The Insurance Marketplace

After a cease and desist order is final, if the Commissioner finds that the person has continued to willfully violate the insurance code, what penalty may be applicable in addition to initial penalties?

$55,000 fine

If a claimant contacts an agent regarding her life insurance policy and clearly expects a response, within what span of time must a complete response be issued?

15 days

When an agent doesn't hold any active appointments with insurers, what happens to the agents license?

It becomes inactive

What are the consequences for failure to comply with the Commisioners office while it is executing a seizure order?

Its a misdemeanor punishable by a fine of $1,000 one year imprisonment or both

When can earned surplus be returned to the policyholder?

Whenever it exists and it's not needed for other expenses

In a conservation or liquidation effort, what power does the Commissioner have?

Complete control over the assets of the insolvent company, power to sue company officers and power to sell the company's assets until all creditors are paid

What's true about an insurers Earned Surplus?

Earned Surplus are unassigned funds that are required to be reported on the insurers annual statement

If the department of insurance requests information from an agent regarding a claim, this must be provided within how many days?

21 days

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?

Defamation

Which of the following best describes an unfair trade practice of defamation?

Making derogatory oral statements about another insurers financial condition

If a licensee wants to terminate her agents license but it is in the possession of her employer, what is true?

She can terminate the license by sending the Commissioner a written notice

Which of the following is the closest term to an authorized insurer

Admitted

How often must every insurer doing business in California report its financial condition to the Commissioner?

Each year, on or before March 1

The claims department would be responsible for investigating what?

Possible fraudulent claims by an insured