insurance regulation
What type of licensee represents the insured?
broker
To whom may a certificate of authority be issued?
To an insurer authorized to transact business in this state
who is considered a nonresident agent
An agent who resides and is licensed in another state, but who is authorized to transact insurance in this state
what are the most common penalties for violators of insurance statutes
a cease and desist order, a fine, a license suspension or revocation
If an insurer holds a Certificate of Authority, it is known as what type of insurer?
authorized
If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?
authorized or admitted
If the Commissioner/Superintendent finds a licensee engaging in an unfair method of competition or an unfair practice, what order will be issued?
cease and desist order
what are producers required to do in order to renew their license
complete continuing education hours and pay a renewal fee
a producer purposely makes bad statements on another insurance company what is this called?
defamation
2 people with the same risk and age are charged different rates what is this called?
discrimination
In general, who can be excluded from producer licensing and examination requirements?
insurance company officers, directors or any other employees who do not transact insurance and who do not receive commissions for their services
What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is?
misrepresentation
Who may share in the commission from the sale of a life insurance policy?
only producers properly licensed for the type of insurance transaction
offering a client free sporting tickets in exchange for purchase of insurance is?
rebating
What type of licensee represents the insurer?
the agent
who must be notified of a producer's change of address?
the department of insurance
who is responsible for the costs associated with the examination of insurers?
the insurer who is being examined
what is the purpose of a cease and desist order?
to prevent a producer or insurer from violating laws for transacting insurance
What type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
twisting
When can the Commissioner or Director examine insurers?
whenever is deemed necessary, but atleast once every few years