Insurance Regulation

consumers must be notified within ______ of the repeat being requested

3 days

What type of licensee represents the insurance company?

the agent

who is responsible for paying producer appointment fees?

the appointing insurer

suspension, revocation, and non-renewal

the director may suspend, revoke and refuse to renew a producer license for any reasonable cause

producer

Individuals and organizations that are required to be licensed to sell, solicit, and negotiate

producers are not allowed

to represent an insured or claimant

Cease and desist

to stop or discontinue

insolvent

unable to meet financial obligations

cases acceptable to receive a temporary license

when a producer becomes deceased, disabled, enters the active service, or the commissioner deems it is in the best interest of the public

how soon after the due date should the insurer pay the agent appointment fees

within 30 days

reporting of actions

you must report any actions taken against you by a government agency within 30 days

to correct the violation if a person failed to respond to the Department's inquiry within 30 days

15 days

how long does a temporary producer's license last?

180 days

civil penalty for violation of the PA insurance fraud prevention act

1st - $5,000 2nd - $10,000 3rd - $15,000

Change of address must be reported within

30 days

penalty for unintentional acts of engaging in unfair methods of competition or practice

$1,000 each violation not exceeding $10,000 in any 6 month period

penalty for intentionally engaging in an unfair method of competition or practice

$5,000 each violation not exceeding $50,000 in any 6 month period

what is needed to apply for a resident insurance license

- a complete pre-licensing course - must be 18 years of age - a completed application - finger prints - paid fee

hearing on rate filing after the insurer is informed of disapproval

10 days

written notice of a hearing for a person suspected of prohibited behavior

10 days

for claims settlements, after receiving notification of a claim, provide the necessary claims forms within

10 working days

for claims settlements, insurers must acknowledge the receipt of claims or any other pertinent communication within

10 working days

for claims settlements, accept or deny claims within _______ of their receipt

15 days

for claims settlements, insurers must respond to inquiries from the department within

15 working days

days to provide a response to the Department's inquiry

30 days

for a commissioner to approve or disapprove changes to a form

30 days

waiting period before rate filings go into effect

30 days

penalty for acting as a agent without proper licensing

3rd degree misdemeanor and a fine up to $1000 for each day of their offense

how long does the insurer or reporting agency have to comply if a consumer requests additional info concerning an investigative consumer report?

5 days

false advertising

Advertisements cannot include any untrue, deceptive, or misleading statements that apply to the business of insurance or anyone who conducts it.

Exclusive general agent

a licensee which has been granted sole authority to act directly or indirectly as an insurance producer for a domestic insurer

twisting

a misrepresentation, or incomplete or fraudulent comparison of insurance policies that persuades an insured/owner, to his or her detriment, to cancel, lapse, switch policies, or take out policy with another insurer

line of authority

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

rebating

an inducement offered to the insured in the sale of insurance products that are not specified in the policy

Gramm-Leach-Bliley Act

an insurance company may not disclose nonpublic information to a nonaffiliated 3rd party

inducement

an offer that attempts to influence the other party

what type of licensee represents the insured?

broker

do not call registry

can call between the hours of 8am - 9pm and was established by the Federal Trade Commission

violation of the laws of the common wealth

commissioner may suspend or revoke the insurance company's certificate of authority, refuse to issue a new COA for up to 1 year, and/or impose a penalty between $5,000-$25,000 for each violation

termination of appointment

commissioner must be notified within 30 days

Unfair Claims Settlement Practices

committed openly and consciously in disregard of the rules and regulations

commissioner will examine insurer

every 5 years

coercion

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

Fair Credit Reporting Act Penalty

if knowingly - $2,500 if unknowingly - the amount equal to the loss

certificate of authority

indicates that the commissioner has examined the business and found it to be financially stable and organized in accordance with the insurance code

aggrieved

injured party

producers do NOT have the authority to

issue policies

Misrepresentation

issuing, publishing, or circulating any illustration/sales materials that is false, misleading, or deceptive that is considered illegal

Fraud and false statements penalty

may be fined, imprisoned up to 10 years or both

improper fiduciary responsibility penalty

misdemeanor, $5000 fine for each violation or 6 month imprisonment

Fair Credit Reporting Act

protects consumers against the circulation of inaccurate or obsolete personal or financial information

investigative consumer reports

reports to provide information on the consumer's character, reputation, and habits obtained through associates, friends, and neighbors of the consumer

Fiduciary Responsibility

requires that all premiums received by a producer must be accounted for and maintained in a trust account separate from all business and personal funds