insurance regulation

Licensing Process

complete prelicensing education
pass examination
submit application and fees
submit fingerprints

types of licenses

individuals: resident and nonresident
business entities
temporary license - valid for 180 days; issued to maitain the existing business

maintenance and duration

- must be renewed every 2 years
-can be reinstated within a short period of time after lapse
-continuing education
-disciplinary actions

state regulations

commissioner of insurance
agent regulation
insurer regulation

Commisioner of Insurance

.does not write laws
regulates the internal affairs of the department of insurance
examines all authorized insurers

agent regulation

*only one license of the same type is allowed per agent
*must be licensed in the line of authority for which the agent transacts insurance.
*Avoid unfair trade practices

Insurer Regulation

responsible for agent appointments
must obtain certificate of authority
must meet solvency requirements
avoid unfair trade practices or unfair claim settings

Federal regulation

fair credit reporting act
insurance fraud
DO NOT CALL LIST
privacy: Gramm -leach- billey act

Fair Credit Reporting Act

Protects consumers against the circulation of inaccurate or obsolete personal or financial information.

insurance fraud

willfully and with intent to deceive making false statements or omitting material facts

privacy: gramm-leach-billey act

rules regarding disclosure of nonpublic personal information to nonaffiliated third parties

do not call list

National do not call registry
strict telemarketing rules
insurers must consult the current registry every 31 days

Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as

Coercion

coercion

use of force to get someone to obey

what is not a requirement for producer license renewal

Renewable examination

how often must the commissioner examine rating organizations

every 5 years

what is the civil penalty for the 1st violation of the pennsylvania insurance fraud prevention act ?

$5000

what is the civil penalty for the 2nd violation of the pennsylvania insurance fraud prevention act ?

$10,000

what is the civil penalty for the 3rd violation of the pennsylvania insurance fraud prevention act ?

$15,000