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