G7 quiz

Ethics

- place customer's interest first - know your job and continue to increase your level of competence - recommend products and services that meet customer's needs - accurately and truthfully represent products and services - use simply language when possible - conduct periodic coverage reviews with customers - protect your confidential relationship with your client - stay informed on and obey insurance laws and regulations - provide exemplary service - avoid unfair or inaccurate remarks about competition

Violating Federal law in business of insurance is punishable by imprisonment for up to and fines up to

10-15 yrs, $50,000

how much continuing education is an agent who holds life-only and/or accident & health license AND property and/or casualty broker-agent license required to complete?

24 hrs per license term for either license

Life Agent CE Requirements

A producer who holds a life-only agent license and/or accident and health agent license is required to complete 24 hours of continuing education every 2 year license term

Annuities & Ethics CE Requirements

Annuities: Required only if agent sells life; 4 hrs/2 years (+8 hr course completed before selling) Ethics: Required of ALL licenses; 4 hrs/2 yr

Application Alterations

Applicant's written consent required for agent/insurer to alter application Applicant's initials on app constitute written consent Alterations made without written consent are a misdemeanor - Insertions may be made by the insurer for administrative purposes only in such a manner as to clearly indicate that such insertions are not to be ascribed (attributed) to the applicant

Ethical behavior

CIC and CCR identify many unethical and illegal practices, but they are not a complete guide to ethical behavior

Prohibited Conduct - Interstate Commerce

Federal law prohibits an individual convicted of dishonesty, breach of trust, or a violation of the Act, to continue working in insurance affecting interstate commerce unless written consent has been requested and received by DOI. Violating this Federal law is punishable by: - 10-15 years of imprisonment - Civil find for greater of: $50,000 or amount received or offered

So many licenses

If person holds life-only, a&H, property, casualty broker-agent licenses, the CE is the same - total of 24 hrs

What happens to a license after death of a natural person who holds insurance license?

It always terminates

Which must any person engaged in business of acting as an insurance agent or broker who receives compensation for arranging or directing sales in connecting with a premium financing agreement do?

Maintain a list of accounts in connection with compensation exempted in premium financing payments for 3 years

Internet Advertisement

Must include: 1. name of agent as it appears on license and any fictitious name approved by Commissioner 2. State of domicile & principal place of business 3. License number - Phone number not required - The agent is responsible for info on his website Considered transacting when: 1. provide insurance premium quote to CA resident 2. Accepts application for coverage from resident 3. Communicates with resident regarding one or more terms of an agreement to provide insurance or an insurance policy

Assuming CE requirements have been met, how is life agent's license renewed?

Pay renewal billing notice the Department sends out about 60 days before the renewal date

In order for an entity to be eligible to hold a license, a co-partnership whose membership has changed must do all of the following, except:

Return the old license with signatures of the original partners to the Commissioner with an explanation Not: obtain signature of the general partner on application for registration, at least one person who will exercise the agency powers o the partnership must remain with the co-partnership, submit a new application to the commissioner within 30 days of change of partners with the names of the new members of the partnership

When licensed agent submits a renewal application with applicable fee on or before expiration date:

The agent will be able to operate for up to 60 days after the specified expiration date

Regarding the handling of personal funds with fiduciary funds, which of the following is true?

The two funds can never commingle

All except one of the following are required to be communicated to an insurance client when client pays the agent for financing premiums. Which is it?

Why it is being financed (the client knows why it is being financed; the client doesn't have enough money to pay premium, so they borrow money to pay premium Not: who is financing the premium, how much agent is paid for such financing, how much cost would be without financing

If an insurance agent or broker receives a commission for arranging premium finance agreements, they must do which of following?

disclose to client the amount of commission received for arranging financing agreement

An agent who acts as an insurance agent, broker, solicitor, life agent or bail agent, acts in which capacity when handling premiums or return premiums for an insured?

fiduciary: trusted with funds or property of another (premiums)

Regarding organizational license, what happens when a corporation is dissolved?

license is terminated

LTC CE Requirements

long-term care insurance: - long-term care (Junior agent 1-4 yrs): 8 hrs/year - California partnership long term care (junior agent): 4 hrs/year - long term care (Senior agent 5 yrs and beyond): 8 hrs every 2 yrs) - California partnership long term care (senior): 8 hrs/2 yrs These hours are part of (not in addition to) total hours needed

An individual license is considered terminated:

on death of the license

Premium financing

policy owner borrows money to pay a premium on an insurance policy and pays interest on the borrowed funds Agent Disclosures: 1. Finance charges (APR, if applicable) 2. Lender info 3. Agent's compensation 4. Cost without finance Agents must maintain records of all premium finance transactions for 3 years

Agents must act on behalf of their clients in such a way that upholds their "fiduciary duty". example

quickly sending an insured's premium to the home office: fiduciary should always be connected with handling money appropriately

When a corporation ceases to exist, its insurance license

terminates unless the corporation files an application to continue to transact within 30 days

An organization will cease to exist as an entity eligible to hold a license for all of the following reasons, except

termination of a key employee not: termination of an association, dissolution of a corporation, dissolution of a co-partnership

What size print must be used for the licensee's license number on all price quotes, business cards and printed material?

the same size as licensee's phone number, fax number, or address

Any person who diverts or misappropriates fiduciary funds is guilty of

theft

An insurance provider may keep commission funds commingled with trust account funds in order to advance premiums at a later time

true

agents must act on behalf of their clients in same manner as hope to be treated

true

Jim sells long term care coverage to public. This means he must complete 8 yrs in approved LTC CE course

true: 8 hrs is part of 24 hours needed not in addition to