Insurance Regulation

$5,000 (Important Dollar Amounts)

civil penalty for each intentional violation of insurance laws regarding unfair methods of competition

Anyone without proper licensing, that is caught, is guilty of...

-third degree misdemeanor -faces a fine up to $1,000 for each day of their offense

30 days (Miscellaneous Producer Regulations)

-to report action taken against producer in another jurisdiction or charges of criminal conduct -to notify the department of change of address -to provide a response to the departments inquiry

30 days (Department of Ins. Regulations)

-waiting period before rate fillings go into effect -for commissioner to approve or disapprove changed to a form

10 days (Department of Ins. Regulations)

-written notice of a hearing for a person suspected or prohibited behavior -hearing on rate filling after insurer is informed or disapproval

Within how many days of requesting an investigate consumer report must an insurer notify the consumer in writing that the report will be obtained? A. 3 days B. 5 days C. 10 days D. 14 days

A. 3 days

All of the following are unfair claims settlement practices EXCEPT A. Suggesting negotiations in settling the claim B. Refusing to pay claims without conducting a reasonable investigation C. Failing to adopt and implement reasonable standards for settling claims D. Failing to acknowledge pertinent communication pertaining to a claim

A. Suggesting negotiations in settling the claim

When a producer died, his surviving spouse needed to maintain the insurance agency until it could be sold. Without passing an examination, she could qualify for a temporary license for a maximum period of A. 90 days B. 180 days C. 1 year D. 2 years

B. 180 days

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to... A. 3 years B. 5 years C. 10 years D. 12 years

C. 10 years

90 days (Licensing and Appointment Requirements)

after moving to Pennsylvania for nonresident to become a licensed resident

18 (Licensing and Appointment Requirements)

age requirement for resident producer license

$50,000 (Important Dollar Amounts)

aggregate penalties for intentional violations within 6 months

$10,000 (Important Dollar Amounts)

aggregate penalties for unintentional violations within 6 months

3 hours (Licensing and Appointment Requirements)

ethics education included in pre-licensing education requirements

$100 (Important Dollar Amounts)

fine per day for failure to correct any violation

$110 (Important Dollar Amounts)

license fee for nonresident insurance producers

$55 (Important Dollar Amounts)

license fee for resident insurance producers

2 years (Licensing and Appointment Requirements)

license renewal period

Reauthorization Act of 2007

made several amendments to the TRIA

Commissioner

the head of the state Department of Insurance

15 days (Licensing and Appointment Requirements)

to correct the violation if a person failed to respond to the department inquiry within 30 days

Individuals applying for insurance licenses must...

-be 18 or older -not committed any prohibited acts -satisfy the pre-exam education requirements + 3 hours of ethics -pass exam -pay fees -possess general fitness, competence, and reliability

24 hours (Licensing and Appointment Requirements)

-continuing education required every 2 years -continuing education that may be carried to the next renewal period

Which of the following entities established the Do-Not-Call Registry? A. The Better Business Bureau B. The NAIC C. The Consumer Protection Agency D. The Federal Trade Commission

D. The Federal Trade Commission

$1,000 (Important Dollar Amounts)

civil penalty for each unintentional violation of insurance laws regarding unfair methods of competition

$165 (Licensing and Appointment Requirements)

lapsed license fee

1 year (Licensing and Appointment Requirements)

to reinstate a lapsed license with current effective date

Twisting

-a misrepresentation, or incomplete or fraudulent comparison of insurance policies that persuades an insured/owner, to his or her detriment, to cancel, lapse, switch policies, or take out policy with another insurer -prohibited

Misappropriation of Funds

-a person in a fiduciary position has used funds in manner for which they were not intended, such as the wrongful taking or use of money belonging to another Example: if an insurance producer, investment broker, or a trustee accepts funds from a client, and then uses the funds for their own personal use, it would be considered misappropriation of funds -considered theft

Privacy of Consumer Financial Information

prohibited from sharing ins. coverage information with a third party -if notice is given, and customer does not sign and return such a form within 30 days, information may be shared -licensee must give a customer an accurate privacy policy; if the relationship ends, licensee is no longer required to provide notice

Aggregate Industry Insured Losses

- $100 million for 2015 -$120 million for 2016 -$140 million for 2017 -$160 million for 2018 -$180 million for 2019 -$200 million for 2020 and after

Mail Order Solicitation

- must file all mail-order solicitations with the department 30 days prior to their first publication -after approved, may be used for 2 years

Penalty for Violating PA Insurance Fraud Prevention Act

-$5,000 for first violation -$10,000 for the second -$15,000 for each subsequent violation

Privacy and the Gramm-Leach-Bliley Act

-an insurance company can not disclose nonpublic personal information to a nonaffiliated third party except for; the insurance company clearly discloses to the consumer in writing that information may be disclosed to a third party; the consumer is given the opportunity to direct the information not be disclosed to the third party; or the consumer is given an explanation of how the consumer can exercise a nondisclosure option

Acting as an Officer, Director, or Agent...

-faces the aforementioned fines and imprisonment -if embezzlement was an amount less than $5,000, prison time may be reduced to 1 year

When applying for licenses, business entities must...

-have one or more licensee, with the department -apply for licensure in the same lines of authority held by designated licensees -have not committed any prohibited acts - be owned, operated, and managed by persons possessing general fitness, competence, and reliability -pay all applicable fees -meet any other criteria established by the department

Producer

-person who sells, solicits, or negotiates contracts of insurance -unlawful to act as a producer without a license -unlawful for insurance contracts to be produced except through a duly license producer

Inducement

an offer that attempts to influence the other party

Coercion

forceful act or threat aimed to influence a person to act against his or her will

If charged with criminal conduct...

-a copy of the criminal complaint, information or indictment -a copy of the order resulting from the pretrial hearing -copy of the final disposition of the charges

Statue

a formal written law enacted by legislature; insurance statues can be found in the state Insurance Code

Consent Agreement

a person who is accused of violating ins. fraud statutes of the Ins. Code may enter into a _______

Line of Authority

a type of insurance a producer or a business entity is authorized to transact

Temporary License

if necessary, commissioner may issue a nontransferable temporary producer license without requiring a written examination -temp licenses may be granted for up to 180 days -department may immediately revoke a temp license if it is in public interest

Consumer Reports

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

Change of Address

must notify the department in writing within 30 days of any chance in address

Cease and Desist

to stop or discontinue

Defamation

when oral or written statement is made that is intended to injure a person engaged in the ins. business applies to statements that are maliciously critical of the financial condition of any person or company

NARAB Requirements and Conditions

-licensing, continuing education, and other qualifications of non-NARAB insurance producers -Resident or nonresident insurance producer appointments -supervision and discipling of such producers -setting of licensing fees for insurance producers

Policy Rates and Forms

-PA Insurance Code requires insurers to file their premium rates with the Commissioner -all rate filings are subject to a 30-day waiting period before they become effective -if the commissioner disapproves of a filing, a hearing may be held 10 days after the insurer is notified of that disapproval -if insurer feels that it was aggrieved, the commissioner may hold the hearing 30 days -commissioner will make decisions on applications within 60 days of the date filing -rating organization licenses will remain in effect for 3 years; fee for this license is $25

Exclusive General Agent

-a licensee which has been granted sole authority to act directly or indirectly as an insurance producer for a domestic insurer -has authority to bind coverage on behalf of the insurer -directly or indirectly produces and underwrites in any 1 year an amount of gross direct written premium equal to or more than 25% surplus

The following persons are not required to be licensed as managers or exclusive general agents...

-a licensee whose authority is limited to the production of insurance business with limited underwriting authority -a manager or exclusive general agent operating under a management contract or exclusive general agency agreement entered into prior to December 22, 1965 -person subject to regulation as a managing general agent

Commissions and Fees

-commission or fee to a licensee for selling insurance

Exemption from Licensing

-insurance producer license is not required of any officer, director, or employee of an insurer or organization employed by insurers, provided they are not directly or indirectly involved with the actual sale of an insurance contract and do not receive any commission

Commissioners General Duties and Powers

-appointed by the governor with consent of the senate, and holds officer for the term or 4 years; and until a successor is appointed and qualified -commissioner must be a citizen of the state of Pennsylvania and experienced in matters of insurance

Violation of Commonwealth Laws

-if ins. comp. violates the laws of the Commonwealth, the Commissioner may suspend or revoke the ins. comp. certificate of authority, refuse to issue a new certificate of authority for a period up to 1 year and.or impose a penalty between $5,000 and $25,000 for each violation

The Gramm-Leach-Bliley Act 2 Disclosures

-when a customer relationship is established -before disclosing protected information

Misrepresentation

it is illegal to issue, publish, or circulate any illustration or sales material that is false, misleading, or deceptive as to policy benefits or terms, or payment of dividends

Civil Penalties

-for each intentional act of engaging in an unfair method of competition or practice, a penalty of up to $5,000 for each violation -unintentional act, a penalty of up to $1,000 for each violation -$10,000 for each violation of the Commissioner's cease and desist order

Licensee may not disclose nonpublic financial information about a consumer unless...

-provided consumer written notice -provided to the consumer an opt-out notice -given the consumer reasonable opportunity to opt out -consumer does not opt out

Commissioner and the Department of Insurance

charged with monitoring the financial strength and integrity of insurers authorized to conduct business in PA in order to determine whether the continued operation of any insurer might be financially hazardous to policyholders, creditors, or the public in general

Section of Insurance Fraud

responsible for investigating and prosecuting insurance fraud

Section 1034, Civil Penalties and Injunctions for Violations of Section 1033

the attorney general may bring a civil action in the appropriate U.S district court against any person who engages in conduct that is in violation of Section 1033 of not more than $50,000 for each violation, or the amount of compensation the person received as a result of the prohibited conduct, whichever is greater

Illegal Inducement

unlawful to pay, offer, or accept; any special favor or advantage in dividends or benefits; any stocks, bonds, securities, or accrued dividends or profits; anything of value not specified in the ins. contract

If an insurer terminates a producer's appointment...

-the commissioner must be notified within 30 days after the effective date of the termination -if the reason for termination is due to the producers engaging in activity prohibited, this must be included in termination notice -insurer must mail a notice to the producer within 15 days after the notification is sent to the Commissioner -producer has the right to send comments to the Commissioner regarding the termination within 30 days of receiving notice -failure to report or false reporting may result in suspension or fine not to exceed $5,000 for each violation

Model Bulletin

including an expedited filing form intended to help state insurance regulators advise insurers about regulatory requirements related to providing terrorism insurance under the revised program

Aggrieved

injured party; someone entitled to begin a lawsuit or request a hearing

Commission

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

Notice of Appointment

-must notify the insurance department of all appointments and terminations of appointments of producers in the format and within the time frame specified by the Commissioner -an insurer that appoints an insurance producer must file with the department a notice of appointment; stating for which companies within the insurers holding company system the appointment is made -the department will verify if the insurance producer is eligible for appointment -appointment fee of $15 within 30 days

Disclosure that states the insurance or annuity is...

-not a deposit -not insured by the FDIC -not guaranteed by the financial institution -subject to risk; loss of principal

Producer Appointment

-a producer may not act on behalf of an insurer unless the insurance producer is appointed by the insurer -if an insurer authorizes a producer to solicit or negotiate insurance on its behalf, the insurer must certify the producers appointment as a representative of the insurer

Insurers must comply with the following regulations for claim settlements...

-acknowledge the receipt of claims or any other pertinent communication within 10 days -respond to inquires from the Department within 15 days -after receiving notification of a claim, provide claim forms in 10 days -complete investigations related to claims in 30 days notice -if investigation cannot be completed during this time, the insurer should give the insured notice and provide notice every 45 days -accept or deny any claims within 15 days of their receipt -if insurer needs more time, notice should be provided within 15 days

TRIA defines an act of terrorism with the following characteristics...

-act must be violent or dangerous to human life, property, or infrastructure -resulted in damage within the U.S., to an air carrier as defined in the U.S. Code, to a U.S. flag vessel based in the U.S. and insured under U.S. regulation, or on the premises of any U.S. mission -act must have been committed by someone as a part of an effort to coerce the U.S. civilian population, to influence U.S. policy, or to affect the conduct of the U.S. government -act must produce property and casualty insurance losses in excess

Violation of Producer Regulation is...

-a misdemeanor -fine of $5,000 for each violation -or 6 months of imprisonment

Rebating

-any inducement offered in the sale of insurance products that is not specified in the policy -both offer and acceptance of a rebate are illegal -may include; rebates of premium payable on the policy; special favors or services; advantages in the dividends or other benefits; stocks, bonds, securities, and their dividends or profits

Unlawful Insurance Fraud

-any person engaged in the business of insurance to willfully, with the intent to deceive, make any oral or written statement that contains either false statements or omit material facts -includes information and statements made on an application for insurance, renewal of a policy, claims for payment or benefits, premiums paid, and financial condition of an insurer -can be fined, or imprisoned for 10 years -if any activity jeopardized the security of the insurer, the punishment can be for 15 years

Certificate of Authority (from Commissioner)

-before company can legally transact insurance, it must obtain a certificate of authority from the Commissioner -indicates that the Commissioner has examined the business and found it to be financially stable and organized in accordance with Insurance Code -must notify Commissioner within 5 business days when there is any material change in their ownership, control, surplus, or solvency

Insurance Fraud Regulation (Cont.)

-borrowing or using another's financial responsibility or other ins. identification card to present a fraudulent claim -for an owner, administrator or employee of any hospital, knowingly allowing the use of the hospital facilities by any person in scheme or conspiracy -soliciting a person to engage, employ, or retain any claim or clause of action against a person for damages for negligence or for pecuniary gain

Telemarketers Cannot...

-call any number on the registry -deny someone a right to be placed on the registry -call outside permissible calling hours (before 8 am and after 9pm) -abandon calls -fail to transmit caller ID information -threaten or intimidate a consumer or use obscene language -cause any telephone to ring or engage a person in conversation with the intent to annoy, abuse, or harass the person called

False Advertisement

-can not include any untrue, deceptive, or misleading statements that apply to the business of ins.

Hearings

-commissioner may issue a statement of charges and hold a hearing for any purpose deemed necessary -notice must be given at least 10 days before hearing

Unfair Claims Settlement Practices (Cont.)

-compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds -attempting to settle a claim on the basis of an application which was altered without notice to, or knowledge or consent of the insured -making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made

To apply for a license in this state...

-completed application -fingerprints -documentation verifying that the applicant has met requirements -license fee

Disciplinary Actions

-denial, suspension, refusal to renew of revocation of the license -a civil penalty up to $5,000 for each violation

NOT required to hold an insurance producer license... (Cont.)

-employees of insurers or organizations engaging in the inspection, rating or classification of risks, or in the supervision of training of insurance producers and who are not individually engaged in the sale of insurance -a person whose activities are limited to advertising without the intent to solicit insurance -a nonresident who sells, solicits, or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under the contract -a salaried full-time employee who counsels or advises his or her employer relative to the insurance interests of the employer or subsidiaries

Fair Credit Reporting Act

-established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant, and properly used -the law also protects consumer against the circulation of inaccurate or obsolete personal or financial info -consumer has the right to know what was in the report

Violent Crime Control and Law Enforcement Act of 1994

-federal law makes it illegal for any individual convicted of a crime involving dishonesty, breach of trust or a violation of this Act to work in business of an insurance affecting interstate commerce without receiving a letter or written consent from an insurance regulatory official- a 1033 waiver -consent must specify that it is granted for the purpose of 18 U.S.C. 1033 -anyone convicted of a felony will be fined or imprisoned for 5 years

The purpose of these examinations is to assess the insurance company's...

-financial condition -ability to fulfill its financial obligations -compliance with state laws

Do Not Call Registry includes the following calls...

-form or on behalf of organizations which have established relationships with consumers (18 months from transaction) -given prior written permission -not commercial or that do not include unsolicited advertisement -by or on behalf of tax-exempt nonprofit organizations

Life Policy Provisions

-grace period of 30 days within which payment of any premium may be subject to an interest charge of 8% -provision that policy will become incontestable 2 years after it has been issued -provision that allows the policy to participate in the surplus of the company beginning no later than 5th policy year -renewable term policies of up to 10 years may participate in the surplus in their 2nd policy year - a provision allowing for loan value after the premiums have been paid 3 full years -a provision that allows a policy to be reinstated 3 years after a default in premium payments -policy must cover any loss related to a pre-existing condition after 12 months

If not properly licensed, may receive commission by...

-if person was licensed at the time of the sale, solicitation, or negotiation -referring a person interested in buying insurance

Licenses

-insurance professionals must be property licensed for a specific line or authority to transact insurance -to ensure that a producer meets educational and ethical standards -regulations set out the requirements, procedures, and fees relating to the qualification, licensure, and appointment of insurance producers -nontransferable and is issued for a maximum of 2 years

Terrorism Risk Insurance Program Reauthorization Act of 2014

-insurer deductible was set at 20% of an insurers direct earned premium of the preceding year and federal share of compensation was set at 85% of insured losses that exceed insurer deductibles until Jan. 1, 2016.; after that the federal share will be decreased by 1 percentage point per calendar year until it reaches 80% -certification process was changed to requiring the secretary of the treasury to certify acts of terrorism in consultation with the secretary of homeland security instead of the secretary of state -mandatory recoupment of the federal share though policyholder surcharges increased to 140% -

Insurers are forbidden from negotiating directly with a claimant who...

-is not represented by an attorney - the claimant should be notified of any time limit affecting their rights -this notice will be given to the first-claimants within 30 days, and to third party claimants within 60 days -upon payment of $1,000 or more in settlement of a third party liability claim, the insurer must send written notice to the claimant

Boycott, Coercion, and Intimidation

-it is illegal -intended to restrict fair trade or to create a monopoly -would include unfair behavior that influences not only clients, but competing agents and brokers

Nonresident Producer

-licensed as a resident producer in another state -may apply to the department for a nonresident producer license or equivalent -department may waive all licensing requirements if nonresident is already licensed in their home state -department may verify an individuals licensing status through the Producer Database by the NAIC -if moving to PA, may become licensed as a resident by submitting application within 90 days of establishing residence in PA

Reporting of Actions

-licensees must make a report of any administrative action taken against them in another jurisdiction or by another governmental agency within 30 days of the final disposition of the matter -if a licensee is charged with criminal conduct, they must provide the dep. with specific documents

Disclosure Required

-licensees who are employed by or affiliated with a financial institution who sell annuities or life insurance must solicit insurance and annuity sales in a location which is distant from the area where deposits or loans are discussed or accepted -if circumstances prevent compliance, the Commissioner may exempt the financial institution from this requirement

Commissioners Responsibilities

-licensing insurance producers and companies, and approving, administering, or contracting the administration of the pre licensing education courses, insurance producer licensing examinations, and CE programs

Unfair Claims Settlement Practices

-misrepresentation of pertinent facts or insurance policy provisions relating to coverages -failing to acknowledge and act reasonably promptly upon communications with respect of claims -failing to adopt and implement reasonable standards for the prompt investigation of claims -refusing to pay claims without conducting a reasonable investigation based upon all available information -failing to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed -not attempting in good faith, fair and equitable settlements of claims in which liability has become reasonably clear

Secretary of the Treasury was required to...

-notify congress within 15 days of an act of terrorism for which estimates a loss or more than $100 billion -devise a way to determine the pro rata share of insured losses that exceeds $100 billion -report to congress on the process used

Insurance Fraud Regulation

-presenting documents and statements that contain false, incomplete, or misleading information concerning any fact material a claim -presenting documents and statements that contain false, incomplete, or misleading information concerning a motor vehicle insurance rate filing, transaction, or action in response to an agency's request -engaging insurance transaction activities without being properly licensed -knowingly benefiting from the proceeds derived from a violation of this act, due to assistance, conspiracy or urging of any person

Investigate Consumer Reports

-provide information on the consumers character, reputation, and habits -information is obtained through an investigation and interviews with associates, friends, or neighbors -can not be made unless the consumer is advised in writing about the report within 3 days of the date requested -5 days to provide additional info -a person who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses may also be fined and/or imprisoned for up to 2 years

Violation of Fair Credit Reporting Act

-unknowingly violates the Act is liable in the amount equal to the loss to the consumer, as well as any reasonable attorney fees -willfully violates the Act will be subject to a penalty of up to $2,500

National Association of Registered Agents and Brokers (NARAB) Reform

-amends the Gramm Leach Bliley Act to repeal the contingent conditions under which the reform may not be established -also prohibited from merging with or into any other private or public entity

Commissioners Responsibilities (Cont.)

-secure or require any documents or information, including fingerprints, reasonably necessary to verify the accuracy of information provided on an application -participate with the NAIC in a centralized insurance producer license registry for purposes of submitting or obtaining information on insurance producers, including licensing history, lines of authority and regulatory action -approve forms to be used by individuals and business entities to apply to the department for an insurance producer license -approve additional limited lines of authority

Violations of Life Policy Provisions

-suspend the license of the offending person -refuse to issue a new license to this person for 1 year -issue a fine of up to $1,000 for each violation

False or Deceptive Advertising includes...

-terms, benefits, conditions, or advantages or an ins. policy -any dividends to be received from the policy, or paid out -financial condition of any person of the ins. company -true purpose of an assignment or loan against a policy

Every member of a rating organization must adhere to the filings made on its behalf except...

-these insurers may file a uniform percentage change to be applied to the premiums produced by the rating system -following a 30 day waiting period, these deviation filings are effective for 1 year -violations of the regulations for premium rates may result in fines of $50 for each violation, not to exceed $500 -commissioner will examine each rating organization as often as deemed necessary, but at least once every 5 years

Terrorism Risk Insurance Act (TRIA)

-to create a temporary federal program that would share the risk of loss from future terrorist attacks with the insurance industry -requires that all commercial insurers offer insurance coverage for acts of terrorism -federal government will then reimburse the insurers for a portion of paid losses for terrorism

If a telemarketer wants to make an unsolicited call to a potential customer, what is the earliest time the telemarketer can call the prospects residence? A. 7 am B. 8 am C. 9 am D. Noon

B. 8 am

All of the following violations may result in an agents imprisonment EXCEPT... A. Knowingly obtaining information about a consumer under false pretenses B. Engaging in the business of insurance after being convicted of breach of trust C. Failing to report the department a criminal prosecution taken against the agent in another jurisdiction D. Embezzling funds from the insurer

C. Failing to report the department a criminal prosecution taken against the agent in another jurisdiction

5 years (Department of Ins. Regulations)

commissioner will examine each insurer

Insurance Fraud Prevention Trust Fund

created to fund the investigation and prosecution of ins. fraud each insurer must pay an annual assessment into this Fund

Insurance Fraud Prevention Authority

established to develop and sponsor the implementation of statewide plans, programs and strategies to combat ins. fraud, improve the administration of the ins. fraud laws, and provide a forum for identification of critical problems for those dealing with ins. fraud

Manager

person that negotiates and bind ceding reinsurance contracts on behalf of a domestic insurer or manages all or part of the insurance business of an insurer and does not act as an agent for that insurer

180 days (Licensing and Appointment Requirements)

temporary producers license valid without written examination

Continuing Education (CE)

-maintain and improve the insurance skills and knowledge of licensed producers -all producers must complete a minimum of 24 credit hours every 2 years -producers with authority to sell, must complete at least 4 CE credits in an approved annuity training

Examination of Records

-department must conduct an examination of every insurer at least once every 5 years -the commissioner or any examiners may issue subpoenas and administer oaths to anyone on any matter that is relevant to the examination -for foreign or alien insurers, the department may accept an examination report on the company as long as the report was prepared by an NAIC-accredited insurance department -records must be kept for 5 years from the last examination

NOT required to hold an insurance producer license...

-director or employee of an insurer whose activities are limited to executive, administrative, managerial, or clerical -director or employee of a special agent assisting insurance producers by providing technical advice and assistance to licensed insurance producers -a person who secures and furnishes information for group insurance or performs of employee benefits for the employers or associations own employees

Lines of Authority in Pennsylvania

-life; coverage on human lives -accident and health; coverage for sickness, BI or accidental death, and disability income -property; coverage for the direct and consequential loss or damage to property of every kind -casualty; coverage against legal liability -variable life and variable annuities; -personal lines; noncommercial property and/or casualty coverage -credit; debt insurance (limited line) -motor vehicle rental; auto rental insurance (limited line) -limited lines; any other type of insurance as determined by the Commissioner

Maintenance and Duration

-a producer license will remain in effect unless suspended or revoked -must be renewed biennially (every 2 years) -must submit proper renewal forms ,pay fees ($55 for resident and $110 for non), and proof of completion of continuing education -if license lapse, may reinstate the license within 1 year by submitting renewal form, paying fee of $165, and providing verification -if reinstatement is within 60 days, reinstatement will occur retroactively on date of license lapse

Reauthorization Act of 2007 Amendments

-act of terrorism was redefined to eliminate the requirement that the individual committing the act be acting on behalf of a foreign person or interest -Terrorism Risk Insurance Program was extended through 2014 -insurers were required to disclose the policyholders the $100 billion cap on their liability -deadlines for the collection of terrorism loss risk-spreading premiums were established

National Do Not Call Registry

-allowing consumers to include their numbers on the list which solicitation calls cannot be made by telemarketers -insurance companies need to comply with this regulation when making solicitation phone calls -to keep compliance, organizations must consult the registry every 31 days -any phone numbers must be dropped from the organization lists

All forms...

-must be filed with the commissioner -commissioner will approve or disapprove within 30 days -if no action is reported within 30 days, the insurer can assume that the form is approved -commissioner may extend period an extra 30 days with written notice -must notify the insurer of the reasons of disapproval within 30 days

A licensed producer moving to Pennsylvania may become licensed as a resident if the producer submits a completed application within how many days of establishing residence in Pennsylvania with proof of licensing from their prior home state? A. 30 B. 60 C. 90 D. 180

C. 90

All of the following are requirements for producer license renewal EXCEPT A. Renewal fees B. Record of fingerprints C. Renewal examination D. Up-to-date continuing education

C. Renewal examination

Which of the following is true regarding Continuing Education required for those holding a Pennsylvania producer license? A. 12 hours each annual period B. Continuing Education is optional C. Varies from insurer to insurer D. 24 hours each licensing period

D. 24 hours each licensing period

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT A. An offer of employment B. Stocks, securities, or bonds C. An offer to share in commissions generated by the sale D. Dividends from a mutual insurer

D. Dividends from a mutual insurer

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act? A. Legal, provided that the information can be verified B. Illegal until endorsed by the Guaranty Association C. Legal, provided that the other insurers are paid royalties for the usage of their names D. Illegal under any circumstances

D. Illegal under any circumstances

Under the Fair Credit Reporting Act, if a consumer challenged the accuracy of the information contained in a consumer or investigative report, the reporting agency must... A. Defend the report if the agency feels it is accurate B. Change the report C. Send an actual certified copy of the entire report to the consumer D. Respond to the consumers complaint

D. Respond to the consumers complaint

Insolvent

unable to meet financial obligations

Assumed Names

license issued by the department will only be issued in the name of the applicant or business entity