pennsylvania producers examination
Unlicensed Activity
$5,000.00 fine and/or imprisonment for up to five (5) years
The temporary license shall be for a period not to exceed
180 days and is not transferable
Limited Line Credit Insurance
credit life, disability, property, unemployment, involuntary unemployment, mortgage life, guaranty, GAP, any form of credit line
Exclusive General Agent (Captive Agent)
granted sole authority to offers products from only one insurer for no more than 25% of the surplus
Casualty Insurance
insurance coverage against legal liability, including that for death, injury, or disability or damage to real or personal property
accident and health or sickness insurance
insurance coverage for sickness, bodily injury or accidental death and may include benefits for disability income
Property Insurance
insurance coverage for the direct or consequential loss or damage to property of every kind
life insurance
insurance coverage on human lives, including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income
variable life and variable annuity
insurance coverage provided under variable life insurance contracts and variable annuities
Credit Insurance
limited line credit insurance
Application fee
no insurance producer shall charge a fee for the completion of an application for a contract of insurance
An insurer or licensee that fails to report as required under the provisions of this section or that is found to have falsely reported with malice by a court of competent jurisdiction may, after notice and hearing, have its license or certificate of authority suspended or revoked and may have civil penalties imposed against the insurer or licensee in an amount
not to exceed $5,000 for each violation
limited line motor vehicle rental insurance
rental of a vehicle that covers personal accident, accidental death and dismemberment, personal effects, roadside assistance (towing, emergency sickness and excess liability)
Law of Federal Preemption
right of federal government to regulate matters within its power to the exclusion of regulation by the states
Federal Preemption
shall not be subject to those provisions or laws which were the subject of the Federal preemption.
candidate
an individual who has satisfactorily completed or is exempt from the preexamination educational requirements of section 604-A
Designated licensee
an individual who is licensed by the insurance department as an insurance producer and who is designated by a business entity to be responsible for the business entity's compliance with the insurance laws and regulations of this commonwealth
rental agreement
any written agreement setting forth the terms and conditions governing the use of a vehicle provided by the rental company for rental or lease
Insurer
an insurance company or association including fraternal benefits society, Lloyds or health plan corporations
limited line insurance
any other insurance as determined by the commissioner
Reinsurer
any person, firm, association or corporation duly licensed in this Commonwealth pursuant to the applicable provisions of the insurance laws of the Commonwealth as an insurer with the authority to assume reinsurance
controlling person
any person, firm, association or corporation who directly or indirectly has the power to direct or cause to be directed the management, control or activities of the reinsurance intermediary
Reinsurance intermediary-manager or "RM"
any person, firm, association or corporation who has authority to bind or to manage all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department or underwriting office, and acts as an agent for such reinsurer whether known as an RM, manager or other similar term
Reinsurance intermediary-broker or "RB"
any person, other than an officer or employe of the ceding insurer, firm, association or corporation who solicits, negotiates or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of such insurer
solicit
attempt to sell insurance or ask or urge a person to apply for a particular kind of insurance from a particular insurance entity
License fee
A nonrefundable $100 fee shall accompany an application for a manager or exclusive general agent license unless modified by the department by regulation
Revocation
The department may immediately and without notice revoke a temporary license if it is deemed in the public interest.
comissioner
the officer in charge of a insurance department or bureau of the public service
Continuing education exemptions
(1) A licensee who was licensed as an agent or broker for a line of authority prior to January 1, 1971, and who has been continuously licensed as an agent, broker or producer for the line of authority since that time. (2) A licensee which is a business entity. (3) A licensee who has only a limited line of authority. (4) A licensee who has a line of authority limited to restricted fraternal. (5) A licensee who has a line of authority limited to limited line credit insurance if the insurer provided a course of instruction to each individual whose duties will include selling, soliciting or negotiating the insurance. (6) A nonresident licensee who has satisfied the continuing education requirements of the licensee's home state if that state recognizes the satisfaction of its continuing education requirements by a resident licensee satisfying the requirements of this act. If the licensee's home state has continuing education requirements and the nonresident licensee fails to satisfy the home state's continuing education requirements, the licensee shall be subject to continuing education requirements of this act. (7) A licensee's line of authority is restricted to domestic mutual fire insurance and the licensee's appointment is with an insurer writing only coverage other than insurance upon automobiles (d) Lapses.--A licensee who allows his or her license to lapse by failing to timely renew the license, pay the fee required by this act or complete the continuing education required by this act may within one year of the license renewal date request the department to reinstate the license. Persons requesting reinstatement of a lapsed license shall submit a completed renewal form, the fee required by this act and verification that the person has completed all continuing education required by subsection (b) for the previously licensed and lapsed periods. The department shall reinstate the license retroactively, with the reinstatement effective on the date the license lapsed, if the department receives a request for reinstatement together with a completed renewal application, payment of the lapsed license fee and proof of continuing education compliance within 60 days after the license lapsed. The department shall reinstate the license prospectively, with reinstatement effective on the date that the license is reinstated, if the department receives a request for reinstatement of a lapsed license more than 60 days after the license lapsed. If a person applies for reinstatement more than one year after the lapse date, the person shall reapply for the license under this act. (e) Extenuating circumstances.--A licensee who is unable to timely comply with the requirements of subsection (a) as a result of military service or other extenuating circumstance may request the department to waive the requirements of having to complete continuing education for the period in which the license had lapsed and payment of the lapsed license fee. The request shall include sufficient detail and supporting documentation to determine the necessity of the waiver. If the department determines that there is good cause for noncompliance, the department shall grant the waiver and permit the licensee to request renewal of the license in accordance with this act.
Enforcement penalties may include
(1) Denial, suspension, refusal to renew or revocation of the license, if any, of the person. (2) A civil penalty not to exceed $5,000 for each action in violation of this act. (3) An order to cease and desist. (4) Any other conditions as the commissioner deems appropriat
No person, firm, association or corporation shall act as an RM if
(1) For a reinsurer domiciled in this Commonwealth unless the RM is a licensed producer in this Commonwealth. (2) In this Commonwealth if the RM maintains an office either directly or as a member or employe of a firm or association or an officer, director or employe of a corporation in this Commonwealth unless the RM is a licensed producer in this Commonwealth. (3) In another state for a nondomestic insurer unless the RM is a licensed producer in this Commonwealth or another state having a law substantially similar to this article or the person is licensed in this Commonwealth as a nonresident reinsurance intermediary.
A licensee or applicant for an insurance producer license shall not
(1) Provide incorrect, misleading, incomplete or false information to the department in a license application. (2) Violate the insurance laws or regulations of this Commonwealth or a subpoena or order of the commissioner or of another state's insurance commissioner. (3) Obtain or attempt to obtain a license through misrepresentation or fraud. (4) Improperly withhold, misappropriate or convert money or property received in the course of doing business. (5) Intentionally misrepresent the terms of an actual or proposed insurance contract or application for insurance. (6) Admit to or been found to have committed any unfair insurance practice or fraud. (7) Use fraudulent, coercive or dishonest practices or demonstrate incompetence, untrustworthiness or financial irresponsibility in the conduct of doing business in this Commonwealth or elsewhere. (8) Have an insurance producer license or other financial services license, or its equivalent, denied, suspended or revoked by a governmental entity. (9) Forge another person's name on an application for insurance or on any document related to an insurance or financial service transaction. (10) Cheat on an examination for an insurance producer license. (11) Knowingly accept insurance business which was sold, solicited or negotiated by a person who is not licensed as an insurance producer. (12) Fail to comply with an administrative or court order imposing a child support obligation. (13) Fail to pay State income tax or comply with any administrative or court order directing the payment of State income tax. (14) Commit a felony or its equivalent. (15) Commit a misdemeanor that involves the misuse or theft of money or property belonging to another person. (16) Commit a violation of Subarticle B. (17) Commit fraud, forgery, dishonest acts or an act involving a breach of fiduciary duty. (18) Transfer insurance coverage to an insurer other than the insurer expressly chosen by the insured without the consent of the insured. (19) Fail to notify the department of a change of address within 30 days. (20) Demonstrate a lack of general fitness, competence or reliability sufficient to satisfy the department that the licensee is worthy of licensure.
The following nonrefundable fees shall accompany an application for renewal of an insurance producer license unless modified by the department by regulation
(1) Resident renewal fee - $55. (2) Nonresident renewal fee - $110. (3) Lapsed license renewal fee - $165.
Licensure
(1) The person possesses a good business reputation. (2) The person possesses the fitness, competence and reliability sufficient to satisfy the department that the individual is worthy of licensure as a manager or exclusive general agent. (3) The person has paid all applicable fees established pursuant to this article. (4) Such other criteria as the department may establish.
Copy of notification to be provided to licensee
(1) Within 15 days of making a notification required by subsection (b) or (c), an insurer shall mail a copy of the notification to the licensee's last known home address by certified mail, return receipt requested, postage prepaid or by overnight delivery using a nationally recognized carrier. (2) Within 30 days of receiving notification pursuant to paragraph (1), a licensee may file written comments concerning the substance of the notification with the department. The licensee shall simultaneously mail a copy of the comments to the insurer by certified mail, return receipt requested, postage prepaid or by overnight delivery using a nationally recognized carrier.
The department may require an RM subject to
(1) file a bond in an amount from an insurer acceptable to the department for the protection of the reinsurer; and (2) maintain an errors and omissions policy in an amount acceptable to the department.
Insurance Entity
a person doing business involving the insuring risks including insurers
Financial Institution
A federal or state chartered bank, bank and trust company, savings bank, savings and loan association, trust company or credit union
application
A form approved by the Insurance Commissioner to be used to apply to the Insurance Department for an insurance producer license
Sales on or from the premises of a financial institution
A licensee employed by or affiliated with a financial institution that solicits the sale of annuities or life insurance, except credit life insurance, on or from the physical premises of the financial institution shall provide a person applying for a contract of insurance a written disclosure at or prior to the time of application for the insurance or annuity. The disclosure shall include a notice of all of the following: (1) The insurance or annuity is not a deposit. (2) The insurance or annuity is not insured by the Federal Deposit Insurance Corporation or any other agency or instrumentality of the Federal Government. (3) The insurance or annuity is not guaranteed by the financial institution or an affiliated insured depository institution. (4) The insurance or annuity is subject to investment risk, including potential loss of principal, when appropriate
Receipt of commissions
A licensee may accept a commission, brokerage fee, service fee or other compensation from an insurance entity or licensee for selling, soliciting or negotiating a contract of insurance. Except as provided in subsection (b), a person may not accept a commission, brokerage fee, service fee or other compensation from an insurance entity or licensee if the person is not a licensee and the compensation is for activities related to the sale, solicitation or negotiation of a contract of insurance (1) a renewal or other deferred commission for selling, soliciting or negotiating a contract of insurance if the person was a licensee at the time of the sale, solicitation or negotiation; or (2) a fee for referring persons to a licensee that are interested in purchasing insurance provided they do not discuss specific terms and conditions of a contract of insurance and, in the case of referrals for insurance that is primarily for personal, family or household use, they receive no more than a one-time, nominal fee of a fixed dollar amount for each referral that does not depend on whether the referral results in a sale
Imposition of additional fees
A licensee may charge a fee in addition to a commission to a person for the sale, solicitation or negotiation of a contract of insurance for commercial business. The fee charged by the licensee shall be disclosed in advance in writing to the person and shall be reasonable in relationship to the services provided
General rule
A licensee may request renewal of the license. The licensee shall remit to the department a completed renewal form, the required fee and verification that the licensee has completed the continuing education required by this act. A resident licensee that has not previously submitted fingerprints to the department shall also submit the licensee's fingerprints and the fee in order to permit the department to receive national criminal history records information from the Federal Bureau of Investigation Criminal Justice Information Services Division. Upon receipt and review, the department shall renew the license unless it determines that the licensee is not in compliance with this act
Misconduct reporting
A licensee shall report to the department any administrative action taken against the licensee in another jurisdiction or by another governmental agency in this Commonwealth within 30 days of the final disposition of the matter. This report shall include a copy of the order, consent order or other relevant legal documents.
Continuing education
A licensee shall successfully complete 24 credit hours of approved continuing education for each two-year license period as a condition for license renewal unless modified by the department by regulation. A licensee may carry forward excess continuing education credit hours up to a maximum of 24 credit hours from one licensing period to the next licensing period.
Response
A licensee who fails to provide a written response to the department within 30 days of receipt of a written inquiry from the department or who fails to remit valid payment for all fees due and owing to the department shall, after notice from the department specifying the violation and advising of corrective action to be taken, correct the violation within 15 days of receipt of the notice
Credit life, credit accident and health and credit unemployment insurance
A person that sells, solicits or negotiates a contract of credit insurance shall do (Model Act for the Regulation of Credit Life Insurance and Credit Accident and Health Insurance) all of the following: (1) Credit life insurance. (2) Credit accident and health insurance. (3) Credit unemployment insurance. If the insurance is sold in connection with loans or other credit transactions, the provisions of the Model Act for the Regulation of Credit Life Insurance and Credit Accident and Health Insurance relating to credit life and credit accident and health insurance are applicable to credit unemployment insurance. The total amount of benefits payable by credit unemployment insurance in the event of unemployment shall not exceed the aggregate of the periodic scheduled unpaid installments of the indebtedness. (2) The amount of each monthly payment shall not exceed the original indebtedness divided by the number of installments. (3) The loss ratio for the insurance shall be set and regulated by the commissioner in the same manner as the loss ratio is set and regulated for credit life and credit accident and health insurance. (4) Involuntary unemployment insurance sold in connection with open-end credit shall provide monthly benefits at least equal to the insured's minimum monthly payment calculated at the time of unemployment, subject to a maximum monthly indemnity contained in the certificate of insurance. (5) Benefits are payable, at a minimum, upon the debtor meeting the eligibility requirements for unemployment compensation. (6) The period during which benefits are payable in the event of the insured's involuntary unemployment shall continue at least until the earliest of the following: (i) The insured's return to full-time work. (ii) Satisfaction of the loan or other credit transaction. (iii) In the case of open-end credit, payment of 12 consecutive monthly installments. (7) The insurance shall not be required as a condition of the extension of credit. (8) If a creditor offers the insurance to any of its debtors, it must offer it under the same terms and conditions to all of its like debtors and under the same terms and conditions as all of its offices or locations in this Commonwealth
Penalty
A person that violates subsection (a) commits a misdemeanor of the third degree and, upon conviction, shall be sentenced to pay a fine not exceeding $1,000 for each day of operation without a license.
doing business with an unlicensed person
A person that violates this section commits a misdemeanor of the third degree
appointment
A written agreement between an insurance producer and an insurance entity under which the insurance producer may sell, solicit or negotiate contracts of insurance issued by the insurance entity for compensation.
Appointment fee
An appointment fee of $12.50 will be billed annually to the insurer for each producer appointed by the insurer during the preceding calendar year regardless of the length of time the producer held the appointment with the insurer. The appointment fee may be modified by regulation. The fee shall be paid in full within 30 days
applicant
An individual who has passed or is exempt from taking the insurance producer licensing examination required by section 604-A. 1
Nonresident Individuals/Corporations
An individual who is currently licensed as a resident insurance producer in another state or territory may apply to the department for a nonresident insurance producer license for the equivalent lines of authority as the individual is licensed in the individual's home state. The individual shall submit to the department a completed application or an updated copy of the individual's home state application indicating the lines of authority for which the individual desires to be licensed, proof of the individual's current home state license and the required license fee. If the individual desires a nonresident insurance producer license for a line of authority for which the individual is not licensed in the individual's home state, the individual shall comply with the requirements of this act prior to making application to the department.
Payment of commissions
An insurance entity may pay a commission, brokerage fee, service fee or other compensation to a licensee for selling, soliciting or negotiating a contract of insurance. A licensee may pay a commission, brokerage fee, service fee or other compensation to a licensee for selling, soliciting or negotiating a contract of insurance. Except as provided in subsection (b), an insurance entity or licensee may not pay a commission, brokerage fee, service fee or other compensation to a person that is not a licensee for activities related to the sale, solicitation or negotiation of a contract of insurance.
Representative of the consumer
An insurance producer acting on behalf of or representing an insurance consumer shall execute a written agreement with the insurance consumer prior to representing or acting on their behalf that: (1) delineates the services to be provided; and (2) provides full and complete disclosure of the fee to be paid to the insurance producer by the insurance consumer
manager
a person that negotiates and binds ceding reinsurance contracts on behalf of a domestic insurer or manages all or part of the insurance business of an insurer and does not act as an agent for such insurer
Personal liability of an insurance producer for an unauthorized entity
An insurance producer shall be personally liable on all contracts of insurance or suretyship unlawfully made by or through the producer, directly or indirectly, for or on behalf of any insurance entity which is not authorized to do business in this Commonwealth.
Fiduciary capacity of an insurance producer
An insurance producer shall be responsible in a fiduciary capacity for all funds received or collected as an insurance producer and shall not, without the express consent of the insurance entity on whose behalf the funds were received, mingle the funds with the producer's own funds or with funds held by the insurance producer in any other capacity.
Representative of the insurer
An insurance producer shall not act on behalf of or as a representative of the insurer unless the insurance producer is appointed by the insurer. An insurance producer not acting as a representative of an insurer is not required to be appointed
Reporting
An insurer shall, upon request, certify to the department the names of all licensees appointed by the insurer
Notification to department
An insurer that appoints an insurance producer shall file with the department a notice of appointment. The notice shall state for which companies within the insurer's holding company system or group the appointment is made. Upon receipt of the notice, the department shall verify if the insurance producer is eligible for appointment. If the insurance producer is determined to be ineligible for appointment, the department shall notify the insurer of the determination
Termination of appointments
An insurer which terminates an appointment shall notify the department in writing on a form approved by the department, or through an electronic process approved by the department, within 30 days following the effective date of the termination
Confidentiality
Any documents, materials or other information in the control or possession of the department which is furnished by an insurer or licensee under section 671.1-A 1 or which is obtained by the department in an investigation pursuant to this act shall be confidential by law and privileged, shall not be subject to the act of June 21, 1957 (P.L. 390, No. 212), 2 referred to as the Right-to-Know Law, shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action. However, the department is authorized to use the documents, materials or other information in the furtherance of any regulatory or legal action brought as a part of the department's duties. (b) Testimony prohibited.--Neither the department nor any person who received documents, materials or other information while acting under the authority of the department shall be permitted or required to testify in any private civil action concerning any confidential documents, materials or information subject to subsection (a). (c) Information sharing.--In order to assist in the performance of the department's duties under this article, the department may share and receive confidential information in accordance with section 202-A. 3 (d) Effect of sharing.--No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the department under section 671.1-A or as a result of sharing as authorized in subsection (c). (e) Exception.--Nothing in this article shall prohibit the department from releasing final, adjudicated actions that are open to public inspection pursuant to the Right-to-Know Law to a database or other clearinghouse service maintained by the NAIC, its affiliates or subsidiaries.
Business Entity
a person which is not an individual
Consent (customer privacy)
For the purpose of complying a financial institution may directly obtain written consent for the use of customer information from a current or prospective loan customer.
Required purchases of insurance
If a financial institution requires a person to obtain insurance in connection with a loan and the insurance is available through the financial institution, a licensee employed by or affiliated with the financial institution shall inform the person at or prior to the time of application that the purchase of the insurance from the financial institution is not a condition of the loan and will not affect current or future credit decisions. The licensee may inform the person that insurance is available from the financial institution If the person purchases the insurance through the financial institution, the licensee shall obtain a written statement or acknowledgment from the person prior to the purchase of the insurance stating that the person has been advised that the purchase of the insurance from the financial institution is not a condition of receiving the loan and will not affect current or future credit decisions The commissioner may promulgate regulations providing for alternative methods of achieving the disclosures and acknowledgment required by this section for situations which do not involve direct contact with the customer at the time of solicitation or application
Correction
If a licensee fails to correct the violation within 15 days of receiving notice, the department may assess an administrative fine of no more than $100 per day per violation.
temporary license
If the department determines that the issuance of a temporary insurance producer license is in the public interest and that the person requesting the license is worthy to receive a temporary license, the department may issue a temporary insurance producer license to the following persons: (1) The surviving spouse or court-appointed personal representative of a resident individual licensee who dies or becomes mentally or physically disabled. The temporary license shall be used by the spouse or representative to operate the insurance business owned by the licensee until: (i) the business is sold or transferred; (ii) the licensee recovers and returns to the business; or (iii) new personnel is trained and licensed to operate the licensee's business. (2) An owner, partner or employee of a business entity licensee upon the death or disability of the designated licensee. The temporary license shall be used by the owner, partner or employee to operate the business entity until: (i) the business is sold or transferred; or (ii) new personnel is trained, licensed and designated as the designated licensee. (3) The designee of an individual licensee who enters active service in the armed forces of the United States. (4) Any other person in an extenuating circumstance where the commissioner deems that the public interest will best be served by the issuance of a temporary license.
Reason for termination
If the reason for the termination was a violation of this act or if the insurer had knowledge that the licensee was found to have engaged in any activity prohibited by this act, the insurer shall inform the department in the notification. Upon the written request of the department, the insurer shall provide additional information, documents, records or other data pertaining to the termination or activity of the producer
Termination of appointments immunities
In the absence of actual malice, an insurer, the authorized representative of the insurer, a licensee, the Insurance Commissioner or an organization of which the Insurance Commissioner is a member and that compiles the information and makes it available to other insurance commissioners or regulatory or law enforcement agencies shall not be subject to civil liability, and a civil cause of action of any nature shall not arise against these entities or their respective agents or employees as a result of any statement or information required by or provided pursuant to this section or any information relating to any statement that may be requested in writing by the Insurance Commissioner, from an insurer or licensee; or a statement by a terminating insurer or licensee to an insurer or licensee limited solely and exclusively to whether a termination under subsection (a) was reported to the Insurance Commissioner, provided that the propriety of any termination under subsection (a) is certified in writing by an officer or authorized representative of the insurer or producer terminating the relationship. (2) In any action brought against a person that may have immunity under paragraph (1) for making any statement required by this section or providing any information relating to any statement that may be requested by the Insurance Commissioner, the party bringing the action shall plead specifically in any allegation that paragraph (1) does not apply because the person making the statement or providing the information did so with actual malice. (3) Paragraph (1) or (2) shall not abrogate or modify any existing statutory or common law privileges or immunities.
NAIC
National Association of Insurance Commissioners
Requirements on insurance producers by financial institutions
No financial institution may impose any unreasonable requirement on an insurance producer not associated with that financial institution
Conditional financial transactions
No financial institution or its directors, officers, employees, agents or insurance producers may require the purchase of insurance from the financial institution or its affiliates or from a designated insurer or insurance producer as a condition of a loan or deposit transaction. A financial institution or its directors, officers, employees, agents or insurance producers may not reject a required contract of insurance solely because the contract was sold by a person that is not associated with the financial institution
The licensing of financial institutions as insurers
No financial institution shall apply to be licensed or to be admitted as an insurer except to underwrite title insurance
Customer privacy
No financial institution shall use or share with a third party any insurance coverage information obtained in making a loan to a current customer for the purpose of selling or soliciting the purchase of insurance or annuities unless the requirements of this section are met
Theft by insurance producers
No insurance producer shall sell, solicit or negotiate a contract of insurance and fraudulently appropriate or convert to his own use or, with intent to use or fraudulently appropriate, take, or otherwise dispose of, or withhold, appropriate, lend, invest or otherwise use or apply money or substitutes for money received by him as an insurance producer contrary to the instructions or without the consent of the insurer
Misrepresentations to an insured of another company
No insurance producer shall, directly or indirectly, misrepresent or make an incomplete comparison of contracts of insurance for the purpose of inducing an insured of another insurer to lapse, forfeit or surrender his contract of insurance and to take out a contract of insurance insuring against similar risks with the licensee or solicitor's insurer.
Rebates
No insurance producer shall, directly or indirectly, offer, promise, allow, give, set off or pay a rebate of, or part of, a premium payable on the contract of insurance or on the insurance producer's commission, earnings, profits, dividends or other benefit founded, arising, accruing or to accrue thereon, or any special advantage in date of policy or age of issue, or any paid employment or contract for services of any kind, or any other valuable consideration or inducement, to or for insurance on a risk in this Commonwealth which is not specified in the contract of insurance paying bonuses to policyholders or otherwise abating their premiums out of surplus accumulated from nonparticipating insurance if any such bonuses or abatement of premiums are fair and equitable to policyholders and for the best interests of the company and its policyholders
Inducements
No insurance producer shall, directly or indirectly, offer, promise, give, option, sell or purchase any stocks, bonds, securities or property, or any dividends or profits accruing or to accrue thereon, or other thing of value whatsoever, as an inducement to purchase a contract of insurance. Nothing in this section shall be construed to prevent the taking of a bona fide obligation, with legal interest, in payment of any premium. This section shall not prohibit payment or receipt of referral fees in accordance with this act
Misrepresentation of terms of policy and future dividends by insurance producers
No insurance producer shall, directly or indirectly: (1) Issue, circulate or use, or cause or permit to be issued, circulated or used, a written or oral statement or circular misrepresenting the terms of a contract of insurance issued or to be issued by the insurer. (2) Make an estimate with intent to deceive of the future dividends payable under the contract of insurance
Advertising as insurance producer of unauthorized entity
No person shall represent or advertise himself to be an insurance producer or representative of an unauthorized insurance entity, including an insurer that is not approved or admitted under section 208 1 and an insurer that has not met the requirements of an eligible surplus lines insurer under section 1605 of the act of May 17, 1921 (P.L.682, No.284), 2 known as The Insurance Company Law of 1921
Soliciting for nonexistent entity
No person shall, directly or indirectly, offer to sell, solicit or negotiate contracts, certificates, agreements, binders or applications for insurance, surety or indemnity in this Commonwealth for or on behalf of a fictitious, nonexistent, dissolved, inactive, liquidated, liquidating or bankrupt insurance entity
Provisions not superseded
Nothing in this act shall supersede any provision of the act of December 21, 1995 (P.L. 714, No. 79), 1 entitled "An act amending the act of May 17, 1921 (P.L. 682, No. 284), entitled 'An act relating to insurance
Termination of appointment
Once appointed, an insurance producer shall remain appointed by an insurer until such time as the insurer terminates the appointment in writing to the insurance producer or until the insurance producer's license is suspended, revoked or otherwise terminated
Personal Lines Insurance
Property and casualty insurance for an individuals and families primarily for noncommercial purpose.
Regulations promulgated
Regulations which are not clearly inconsistent with the provisions of this article shall remain in effect until replaced, revised or amended.
Injunctions
The commissioner may maintain an action for an injunction or other process against any person to restrain and prevent the person from engaging in any activity violating this act or regulations promulgated under this act
Waiver
The department may waive the requirements for a person applying for a nonresident insurance producer license in this Commonwealth that possesses a valid insurance producer license from the person's home state if the person's home state awards nonresident insurance producer licenses to resident licensees of this Commonwealth on the same basis
Ongoing notification requirement
The insurer shall promptly notify the department if upon further review or investigation the insurer discovers additional information that would have been reportable to the commissioner in accordance with subsection (b) had the insurer known of the existence of the information.
Mailing (customer privacy)
The notice shall be sent by first class mail and may be included in a solicitation for the purchase of insurance or annuities. This notice shall be addressed to the individual customer and shall include a postage prepaid response mechanism
Appeals
The person aggrieved by a decision of the commissioner that has a direct interest in the decision may appeal the decision of the commissioner
Provisions superseded (Scope)
The provisions of this article shall supersede conflicting provisions found elsewhere in this ac
Customer Privacy consent notice
USE OF INSURANCE INFORMATION RELATING TO YOUR LOAN AS A CURRENT LOAN CUSTOMER, WE MAY HAVE INSURANCE COVERAGE INFORMATION THAT WAS OBTAINED AS PART OF YOUR LOAN PROCESS. UNDER PENNSYLVANIA LAW, YOU HAVE THE RIGHT TO DIRECT THAT WE NOT USE OR SHARE THIS INFORMATION IN THE MARKETING OF INSURANCE OR ANNUITIES. TO EXERCISE THIS RIGHT, YOU MUST SIGN AND RETURN THIS FORM WITHIN THIRTY (30) DAYS. IF YOU DO NOT SIGN AND RETURN THIS FORM TO US, WE MAY USE OR SHARE THIS INFORMATION IN THE MARKETING OF INSURANCE OR ANNUITIES. __________________________________ (Signature)
consent form (customer privacy)
USE OF INSURANCE INFORMATION RELATING TO YOUR LOAN THE BORROWER HEREBY CONSENTS TO THE USE OR SHARING OF ANY INSURANCE COVERAGE INFORMATION OBTAINED AS PART OF THE LOAN PROCESS IN THE MARKETING OF INSURANCE OR ANNUITIES. __________________________________ (Signature)
Enforcement by department
Upon evidence of a violation of this act, the department shall notify the person of the alleged violation. The notice shall specify the nature of the alleged violation and fix a time and place, at least ten days thereafter, when a hearing on the matter shall be held. (b) Hearing.--The department shall conduct the hearing on the violation in accordance with 2 Pa.C.S. Ch. 5 Subch. A 1 (relating to practice and procedure of Commonwealth agencies). (c) Evidence.--No person shall be excused from testifying or from producing any books, papers, contracts, agreements or documents at any hearing held by the commissioner on the ground that the testimony or evidence may tend to incriminate that person. (d) Penalties.--After the hearing or upon failure of the person to appear at the hearing, if a violation of this act is found, the commissioner may, in addition to any penalty which may be imposed by a court, impose any combination of the following deemed appropriate: (1) Denial, suspension, refusal to renew or revocation of the license, if any, of the person. (2) A civil penalty not to exceed $5,000 for each action in violation of this act. (3) An order to cease and desist. (4) Any other conditions as the commissioner deems appropriate
Criminal conduct reporting
Within 30 days of being charged with criminal conduct, a licensee shall report the charges to the department. The licensee shall provide the department with all of the following within 30 days of their availability to the licensee: (1) A copy of the criminal complaint, information or indictment. (2) A copy of the order resulting from a pretrial hearing, if any. (3) A report of the final disposition of the charges.
business entity application
a form approved by the insurance commissioner to be used by business entity to apply to the insurance department for an insurance producers license
No person, firm, association or corporation shall act as an RB in this Commonwealth if
the RB maintains an office either directly or as a member or employe of a firm or association or an officer, director or employe of a corporation: (1) in this Commonwealth unless the RB is a licensed producer in this Commonwealth; or (2) in another state unless the RB is a licensed producer in this Commonwealth or another state having a law substantially similar to this article or the RB is licensed in this Commonwealth as a nonresident reinsurance intermediary.
line of authority
the license ability to sell, solicit, or negotiate particular classes or types of insurance
An insurance entity or licensee shall not pay a commission or fee to a person under this subsection if
the person is a licensee under suspension or a former licensee whose insurance producer license was revoked