Wyoming Statues, Rules and Regulations Common to All Lines
Insurance Commissioner Requirements
- Appointed by the Governor of Wyoming - General powers and duties include: - personally supervise the department operations - examiner and inquire into violations of the insurance code - enforce the insurance code - execute the duties imposed upon him/her by the insurance code - immediately pay the state treasurer for deposit in the general fund, unless otherwise specifically provided, any monies paid to him/her under the code - have any additional powers an duties as may be provided by other laws of this state
Maintaining a License - License Termination
- Commissioner can terminate an insurance license for due cause - an individual insurance producer, who allows license to lapse, may within 12 months of due date of annual continuation fee, reinstate the same license without needing to pass a written examination.
Consultant license rejoiced or suspended if:
- failure to pay the annual licensing fee - violating any provision of the rules and regulation - the discover of a fact that would have justified a license refusal
Unfair Trade Practices
- insurers and insurance producers may not engage in any trade practice that is defined as, or determined to be an unfair method of competition or an unfair or deceptive act or practice in the business of insurance.
Multiple Insurance Classification modes
- ownership - authority to transact business - location of incorporation - marketing and distribution systems - rating (financial strength) Can be classified based on multiple of these simultaneously
Persons Required to be Licensed
All insurance insurance companies transacting insurance in the state must hold a certificate of authority for the kinds of insurance they transact to protect the interests of the insurance-buying public. All individuals selling insurance must be licensed as a producer
Broker
An Insurance producer that is not appointed by an insurance company and is deemed to be representing the client in matters of insurance - relationship between a broker and an insurer is the same as that of an agent and an insurer. To this extent, an insurer has the right o pay a broker the customary commission. However, a broker does not have the power to obligate the insurer to any risk.
Maintaining a license Continuing Education
CE 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. - Must complete 24 classroom hours of CE within each 2-year licensing period. Of the 24 hours at least 3 hours must relate to ethical requirements - Commissioner can grant a 1 year extension to CE requirement for good reason
Insurance Producer Licenses
Can be licensed in any of the following lines of authority: - life - Accident and health or sickness - property - casualty - variable life and variable annuity products - personal lines - credit - any other line of insurance permitted under state laws or regulations
Nonresident License
Can obtain a Wyoming license even if not a resident of the state if meets the following qualifications: - is currently licenses as a resident and is in good standing in his/her home state - has submitted the proper request for licensure and has paid the fees required - has submitted or transmitted to the Commissioner the application for licensure the person submitted to his/her home state, or a completed uniform application - the person's home state awards nonresident producer Lin sees to residents of Wyoming on the same basis If a non-resident producer moves states, must file a change of address within 30 days of move
Temporary license
Commissioner can issue a temp license for a period of 180 days without examination if the Commission deems the temp license necessary for the servicing of an insurance business in the following cases: - to the surviving spouse or court-appoint rep of a licensed producer who dies or becomes physically/mentally disable to allow time to sell the insurance business, or time to train and license a new agent to operate the business - to a member or employee of a business entity licensed as an insurance producer, upon the death or disability of an individual designated in the Baha'i ness entity application or the license - the designee of a licensed producer or broker who enters into active service in the U.S. armed forces Has same powers as a permanent license Commissioner can limit the powers of the temp license anyway deemed necessary to protect insureds and plublic
Commissioner Penalties
Commissioner must notify accused of violations before imposing a civil penalty. Notice provides for a hearing no more than 10 days after its receipt. In additional to any existing penalties, anyone that unknowingly violates an order of the Commissioner must pay to the state a sum of up to $1k. Anyone who willfully violates an order will be fined up to $2k
Commissioner Orders and Hearings
Commissioner's role is to enforce insurance laws and to protect public from unfair trade practices. Commissioner can issue a statement of charges and hold a hearing for any purpose deemed necessary (within the scope of the Insurance Code). If a violation of code results in criminal prosecution the Commissioner hands over info to Attorney General or District Attorney for the count having jurisdiction. - Orders and notices of the Commissioner are effective only when signed and must state the effective date, the purpose, and the grounds on which they are based - Cease and Desist order issued by Commissioner will go into effect 2 days after it is issued. The person affected by the order may request a hearing before the Commissioner no more than 10 days after the date on which the person received the order. Commissioner makes decision within 2 days of hearing. If no hearing requested the cease and desist order is final 11 days after receiving it. - If an agency intends to adopt substantive rule changes, the opportunity for a hearing will be granted if requested by 25 persons. No hearing will be conducted until at least 45 days after the lesser of the following: - the date on which the notice of intended action was given - the date on which the notice is published (if publication is required)
Home office
Insurer's headquarters, principal place of business
Important Dollar Amounts
Memorize these numbers and their definitions for state regulations portion of test: - $1k fine - per violation of the licensing regulations of the Insurance Code - $2k fine - for willful violation of the order of the commissioner - $1k fine - for non willful violation of the order of the commissioner - $5k civil penalty - for each violation of the insurance code - $50k Aggregate fine for violations of code ink a 1-year period - $1k civil penalty for each violation of the Code by an individual agent - $10K aggregate fine for violations of the Code in a 1-year period by an individual agent
Licensing and Appointment Requirements (Numbers, Dollars, Days & Dates)
Memorize these numbers and their definitions for state regulations portion of test: - 18 - minimum age of licensees - 2 year - license renewal period - 15 days - insurer must file a notice of producer appointment - 30 days - to notify commissioner of termination of producer appointment - 90 days - Time period to submit a license application to be exempt from examination after previous license in the same line of authority has expired - 180 days - temporary license valid - 12 months- license reinstatement period after a lapse
Miscellaneous Producer Regulations (Numbers, Dollars, Days & Dates)
Memorize these numbers and their definitions for state regulations portion of test: - 24 hours - must be completed for CE every 2 years - 3 hours - must be completed of CE in ethical requirements - 30 days - to inform the commissioner of change of address - 30 days - for nonresident producer to file a change of address - 30 days - to report criminal prosecutions and administrative actions - 3 years - Producers must keep records available for inspection
Department of INsurance Regulations (Numbers, Dollars, Days & Dates)
Memorize these numbers and their definitions for state regulations portion of test: - 5 years - Commissioner will conduct examinations of authorized insurers - 2 days - Cease and desist order goes into effect - 10 days to request a hearing after receiving a cease and desist order
Fraud (Unfair Trade Practices)
No person is permitted to: - make a false statement with reference to any application of insurance for the purpose of obtaining benefit - present a false claims or false proof in support of a claim - prepare a false certificate to be used in connecting with a claim
Resident Producer License
Obtained by a Wyoming resident who meets the qualifications required by the Commissioner which authorizes the licensee to transact insurance in this state
Stock Companies
Owned by stockholders who provide the capital necessary to establish and operate the insurance company and who share in any profits or losses. Officers are elected by the stockholders and manage stock insurance companies. Traditionally, these companies issue nonparticipating policies, in which policy owners do not share in profits or losses. A nonparticipating policy does not pay dividends; however, taxable dividends are paid to stockholders
Commission
Payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium
Producer Responsibilities - Fiduciary Capacity
Premium Accountability - an premiums or return premiums received by an insurance producer are trust funds received in a fiduciary capacity. The producer will account for and pay the funds to the insured, insurer or insurance producers as required Separate Account Requirements - The licensee must establish a separate trust account for premiums and cannot use the account for or commingle it with his or her own funds. The producer must maintain an accurate record and itemization of the funds deposited in the account. - any insurance producer who diverts or appropriates any funds to which he or she is not lawfully entitled to the producer's own use is guilty of embezzlement, and upon conviction will be punished as provided by law
Maintaining a License Change of Address
Resident producers are required to maintain a place of business in this state accessible to the public where the producers conduct transactions under license. The license must be displayed in plain view in the producer's place of business. The address of business must appear on the producer's license. LIcensees must inform the Commissioner of a change of address within 30 days of the change.
Reciprocal Insurance Company
Results in an interchange of reciprocal agreements of indemnity among persons known as subscribers. Put into effect and administered by an attorney-in-fact common to all persons. Subscribers agree to become liable for their share of losses and expenses incurred among all subscribers, and they authorize the attorney in fact to manage and operate the exchange
Surplus Lines Broker
Sell surplus lines. Anyone licensed in their home state must also receive a nonresident surpluses lines producer license. Producers may be licenses as surplus line brokers if: - they are licensed as property and casualty agent - The Commissioner deems them to be Trustworthy - they maintain an office accessible by the Commissioner
Commissioner
The head of the state department of insurance.
Law of Agency
The law that governs the relationship between a principal and his or her agent. States that: - an agent represents the insurer, not the insured - any knowledge of the agent is presume to be knowledge of the insurer - if the agent is working within the conditions of his/her contract, the insurer is fully responsible - when the insured submits payment to the agent, it is the same as submitting a payment to the insurer
Inducement
an offer that attempts to influence the other party
Certificate of Authority
Insurers must apply for a be granted a license in a state before it may transact business. Apply with the state department of insurance and must meet any financial (capital and surplus) requirements set by the state. If you meet reqs of state you are considered Authorized or admired into the state as a legal insurer. - no person by act as an insurer and no insurer may transact insurance in the state unless authorized by an existing certificate of authority granted by the Commissioner. - no insurer may solicit insurance applications or otherwise transact insurance in another state or country, from offices or by personnel located in this state, unless it holds a certificate of authority granted by the Commissioner
Limitations (Wyoming Guaranty Association)
It is an unfair trade practice to make any statement that an insurer's policies are guaranteed by the existence of the Wyoming INsurance Guaranty Association. Authorize insurers in this state must disclose to their policyholders that fact that insurance company contracts are not guaranteed by the state guaranty association
Boycott, Coercion, Intimidation (Unfair Trade Practice)
It is illegal to be involved in any activity of boycott, coercion, or intimidation that is intended to restrict fair trade or to create a monopoly. This would include unfair behavior that influences not only clients, but competing agents and brokers
Misrepresentation (Unfair Trade Practice)
It is illegal to issue, publish, or circulate any illustration or sales material that is false, misleading, or deceptive as to policy benefits or terms, the payment of dividends, etc. This also refers to oral statements.
Producer Responsibilities - Place of Business of LIcensees, Display of LIcense and Records
- Each resident producer must have and maintain in this state a place of business accessible to the public and in which the licensee principally conducts transactions under his license - The licenses of a producer must be conspicuously displayed isn't he place of business in a place customarily open to the public - The producer must keep a complete record of transactions under his license at his place of business. The record must show the names of the insurer and insured, the number, expiration date, premium payable as to the policy or contract and any other information for each insurance policy or contract placed by or through the licensee - The producer must keep records available for inspection for a period of at least 3 years after completion of transactions
Producer Responsibilities - Military Sales Practices
- Military sales practices regulation was promulgated by the Department of Insurance to protect active duty service members of the US Armed forces from dishonest and misleading insurance sales practices. This regulation applies to all life insurance policies and annuities, except credit life, group life insurance and annuities, conversion and replacement policies, or contract used to fund pension plans - The regulation defines two types of false, misleading, or deceptive practices by insurers or producers: practices committed on a military installation, and practices committed regardless of location. - The following are considered misleading and deceptive sales practices when they are conducted in a face-to-face solicitation on a military installation: - soliciting life insurance sales without permission from the base commander or his designee - making any door-to-door life insurance product solicitation when the meeting is not made by pre-arranged appointment - Failing to clearly disclose that the purpose of the meeting is for the sale of life insurance - Soliciting service members in large group or captive meetings where attendance is not voluntary or soliciting in barracks or transient housing where the base commander has forbidden such activity - Posting advertisements or flyers for insurance sales - Lead generation materials, except for annuity sales, must clearly state that the purpose of the solicitation is for the sale of life insurance and that the respondent will be contacted by an insurance producer. - At the timed of face-to-face sale, the service member must be given a copy of the application or a written disclosure and an explanation of the free-look period, including instructions about how to cancel the policy.
Producer Responsibilities - Use of Senior-Specific and Professional Certifications
- Producers soliciting or selling life insurance producers cannot use senior-specific certifications or professional designations in such a way that may mislead an applicant, or imply that the producer has special training or certification. Producers are prohibited from using titles or acronyms that imply designations that are not actually earned, nonexistent or self-conferred. - Special consideration must be given to the use of terms such as senior, retirement, elder, and their combination with terms such as certified, registered, chartered, advisor, specialist, or similar (e.e. Certified senior advisor or certified elder planning specialist)
License Denial reasons:
- providing incorrect, misleading, incomplete or materially untrue information in the license application - violating any insurance laws, or violating any regulation, subpoena or order of the Commissioner or of another state's insurance Commissioner - obtaining or attempting to obtain a license through misrepresentation or fraud - improperly withholding, misappropriating or converting any money or properties received in the course of doing insurance business - Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance - Have been convicted of a felony - Having committed any insurance unfair trade practices or fraud - Using fraudulent, coercive or dishonest practices, or demonstrating incompetence, untrustworthiness or financial irresponsibility in the conduct of business - having an insurance producer License, or its equivalent, denied, suspended or revoked in any other state, province, district or territory - Forging another's name to an application for insurance or to any document related to an insurance transaction - Improperly using notes or any other reference material to complete an examination for an insurance license - Failing to comply with an administrative court order imposing child support obligation
Agent Responsiblilities
- responsible for accurately completing the application for insurance - submitting the application to the insurer for underwriting - delivering the policy to the policyowner Agents of fraternal benefit societies must be licensed in accordance with state laws. Any agent devoting less than 50% of their time to the solicitation of insurance contracts is exempt from this provision (an individual soliciting policies total more than $50k or soliciting policies on mor than 10 individuals is presumably devoting more than 50% of their time to solicitation)
Qualifications for Business Entity to obtain a LIcense:
A business entity acting as an insurance producer is required to obtain an insurance producer license. Before accepting application the Commissioner must confirm the business entity has: - paid the required fees - has design eaten a licensed producer responsible for the business entity's compliance with the insurance laws, rules and regulations of this state.
Statute
A formal written law enacted by legislature; insurance statues can be found in the state Insurance code
Service representatives
A licensed individual who receives a salary from an insurer or managing general agent to work with producers and help them sell insurance to the insurer. - must be licensed - no examination required, but must make application to Commissioner - must pay appropriate fees and license only value for 24 months
Rules for Health Information (Consumer Privacy Regulation)
A licensee may not disclose nonpublic personal health information about a consumer or customer unless an authorization is obtained from the consumer or customer in questions. Valued authorization to disclose nonpublic personal health info may be presented in writing or in electronic form. However, the authorization must specify a length of time no long than 24 months, for which the authorization will remain valid.
Requirements for Notification (Consumer Privacy Regulation)
A licensee must provide clear notice that accurately reflects its privacy policies after establishing a customer relationship with an individual. A licensee must notify customers of its privacy policies at least once in any period of 12 consecutive months
Twisting (Unfair Trade Practice)
A misrepresentation, or incomplete or fraudulent comparison of insurance policies that persuades an insured/owner, to his or her detriment, to cancel, Lapse, switch policies, or take out a policy with another insurer
Reciprocity
A mutual interchange of rights and privileges
Qualifications for Obtaining a License:
A person applying for a resident insurance producer license must apply to the Commissioner 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 individuals knowledge and belief. License issued providing: - Applicant is at least 18 - has not committed any act that is ground for denial, suspension or revocation - has paid the required fees - has successfully passed the required examination for the lines of authority for which a license is requested - has provided the Commissioner a credit and investigation report on the applicant from a recognized and established independent investigation and reporting agency. The cost of the report is paid by the applicant
Unfair Claims Settlement Practices
A person is considered to be engaging in unfair and deceptive business practices if that person commits any of the following unfair claims settlement practices with such frequency as to indicate a general business practice: - misrepresenting pertinent facts or insurance policy provisions - failing to acknowledge and act reasonably promptly upon communications with respect to claims - failing to adopt and implement reasonable standards for the prompt investigation of claims - Refusing to pay claims without conducting a reasonable investigation - Failing to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed - Not making a good faith attempt to secure prompt, fair, and equitable settlements of claims in which liability has become reasonably clear - And more
Maintaining a License Reporting of Actions
A producer must report to the Commissioner any administrative action taken against the producer in another jurisdiction or by another governmental agency in Wyoming within 30 days of the final disposition of the matter. This report must include a copy of the order, consent to order or other relevant legal documents - Within 30 days of the initial Pretrial hearing date , the producer must report to the Commissioner any criminal prosecution of the producer taken in any jurisdiction -The report must include a copy of the initial complaint filed, the order resulting from the hearing and any other relevant legal documents
Maintaining a License Renewal and Expiration
A producer's license will remain in effect unless revoked or suspended, as long as continuing education requirements are met and required fees are paid every 2 years on the last day of the Licensee's birth month. Must also pay a license continuation fee of $100 for resident ($150 for nonresident)
False Advertising (Unfair trade practice)
Ads cannot include any untrue, deceptive, or misleading statements that apply to the business of insurance or anyone who conducts it. False or deceptive advertising specifically includes misrepresenting: - terms, benefits, conditions, or advantages of any insurance policy - any dividends to be received from the policy, or previously paid out - financial condition of any person or the insurance company - the true purpose of an assignment or loan agains the policy Representing an insurance policy as a share of stock, or using names or titles that may misrepresent the true nature of a policy also will be considered false advertising.
Consultant
An individual or corporation who charges a fee for giving advice and counsel regarding insurance contracts. To be a licensed consultant an applicant must: - be an adult - be a resident of Wyoming - be trustworthy - pass a written examination - maintain an office that is accessible to the public Within one year of applying for the consultant's license applicants must have completed the appropriate exam and the license is not valid for more than 24 months
Authorized Insurer
An insurance company that has qualified and received a Certificate of Authority from the Department of Insurance to transact insurance in the state.
Alien Insurer
An insurance company that is incorporated outside the U.S.
Exemptions from Obtaining a License:
An insurance producer license is not required of any officer, director or employee of an insurer or organizations employed by insurers, provided they are not directly or indirectly involved with the actual sale of an insurance contract and do not receive commission: - employee of insurer whose activities are limited to executive, administrative, managerial, or clerical - a person who secures and furnishes information for group insurance or performs administrative services related to mass-marketed property and casualty insurance
Producer Responsibilities - Commissions & Compensation
An insurer or insurance producer may not pay a commission, service fee, brokerage or other valuable consideration to a person for selling, soliciting or negotiating insurance in this state if that person is required to be licensed under this chapter and is not so licensed - A person may not accepts a commission, service fee, brokerage or other valuable consideration for selling, soliciting or negotiating insurance in this state if that person is required to be licensed under this chapter and is not so licensed - renewal or other deferred commissions may be paid to a person for selling, soliciting or negotiating insurance in this state if the person was required to be licensed under this chapter at the time of the sale, solicitation or negotiation and was so licensed at that time.
Subpoena
An order for someone to appear as a witness or submit testimony or evidence
Fraternal Benefit Society
An organization formed to provide insurance benefits for members of an affiliated lodge, religious organization, or fraternal organization with a representative form of government. Fraternal sell only to their members and are considered charitable institutions, and not insurers. They ar not subject to all of the regulations that apply to the insurers that offer coverage to the public at large. - when at least 10 U.S. citizens (a majority of which reside in Wyoming) desire to form a fraternal benefit society, they may create articles of incorporation. Also a bond must be filed with the Commissioner in the amount between $300k - $1.5 Mil - A preliminary certification can be granted and valid up to 1 year and extended up to 1 year - Society may not transact insurance until: - 500 applicants have been secured - 10 subordinate lodges have been established - a list of applicants has been submitted to the Commissioner - These 500 applicants have paid 1 monthly premium, amount to at least $150k
Controlled Business (Unfair Trade Practices)
Any coverage written on a producer's own life, Heath or property, and/or that of the producer's immediate family or business associates. - A licensee is not allowed to collect commissions on controlled business above the state-specified limit - In Wyoming, a producer's license will be deemed to have been, or intended to be, used for the purpose of writing controlled business, if during any 12-month period, the aggregate amount of premiums on controlled business would exceed the aggregate amount of premiums on all other insurance business of the applicant or licensee.
Rebates and Illegal Documents (unfair trade practices)
Any inducement offered to the insured in the sale of insurance products that is not specified in the policy. Both the offer and acceptance of a rebate are illegal. Rebates may include, but are not limited to: - Rebates of premiums payable on the policy - special favors or services - Advantages in the dividends or other benefits - stocks, bonds, securities, and their dividend profits It is unlawful to pay, offer or accept any of the following as an inducement to buy insurance: - any special favor or advantage in dividends or benefits - Any stocks, bonds, securities, or accrued dividends or profits - anything of value not specified in the insurance contract
Mutual Companies
Are owned by the policyowners and issue participating policies. With participating policies, policyowners are entitled to dividends, which, in the case of mutual companies, are a return of excess premiums and AR therefore no taxable. - dividends are generated when the premium and the earnings combined exceed the actual costs of providing coverage, creating a surplus. Dividends are not guaranteed
Unfair Discrimination (Unfair Trade Practices)
Discrimination in rates, premiums, or policy benefits for persons within the same class or with the same life expectancy is illegal. No discrimination based on an individuals marital status, race, national origin, gender identity, sexual orientation, creed, or ancestry unless the distinction is made for a business purpose or required by law
Commissioner Examinations
Done to ensure that the companies remain solvent and conduct business of insurance in compliance with state laws and regulations pertaining to licensing, policy forms, rates, claimed an market conduct - examinations done as often as deemed necessary, but must examine each insurer at least once every 5 years Can also exam any individual: - who is an agent, broker or adjuster - having a contact for the right to control an insurer - holding shares of voting stock - Engaged in the promotion , formation or financing of an insurer
Maintaining a License - Penalties
Each violation of the licensing regulations of the Insurance Code for which a greater penalty is not provided is a misdemeanor punishable by a fine of not more than $1,000, or by imprisonment in the county jail for not more than 6 months, or both. - Any person who violates any provision of the Code, any lawful rule or final order of the Commissioner or any final judgment or decree made by any court must pay a civil penalty of no more than $5,000 for each offense, or $50,000 in the aggregate for all such offenses within any 1-year period.
Agent Appointment and Termination
In order to transact insurance as a representative of an insurance company, an insurance producer must be appointed by that insurer. - Insurer must file notice of appointment with the Insurance Department within 15 days of when the agency contract is executed or the first insurance application is submitted to the insurer by that producer - Insurer must pay an appointment fee for each producer it appoints. Renewal fees for each producer due by March 31st of each year - Insurer must pay a renewal fee for each company an producer is attached to - An insurer that terminates the appointment with a producer for any reason must notify the commissioner within 30 days following the effective date of the termination - Within 15 days after making the notification, the insurer must mail a copy of the notification to the producer at his last known address - Within 30 days after the producer has received the original or additional notification, the producer may file written comments concerning the substance of the notification with the Commissioner.
Opt Out Options (Consumer Privacy Regulation)
In some cases, a consumer can opt out of the disclosure of nonpublic Pearson all financial information to a non affiliated third party. In these instances, the licensee must accurately explain each customer's right to opt out. Weather this notice is mailed or sent by electronic means, the customer must be given reasonable means to opt out within 30 days of opening the account.
What constitutes non-consideration as a Consultant
Individuals are not considered consultants, provided no additional fee is charged for their advice: - attorney at law - any licensed agent or broker that gives incidental advice - any person that gives incidental advice in the course of a business activity
Limited Line Producers
Individuals authorized by the Commissioner to transact limited lines insurance, such as credit life, mortgage life, or specialty lines
Location of Incorporation (domicile) Classification
Insurance company regardless of where the insurance company is incorporated, it must obtain a Certificate of Authority before transacting insurance within the state
Foreign Insurer
Insurance company that is incorporated in another state or territorial possession (such as Puerto Rico). For example a company chartered in California would be a foreign company in New York.
Domestic insurer
Insurance company that is incorporated in this state. Most instances the company's home office is in the state in which it was formed.
Surplus Lines
Insurance that is not available in the regular marketplace from admintted insurers is referred to as Surplus Lines. Usually involves insurance for high risk individuals and is placed with no admitted insurers who specialize in offering insurance to the high risk market
Producer Responsibilities =- Agency vs Individual Licenses
The Insurance Department can issue licenses for both agencies (business entities) and individuals producers. it is the insurance agent or broker's responsibility to apply for the appropriate license and to meet the licensing requirements
Purpose (Wyoming Guaranty Association)
The WIGA is a nonprofit legal entity that was created to protect policyowners, insureds, beneficiaries, and anyone entitled to payment under an insurance policy from the incompetence and insolvency of insurers. The association will pay covered claims up to certain limits set by state law. The Association is funded by its members through assessment. All authorized insurers, which are required to be the members of the Association, contribute to a fund to provide for the payment of claims for insolvent insurers.
Duties (Wyoming Guaranty Association)
The association pays covered claims that arose before insolvency was declared and that arise in the 30 days after the determination of insolvency. It will also pay claims that arise before the policy expires, as long as the claims are in the 30 days after the determination of insolvency or arise before the insured replaces the policy or otherwise cancels it
Insurer
The company or organization that issues a policy of insurance
Financial Obligations (Wyoming Guaranty Association)
There are limits on what the Association is obligated to pay out. The Association cannot pay more than an insurer owes under a policy. Theses limits apply regardless of the number or types of policies held with the same company. For life and health insurance claims, for example, the Association will pay up to the following limits: - 300,000 in death benefits for one life, but not more than $100k in net cash surrender value - $100k for health coverages - $300k for Disability insurance, disability income insurance, or long-term care insurance - $300k for basic hospital, medical and surgical insurance or major medical insurance - $250 k in withdrawal and cash values for annuities - The full amount of a covered claim for benefits under workers compensation coverage - Up to $7,500 per policy for a covered claim for return of each unearned premium - up to $300,000 per claim other than workers compensation and return of unearned premium claims Regardless of the number of policies or contracts, the maximum amount of protection for each individual is $500,000
Purpose (Consumer Privacy Regulation)
These laws apply to all relevant information about individuals who obtain services primarily for personal purposes. Laws govern the treatment of nonpublic personal health and financial information by licensees of the insurance department
False Financial Statements (Unfair trade practice)
Those that are intended to deceive public officials or the general public about the financial condition of an insurer. This often occurs when an important fact about the financial status of an insurer is deliberately withheld in order to present the company in a more favorable light.
Foreign Insurers in Wyoming
To be able to operate in Wyoming a Foreign Insurer must have been issuing its own policies for at least 2 years in its state of domicile. This requirement can be side stepped if the insurer is otherwise qualified for a certificate of authority.
Promulgate
To make public, to put into action (e.g. Laws, court decrees, and similar)
Defamation (Unfair trade practice)
When an oral or written statement is made that is intended to injure a person engaged in the insurance business. This applies to statements that are maliciously critical of the financial condition of any person or a company
Exempt
not subject to a duty or obligation
Cease and Desist
to stop or discontinue
Insolvent
unable to meet or discharge financial obligations
