Property: Colorado Statutes, Rules and Regulations Common to All Lines
When are all insurance companies doing business in this state required to make a (financial) statement under oath and file it with the Commissioner?
Annually (on or before March 1)
___ occurs when an oral or written statement is made that is intended to injure a person engaged in the insurance business.
Defamation (also applies to statements that are maliciously critical of the financial condition of any person or a company.)
If the insurance agency's filing status is nonresident, comply with the qualification requirements for non-residency
Requirements of an Insurance Agency or Business Entity
Producers applying for licensing qualification to include ___ must furnish evidence that they have a current registration with a broker/dealer through the FINRA
Variable Contracts
The Commissioner of Insurance is appointed by whom?
the Governor
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of
Rebating (When producers give or promise anything of value that is not specified in the policy)
Health entities must also gain records regarding: Network adequacy; Utilization review; Quality assessment and improvement; and Provider credentialing. Under what regulation
Records and Requests for Information
Operations and Management; Policyholder Services; Claims Handling; Rating; Underwriting; Advertising, Marketing and Sales; Complaint/grievance handling; and Producer Licensing. These pertain to what regulation?
Records and Requests for Information regulation
Be at least 18 years old; Have not committed any act which is a ground for denial, suspension, or revocation of a license; Be a resident of this state, or if a resident of another state, meet requirements of a nonresident licensure; if nonresident, furnish the Commissioner with a current certification of resident license;
Requirements of a resident insurance producer license applicant
Have satisfied minimum prelicensing education requirements and passed the licensing examination for the appropriate line of authority; Have paid the prescribed license fee; and Be competent, trustworthy, and of good moral character and good business reputation
Requirements of a resident insurance producer license applicant
Designate a licensed producer who is an officer, partner, or director responsible for the insurance agency's or business entity's compliance with the insurance laws and rules of this state;
Requirements of an Insurance Agency or Business Entity
For how many years must a producer keep supporting documentation of his or her continuing education completion?
5 years following license continuation
The commissioner will notify the producer of the requirements to continue the license
90 days prior to the month the license expires
Supervise the business of insurance in this state to assure that it is conducted in accordance with the laws of this state and in such a manner as to protect policyholders and the general public; Transmit all monies collected by the Division of Insurance to the dept. of the treasury's general fund;
Duties of the Commissioner
Supervise insurance business, Licensing, Approve policies and forms, Enforce insurance laws and impose penalties for violations, conduct examinations, investigations, and hearings are:
Duties of the Commissioner of Insurance (compressed)
How often are insurance producers required to renew their license?
Every 2 years
Disclose to the insurance Commissioner all officers, partners, and directors, whether or not they are licensed as insurance producers; The agency's officers, directors, or partners are trustworthy, of good moral character, and of good business reputation; Pay the required fees;
Requirements of an Insurance Agency or Business Entity
Register with the Commissioner at least 1 individual who holds a valid insurance producer license for the line or lines of authority requested in the application;
Requirements of an Insurance Agency or Business Entity
Register with the Commissioner the name of each natural person who, as an officer, director, partner, owner, or member of the insurance agency or business entity, is acting as and is licensed as an insurance producer;
Requirements of an Insurance Agency or Business Entity
Each insurer that ___ must provide to each individual whose duties will include selling, soliciting, or negotiating limited lines credit insurance, a program of instruction that may be approved by the insurance ___ .
Sells, solicits, or negotiates any form of limited line credit insurance; Commissioner
Regarding investigations of insurers, the Colorado Commissioner of Insurance may
Subpoena witnesses whenever he/she deems necessary
Who may require the filing of any documents reasonably necessary to verify the information contained or required in the application
The Commissioner
The regulation of the insurance industry primarily rests with
The State (each state is responsible for the conduct of insurance within that state.)
to ensure that companies remain solvent and conduct business of insurance in compliance with state laws and regulations pertaining to licensing, policy forms, rates, claims, and market conduct are:
The purpose of examination
The Commissioner may examine or investigate any company or person involved in insurance transactions as often as deemed appropriate, but ___
at least once every 5 years
The refusal of any company or its employees to submit to examination or to comply with any reasonable requests of the examiners will be grounds for
suspension, revocation, denial, or nonrenewal of any license held by the company
The Commissioner of Insurance is subject to confirmation by
the Senate
The amount of all premiums collected during the year ending the last day of preceding December; The amounts actually paid to policyholders; The amount of insurance reinsured in other companies authorized to do business in this state and the amount of premiums paid are:
under oath and filed required financial statements made by all insurance companies doing business in this state (Colorado)
The amount of insurance reinsured in companies (naming them) not authorized to do business in this state and the amount of premiums paid; and The amount of reinsurance accepted from admitted companies and the premiums received from such reinsurance, with the name of the companies so reinsured are:
under oath and filed required financial statements made by all insurance companies doing business in this state (Colorado)
File annual reports to the Governor and the General Assembly regarding the state of the insurance business in Colorado.
Duties of the Commissioner
An insurer who fails to respond to a Division of Insurance inquiry by the deadline faces a ___ civil penalty for the initial violation. Fines may reach up to ___ for subsequent violations.
$500; $5,000
The Division of Insurance has requested information regarding an insurer's underwriting policies via e-mail. How many days does the insurer have to respond to this request?
20 days (Companies have 20 calendar days to respond to any Division of Insurance inquiry sent in any matter Other than an Examination Request/Memo Form.)
In Colorado, the required CE training must be completed within ___ after the producer's licensed renewal date.
24 months
Adopt rules and regulations to enforce provisions of the insurance code; File and safely keep all booksand papers required by law; Issue insurance license and certificate of authority for transacting insurance business in this state;
Duties of the Commissioner
Conduct examinations, investigations, and hearings to determine whether any person has violated any insurance laws of Colorado;
Duties of the Commissioner
Who must submit a license application and declare under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the individual's knowledge and belief?
Applicant for a resident insurance producer license
In order to get a nonresident license in this state, a producer must
Apply and pay a fee to a nonresident state that reciprocates
All insurance transactions must be conducted through an
Authorized Insurer
Encourage the dissemination to the public of general information concerning insurance so as to work toward informed choices of insurance needs and options; and Generally, perform with justice and impartially all the duties that are imposed on the Commissioner by the laws in relation to the business of insurance in this state.
Duties of the Commissioner
For good reason shown, the Commissioner may grant an extension of time, up to 1 year, within which to comply with the requirements of this regulation.
CE Requirements
For producer authorized to sell Property or Personal Lines Insurance, at least 3 hours must be courses in Homeowners Insurance Coverage; At least 18 of the 24 credit hours must be in approved courses in the authorities for which the producer is licensed
CE Requirements
If a producer holds more than one license in this state, the required CE hours must be completed within 24 months after the date of the first license renewal.
CE Requirements
Up to 12 CE hours may be carried over to the next licensing period if completed within 120 days before the license continuation date;
CE Requirements
Up to 24 hours of instruction must be completed by attending CE courses or programs of instruction approved by the Commissioner; Out of the 24 CE hours, 3 credit hours must be courses in ethics;
CE Requirements
What is a document that authorizes a company to start conducting business and specifies the kind(s) of insurance a company can transact and is illegal for an insurance company to transact insurance without?
Certificate of Insurance
Valid Certificate of Authority Required: Except for reinsurance by an authorized insurer, it is unlawful for any person, company, or corporation in this state to solicit, receive, or forward applications for insurance, or to issue or to deliver policies for any company not legally authorized to do business in this state. Any person violating this provision is guilty of a ___.
Class 1 Misdemeanor
___ is to require, as a condition to a loan, that the applicant purchase insurance from a specific insurer.
Coercion
Who is the head of the Department (Division) of Insurance?
Commissioner of Insurance
What rules are 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?
Continuing Education (CE)
What is any coverage written on a producer's own life, heath or property, and/or that of the producer's immediate family or business associates?
Controlled Business
The annual statement made to the Commissioner must include the information required by the ___ adopted by the ___ .
Convention Blank Form; National Association of Insurance Commissioners (NAIC).
Who assumes control over an insurance company's funds and management if they become insolvent?
Department of Insurance (in an effort to rehabilitate the company but they will liquidate the assets of the company if rehab is not possible.)
The CE requirements ___ to any person holding a limited or restricted license if such license is in good standing with the division and no complaints have been filed against the licensee.
Do Not Apply
The requirement that producers must account for all insurance funds collected, and not commingle those funds with their own is known as
Fiduciary Responsibility
Producers who wish to sell variable life insurance in this state must be registered with what entity?
Financial Industry Regulatory Authority (FINRA)
An ___ acting as an insurance producer must also obtain an insurance producer license. ___ must be made on a form specified by the Commissioner.
Insurance Agency or Business Entity; Application
According to the agency law, the producer always represents the
Insurance Company
What term refers to a person required to be licensed under the state law to transact insurance, which included soliciting, negotiating, delivery, or renewing insurance contracts?
Insurance Producer or Producer
An insurer receives an Examination Request Form dated June 2 from the Division of Insurance. The insurer must respond by
June 12 (companies must respond to an Examination Request/Memo Form within 10 calendar days from the date on the form.)
A provider network wanting to do business as a ___ must obtain a license. The Commissioner may refuse to issue an ___ license if the applicant qualifies as a licensed carrier under another licensure category.
Limited Service Licensed Provider Network (LSLPN); LSPN
In order to facilitate responses to inquiries from the Division of Insurance, companies must maintain all records for at least
The current calendar year, plus the 2 prior calendar years
The Governor has asked the Commissioner to examine an insurance company after a group of insured(s) has filed several complaints against the company. Who will pay for this examination?
The insurance company (all reasonable expenses and charges associated with the exam must be paid directly by the examine to the examiner, regardless of the reason for the exam.)
The Commissioner may petition a court of competent jurisdiction for an order compelling the person to appear and testify or produce documentary evidence if any person
fails to obey a subpoena
Any person who knowingly or willfully testifies falsely in reference to any matter material to an examination is
guilty of a misdemeanor and, upon conviction, can be punished by a fine of not more than $5,000, or by imprisonment for not more than 3 months, or by both.
The Commissioner may also require the company to submit ___
interim financial statements and reports on a monthly or quarterly basis
The Commissioner and the examiners have the power to
issue subpoenas, administer oaths, and examine under oath any person as to any matter pertinent to the examination.
