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