insurance regulation
an insurance agent
a person authorized to sell, solicit, & negotiate insurance contracts
rebating
agent offered a client free tickets to a sporting event in the exchange for the purchase of an insurance policy. what's the agent guilty of
considered a nonresident agent
agent who resides & licensed in another state, but who is authorized to transact business in this state
certificate of authority
document required for an insurance company to transact insurance
types of insurers
domestic, foreign, alien
defamation
if a producer makes maliciously critical statements about another insurer, what's the illegal practice called
authorized or admitted
if an insider meets the states financial requirements & is approved to transact business in the state, is considered what type of insurer
authorized or admitted
if an insurer holds a certificate of authority is known as
cease & desist order
if the commisioner/superintendent finds a licensee engaging in an unfair method of competition of an unfair practice, what order will be issued
in general who can be excluded from producer licensing & examination requirements
insurance company officers, directors, or any other employees who do not transact insurance and who do not receive commissions (usually, their responsibilities include administrative, executive or clerical)
a controlled business
insurance on the producers own life or property, or the lives or property of the producers family or business associates
only producers licensed for the type of insurance transaction
may share in the commission from the sale of an insurance policy
misrepresentation
on its advertisement, a company claims that it has funds on its possessions are, in fact, not available for the payment of losses or claims. what's the company guilty of
purpose of cease & desist order
prevent a producer or insurer from further violating laws for transacting insurance
continuing CE hours & pay a renewal fee
producers required to do in order to renew their license
fiduciary
requirement that agents must account for & promptly remit all insurance funds collected is what type of agent responsibility
insurer being examined
responsible for the costs associated with the examination of insurers
certificate of authority
state-issued document empowering an insurance company to become an admitted insurer is called
an insurer authorized to transact business in this state
to whom may a certificate of authority be issued
discrimination
two ppl who are in the same risk & age class are charged diff rights for their insurance policies due to an insignificant factor. what is this called
foreign
type of insurer formed under the laws of another state
the agent
type of licensee represents the insurance company
twisting
type of misrepresentation persuades an insured, to their detriment, to cancel, lapse, or switch policies from one to another
misrepresentation
what illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is
when is controlled business legal
when the commissions from controlled businesses do not exceed the aggregate commissions on all other businesses
when it's intentional & material
when would a misrepresentation on an insurance application be considered fraud
when can the commissioner or director examine insurers
whenever deemed necessary
department of insurance (commissioner/director/superintendent)
who must be notified of a producers change of address
stockholders
who owns stock companies
most common penalties for violations of insurance statutes
-cease & desist order -a fine -license suspension of revocation