producer licensee eligibility
-be at least 18 years of age
-have not committed any act that is group for denial, suspension or revocation
- pay the required fees
-have successfully passed the required examination for the lines of authority for which a license is requested
resident producer
an insurance producer is appointed by an insurer to act on the insurer's behalf. an insurance producer may not act as agent of an insurance company unless the producer becomes appointed by the insurer. An insurance producer who is not acting as an agent o
certified insurance consultant
can examine insurance and annuity contracts and make recommendations for a FEE. a consultant contract must be in writing and executed, in duplicate, by the person receiving the consultant's services (or by their legal representative). One of the copies mu
nonresident producer license eligibility
-the person is currently licensed as a resident and in good standing in the person's home state
-the person has submitted the proper request for licensure and has paid the required fees
-the person has submitted to the Commissioner the application for lic
temporary insurance producer license
can be issued under special circumstances. They expire after 180 days unless the temporary producer passes a license examination. For a license to be issued, the Commissioner must decide that the temporary license is necessary for the servicing of an insu
CE requirements
-a minimum of 24 hours of continuing ed credits every 2 years
-3 of these hours must be completed in courses related specifically to state regulations or ethics
-A minimum of 6 credit hours must be completed for each line of authority
-Property and Casual
CE exemptions
-producers who obtain their licenses within the last 12 months of a biennium don't need the 24 hours
-those licensed only in credit insurance or travel accident and travel baggage insurance are also exempt from the 24 hour CE requirement
surplus requirements
STOCK insurance:
capital of $1 mil
surplus of $2 mil for a life insurance policy
capital of $500k and surplus of 500k for health insurance
mutual insurance co:
surplus of $3 mil for life and 1mil for health
controlled business
any coverage written on a producer's own life, health 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. Most states w
rebating
defined as 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 at not limited to:
rebates of premiums payable on the p
twisting
a misrepresentation or incomplete or fraudulent comparison of insurance policies that persuades an insured/owner, to their detriment, to cancel, lapse, switch policies or take out a policy with another insurer.
false financial statements
statements 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
coercion
to require, as a condition to a loan, that the applicant purchase insurance from a specific insurer
defamation
occurs when an oral or written statement is made that is intended to injure a person engaged in the insurance business. This also applies to statements that are maliciously critical of the financial condition of any person or a company
The Insurance Information and Privacy Protection Act
requires that, during the course of acquiring information, insurers must follow certain procedures to protect the privacy of applicants. the act guarantees to individuals their rights to privacy as they apply to insurance.
Fair Credit Reporting Act
established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant and properly used. The law also protects consumers against the circulation of inaccurate or obsolete personal or finan
consumer reports
include written and/or oral information regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources
investigative consumer reports
similar to consumer reports in that they also provide information on the consumer's character, reputation, and habits. the primary difference is that the information is obtained through an investigations and interviews with associates, friends and neighbo