Insurance regulation
agents misrepresents policy benefits to convince policy owner to replace policies
All of the following would be considered rebating except? A agent offering to share commision with another policy holder B agent offers tickets to baseball game as inducement to buy insurance C agents misrepresents policy benefits to convince policy owner to replace policies
name, address, identificaiton number and date of insurance
An agencys license must have what on it?
commission
Any payment to a producer from an insuer that is contingent on the sale of an insurance policy or contract is called
UBEA
Application for insurance must be made using
false advertising
Circulating deceptive sales material to the public is what type of unfair trade practice?
license will be cancelled
What happens if an insurer wants to renew license and they miss the deadline date?
by the last day of the birth month
What is the deadline in SC for completeing your continuing ed credits?
SC legislature
What makes laws including business laws
consumer report
What report will provide the underwriter with the information about an insurance applicant's credit?
producer
What type of licensee represents the insurance company
defamation
When a producer was reviewing a potential customers coverage written by another company, the producer made several remarks that were maliciously critical of that of the insurer. The producer could be found guilty of?
30 days
When an producers appointment is canceld by insurer, the insurer must notify the Dpeartment of insurance within what time limit?
30
Fines levied by director in lieu of license revoking must be paid within how many days?
commission
How are insurance producers compensated, where a percentage of premium paid goes to producer
2 years
How long can you go to prison for with a misdemeanor in insurance
180 days
How long is a temporary license valid?
15 days
How many days do you have to file with a director a producers appointment
$25
How much is the renewal fee for renewing license for insurance agency/producer in SC
10000, 2 years
IF person is conviceted with a midemanor for acting without a license how much is the fine and imprisonment?
50
If a director gives a cease and desist order the violator must pay a max amount of how much if unwillful
30 days
If a director gives someone a Cease and Desist order how many days do they have to comply?
restitution and pay difference of tax owed
If a person covicts fraud they must make full?
director
If a person is suspected of acting in violation for the insurance code, who may request a legal hearing and give written notice of the time and place of all hearings to person cited to appear?
defamation
when a producer was reviewing a potential customers coverage written by another company insurer made alot of marks that was critical of insurer. The prodcuer could be found guilty of
fiduciary relationship
when an individual places trust in someone else to perform certain duties or actions
3 days
within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
respond to consumers complaint
Under the fair credit reporting act, if the cosumer challenges the accuracy of the information contained in his or her report the reporting agency must
fiduciary
When handling premium funds in the conduct of their business insurance producers are acting in what capacity?
never that is prohibited
When is ok to sign blank forms?
telling client that his first premium will be waived if he purchased policy
Which of the following is an example of a producer being involved in an unfair trade practice of rebating A charging client a higher premium for same policy as another client in same recurring class B making deceptive statements about competitor C telling client that his first premium will be waived if he purchased policy
Director is elected for term for 4 years
Which of the following statements is not true regarding the director of insurance in the state? A director is full time and salaried B Director is elected for term for 4 years
confirming future dividends in a life insurance proposal
Which of the following would be considered a ilgal inducement to purchase insurance A inviting prospective clients to grand opening of producers new office B confirming future dividends in a life insurance proposal C mailing in a agents brochure
producer
a person who is authorized by an insurer to sell, solicit, negotiate or receive and deliver insurance policies on behalf of the insurer
never
In what situation is it legal to limit coverage based on marital status?
50 dollars a day
if you violate a cease and desist order how much is the fine
false advertising
illegal practice of advertising materials that are untrue, deceptive or misleading
broker
insurance producer not appointed by an insurance company and is deemed to be a legal representative of the client.
rebates
insureds offer something of value in order to induce sales of an insurance product
misrepresentation
issuing or publishing illustration or sales material that is false or misleading
misrepresentation
issuing sales material with exaggerated statements about policy benefits
directors
licenseing people is the job of who?
twisting
misrepresentation or incomplete 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 is called
defamation
occurs when an oral or written statement is made that is intended to injure a person engaged in insurance business
Fair Credit Reporting Act
protects consumers from circulation of inaccurate or obsolete personal information or financial information?
Discrimination
rates premiums or policy benefits for persons within the same class or with the same life expectancy is illegal pertaining to religion, race or marital status
Federal Fair Credit Reporting Act
regulates consumer reports
dividends from mutual insurer
All of the following would be considered rebates if offered to insured in sale of insured except A dividends from mutual insurer B an offer of employment C stocks, securities or bonds
discrimination
Two individuals are in the same risk and age class, yet they are charged different rates due to insignificant risk factor. What is this called?
15000 unwillful and 30000 willful
If a vilolator is an insurer how much will fine be?
cease and desist order
If after a hearing the Director of Insurance determines that an insuer has engaged in an unfair or deceptive method of competition or act the director will order a what?
200
If any producer signs any blank forms how much is the fee?
6 months
A producer failed to complete required CE hours for compliance period. Within what time period after deadline may license be reinstated?
any licensed insurer who is licensed in the same line of insurance
A producer may share a commission with?
sexual orientation
AN insurance application cannot ask about what kind of information from an applicant?
producer
AN insurance producer transacting business under any name other than producers legal name must notify the Director prior to using the assumed name
hearing
ANyone who violates a cease and desist order will be subject to a what before the director?
Illegal under any circumstances
After insurer publishes intimidating brochures, that protray insurers competition as financially and professioanlly unstable what is this called
suggesting negotiations in settling claims
All of the following are unfair claim settlements except? A refusing to pay claims without conducting an investigation B failing to adopt and implant standards for settling claims C suggesting negotiations in settling claims
client
An insurance producer has not been appointed to an insurance company who is the producer considered to represent?
illegal
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. what is going on here?
5 days
If consumer requests additional information concerning an investigative consumer report, how long does insurance agency or insurer have to comply?
insurer does not have certificate of authority in another state
Before granting a certificate of authority to a company the director must be satisfied by proper evidence that all of following are true EXCEPT A insurer does not have certificate of authority in another state B insurer has not entered into any agreement which may render proceedings hazardous to this state
100
If director gives a cease and desist order the violator must pay max amount of how much is willful?
100
if a cease and desist order is willful how much will the fine be?
The customer's associates, friends, and neighbors provide the report's data
Comparison to the consumer reports which of the following descirbes a unique characteristic of investigative consumer reports?
8
Concerning continuing ed classes the class line of authority how many credit hours do you have to have?
misrepresentation
During a sales representation a producer intentionally makes a statement which may mislead the insurance applicant. This describes
Without receiving written consent from an insurance regulatory authority
Federal law makes it illegal for anyone convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce?
coercion
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as?
unwillfull 2500 willfull 5000
If violater is a person licensed by director the fine will be how much?
director
If you supervise and regulate rates you are what part of insurance position?
fraud
Insurance company assures new policy holders that the premium costs will not increase for a period of time of at least 5 years. However due to increasing financial strain they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?
yes as long as both are licensed for that line of business
Is it ever possible for more than one producer to split commissions transaction in this state?
twisting
agents who pursuade insured's to cancel a policy in favor of another one when might be insurers best interest are guilty of
15000/30000
an insurer may be fined with unwillful or willful fines?
rebating
any inducement offered to the insured in the sale of insurance products that is not specified in the policy
2500
any person convicted of a misdemeanor must be punished with how much fines/
misdemeanor
any person who acts insurance without a license is commiting a?
misrepresentation
anyone who issues, publishes or circulates any illustration or sales material that is false, misleading or deceptive as to policy benefits or terms or even oral statements is commiting somthing called/
5
director will examine each authorized user how many years?
coercion
forcing another client to buy insurance from a particular lender as a condition of granting a loan is defiend as?
coercion
to require applicant to purchase insurance from a specific insurer
discrimination
twin brothers applied for life insurance from company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a way stronger financial situation than the other. Because of this the company charged him with a higher rate for his insurance. This practice is considered?
Fair credit reporting act
what act established procedure that cocumer reporting agencies must follow in order to ensure that records are confidential, accurate, relevbant and properly used
rebate
what is allowed if its in the best interest of the client?
licensed agency
what is another word for producer
making comparisons between different policies
which of the following is not considered a misrepresentation as it pertains to unfair trade practices? A making comparisons between different policies B stating insurance policy is share of shock
$100
A special producer fee is?
$25 18
How much is the insurance license fee? And what is the age requirement?
every 2 years
How often do you need to complete continuing ed classes in order obtain license?
within 2 years from effective date
If a producer gets their license revoked how long until they can reapply for license again?
30 days
If a producer has licence revoked director may allow the producer to pay penalty of how many days would they have to pay?
30 days
If a producer has to report any actions against another producer how many days do they get to do it?
10 days
If a producer is convicted of a crime how long of a notice does a person get for license revoking?
6 months
If a producer lets insurance license expire for failure to comply with CE hours what time limit is giving to them
$50
If a producer lets insurance license expire what is the required penalty fee?
Misdemeanor
If a producer pretends to be insurer, collects from employer without insurers authority, secure cash advances by false statements or fail to remit or account for collected funds they can get what kind of conviction?
every 2 years
If an insurer wants to renew license for insurance how often should they do it?
September 30 of even numbered years
If an insurer wants to renew license for insurance what is the deadline date?
30 days
If your a nonresident producer who moves from one state to another how many days do you have to change your address and provide certification for new resident state?
reinsure policies of insolvent insurer through other companies
In event of insurers insolvency south Carolinas life and health guarantee association will
appointed by governor
In insurance how is the director elected into office?
show proof of valid license for same line of authority in home state
In order to become licensed as a non resident in this state what must a person do?
the foreign company
The director is conducting an exam of foreign company transacting business in SC. Who is responsible for cost of exam?
true
The remainder credits can be taking from any subject true or false
supervise and regulate rates, ensure all laws faithfully executed, report to attorney general and instate civil actions, act as circuit court judge, require witnesses, license people, issue cease and desist orders and charge perjury
What are the general duties and resonsibilities of a director?
currently licensed as resident, in good standing with state live, apply for same line of authority, submitted proper requests for licensure and paid fees, awards on non residents
What are the qualifications one has to meet if they are to become a nonresident producer?
30 days
When a producers appointment is cancelled by company department of insurance must be notified within?
immediately but not more than 2 years
When director finds license has been obtained by fraud or misrepresentation he may suspend the license when?
producer promptly forwarding premiums to insurance company
Which of the following is an example of a producers fiduciary responsibilities A producer doing a review on clients coverage B producer promptly forwarding premiums to insurance company
submit a request in writing to department to cancel the lines of authority
multi line producers who do not wish to complete 8 hurs required of line of authority portion must do what?
special producer
person employed by insurer or general producer to travel in a designated territory to supervise and assist producers in the proper discharge of their duties
travel producer
producer of common carrier who sells only transportation ticket policies of accident and health insurance or baggage insurance
broker
In an insurance transaction who is authorized to represent the client
obtain insurance agency license
In order to transact insurance business in this state, an agency must meet all the requirements EXCEPT A pay required fees B Designate a license producer to insure compliance with insurance laws C submit uniform business entity application D obtain insurance agency license
September 30 of every even number years ( every 2 years)
When are insurers required to renew appointments?
$100
a general producer license fee is?
passing state licensing exam
all of the following are requirements for nonresident license except A submitting a license application from home state B passing state licensing exam C submitting proper application and paying fees
paying fee and online renewal application
all producers licensed in SC must renew their license by doing what 2 things?
5 years
all producers must make and keep a full and correct record of the insurance business they transact showing policy number date term amount insured and premiums for how long?
8
A producer licensed in life and health as well as property and casualty must complete a minimum of how many hours in each line of authority every 2 years?
5 years
How long must a licnesee keep records of insurance transaction files available for inspection by director?
director of his designee
If a producer has to report any actions against another producer who do they tell?
30 days
Producers must notify department with change of address or legal name changes within what time limit?
director
When transacting business who must be notified prior to using assumed name?
producer
authorized by insurer to sell, solicit, negotiate or receive and deliver insurance policies on behalf of the insurer
authorized representative of insurer
before an applicant must act as an agent who must they be appointed by?
3
for continuing ed how many credit hours of ethics do you have to complete?
8
for continuing ed how many hours is needed for each line of authority?
ethics
for continuing ed you have to have 3 credits for which subject
individual producer
formerly referred to as an agent,
director
if you ensure all laws faithfully executed you are part of what insurance position?
general producer
person who as a representative of an insurer or insurers, has the authority to supervise producers and local producers and exercise such management authority as delegated by principal
special producer
special agent is also called
30 days
A producer must report to director about any criminal prosecution of the producer taken in any jurisdiction within how many of initial pretrial hearing date?
failure to meet sales quota
A producers license may be revoked by director for all following except? A conviction of crime in moral turpitide B failure to meet sales quota
$20
A travel insurance accident renewal license fee is?
every 5 years
Director must conduct an examination of each insurer in state at least?
make laws related to business of insurance in the state
Director of insurance has all following duties except? A make laws related to business of insurance in the state B make regulations to carry out the laws relating to business of insurance in state
24
How many hours of continuing ed must one complete in order to renew insurance agent license?
2 years
If a producer gets fined because of a misdemeanor how long could you get imprisoned for?
5 years from now
The director has just finished examining a domestic insured. When is the director not required to examine the same insurer?
every 5 years
The director must conduct an exam of each insurer in this state at least?
be a registered voter in state of SC
Which of the following is the minimum requirements to be licensed as a producer in south Carolina EXCEPT A pay one time producer licensing fee B be registered voter in SC C have not been convicted of felony in past 5 years D pass required license exam
general producer
Who is also referred to as a general agent
the examined insurer
Who is responsible for covering expenses associated with exam of domestic insurers?
Director or chief of insurance commissioner
Who is the State Departmnet of Insurance managed and operated by?
directors
Whos job is it to charge purjury in insurance
directors
Whos job is it to send out cease and desist orders?
director
You have to be a memeber for govenors cabinet in order to qualify for what position in insurance?
director
You have to be appointed by governor if you want what position in insurance?
$40
a limited lines individual producer resident and nonresident is how much?
18
a maximum of how many credit hours for carrying forward to next biennial period
change of address and certification from new resident state
a nonresident producer who moves from one state to another must file what two things?
agency
acts as an insurance producer is required to obtain insurance producer license
appointing insurance company
all appointments must be submitted by
policy number, date, term, amount insured, premiums
all producers must make and keep a full and correct record of the insurance business they transact showing what?
insurance producer license
an agency acting as insurance producer is required to obtain what?
certificate of authority
before any insurance company can leggaly transact insurance it must first obtain what?
agency
before approving an insurance producer application who must confirm agency has paid the fees and designated a producer responsible enough
director
being a court ordered judge or needing witnesses is all part of what career in insurance position?
5
director must conduct exam of every insurer authorized to transact business in this state how many years?
fiduciary relationship
hold money belonging to others in trust and transfer it to designation as soon as possible
every 2 years
how often must producer complete CE hours
30 days
if a producer gets license revoked how long will it take judicial to approve
individual producer
person who is authorized by insurer to represent it and to offer to the public insurance policies or contracts and attendant services that are performed incidental to such policies or contracts
misdemeanor
producer who fails to act as a fiduciary commits what crime?
