Insurance Regulations - License, State Regulations
How old do you have to be to obtain a license?
18
How long can temp licenses be granted for?
180 days
How long is a licensed issued for?
2 years
Within how many days must a producer notify the Department of an address change?
30
If an insurer terminates a producer's appointment, the Commissioner must be notified within how many days?
30 days
Anyone without proper licensing, that is caught acting as a general agent is guilty
3rd degree misdemeanor & a fine for $1,000 for each day of the offense
If a company changes their ownership, control or surplus, how many days do they have to notify the Commissioner
5 days
For the purpose of examination by the department, insurers must keep a record of all financial files for at least
5 years
How long does a new resident in PA have to submit a completed application for their license?
90 days
Who is considered a nonresident agent?
An agent who resides and is licensed in another state, but who is authorized to transact insurance in this state
What is a producer?
An agent who sells, solicit, or negotiates contracts of insurance
What authorities is authorized to issue a temporary insurance producer's license?
Commissioner
Which of the following authorities monitors the financial strength of the insurer?
Department of Insurance
How often must the Commissioner examine rating organizations?
Every 5 years
Advertisements cannot include any untrue, deceptive, misleading statements that applies to insurance business or agent. If this happens what is this called?
False Advertising
True or False: The Commissioner sets all insurance premium rates used in Pennsylvania
False, all prem rates must be filed with the Commissioner. The insurer must wait 30 days before using the filed rate, or until approval is received
What is controlled business?
Insurance on the producer's own life or property, or the lives or property of the producer's family or business associates
What is the Insurance Fraud Prevention Trust Fund?
It was created to fund the investigation and prosecution of insurance fraud
Who may share in the commission from the sale of an insurance policy?
Only producers properly licensed for the type of insurance transaction
An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?
Rebating
A producer in another state wants to become a producer in PA. The other state gives the same privilege's to PA producers wanting to be licensed in that state as it does its own agents. PA extends extends the privilege's of its agents to the prospective agent of the other state. What is this called?
Reciprocity
A licensee serving in the military is unable to fulfill her continuing education requirement. What would the licensee have to do to renew the license?
The licensee may submit a request to the department to have requirements and fees waived. The department will then determine if the request is permissible
If a producer allows their license to lapse, what do they have to do?
They can submit a renewal form within 1 year, and paying the fee of $165
When would a misrepresentation on an insurance application be considered fraud?
When its intentional and material
When is controlled business legal?
When the commissions from controlled business do not exceed the aggregate commissions on all the other business (specific limits may vary from state to state)
How soon after the due date should the insurer pay the agent appointment fees?
Within 30 days
Before an insurance company can legally transact insurance, they must obtain
a certificate of authority
What is a cease and desist order?
an order or request from the Commissioner if they find a licensee/producer of breaking insurance law
If an insurer holds a Certificate of Authority, it is known as what type of insurer?
authorized/admitted
A license must be renewed
biennially
If a producer makes maliciously critical statements about another insurer, what is this illegal practice called?
defamination
Failure to submit funds appropriately could constitute
embezzlement
Who appoints the commissioner?
governor
What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is?
misrepresentation
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
rebating
What is defamation?
the action of damaging the good reputation of someone; slander or libel.
What is coercion?
to require, as a condition to a loan, that the applicant purchase insurance from a specific insurer
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
twisting
