Property and casualty
And insured of an insolvent insurance company with a homeowner coverage of 450,000 submits a fire claim to the guarantee association of 350,000. Disregarding any deductible how much with a guarantee association pay for the loss?
$300,000 the maximum amount the association will pay for a covered claim as lesser of the amount of laws to limit policy or 300,000 subject to $100 deductible
To do business in Kansas foreign companies must possess the required amount of surplus and paid up capital money not borrowed and also fulfill the following
1. make a deposit with the department in the amount required by state insurance code 2. participate to the extent possible then the insurance regulatory information system in ministered by the national Association of insurance commission in a icy 3. submit a financial examination report from the Department of the insurers homestay 4. sure that the majority ownership interest of the company or financially sound 5 must not be owned and managed by anyone previously convicted of fraud embezzlement 6 must of been in operation at least three years 7 must not require immediate regulatory attention by the Department of insurance
If an insured's home is damaged by fire, within how many days Must the insurance company provide the insured with the form and instructions to complete a proof of loss?
10 days
A property and casualty producer must complete how many hours of continuing education every two years
12
FAIR Plan policies are effective for how many months
12 months
Licensing candidate must be at least how many years of age to be license
18 years old
What is required in order for an insurer to conduct business in the state of Kansas
A certificate of authority
Domestic Company
A domestic company is an insurer a risk retention group licensed in Inc. in Kansas
The commissioner does not have the authority to suspend the license of which of the following licensee
A licensee unknowingly excepts business from an unlicensed producer
The automobile assigned risk plan is for what type of persons
A person who no longer can get normal coverage due to claims history
Auto club producer
A producer appointed by an auto club to sell its memberships. An appointment notice must be provided to the commissioner, and must include; the producers name address age gender and Social Security number next paragraph evidence that the applicant is reputable and well-trained a $15 registration fee must be paid at the license application and again at renewal by May 1 once every two years. And auto club must notify the commissioner within 30 days after terminating a producers appointment the commissioner may upon notice and a hearing revoke or suspend that registration from any violation of auto club producer requirements
Nonresident Producer
An individual or business entity doing business in Kansas but who is a resident of another state and licensed in that state in good standing the producer must make application in their home state and miss for nonresident producer license to Kansas residence on the same basis
Resident Producer
An individual or business entity license to act as an insurance agent that maintains a principal place of residence or business in Kansas
Producer
An individual or business entity required to be license under Kansas law in order to sell solicit or negotiate insurance. The term producer also includes broker unless otherwise specified licensing requirements do not apply to an inch or salary traveling representatives
Foreign Company
And ensure a risk retention group not incorporating in Kansas but license and registered to do business in Kansas
Cancellation and Nonrenewal auto only
And insured who intends to cancel refuse renewal of an auto policy for any reason except nonpayment of premium must provide 30 days notice to the insured. During the first 60 days of an auto policy, and ensure I may cancel the policy for any reason. After 60 days, and insured can only cancel the policy for one of the following reasons
Fraternal benefit society
Any in corporative society order or lodge without capital stock and not for profit and conducted solely for the benefit of its members
Rebating
Any inducement offered in the sale of insurance products that is not specified in the policy.
Commercial properties
Apartment buildings with five or more units Mercantile properties Service risks Manufacturing rest with no more than 20 production employees
Under Kansas law, which of the following rate discrimination practices is allowed?
Based on actuarial data
True or False
Commercial policies are exception and must provide 60 day notice for intent to refuse 30 days for intention to cancel
A producer is guilty of what when he makes a derogatory statement about a computing insurers financial statement
Deformation
Commissioner of the Office of Insurance Regulation
Elected every 4 years. If a vacancy is created during the four year term the governor will appoint a suitable person to fill the position for the unexpired term until the qualification successor is elected
Boycott, Coercion, and Intimidation
Entering into an agreement to take action resulting in an unreasonable restraint of or monopoly in the business of insurance
Delivery by electronic means
Equivalent to first class mail. Postage prepaid and first class.
PIP coverage provides what following benefits
Essential services are required with coverage up to $25 per day
True or False
Except for non payment of premium. Kansas law requires at least 30 days notice prior to cancellation of most property or casualty policies. A homeowner's policy may be cancelled for nonpayment of premium with a 10 day notice.
Excess line producers
Excess also called surplus lines insurance is written on unique or high-risk exposures that standard insurance will not ensure. Since admitted carriers are required to participate in the state guarantee association, excess lines are provided Buy non-admitted carriers. And excess lines license is required and the commissioner can revoke or suspend the license of any producer who transact excess Lines insurance without holding an excess lines license. The commissioner may also impose a fine of doubling the tax on premiums paid upon any producer who writes business with a non-admitted carrier without being properly license for excess lines. The access lines license must be renewed each year by May 1 in a renewal fee paid
In order to transact excess lines insurance, a property/casualty producer must have which of the following?
Excess lines license
Suspension and/or revocation of license
Following to hearing the commissioner may suspend, revoke or refuse renewal of any license of the investigation reveals at least one of the following circumstances; The license was obtained through fraud or miss representation The interest of the insured or of the public or not served under the license The licensees; with held misappropriated or converted money or property received in the course of doing business Misrepresented the provisions terms and or conditions of insurance policy Is or has been convicted of a misdemeanor or felony Admitted to her was found to have committed any insurance unfair trade practices Had an insurance producer license denied suspended or revoked in any other state Forged another persons name and application or any document related to insurance And properly use notes or reference material to complete an examination Knowingly excepted business from an authorized producer Failed to comply with the child support order Failed to pay income state tax Engaged in rebating Intentionally omitted materials faxed in during the presentation or sale of insurance policy Made misleading representations or comparisons to undo surrender of a policy Violated a subpoena or other order of regulatory official of insurance in any state
In Kansas ensures that are formed under the laws in Minnesota or what companies?
Foreign companies
Choose the true statement about Kansas Worker's Compensation law
Hey. Worker's Compensation claims must be filed by the employer within 30 days of the injury Bee. All insurance carriers must participate in the state workers compensation fund C. Employers with less than $35,000 in payroll are excluded from Worker's Compensation D. An injury is covered if the employee was under the influence of drugs B
Filings
Insurers misfile all rates, writing plans, and classification manuals with the commissioner, it may not use any rate that the commissioner disapproves. Rachel review to verify that they are not excessive, unfair discriminatory, likely to create a monopoly, or in adequate
True or false
It is unlawful for a producer or insured to charge in an approved rate or to prove any sort of rebate credit or discount not written in the policy. It is also unlawful for the insured to except any such rebate credit or discount. The commissioner can find a person or entity up to $500 for each violation up to $2000 for willful violations in addition to any other penalty provided by law True
An automobile policy may be canceled if it has been in Forrest for 60 days with the insured he was guilty of which of the following in the past three years?
Leaving the scene of an accident The policy may also be canceled if the insured has third violation within a period of 18 months made a false statement on their drivers license or operating a motor vehicle an intoxicated condition or under the influence of drugs
Unfair Discrimination
Making or allowing unfair discrimination in the amount of premiums or rates charge between persons of the same rating class
Defamation
Making or spreading any false or malicious critical statement regarding the financial condition of any person, with the calculated intent to damage the reputation of that person
Miss representations and false advertising of insurance policies
Making, issuing or circulating any statement which misrepresent the benefit, advantages, conditions or terms of any policy, or the financial condition of any person or insured, or miss represents a policy as being shares of stock.
In eligible properties for the fair program
Manufacturing risks with more than 20 in production employees Farm properties Automobile risks Vacant and occupied or idol property on the individual case by case basis Other risks excluded by the fair governing committee with approval of the commissioner
Twisting
Misrepresenting information to a consumer in order to compel them to labs for fit exchanger surrender in existing insurance policy in order to take commission on a new sale
I'd a business property or casualty policy has been in place for 90 days insurers can cancel ONLY for one of these reasons;
Nonpayment of premium Fraud or material misrepresentation Violation of the material terms and conditions of the policy Substantial change in risk Commissioner determines that contributing the policy cities place hazardous financial conditions or in violation of the law. The commissioner determines insurer no longer has adequate reinsurance
When a producer lives in Missouri and wants to do business in Kansas he must first do what?
Obtain a nonresident license in Kansas
The commissioner may impose one of the following in Lou of a vacation or suspensions
Official Censure Fine of up to $500 per violation, not to exceed $2500 for the same violation within six consecutive months next paragraph fine of up to $1000 per violation if the person knew, or should have known their actions could result in suspension or revocation not to exceed 5000 for the same violation occurring within 6 consecutive months
A producer license to transact insurance in Kansas is required to hold an appointment with how many insurers?
One
Dwelling properties
Owner occupied or tenant occupied Mobile homes and fix location Vacant or occupied dwelling's are considered on an individual basis
An applicant must do which of the following before the insurance commissioner will approve the application for insurance license
Pay a nonrefundable application fee
Qualification/examinations
Persons at least 18 years of age who was transact business as an insurance producer must submit an application to the commissioner and fulfill the following Pay a nonrefundable application fee Can't have committed an act that is grounds for dismissal Pass a licensing examination for each class of insurance the person wishes to transact the four classes of insurance also known as the lines of authority are; Life Accident and health Casualty and allied lines Property in allied lines The issuance of a license does not come for authority to transact business until the producer is certified by a company and I submitted proof of coverage by errors and omissions policy.
Who is not eligible for coverage under federal multi-peril crop insurance program
Producer
If a producer offers any special favor and dividends or other benefits to insure, the producers guilty of which of the following marketing practices?
Rebating
From the following choose which is not considered unfair discrimination by the insurer between two individuals of the same class
Refusing to ensure Limiting the coverage Charging a different rate due to risk characteristics Refusing to continue insuring Charging a different rate due to risk characteristics ; if the reason is geographical location of the wrist charging a different rate to an individual is unfair discrimination by the insurer
The commissioner may subject a person who has violated the Kansas insurance code to imprisonment up to ______ in the county jail
Six months
Temporary License
The commissioner can issue a temporary producer license valid for a maximum of 180 days, without requiring an exam, to the following individuals or businesses entities;
Exemptions and exceptions
The commissioner can waive the following licensing examination if the applicant Is applying for a travel insurance producer license Was previously license in Kansas and the license labs less than two years prior Is applying for a license to write insurance on growing crops and has been continuously listen to write crop coverage since at least 430 1986 Pass the licensing exam, but was not appointed solely due to clerical error by an inch or next paragraph is currently licensed in good standing in another state for the same lines of authority or was licensed in the same lines with already in another state, and that license expired or was canceled in good standing with the 90 days prior to Kansas application
Choose the false statement regarding crop insurance
The farmer selects the amount of coverage after planting the crop Hail insurance is available through private companies without federal subsidy Crop insurance continues coverage until canceled The crop insured coverage is available up to 75% of the yield A the farmers likes the amount of coverage after planting the crop
True or false
The limit of Worker's Compensation benefit is 250,000 True
A premium rate reduction course will apply to the insurance premium for how many years
Three years
An example of _________is charging a lower rate to one of the individuals who lives in a certain geographical location in which others are charged the correct higher rate
Unfair discrimination
False Information and Advertising
Using advertisements, announcements, or statements which are untrue, deceptive, or misleading
A stock property insurance must have a minimum of _______ in Capitol, $300,000 in surplus, and a deposit equal to the minimum capital stock in order to write inland marine insurance.
a. $450,000 B. $550,000 C. $900,000 D. $1 million L A
Cancellation and non-renewal auto only continued
Non-payment of premium The insurance was obtained through fraudulent misrepresentation The insured violates any of the terms and conditions of the policy The name insured or another household member or regular user of the vehicle; Has a drivers license suspended or revoked or is become subject to epilepsy or heart attack and cannot offer proof from a physician affirming the persons ability to operate the vehicle To name insured another household resident regular user of the vehicle was convicted of during the last 36 months before the policy began or convicted during the policy period of felony criminal negligence operating a motor vehicle while intoxicated leaving the scene of an accident making false statements on a drivers license application theft of a motor vehicle three moving violations within 18 months
A homeowner policy that has been affect for 90 days or more may not be canceled for which of the following reasons
Nonpayment of premium Excessive number of claims Substantial change in risk material representation Excessive number of claims
The commissioner of insurance may issue a temporary insurance producer license in approve circumstances for her. Not exceeding how many days
180 days
The minimum required insurance limits of liability in Kansas are?
25/50/25 25,000 per person 50,000 per occurrence 25,000 per occurrence for property
A producer must notify the commissioner within how many days when there is a change of homer business address
30 days
After receiving a proof of loss, and ensure I missed a firm or deny coverage on the claim within how many days
30 days
The guarantee association will cover existing claims prior to the determination of insolvency or arising within how many days after the termination of insolvency
30 days
The benefit amount for a temporary total disability benefit is -___________ of the employees weekly wages
66 2/3%
License Renewal
A producer license in good standing not revoked suspended denied renewal or otherwise under disciplinary action renews by in early every two years so as long as the completion of continuing education requirements is reported to the commissioner by the producers renewal date
Change of address or place of business
A producer must notify the department within 30 days of any change the residence or business address
Which of the following is a false statement about the powers of the commissioner of insurance regarding department of insurance hearings
A the commissioner does not have the power to issue a cease and desist Be the commissioner can examine witness and evidence See the commissioner has subpoena power D the commissioner conservative person a statement of charges and conduct a hearing (A)
Which of the following is true about Kansas commissioner of insurance
A the governor of Kansas appointed the commissioner of insurance B the commissioner is elected by the Senate of the state C the federal court holds a hearing in the federal judge determines who will be the commissioner D the commissioner is elected by voters in Kansas D
The commissioner may examine the financial condition of any and sure whenever it is necessary or at least every ______ years
A. 3 B. 5 C. 7 D. 10 (B)
Choose the true statement regarding the payment of PIP benefits
A. All overdue payments are subject to 12% simple interest B. Disability benefits must be paid weekly C. Claim payments will end after two years from the date of the injury D. An overdue payment of non-disability benefits is one that is not paid within 60 days C
It is an unfair claims settlement practice to refuse to pay claims without conducting innovation using what standards
A. Claim B. State statues C. Reasonable D. Approved C
It is illegal for an agent to submit a claim for the insured without notifying the insured that he did which of the following?
A. He called the claim representative next. Paragraph B He notified the police C.He altered the application D. He provided a proof of loss C
Which injury is covered under Worker's Compensation
A. Injury caused an increase disability from a pre-existing condition B. Employee was injured because he would not wear safety glasses C. The farmers work was injured while harvesting the crops D. A terminated employee who notified the former employer a month later A
Which of the following is not an alternate source of Worker's Compensation coverage for an employer?
A. Kansas workers compensation residual market plan B Self-insured employer C. Employer stock insurance company D. Worker's Compensation pool C
Marine/inland marine insurance will cover which of the following?
A. Pipelines B. Building improvements C. Money and security in a bank D. Storage A pipelines
Property may not be turned down for FAIR plan coverage because of which of the following?
A. Poor housekeeping B. Underwriting standards C. Environmental condition D. Vacancy B
Which of the following is not a general duty of the Kansas commissioner of insurance
A. Regulate insurers B. Issue insurance license for producers C. Create Kansas insurance laws D. Supervise the sales of insurance company stock C
Which of the following is not an improper claim settlement practice?
A. Requiring the claimant to submit proof of loss before paying the claim B. Failure to settle claims under one section of the policy in order to influence settlement other sections C. Forcing the claimant to file suit in order to be reimbursed D. Compel the claimant to appeal for arbitration and then settle a claim for a lower amount A.
Which of the following is not true about the FAIR plan?
A. The FAIR plan policy provides insurance to an applicant who has rejected by a normal market or insured due to the applicants geographical location B. The FAIR plan can turn down a building due to poor housekeeping C. FAIR plans are federally supervise D. FAIR plan losses are paid by insurance company who do business and private sectors C
Which of the following is true about UM/UIM coverage?
A. The minimum UM limits are 50/100 B. The minimum under insured motorist coverage limits are 100/300 C. UM and UIM are required coverages D. The insured may reject the coverage in writing D
The excess lines producer is not responsible for doing which of the following
A.file and affidavit with the commissioner with every excess lines policy written B. Play and annual renewal fee C.. Inform a prospective named insured that the insurer is not authorized D. Obtain the perspective named insurers consent within 30 days after binding coverage A file an affidavit
Kansas property and casualty insurance guaranty Association act
The guarantee association is supervised by the commissioner and made up of Kansas admitted property and casualty insurance. In the event remember insurer becomes in solvent, the association assumes all the insolvent insurers duties, obligations, and rights of the subrogation. Members insurance or is this the amounts necessary to administer the program and pay covered claims. The association will cover claims existing prior to the determination of insolvency, or incurring within 30 days after the determination of insolvency. However, it is not required to pay such claims if they are made over 18 months after the insured became in solvent. The maximum the association will pay for a claim is the lesser of the loss amount, the policy limits, or $300,000 with $100 deductible Worker's Compensation medical claims have no maximum
In Kansas which one of the following is an exempt from licensing requirements
Travel producer
The commissioner of insurance general duties and powers
has general supervision in control and regulation of persons and companies to authorize transact the business of insurance in Kansas Has the authority to make any rules necessary to enforce the insurance laws of Kansas Supervises all transactions related to the organization or re-organization of insurance companies in Kansas and also supervises the sale of stocks bonds and other items that are evidence of interest or debt issued by those companies Issues the proper insurance license for producers brokers and the certificates of authority for the insurance qualified to conduct business in Kansas
Producer appointment/certification and termination of appointment
No producer may transact insurance without a certification appointment from at least 1 inch are. Insurers must notify the department within 30 days of the appointment. All producers in an agency must be appointed by each company the agency represents for each class of business the producer is qualified to transact. And ensures termination of an agency contract automatically terminated the certification of all individuals producers of that agency. A producer can cancel his or her license certifications or both by sending a written request of the Department of insurance and insurance cancel certifications by written request to the Department of insurance upon termination of the contract with the producer.
Continuing education
Producers must complete a certain number of continuing education courses biennially in any lines for which they are license. Lectures, seminars, and correspondence courses constitute acceptable continuing education course work. The requirements for each line are Crop two hours Title four hours Preneed no CE hours are required Life health property casualty variable contracts and personal lines 12 hours At least one hour muet be an ethics course Only three hours of agency management courses will count towards the requirement
Failure to maintain and report continuing education
Producers must complete continuing education requirements for the commissioner. If the report is not received by the producers biennial renewal date all of the producers corresponding license are automatically suspended in $100 fine will be assessed for each license suspended. The producer than has 90 days to in the suspension by furnishing proof of continuing education completion and paying all funds. If the producer does not do this, the license does not renew and it is considered to have expired
And ensure may refuse to renew an auto policy for any of the reasons for cancellation as well as for one of the following
The commissioner orders the insured to reduce policy volume to preserve financial integrity next paragraph the insurer in a longer does business in Kansas Medical evidence that insured has a disability that impairs safe and reasonable driving Substantial change and risk The policy has been continuously in effect for five years after the first anniversary date
