Producer License Ch 1

The purpose of licensing is:

Ensure high standards of service to the insuring public of this Commonwealth

Individuals must complete a __ hours pre-licensing course

24 hours

Business entities

Partnerships or corporations

Individuals that have completed pre-licensing education have __ year to pass their state licensing exam

One year

Countersigning

Insurance agent appointed by a company to represent them in a state where they have no representation

Insurance agency employees who function exclusively in non=selling activities:

do not need to be licensed

Resident Producer License

Live or work in this state (home state)

Agent

Represent the company

Broker

Represent the client/insured

The primary benefit of acting as a broker is:

The ability to place business with insurers that he or she (the producer) does not directly represent by means of an agency appointment = brokering business

Producers representing a consumer/engaging in a fee agreement must:

Execute a written agreement with the consumer prior to acting on his/her behalf

Fee Agreement

Written statement signed by the claimant and the claimants appointed representative(s) who expect to charge and collect for services

Non-Resident Producer's License

Living in one state, but working in another

A non-resident must submit to the insurance department:

A completed application or an updated copy of the individual's home state application indicating the lines of authority, proof of individual's home state license, and payment of the applicable fees

If an individual establishes a principal place of residence or business within PA (from another state), application as a resident agent must be made within:

90 days

Temporary License

Can't sell anyone new insurance. Trying to sell company to another

A temporary license is issued for a period not exceeding __ days from the date of death or declaration of incompetence

180 days

Managers and Exclusive General Agents License (MGA)

Issued to producers that conduct insurer-type activities such as underwriting, policy issuance and claims settlement

Producers are prohibited from comingling insurance premiums collected from applicants with personal monies __ the expressed written consent of each insurer.

Without

Yes, you can comingle insurance premiums only if you have written consent, but should you comingle funds?

No, it is bad business practice

Producers must notify the insurance department of any legal name change, address change of residence/business, agency change, administrative action by governmental agency, criminal conduct change within:

30 days

The insurance department may waive the mandatory pre-licensing education requirement and the state licensing exam requirement for:

Certain professional designations, Nonresident applicant, temporary license

Anyone who is a licensed producer has never:

Violated any section of the Commonwealth insurance laws

Producers must complete __ hours of continuing education for license renewal

24 hours

Producer licenses are issued for a __ year period

Two year period (biennially)

If a producer fails to renew his or her license by their renewal date, he/she will have __ days to complete their CE and there will be no lapse in licensure.

60 days

Insurance commissioner

Oversees all the licensing, policy changing

The insurance commissioner is appointed by the __ and empowered to enforce and execute the insurance laws of the Commonwealth

Governor

The insurance commissioner's powers and duties include the right to:

staff department, appoint deputies, conduct investigations, hold hearings and issue fines, and suspend or revoke certificates or licenses.

Admitted

Ask for permission to do/write insurance in the specific state

Non-admitted

Authorized to do business; cannot compete with admitted

Guaranty Fund

Only applies to admitted carriers

Insurance company can get __ per policy for return of unearned premium by admitted insurers

$10,000

PA Property and Casualty Insurance Guaranty Association Act

Provides a means of covering claims for certain property and casualty policies.

Coverage is provided to insureds or claimants covered by:

Admitted or authorized insurers that subsequently become insolvent

Coverage is provided up to __ per claimant and __ per policy for return of unearned premium

$300,000 per claimant and $10,000 per policy for return of unearned premium

Time period to acknowledge receipt of a claim (unless payment is made)

10 working days

Time period to provide claim forms and reasonable assistance

10 working days

Time period to respond to an insurance department inquiry

15 working days

Time period to complete a claim investigation after notification

30 working days

Time period to accept or deny claim after proof of loss is executed

15 working days

Misrepresentations

False statement that are relied upon as being truthful. Include: twisting, false advertising, and illegal inducement

Fair discrimination may be permitted when there is:

Sound actuarial justification

Redlining

A discriminatory practice by which banks, insurance companies, etc., refuse or limit loans, mortgages, insurance, etc., within specific geographic areas, especially inner-city neighborhoods.

Unfair Claims Settlement Practices Act

Addresses claim practices

Unfair Insurance Practices Act

Address trade practices

Privacy of Consumer Financial Information

Address confidentiality

Insurance Fraud Regulation

Address fraudulent insurance activities

Fair Credit Reporting Act

Protects consumers from inaccurate credit data

Do-Not Call List

Protects consumer privacy

Fraud and False Statements

Address fraudulent conduct

Gramm-Leach-Bliley Act

Addresses privacy concerns