Insurance Regulation

How much is the late fee for renewing your license?

$10

Requirements for License Applicant

-resident of NYS -at least 18 years old -submit a standard application for licensing on a form approved by superintendent -fulfill prelicensing education requirement (20 hr single line, 40 hr for personal lines, 90 hrs for property/casualty agent) -pay application fee -pass exam

The written exam is not required for the following individuals:

-ticket-selling agent -individual with license revoked -nonresident licensee currently licensed in another state -applicant who has already passed the written exam

If a license is revoked how long must a person wait to re-apply?

1 year

If any business is transacted while not authorized, a penalty of $_______ will be levied on the first violation, and $_______ for each subsequent violation

1,000, 2,500

Hearings for disciplinary actions will be held at least ____ days after notice is served

10

The superintendent may refuse to issue, suspend, or revoke a license if an applicant or licensee received more than ___% of the aggregate commissions during a ____ month period from controlled business

10, 12

a personal convicted of a felony may apply for a ____ to transact insurance business.

1033 waiver

Every insurer writing private or commercial insurance must file a fraud prevention plan for the detection, investigation, and prevention of fraudulent insurance activities within _____ days

120

To appoint an agent, a notice of appointment must be filed and approved by the Superintendent within ___ days from the date the agency contract is executed

15

To renew a license, any resident agent must complete ____ hours of instruction by an approved provider of continuing education biennially

15

Insurance licenses need to be renewed every ____ years, and must be renewed ____ days before expiration. It will expire on your birthday depending on the year

2, 60

There can be a penalty of up to $____ per day of delay of annual statement of financial conditions, not exceeding $_____ for each failure

250, 25,000

Domestic property/casualty insurance company will be examined one every ___ years

3

A licensee must report to the Superintendent of Insurance any administrative action taken against the licensee in another jurisdiction or by another governmental agency in this state within _____ of the final disposition of the matter.

30

The Department of Financial Services must be notified within ____ days of any changes of address: resident, business, or email

30

Domestic life insurer must be examined at least once every ___ years

5

A person who violated a cease and desist order is liable for penalties up to $_____ for each violation

5,000

Penalties for violation of insurance licensing laws may be up to $____ for each offense, up to $_____ aggregate for all offenses

500, 2,500

Insurers must keep records of their insurance transactions for how many years after the transaction was completed?

6

After a cybersecurity event has been discovered, an insurer or its agents must report the event to the Department of Financial Services within ____ hours

72

If a person licensed in another state moves to NY and wants to become a resident agent or broker, he/she must apply within _____ days of the cancellation of the applicants previous license

90

Fair Credit Reporting Act

A federal law that established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant and properly used.

cease and desist order

An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.

Investigative Consumer Report

An extensive report that includes information on an individual's character, general reputation, personal characteristics, and mode of living through investigation. These reports cannot be made unless the consumer is advised in writting within 3 days

exemption from licensing

An insurance producer license is not required of any officer, director or employee of an insurer or organizations 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.

controlled business

Any coverage written on a producer's own life, health or property, and/or that of the producer's immediate family or business associates

rebating

Any inducement offered in the sale of insurance products that is not specified in the policy. Articles of merchandise are not considered rebates if valued at $25 or less

public adjuster

Any person, firm, association or corporation, who for a commission acts on behalf of the insured in negotiating a settlement of a claim for loss or damage to property.

Every entity transacting insurance in this state must file with the office of the Superintendent an annual statement on or before ______ ___ of each year showing its financial condition

March 1st

The insurer must provide notice to individuals about its privacy policies and practices,

No later than the time an insurance policy is delievered

refuse to issue a license

The Superintendent may refuse to issue any insurance agent's license if the proposed licensee is found not to be trustworthy and competent, or has not complied with any prerequistes.

Consumer Reports

Written and /or oral statements regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources.

business entity

a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity

agents

a person authorized by an insurer to solicit, negotiate, and obtain insurance contracts; represents the insurer, not the insured

false advertising

advertising that is misleading in some important way, including the failure to reveal facts about possible results from using the advertised products

cybersecurity policy

an approved written document that identifies the policies and procedures in place to keep the information system safe

nonresident insurance agent

an individual who is a resident of another state, who is licensed to act as an agent in the state of NY

producer

an insurance agent, title insurance agent, insurance broker, reinsurance intermediary, excess lines broker, or any other person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance

inducement

an offer that attempts to influence the other party

information system

an organized system that collects, maintains, and transmits electronic Nonpublic Information

Nonpublic Information

any business-related information that is not publicly available information that if misused could jeopardize a covered entity's security and operations

cybersecurity event

any effort to obtain unapproved access to an information system whether successful or unsuccessful

covered entity

any person operating under a license, registration, certificate, or similar authorization under the Banking Law, the Insurance Law, or the Financial Services Law

brokers

any person, firm, association, or corporation who solicits, negotiates, or obtains insurance for an insured in exchanged for a commission; represents the inured, not the insurer

independent adjuster

any person, firm, association, or corporation who, for a commission, acts on behalf of an insurer in the work of investigating and adjusting claims

home state

any state, district, or territory of the United States in which an insurance producer maintains his/her principal place of residence or principal place of business, and is licensed to act as an insurance producer.

At the hearing, the aggrieved party has the opportunity to:

appear in person and by counsel give evidence why an order should not be made inspect all documentary evidence and witnesses obtain witnesses on the person's behalf

solicit

attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular licensed insurer

discrimination

discrimination of rates, premiums, or policy benefits for persons within the same class or with the same life expectancy is illegal

continuing education (CE) rules

established to protect the public by maintaining high standards of professional competence in the insurance industry, and to maintain and improve the insurance skills and knowledge of licensed producers

sell

exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurer

guaranty association

formed to protect policy owners from the incompetence and insolvency of insurers

insurance fraud prevention act

intended to permit the Superintendent and the department to utilize their expertise to investigate and discover insurance fraud

Commissions may be split among agents/brokers provides that they are ____ with the _____ insurer

licensed, same

Any violations of the Insurance Code provisions will be considered a _______ unless specifically categorized as a felony

misdemeanor

defamation

occurs when an oral or written statement is made that is intended to injure a person engaged in the insurance business

consultants

offer advice to the public about the benefits, advantages and disadvantages of insurance policies for a fee.

Superintendent Duties

supervise insurance business, licensing, approve policies and forms, enforce insurance laws and impose penalties for violations, and conduct examination, investigations, hearing

embezzlement

taking for one's own use in violation of trust; stealing (of money placed in one's care)

negotiate

the act of directly conferring with or offering advice to a purchaser or prospective purchaser of a particular insurance contract concerning any of the substantive benefits, terms or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from licenses insurers

Reciprocity

the obligation to return in kind what another has done for us

cybersecurity programs

these identify cybersecurity risks, monitor and recognize cybersecurity events, and recover/report

solvent

to have the assets to meet its financial obligations

Temporary License

used to serve existing business; issued in the case of death, disability, or military service; lasts for 90 days