Cease and Desist
To stop or discontinue
Coercion
Forceful act or threat aimed to influence a person to act against his or her will
Commission
Payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium
Director
The head of the state Department of Insurance
Exempt
Not subject to an obligation
Home State
A state in which an insurer is organized and has its main place of business
Inducement
An offer that attempts to influence the other party
Injunction
A court issued order to stop committing an act or violation
Insolvent
Unable to meet financial obligations
Procure
Obtain
Statute
A formal written law enacted by legislature, insurance _______s can be found in the state Insurance Code
License Application Requirements
-Must be 18 years old
-File an application with the Director
-Pay the appropriate license fee
-Have not committed any act that is grounds for denial
-Pass each examination which is required for the license being sought
Exam Attempts
A candidate for a producer license may have 4 ______________ in a 12-month period. After those 4, any ______________ must be after a year
Documentation
Candidates for a license must provide legal _____________ that they may be in the United States by federal law
Lines of Authority
The __________________ are:
-Life
-Accident and Health or Sickness
-Property
-Casualty
-Variable Life and variable annuity products
-Personal Lines
-Credit
Life
Coverage on human lives, including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income
Accident and Healthy or Sickness
Coverage for sickness, bodily injury or accidental death and may include benefits for disability income
Property
Coverage for the direct or consequential loss or damage to property of every kind
Casualty
Coverage against legal liability, including liability for death, injury, disability or damage to real or personal property
Variable Life and Variable Annuity Products
Coverage provided under a variable life insurance contract or a variable annuity
Personal Lines
Property and casualty insurance coverage that is sold to individuals and families for noncommercial purposes
Credit
Limited line credit insurance
Producer
An insurance ________ is a person who is licensed to sell, solicit or negotiate insurance (must have a license)
Non-resident Producer
A ____________________ may be licensed in AZ without taking a written exam if the agent is:
-In good standing in his or her current state
-The applicant otherwise complies with all provisions in AZ
-The state in which the person resides accords the same p
Adjuster
Anyone who adjusts, investigates or negotiates the settlement of claims arising under insurance contracts for a fee (must have a license)
Life Settlement Broker
Person who, for compensation, solicits, negotiates, or offers to negotiate a life settlement contract. They represent only the policyowners, and have a fiduciary duty to the owners to act according to their instructions and in their best interest (must ha
Business Entity
Any corporation, association, partnership, limited liability partnership or other legal entity, except an individual or sole proprietorship (must have a license)
180
Temporary producer's licenses last ___ days and may be given to surviving kin or producers, employees of business entities in death of the designated producer, or to designees of a license producer who enters active military service, without a written exa
Vending Machine
Only licensed producers may solicit applications and issue policies by means of a _________________
Surplus Lines Insurance
May be procured from unauthorized insurers but only through a licensed surplus lines broker, may be obtained for the purpose of securing premium rates or terms of contract advantages
Fingerprints
The Department may require a license applicant to submit a set of ____________ to the FBI with a background check
4
The producer license must be renewed every _ years on the last day of the month of the licensee's birthday with an application and license fee
Continuing Education
License Renewal requires 48 hours of ____________________, 6 of which must be ethics training, records must be held for 5 years
30
In the case of change of address or name, the Department of Insurance must be notified within __ days, as well, any criminal issues must be reported within __ days
1
_ year, period to renew an expired license or reapply after license surrender, suspension, or revocation
5
_ years, how often each domestic insurer must be examined
Transact
In terms of insurance, ________ could mean:
-Solicitation and inducement
-Preliminary Negotiations
-Effectuation of a contract of insurance
-Transactions subsequent to the effectuation of the contract
These are illegal if not license
Negotiate
The act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance
Sell
To exchange a contract of insurance for money or its equivalent on behalf of an insurer
Solicit
Attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company
Share
It is permissible to _____ commissions if the two ____ing are both licensed
Place of Business
Every producer must maintain a _________________ accessible to the public and present records in the building
Misrepresentations
It is illegal to issue any illustration or sales material that is false __________________
False Advertising
Advertisements cannot include any untrue, deceptive, or misleading statements that apply to the business of insurance or anyone who conducts it (illegal)
False Financial Statements
Those that are intended to deceive public officials or the general public about the financial condition of an insurer (illegal)
Rebating
Defined as any inducement offered to the insured in the sale of an insurance products that is not specified in the policy (illegal)
25
Any prizes, goods, or merchandise worth more than __$ may not be gifted to customers (due to favoritism)
Defamation
An oral or written statement intended to injure a person engaged in insurance business (illegal)
Unfair Discrimination
Discrimination in rates, premiums, or policy benefits for persons within the same class (illegal) (this includes discrimination based on hemophilia, genetic predisposition, developmental disabilities or delays, being victims of domestic violence, or blind
Fraud
Any misrepresentation of a material fact, made knowingly and with the intent that another person will rely on it and suffer financial injury as the result (class 6 felony)
6
_ years, Director's term in the office
3
_ years, Insurers must keep records of all transactions
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
Consumer Reports
These include written and/or oral information regarding a consumer's credit, character, reputation, or habits collected by a reporting agency
Investigative Consumer Reports
These are similar to consumer reports, but they also include info about the consumer's character, reputation, and habits and consumers must be notified in 3 days
Violent Crime Control and Law Enforcement Act of 1994
Anyone who violates this act may not work in the business or insurance without the consent of an insurance regulatory official (1033 waiver)
1033 Waiver
This form, signed by the Director of Insurance, allows someone convicted of a deceitful crime to work in the business of insurance
Section 1034
Civil Penalties for violations of section 1033, this section states the attorney general may bring a civil action in the US district court for $50,000 for each violation
National Do Not Call Registry
Registry of people who cannot be called by telemarketers
Can-Spam Act of 2003
Any emails sent out must include an opt-out option honored in 10 business days, the from line must be the company, there must be a physical postal address
Gramm-Leach-Bliley Act
This act states that in general, an insurance company may not disclose nonpublic personal information unless they disclose to the consumer in writing that it will be disclosed, and the consumer has a chance to cancel this
Terrorism Risk Insurance Act
Act made to create a temporary federal program that would share risk of lose from future terrorist attacks with the insurance industry (all insurers must offer insurance coverage for acts of terrorism)
National Association of Registered Agents and Brokers Reform
Amends the Gramm-Leach-Bliley Act to repeal the contingent conditions so that the National Association of Registered Agents and Brokers may be established
2
_ years, imprisonment term for willfully violation the provisions of the Fair Credit Reporting Act
Permissible Calling Hours
8 am - 9 pm is the _________________________ for telemarketers