X. Insurance Regulation
If a business is transacted while not authorized, penalty is?
$1000 for the 1st violation and $2500 for each subsequent violation
If a person violates cease and desist order, the superintended may impose a civil penalty of
$5,000
civil penalty for not submitting records to superintendent?
$500 per day (total not to exceed $10,000) if not submitted within 15 days
A producer has how many days to demand for a hearing (after a superintendent has given a written reason of action)?
10
if a violation or unfair trade practice occurs, how many days after notice will a hearing be held?
10
The maximum prison sentence given under federal law for unfair and deceptive insurance practices is
15 years
A producer must notify any change of address (residence, business, or email) within how many days?
30
If renewal license is denied, in how many days will the current license expire?
5 (after the agent is notified)
Insurer must keep the following for how many years? -record (policy record, licensing, complaint, or financial); -application (where no policy or contract was term-30issued); or a -claim file
6
agent must file a renewal application how many days before the license expires?
60
if an insurer refuses to pay a claim, how many days must a insured wait to take a legal action after submitting a written proof of claim?
60
If a licensed person is moving to NY, he or she may become licensed as a resident if they submit a completed application within how many days of establishing residence in NY with proof of licensing from their prior home state?
90
How long does a temporary license last for?
90 days (unless the superintendent renews additional 90-day term), not to exceed an aggegrate of 15 months
represents the insured?
Broker
What are producers required to do in order to renew their license?
Complete continuing education (15 hours) biennially
A producer has become disabled. In order to keep his business going, what may his designee do?
Obtain a temporary license
How often must the superintendent examine life insurer and rating organization?
Q5 years (Q3 for fraternal benefit society and property/casualty)
represents the insurer?
agent
In order for a person, firm, association, corporation, or joint-stock company to do business, it must apply for and obtain
certificate of authority
A producer's license must be renewed
every 2 years
how often must a superintendent examine each admitted insurance company
every 6 years
Violation of US code title 18 code 1033 may result in
fine of up to $50,000, imprisonment for up to 15 years, and/or license revocation
An association which maintains a facility that displays, offers, and counteroffers for purchasers or sellers of life settlement contracts is known as a
life settlement intermediary
An insurance consultant is best defined as a agent that
provides a fee for service
Who is considered a nonresident agent?
resident of another state, but who is authorized to transact insurance in NY state
temporary license is issued to whom?
surviving spouse, next of kin or agent's representative to a member of employee of a business entity designee of an agent entering active military service
Replacing a policy when it is not in the best interest of a client is known as
twisting
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
twisting
In what circumstances is a temporary license issued?
when an agent becomes disabled (mentally or physically) or dies in order to keep his business going
If an insurer terminates a producer's appointment, the Commissioner must be notified within how many days?
30
Licensees must make a report of any action taken against them in another jurisdiction or by another governmental agency within how many days of the final disposition of the matter?
30
Within how many days must a producer respond to an inquiry from the Commissioner?
30
