L&H: Insurance Regulation

90 days

A licensed producer moving to PA may become licensed as resident if the producer submits a completed application within how many days of establishing residence in PA w/ proof of licensing from their prior home state?

Incorrect Statement

A licensee is barred from charging a fee in addition to a commission to a person for the sale, solicitation, or negotiation of a contract of insurance for commercial business

24 hours to current, 24 hours to period immediately following

A producer completed 52 hours of cont edu. How many hours can a producer apply to her current reporting period, how many hours can she carry to the next reporting period

30 days

A producer licensed in PA must notify the Insu Dept of any change in address w/in how many days?

Reciprocity

A producer licensed in another state wants to become a producer in PA. The other state gives the same privileges to PA producers wanting to be licensed in that state as it does its own agents. PA, therefore extends the privileges of its agents to the prospective agent of the other state. What is this called?

All (bc licensed at time of sale)

A producer sold an insu policy. His license was suspended. In this case, how much of the commission will the producer receive

Considered an Unfair Claims Settlement Practice

Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered

Unfair Claims Settlement Practice

Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently offered

Twisting

Agents who persuade insured to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of

Third-degree misdemeanor and $1,000 fine

An individual caught acting as an exclusive general agent- even tho he is not licensed. Assuming this occurred in a single day, what is max penalty

Illegal

An insurer devised an intimidation strategy in order to corner a large portion of the insu market. What describes this process?

10 years

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insu may be imprisoned for up to

Commissioner

Authorities allowed to issue temporary insurance producer's license

Dept of Insurance

Authorities monitors the financial strength of insurers?

False Advertising

Circulating deceptive sales material to the public is what type of Unfair Trade Practice?

$5,000

Civil Penalty for the first violation of the PA Insurance Fraud Prevention Act?

$10,000

Civil penalty for violating a cease and desist order of the Commissioner

Appointed by governor

Commissioner of Insurance is placed in office by which means

Cease and Desist Order

Commissioner suspects that a person is violating an insurance law or other regulation, what can be issued that would offer the person to stop committing the act of violation?

24 hours each licensing period

Continuing Edu required for those holding a PA producer license

Telling a client that his first premium will be waived if he purchases the insu policy today

Ex of producer being involved in unfair trade practice of rebating

Calls not commercial or don't include unsolicited ads Calls by or on behalf of tax-exempt nonprofits Calls for which the consumer has given prior written permission

Exceptions (not included) in National Do Not Call List

Ex of Unfair Claims Settlement Practice

Failure to promptly settle a claim when liability has been clearly established

W/o receiving written consent from an insurance regulatory authority

Fed law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insu affect interstate commerce

Protect private customer info filed w/ a financial institution

Gramm-Leach-Bliley Act was passed to

180 days

How long does temporary producer's license last for the surviving spouse of a deceased producer?

3 days

How many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained

Every 5 years

How often must the Commissioner examine rating organizations?

Within 30 days

How soon after the due date should the insurer pay the agent appointment fees?

5 days

If a consumer requests additional info concerning an Investigative Consumer Report , how long does the insurer or reporting agency have to comply

Dept of Insu

If an insurer appoints a producer, which authority must be notified

The Licensee

If another gov agency takes legal action against a licensee, who reports the action?

Change reported to Commissioner

If licensee wants to transact insu under a diff name than that listed on his/her producer's license, what must occur?

Offering benefit certifications or securities in return for purchasing insu Issuing or delivering insu company stock in return for purchasing insurance Promising returns and profits from the purchase of insu

Illegal inducements in marketing insurance

The consumer's associates, friends, and neighbors provide the report's data

In comparison to consumer reports, what is a unique characteristic of investigative consumer reports

Consumer Report

Includes info regarding a person's credit, character, reputation, and habits

Representative of the consumer

Insurance producers that do not have company appointments are considered a/an

Misrepresentation

Issuing sales material w/ exaggerated statements about policy benefits

90

Licensed producer moving to PA may become licensed as a resident if the producer submits a completed application w/in how many days of establishing residence in PA w/ proof of licensing from their prior home state

Producer

Licensees is classified as a representative of the insu company and not allowed to represent and insured or claimant?

30 days

Licensees must make a report of any action taken against them in another jurisdiction or by another gov agency in PA w/in how many days of the final disposition of the matter

General fitness, competence, and reliability Maintaining on staff at least 1 person in good standing Applying for a license in the same lines of authority as held by licensed designees

Licensing requirements for a business entity

$2,500

Max penalty for habitual willful noncompliance w/ the Fair Credit Reporting Act

$100

Maximum allowed value of a gift that an agent can give to an insured w/o violating regulation of rebating

18

Minimum age for obtaining producer's license in this state

Explaining to the client the advantages of permanent insu over term and suggesting changing policies

NOT Twisting actions

Suggesting negotiations in settling the claim

NOT Unfair Claims Settlement Practices

Only written statements are fraud

NOT correct regarding false statements by a person engaging in the business of insu

Inviting prospective clients to the grand opening of the company's new office

NOT illegal inducements in marketing insurance

Telemarketers

National Do Not Call Registry was created to regulate

Having all emps complete cont edu courses once every 2 yrs

Not a licensing requirement of business entity

Dividends from mutual insurer

Not a rebate offered to insured in sale of insu

Calls based outside of United States

Not considered an exception (included) in National Do Not Call List

giving a client a $50 pen w/ the insurer's logo during the insu application process

Not rebating

$5,000 for each violation

Once it has been reasonably proven that a person has knowingly violated the Insurance Code regarding unfair methods of competition, the Dept may impose a civil penalty of

be responsible for at least 25% of total commissions collected by officer that they manage

Person applying for a manager or exclusive general agent license must NOT

Sufficiently fit, competent, and reliable by Dept of Insu Have paid all applicable fees Have authority to act on insurer's behalf

Person applying for a manager or exclusive general agent license must meet the following criteria

Fiduciary capacity refers to a producer's

Position of financial trust to clients and insu company

24 credit hours

Prior to license renewal, all insurance producers must successfully complete how many hours of cont edu

Issue policies

Producer does not have authority to

Producer's fiduciary responsibilities

Producer forwarding premiums to insu company

Deliver policies Solicit insu contracts Negotiate contracts of insu

Producer has authority to

Biennially

Producer's licensed must be renewed

Fair Credit Reporting Act

Protects consumers against circulation of inaccurate or obsolete personal or financial information

Offer of emp Stocks, securities, or bonds Offer to share in commissions generated by the sale

Rebates if offered to insured in sale of insur

Federal Fair Credit Reporting Act

Regulates consumer reports

Salaried emp who advertises and solicits insu

Required to be licensed as an insurance provider

Fiduciary Responsibility

Requirement that an agent not co-mingle insu monies with their own funds is known as

Appointing Insurer

Responsible for paying producer appointment fees

Unfair claim methods and practices regulations

Should an insu company deny a claim submitted by an insured w/o providing to that insured a prompt and reasonable explanation of the claim denial, the insured would be in violation of

Committing any misdemeanor

State Insu Code identifies all of the following as prohibited acts that can cause suspension, revocation or denial of an insu producer license EXCEPT

8am until 9pm

Telemarketing hours

Misappropriation of funds

Term used when a person in a fiduciary position has used assets in a manner for which they were not intended such as the wrongful taking or use of money belonging to another

10 days

To avoid violations of Unfair Claims Settlement Regulations, insurers are required to acknowledge the receipt of a claim w/in how many days

10 days

To avoid violations of unfair claims settlement regulations, insurers are required to acknowledge the receipt of a claim w/in how many days

Misrepresenting terms and conditions of existing policy to make new one more attractive Embellishing the terms of proposed policy in order to convince the insured to switch Making an incomplete comparison btwn the existing and proposed policies

Twisting actions

Respond to consumer's complaint

Under Fair Credit Reporting Act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must

Must be informed of the source of the report

Under Fair Credit Reporting Act, individuals rejected for insurance due to info contained in a consumer report

If consumer does not sign and return notice of disclosure w/in 30 days

Under which circumstance can financial institutions share insurance coverage info w/ third parties, for purpose of soliciting the purchase of insu?

Refusing to pay claims w/o conducting a reasonable investigation Failing to acknowledge pertinent communication pertaining to a claim Failing to adopt and implement reasonable standards for settling claims

Unfair Claims Settlement Practices

30 days

When a producer holding a certification or broker's license has a change in his/her residence or business address, he/she must notify the Dept of Insu and any company for which the producer holds the appointment w/in

30 days

Within how many days must a producer respond to an inquiry from the Commissioner?