Life insurance license Ch.4

When is a producer required to report to the director or his designee any administrative action taken against the producer in another jurisdiction or by another governmental agency in South Carolina?

Within 30 days of the final disposition of the matter

What do nonresident producers need to transact business in this state?

a sponsoring producer appointed to them through NIPR

How many continuing education hours are necessary

24 hrs Minimum of eight hours in each line of authority Minimum of three hours of ethics Remainder of the required minimum 24 hours could be taken and any approved CE course

How long after a producer lets their license lapse due to failure to comply with CE requirements can they reinstate?

6 months if CE requirements have been met and fee paid

statute

A formal written law enacted by legislature; insurance statutes can be found in the state insurance code

How often must a producers license be renewed

Biennial basis by the last day of the licensees month of birth (by September 30th of even numbered years) Even or odd year basis depending on the year in which the producer was born

Qualifications to transact insurance

-at least 18 -be it good moral character -have not been convicted of any felony or crime for the last 10 years, or revocation of a license -pass required license exam -pay the license fee of $25

What must a nonresident producer who moves from one state to another do?

-file a change of address -provide certification from the new resident state within 30 days of the change of legal residence

What must the individual producer license contain

-licensee's Name -address -personal identification number -date of issuance -lines of authority -any other info the Director considers necessary

How many hours in excess of the required minimum can be carried forward to the next biennial period?

18 excess hours

Reciprocity

A mutual interchange of rights and privileges

domicile (for insurers)

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

What are the additional training requirements for producers who intend to sell long-term care policies in this state?

Complete life, accident and health licensing requirements Obtain a license Complete an initial eight hour training course in a long-term care partnership product Provide proof of training to the appointing carrier For our biennial training requirement to Maintain their eligibility to sell and service the product

What must the report include

Copy of the order, consent to order, or other relevant documents

When can a licensed insurance producer request a waiver of the renewal procedures?

Due to active military service or some other extenuating circumstances such as a long-term medical disability

Within 30 days of the initial pre-trial hearing date, a producer must report to the director any criminal prosecution of the producer taken any jurisdiction and include what with the report?

Initial complaint filed, the order resulting from the hearing and any other relevant legal documents

Authorized User

Insurer who has received a Certificate of Authority from the department of insurance to transact insurance in this state

How do producers licensed in South Carolina renew their license?

Paying a $25 renewal fee Completing an online renewal application Continuing education recordkeeping fee

Commision

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

Director

The head of the state department of insurance.

True or false: Those already exempt from continuing education will be grandfathered in

True

When can a person obtain a surplus lines insurance broker license?

after passing the surplus lines examination if that person already holds a property and casualty license

inducement

an offer that attempts to influence the other party

insurance broker

as used in SC, means an individual licensed by the director or the Director's designee to represent citizens of this State in placing insurance may place insurance either with an eligible surplus lines insurer or with a licensed insurance agent in and insurance carrier licensed in this state

moral turpitude

conduct that is contrary to community standards of justice, honesty or good morals

Individual Producer

formerly known as an agent a person who is authorized by an insurer to represent it and to offer to the public insurance policies or contracts and attendant serviced that are performed incidental to such policies or contracts.

General Producer

formerly referred to as a general agent, a person who, as a representative of an insurer or insurers, has the authority to supervise producers and to exercise such management authority as delegate by the principal

Special Producer (State Producer)

formerly referred to as a special agent, a person employed by an insurer or general producer to travel in a designated territory to supervise and assist producers in the proper discharge of their duties. license granted to these grants no authority to solicit from the public, counter sign policies or receive commission

broker

insurance producer who is not appointed by an insurance company and is deemed to be a legal representative of the client. do not have an agency agreement with any company; therefore their words and actions are not legally binding to the company

if someone is licensed as a surplus lines broker in their home state, what must they receive prior to transacting business in this state?

nonresident surplus lines broker license

producer

person who is authorized by an insurer to sell, solicit, negotiate, or receive and deliver insurance policies on behalf of the insurer. may also include a licensed agency

nonresident producer

producer licensed in another state that meets the following qualifications -currently licensed as a resident and in good standing in his or her home state -applying for the same line of authority as held in the home state -has submitted proper requests for licensure and paid the required fees -has the producer's home state awards nonresident insurance producer licenses to residents of this state on the same basis

Travel accident baggage producer

producer of a common carrier who sells only transportation ticket policies of accident and health insurance or baggage insurance on personal effects

how does the director verify the producer's licensing status?

through the Producer Database maintained by the National Association of Insurance Commisioners

cease and desist

to stop or discontinue

What must be provided if previously licensed in another state?

Applicant must submit a copy of online application and fee payment

True or False: and insurance provider is not required to notify that director if they are doing business under any name other than their legal name.

False. They must inform the director if doing business under any other name

Required fees for licensing renewal per type of producer

Limited lines individual producer resident and nonresident $40 General producer $100 Special producer $100 Travel accident and baggage producer $20

What would someone receive if selling insurance with no license in the state of SC?

Misdemeanor

Types of Licensees

Producer Individual Producer General Producer Special Producer Travel Accident Baggage Producer

What must be provided if applying for Variable contracts

Proof of series 6 or 7

In the case of a change of address what needs to be submitted and to whom?

Residence, mailing, and business addresses to www.nipr.com