Property and Casualty-Insurance Law and Regulations

Requirements to obtain license in state of CT

An individual must have: 1. Successfully completed a course approved by the Commissioner requiring not less than 40 hours for each line of insurance for which they desire to be licensed or has equivalent training determined by the Commissioner 2. They have to at least 18 years of age 3. Not committed any act that is a ground for a denial, suspension or revocation 4. Paid the appropriate fees 5. Passes the examinations for the appropriate lines of authority

Foreign Insurer

An insurer that is organized under the laws of another US State or terrority

Expiration and Renewal Laws (CT)-How often does a producer's license renewal?

Every two years on the producer's birthday. Renewal fee is $160

Hearing/Fine- If a person knew or should have known the law was being violated

Hearing will be 30 days after notice issued by Commissioner $25,000 per act and may not exceed aggregate of $250,000 in any 6 month period

Types of Insurers

Alien, Domestic, Foreign, Mutual, Stock, and Unauthorized entity or non-admitted insurer

Notice and Hearing-If a person has engaged in unfair acts

- Hearing will be 30 days after notice issued by Commissioner $5,000 monetary penalty for each violation or unfair act, may not exceed aggregate of $50,000

Other Powers of the Insurance Commisioner

1. Conduct investigations and hearings and issue subpoenas 2. Revoke Licenses of insurers, producers, adjusters and consultants for just cause 3. Regulate insurers for solvency 4. Regulate most insurance premium rates

Other Duties of the Insurance Commissioner

1. Issuing licenses and collecting appropriate fees 2. Setting reserves for domestic companies 3. Appointing examiners who are delegated the duty of examining insurers 4. Issuing cease and desist orders to insurers, producers, adjusters and consultants for just cause 5. Conduct hearings in connection with the wrongdoing of an insurer or licensee 6. Reporting illegalities in the insurance business to the state Attorney General

Who is required to have a license?

1. People or businesses who are selling insurance directly to the public and whose compensation are linked directly to their sales 2. Activities include: selling, soliciting, and effectuating coverage of Insurance

What is required on an application for a license?

1. The application must be properly filled out and fees paid 2. The applicant has to be deemed as having good moral character and financially responsible.

What kind of applicants can the Commissioner waive the examination requirement for?

1. temporary producer's license 2. for a non-resident producer's license 3. individuals who have held the type of license being applied for any time within 12 months preceding the date of application ( a license may be reinstated within 12 months of expiration without having the producer complete new pre-licensing and exam requirements

Insurance Commissioner

A individual who is appointed by the Governor and cannot be a director, officer or agent of an insurer. Their primary duty is to see that insurance laws are properly executed and the public interest is protected by the enforcing of these laws.

Domestic Insurer

Insurer that is organized under Connecticut Law or their home state

Insurance Agent

an insurance producer who is appointed by the insurer to act on the insurer's behalf. They are licensed as a producer and holds a written appointment (or contract) with an insurance company.

Unauthorized or Non-Admitted insurer

an insurer that has not been granted a certificate of authority by the Commissioner to transact insurance business in Connecticut Ex. Surplus

What/Who is an Insurer/insurance company?

any person or entity other than a fraternal benefit society that transacts insurance business

Insurance Producer

is a person required to be licensed under the laws of this states to sell, solicit or negotiate insurance

Penalties- Fine for any insurer

making false financial statements or advertisements about financial information is $10,000 fine for first offense $20,000 for each subsequent offense

Penalties- fine for any person or corporation

violating any provision of CT law for which there is no other penalty $15,000

Expiration and Renewal Laws

1.If producer fails to renew has to pay double the $160 fee, have to pay $320 to reinstate 2. Any insurer that cancels or nonrenews an appointment must notify the agent, agency and the Insurance Department

Conditions where the Commissioner can waive the pre-licensing education requirement

A producer who moves to CT must apply for a new license within 90 days of becoming a resident

Cease and Desist Order

Commissioner will issue statement of charges and a notice of hearing which will occur 30 days after Then issue a cease and desist order after hearing if person is found guilty Violation of cease and desist order is punishable with a fine of not more than $50,000 or a suspension or revocation of the person's license

Stock Insurer

Insurer that is incorporated with capital contributor by stock holders to whom the earnings are distributed as dividends on their shares

Alien Insurer

Insurer that is organized under laws of a state or country outside of the United States ex. England, Mexico