exceeded 35% of the aggregate commissions earned on all business written by the licensee during the same period.

Consideration

something of value that each party gives to the other. Insured- payment of premium and the representations made in the application. Insurer- promise to pay in the event of loss

False Financial Statements

those that are intended to deceive public officials or the general public about the financial condition of an insurer. This often occurs when an important fact about the financial status of an insurer is deliberately withheld in order to present the company in a more favorable light.

false advertising

wide scope of communication, from publishing an ad in a newspaper or magazine, to broadcasting a commercial on television or the internet. They cannot include any untrue, deceptive, or misleading statements that apply to the business of insurance or anyone who conducts it.

Competent Parties

Those entering into the contract must be of legal age and must be mentally competent to understand the contract, and not under the influence of drugs or alcohol