Kansas P&C

Fire is considered to be:

A cause of loss.

Risk

A chance to lose something of value

Within 30 working days of their occurrence, a licensed agent must report to the Commissioner of Insurance all of the following:

A conviction of a misdemeanor or felony. Any change of name, residence, or business address. Actions of a disciplinary nature on an occupational license.

A slippery floor is:

A hazard.

Morale Hazard

A reflection of indifference or the potential indifference to others: High weeds, lack of maintenance, large dents, smoking.

Peril

A specific cause of loss. i.e., tornado, fire, hail

When can an agent use statistics in advertising during a sales presentation?

When approved by their company.

Twisting:

When misrepresentations and untrue statements are used in the replacement of an existing policy.

When does the policy period begin?

When the agent binds the coverage.

A resident Producer:

a person that resides in a state and is licensed to transact insurance biz for at least one insurer in that same state.

What is the maximum fine for an unintentional violation after an agent has been found guilty by the Insurance Commissioner and placed under a cease and desist order?

$1,000

Life and Health CE hours:

12

Legal Hazard

An example would be a backyard hot tub

All of the following are unfair claims settlement practices:

1. Misrepresentation of pertinent facts or policy provisions. 2. Failure to acknowledge or act promptly with respect to a claim. 3. Attempt to settle a claim because the application was altered without the knowledge or consent of the insured.

The Hearing Process

1. Notice of hearing--15 days or within reasonable time 2. Hearing--oath, examine, subpoena witnesses, etc. 3. Commissioner decision. 4. Penalties--suspension, revocation, fines, redress of injury, cease and desist order.

An advertisement includes:

1. Printed and published material. 2. Billboards. 3. Prepared sales talks by agents.

In theory, an insurable risk should include:

1. The loss must be definite in time, place, and amount. 2. The loss must cause economic hardship. 3. The loss must be accidental.

if a producer intentionally violates insurance statutes, rules, or regulations they:

1. get fined $2,000 for each act. 2. May have license revoked or suspended. 3. may be issued a Cease and Desist.

Property and Casualty CE hours:

12

A Property and Casualty agent must complete how many hours of continuing education?

12 hours every 2 years by their due date.

Crop insurance CE hours:

2

Life and Health and P+C CE hours

24!

Title Insurance CE hours:

4

Commissioner's Term Length

4 years.

When a new Homeowners or Personal Auto Policy is insured, what is the usual length of time that a company can cancel a policy for any reason?

60 days.

Fair Credit Reporting Act:

A Federal law that allows insurers access to information to underwrite insurance. Insurance company is required to inform the applicant that their credit will be used. Applicant must be informed in writing within 3 days after the inspection report was requested.

The only type of risk that is insurable is:

A Pure Risk.

Peril

A Specific cause of loss

Who is required to obtain a license?

ANYONE transacting insurance business, including quoting, discussing, or signing apps.

Rates charged for insurance coverage sold in this state must be:

Adequate.

What information must be included in agents advertisements?

Agent's full name and phone number.

Disclosure:

Underwriter has 21 days to disclose why a denial or need for extra premium due to present risks/hazards.

Moral Hazard

An example would be a prior felony conviction

Retaining the risk

An example would be someone who chooses not to insure and asset

Speculative Risk

An example would be the failure of a new business

Legal Hazards

Any action or operation that increase the chance of law suits. Trampolines, dogs, pools, home day care

Where should an agent send a petition after a revocation of license notice has been given?

Any court in residing county.

How is risk managed?

Avoid it, reduce it, retain it, transfer it, or share it.

Producers will lose their license if:

CE not met, or license suspended or revoked by IC or felony conviction.

Boycott, Coercion, Intimidation

Cannot force a person to buy under any circumstances.

If fired or quit:

Company has 30 days to de-certify you.

An insurance agent must complete how many hours of continuing education?

Complete the approved courses as specified by the law every 2 years.

If a person deliberately withholds information on an application for insurance, they are guilty of:

Concealment.

Pure Risk

Defined as uncertainty for loss without potential for gain

Unfair Trade Practice Act

Details illegal actions performed by agents.

The Insurance Commissioner:

Enforces insurance code and administers and regulates existing laws that have ALREADY been passed by the Kansas Legislature.

Who can obtain a temporary license?

Family member, administrator, or executor of the estate.

A foreign insurance company:

Has its home office located in another state.

A temporary insurance license can be issued...

In emergency situations like death or disability of producer.

Hazard

Increases the likelihood of a loss

To restore a person back to their original economic position before a loss, without provision for material gain, is the principal of:

Indemnity.

If an individual faces the risk of economic loss in the event of property damage or loss of life, this is represented by the principal of:

Insurable interest.

"Proof of Loss"

Insurer has 10 days to get to insured. Insured has 60 days to complete and submit. Insurer has 15 days from receipt to approve, deny, or say why they need more time to investigate claim. Insurer must pay within 30 says after receipt of proof of loss or after final agreement.

To meet the requirements for a license in Kansas you must comply with all:

Legal Age. Pay non-refundable fee. Be of good business reputation.

When an insurer wants to advertise in this state, what must they submit to the Kansas Insurance Department?

Letter of compliance.

If you forget to complete CE requirement

License suspended for up to 90 days, must take all required hours plus play $100 reinstatement fee for each license held.

Kansas Property and Casualty Guaranty Association Act

Limits: $100--minimum claim amount $300,000--maximum claim amount Unlimited--for worker's comp claims only

All of the following would have restricted rights in a contract:

Minors. Intoxicated persons. Insane persons.

Claims reserves:

Must be in cash.

If a complaint is filed against an agent in this state, the expense for the examination of the agent's business by the insurance Commissioner is:

Paid by the agent examined if the complaint is justified.

4 types of hazards:

Physical Moral Morale Legal

Advertisements must include:

Producer's name and phone number.

The following are examples of Unfair Trade Practices:

Rebating. Misrepresentation. Coercion.

Direct Loss

Refers to actual damage of a loss and cost to repair

Indirect Loss

Refers to additional expenses incurred with a loss

Moral Hazard

Reflect any illegal activity of an insured or applicant: Arson, speeding, substance abuse, felonies.

An insurance contract that indemnifies the insured to the actual amount of loss, or for a stated amount, is called a:

Reimbursement contract.

Actual cash value is defined as:

Replacement cost of the property, less depreciation, obsolescence and deterioration.

An agent's records must be given to the Commissioner when:

Requested by the Commissioner.

A self-insurer deals with risk by:

Retaining the risk

If the commissioner has reason to believe an agent is engaged in unfair or deceptive practices, their first action would be to:

Serve the offender with a statement of charges and notice of hearing.

Misrepresentation:

When a producer knowingly gives false info or untrue comparisons of any policy's benefits or advantages. includes misinformation of a company's financial condition.

Rebating and Inducement

When a producer offers to give something of value in turn for purchasing the policy.

Insurance Consultant

When acting as a consultant, there must be a written agreement disclosing all fees before advice given.

If you are denied insurance because of your driving record, what law requires the insurance company to notify you of the reasons for the denial?

The Unfair Trade Act.

The replacement cost value is:

The actual cost to repair or replace at today's labor and material costs without allowances for deterioration, obsolescence and depreciation.

Under the jurisdiction of the unfair trade practices act, advertising can be considered to be all of the following:

The agent's statements. Material use in an insurance presentation. Brochures produced by the insurer.

What is Risk?

The chance of losing something of value.

The Unfair Claims Settlement Act requires:

The insurer must settle the claim within 60 days from the date they agree to pay.

who can cancel a binder?

The insurer.

Redlining

The practice of not selling insurance to those who live in low-income, high-crime areas of town. This is discriminatory.

Insurance

Transfer of Risk

Replacing an existing policy to the detriment of the insured is considered:

Twisting.

Speculative Risk is defined by:

Uncertainty of loss, with possibility of gain.

Physical Hazard

an example would be a wet floor

A way to void a contract is:

applicant knows of an adverse health condition and fails to report it.

Solvency is determined:

by commissioner auditing books at least once every 5 years

Direct loss

costs for repair to a damaged property

Continuing Education must be completed:

every 2 years (biennium) by your birthday (based on your birth year, even or odd).

Binders

evidence of coverage issued by insurance company.

indirect loss, or "consequential loss"

financial loss suffered because of the "loss of use' of the covered property.

Should a producer fail to respond to requested from Commissioner, Commissioner may:

impose a fine of $1,000 for each violation, and an additional penalty of up to $500 per week that info was not reported.

hazard

increases the likelihood and or seriousness of a loss. They increase the likelihood of a peril occurring.

Temporary licenses can be issued without state exam for a period of:

initial 180 days, can be renewed for additional term of 180 days.

Cease and Desist order is:

issued if determined that violation occurred. up to $1,000 per unintentional violation with max $10,000 for all violations within a 6-month period. Intentional violation $5,000 per with max of $50,000

A non-resident producer

lives in a diff state than the one they are licensed, and have written permission (non-resident license) to sell in a diff state through the commissioner of that state. $30 app fee, $50 license fee, and $50 renewal fee every two years.

Defamation

making maliciously critical, slanderous, or derogatory statements in order to injure a person or company's reputation.

In lieu of revocation or suspension, commissioner may issue:

monetary penalty up to $500 per unintentional violation max of $2500 for 6-month period. INTENTIONAL ACTS $1,000 per violation up to $5,000 OR IMPRISONMENT (can't exceed 6 months).

Physical Hazard

relative to the condition of the property: old wiring, slippery floors, worn tires--increase likelihood of a loss.

IT is a VIOLATION

when a producer uses the Guaranty Association in any sales presentation where it's implied that any benefits or claims not paid by company would be covered by the Association.