Chapter 8: General Insurance Regulation
What are the continuing education requirements for producers in this state?
Producers must complete 24 CE hours every 2 years.
What constitutes rebating?
Rebating includes premiums payable on the policy, special favors or services, advantages in dividends or benefits, stocks, bonds, securities, and their profits ( and similar inducements).
Upon what grounds can the Commissioner revoke or suspend a producer license?
Some of the examples include providing incorrect information in the application, obtaining a license through misrepresentation or fraud, improperly withholding any monies or properties, engaging in unfair trade practices, or failure to pay state income taxes.
How long does a licensee have to notify the Commissioner of a change of address or legal name?
30 days after the change.
What is the difference between an admitted and nonadmitted insurer?
An admitted insurer has qualified and received a Certificate of Authority from the Department of Insurance to transact insurance in the state. A nonadmitted insurer may not transact insurance because it either has not applied, or has been denied a Certificate of Authority.
What is controlled business? To what extent can a producer write controlled business legally?
Insurance covering the producer's own life or property or those of the producer's family or employees. In a 12-month period, less than 25% of a licensee's aggregate commissions can be from controlled business.
How often must insurers be examined, and who is responsible for conducting such examinations?
The Commissioner must examine all authorized insurers at least once every 5 years.
What is the difference between domestic, foreign and alien insurance companies?
A domestic insurer is incorporated in this state. A foreign insurer is incorporated in another state. An alien insurer is incorporated outside the Untied States.
What is the purpose of a cease and desist order?
To require a person to stop engaging in improper business actions, or committing violations.
What are the broad powers and duties of the Commissioner of Insurance?
Regulate the affairs of the Insurance Department, prescribe forms and procedures, aid in interpretation of laws, issue, renew, or suspend and revoke licenses and certificates of authority.
To whom may a temporary license be issued?
To the surviving spouse after the death of a producer; to an employee after the individual designated under a business entity application becomes disabled; to the designee of a producer entering active duty. The license will last for 180 days.