Insurance Regulation
an insurance producer using a name that has not been approved will be subject to a fine up to __. if the producer continues to use the name for __ or more days after being notified by the commissioner to stop using the name, producer will be subject to additional fine up to ____.
$250; 10; $5,000
the following producers may be exempt from CE requirements in this state if:
1. are 65 yrs old and has at least 15 years of experience; and who is either no longer actively engaged in the insurance business or who represents a licensed insurer in this state 2. is currently serving a term as a member of the legislature 3. nonresident who has met CE requirements in their home state 4. individual renewing their resident producer license for the first time after initial issuance
an applicant for an individual license must meet the following requirements:
1. at least 18 2. resides in state or maintains her/his principal place of business in the state 2. has not committed any act that is a ground for denial, suspension, or revocation 3. has completed a pre licensing course 4. has paid licensing fee/ submitted application 5. fulfill fingerprinting requirements(if required) 6. has passed exam
the commissioner is in charge of what 4 things?
1. conducting legal hearings regarding suspected violations of the insurance code 2. issuing cease and dissent orders 3. examining insurers for solvency 4. issuing, renewing, suspending, and revoking licenses
individual who do not reside in Louisiana may obtain a nonresident producer license if he or she meets the following qualifications
1. currently licensed as a resident and is in good standing in his/her home state 2. has requested a license and has paid the licensing fee 3. has provided the commissioner with either a uniform application or the same license application that was submitted to their home state 4. the producer's home state awards nonresident producer licenses to residents of louisiana on the same basis
life insurance policy illustrations must include what 6 things:
1. name and business address of insurer/producer 2. name, age, sex 3. underwriting or rating classification upon which the illustration is based 4. generic name of policy, the insurer product name, and form number 5. initial death benefit 6. dividend option election or application of non guaranteed elements
all policy forms issued in this state must conform to the standards set forth by the insurance code, and must clearly identify the following information:
1. name of parties/insurer 2. subject of insurance/risks insured against 3. time the insurance takes effect and is expected to terminate 4. statement of the premium, and premium rate 5. conditions pertaining to the insurance
this category of insurance professionals may include company officer, directors or employees of the insurer who perform the following duties:
1. only perform executive, administrative, managerial, or clerical activities that are not directly related to the sale, solicitation or negotiation of insurance 2. have a function that relates to underwriting, loss control, inspection of the processing, adjusting, investigating or settling of a claim on a contract of insurance 3. acting in the capacity of a special agent where they are providing technical advice and assistance to licensed producers and do not include sale, solicitation or negotiation of insurance
Rebates may include, but are not limited to, the following:
1. rebates of premiums payable on the policy 2. special favors or services 3. advantages in the dividends or other benefits 4. stocks, bonds securities, and their dividends or profits
a temporary license may be issued to the following individuals
1. surviving spouse, next of kin, or employee of a licensed insurance producer who is deceased or disabled 2. a member of employee of a business entity licensed as an insurance producer, upon death or disability of an individual designated in the business entity application or the license 3. the designee of a licensed insurance producer entering active service in the U.S armed forces 4. any other person deemed fit by the commissioner
illustrations don't apply to what 4 policies?
1. variable life 2. individual and group annuity contracts 3. credit life 4. individual life policies with death benefits below $10,000
up to ___ hours of excess continuing education credits may be carried forward to the next renewal period for producers licensed in any combination of life, health and accident, property, casualty, or personal lines
10
the insurer must file a notice of termination to the producer within __ days after the notification is sent to the commissioner. the producer has a right to send comments to the commissioner regarding the termination within ___ days of receiving the notice
15; 30
to appoint a producer as its agent, the appointing insurer must file a notice of appointment with ___ days from the date the agency contract is executed; the commissioner upon receiving this notice, has ___ days to make sure that the producer is suitable for appointment; if producer is determined to be ineligible for appointment, the commissioner must notify the insurer within ___ days of making the determination.
15; 30; 15
a producer's license is valid for __ years __ days to file notice of appointment with commissioner __ days for commissioner to determine whether producer is suitable for appointment __ days for commissioner to inform insurer that producer is ineligible for appointment __ days to notify commissioner of termination of appointment temporary license period lasts for ___ days
2 15 30 15 30 180
producers who allow their license to lapse may reinstate the same license within __, upon proof of fulfilling all continuing education requirements through the date of reinstatement, and by paying all overdue fees. if lapsed for more than __ years, the producer must apply for new license
2 years
___ hours of CE (continued education) for insurance producers every 2 years __ hours of CE that must be about ethics ___ % is the maximum amount of business that can be attributed to controlled business __ days to report change of home or business address __ days to report administrative action or conviction
24 3 25 30 30
all insurance producers licensed in Louisiana must complete __ hours of approved continuing education prior to each license renewal. at least __ hours must be on ethics
24; 3
$___ fine for using an unapproved name $___ fine for repeated violations of the approved name regulation $__ fine for unintentional violations of insurance code $___ aggregate fine for unintentional violations of insurance code $__ finer per violation for willful violations of insurance code $__ maximum fine for all willful violations of insurance code within a 6-month period
250 5000 1000 100,000 25,000 250,000
producers need to submit a license renewal application every __ years. license renewals must be completed by the ___. the renewal window begins __ before expiration. if the application is received after the stated deadline, then a ___ fee will charges.
2; last day of producer's birth month; 90 days; $25
producers licensed to write property, casualty property and casualty or personal lines of insurance must also include ___ credit hours on flood insurance
3
with ___ days of a conviction in district court, a producer must report the conviction to the Commissioner and provide a copy of bill of information or indictment
30
an insurance producer must report to the commissioner any administrative action taken against them in another jurisdiction or by another governmental agency in Louisiana within __ of the final disposition matter
30 days
every licensee must notify the commissioner of any changes to the licensee's residential, mailing, business, or e-mail address or pone number within __ days of the change. failure to do so will result in a ___ penalty per violation.
30 days; $50
If an insurer terminates a producer's appointment, the Commissioner must be notified within how many days? however if the reason for the termination is due to the producer engaging in fraudulent activity, the commissioner must be notified within __ days after the effective date of the termination
30; 15
unlike consumer reports, these reports cannot be made unless the consumer is advised in writing about the report within __ days of the date the report was requested; consumers must be advised that they have a right to request additional information concerning the report, and the insurer or reporting agency had __ days to provide the consumer with the additional information
3;5
at the commissioner's discretion, a licensed agent or broker who is a member of, and actively participates in, a state or national insurance association may be granted __ continuing education credits
4
commissioner is elected for a term of ___ years
4
each insurer must maintain at its home or principal office a complete file containing a copy of every advertisement for wither _ years or until the next scheduled examination of the insurer, whichever is the longer period of time
4
individual producers engaged in the sale of any annuity products must complete a one-time, ___ hour training course.
4
commissioner's term office is __ years commissioner will examine each insurer __ years commissioner has __ days to conduct a hearing
4; 5; 30
the commissioner can examine insurers for solvency and compliance with the insurance code as frequently as deemed necessary, but at least once every ___ years. newer insurers may be examined more frequently: every __ months for the first __ years and ___ a year for years 4-6.
5; 6 months for 3; once
once a policy is issued with illustrations, insurers must provide each policy owner with an ___ on the status of the policy
annual report
___ is a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity
business entity
____ can act as producers, provided that they obtain producer's licenses. if a member or employee of the ___ wants to transact insurance, that person must first register with the Department of Insurance under the business entity's license and obtain an individual producer's license
business entity
insurers ___ by the insurance guaranty association
cannot advertise protection
a nonresident producer who moves from one state to another state must file a _____ form and provide certification from the new resident within __ of change of legal residence. no fee or license application is required
change of address; 30 days
___ is to require, as a condition to a loan, that the applicant purchase insurance from a specific insurer
coercion
___ include written and/or oral information regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources
consumer reports
___ is insurance that covers the producer or the producer's immediate family or employer
controlled business
____ occurs when an oral or written statement is made that is intended to injure a person engaged in the insurance business; also applies to statements that are maliciously critical of the financial condition of any person or company
defamation
foreign an alien insurers licensed in louisiana ___ have to be examined by the commissioner. instead the commissioner may accept an examination report on the company as prepared by the insurance department of the company's state of domicile or port of entry state, provided that proper protocol is followed
does not
any insurer that is organized in another state and admitted to do business in this state, may become a ___ by complying with all of the organization and licensing requirements of a domestic insurer of the same type. the insurer will be required to designate its principal place of business in this state
domestic insurer
the ___ established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant , and properly used; also protects consumers against the circulation of inaccurate or obsolete personal or financial information
fair credit reporting act
once a replacement policy is issued, the insurer must notify the policy owner of the right to receive an unconditional refund of all premiums paid within __ days from the date of policy delivery. this right is commonly referred to as a ___ period
free look
____ stipulates that in general, an insurance company may not disclose nonpublic personal information to a nonaffiliated this party except for certain reasons
gramm-leach-bliley
___ are formed to protect policy owners, insureds, beneficiaries, and anyone entitles to payment under an insurance policy from the incompetence and insolvency of insurers; is funded by its members through assessment; all authorized users contribute to a fund to provide for the payment of claims for insolvent insurers
guaranty associations
effective january 2018, licenses that end in an even number will expire ___. likewise, licenses that end in an odd number expire in ___
in even numbered years; odd numbered years
an offer that attempts to influence the other party
inducement
each form, including riders and endorsements, must be identified by a form number in the ___ corner of each page. each printed portion of the text of the policy and any endorsements must be printed in a least __ point type.
left hand corner; 10
annual statements are due before ___ and show the condition of the company as of ___ of the previous year. quarterly reports are due before __
march 1st; dec 31st; may 15, aug 15, nov 15
conduct that is contrary to community standards of justice, honestly or food morals
moral turpitude
____ is defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy; both the offer and acceptance of a ___ are illegal.
rebating; rebates
____ means any transactions in which new life insurance or a new annuity is purchased and, as a result, the existing life insurance or annuity has been..
replacement
___ is the company that issues a new policy while having an existing one; they present to the applicant a __ that is signed by both the applicant and the producer; copy must be left with the applicant
replacing insurer; notice regarding replacement
a formal written law enacted by legislature; insurance statutes can be found in the state insurance code
statue
a ___ license may be granted under specific circumstances; these licenses last for ___ after that , the person needs to take a producer's exam and receive a standard license
temp producer's license; 180 days
true or false: any domestic insurer, upon the approval of the commissioner, may transfer its domicile to any other state in which it is admitted to transact insurance, but upon the transfer will be required to cease to be a domestic insurer and must be re-qualified as a ____ insurer.
true; foreign
what 2 disclosures does the gramm-leach-bliley act require?
when the customer relationship is established before disclosing protected information
