Chapter 15 - Insurance Regulation

a producer has died. The surviving spouse is winding down the company. What is the max temporary license without an exam

180 days

you are licensed in another state and move to PA. how long do you have to get licensed in Pennsylvania

90 days. Nonresident producers must submit a completed app within 90 days of establishing residency

what is reciprocity or reciprocal

a mutual interchange of rights and privileges

who does an insurance producer represent

a producer is always classified as a rep of the insurance company for whom they transact insurance

insurance producers that do not have company appointments are considered a what

a representative of the consumer

what is a home office or domicile

a state in which an insurer is organized and has its main place of business

define line of authority

a type of insurance a producer or a business entity is authorized to transact

define inducement

an offer that attempts to influence the other party

who must be licensed as an insurance producer

anyone who solicits insurance and receives commissions from insurance transactions

a banker is saying they won't give you a loan unless you get an insurance policy with the bank. What is this an example of

coercion. And it is illegal

true or false. fed law makes it illegal for any individual convicted of a crime involving dishonesty or beach of trust to work in insurance affecting interstate commerce under any circumstances

false. They can but must receive written consent from an insurance regulatory authority

if an insurer changes a form that it uses to transact insurance, it must do what

file the form with the commissioner for approval. Commission will approve or disapprove the form. If 30 days after the for mis filed and no action, the insurer can assume approved

define coercion

forceful act or threat aimed to influence a person to act against his or her will

define aggrieved

injured party. Someone entitled to begin a lawsuit or request a hearing

whom do insurance agents represent

insurance agents represent the insurer

what are examples of unfair discrimination

marital status, race, color, national origin, creed, ancestry are unfair discrimination practices

can you name some unfair trade practices that producers should avoid

misrepresentation, rebating, defamation, unfair discrimination

is it true the commissions sets all insurance premiums rates used in PA

no the commissions does not set all premium rates used in Pennsylvania

when getting an insurance producers license is it a requirement to have all employees complete continuing education courses once every 2 years

no. not every employee. Only employees soliciting insurance

what is a commission

payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium

what does the FFCRA federal fair credit reporting act regulate

regulates consumer reports

who established the do not call registry

the federal trade commission or FTC

who is the commissioner

the head of the department of insurance

what does a broker, public adjuster, public adjuster solicitor all have in common

they are all deemed to be representatives of the insured or claimant.

a individual was caught acting as an exclusive general agent. Even though he is not properly licensed. Assuming that this occurred in a single day, what is the max penalty

third degree misdemeanor and a 1k fine for each offense

what is a cease and desist

to stop or discontinue

which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another

twisting.

define insolvent

unable to meet financial obligations

does the insurance applicant have to be notified when an insurer requests an investigative consumer report

yes. Insurance applicants must be notified in writing whenever insurers request investigative consumer reports