Insurance in California is divided into the following 20 categories:
1. Life
2. Fire
3. Marine
4. Title
5. Surety
6. Disability
7. Plate Glass
8. Liability
9. Workers Compensation
10. Common Carrier Liability
11. Boiler & Machinery
12. Burglary
13. Credit
14. Sprinker
15. Team & Vehicle- Protection against liability or dam
What is a public insurance adjuster?
A licensed individual who, for compensation, works on behalf of an insured in settling a claim for loss or damage under a policy covering real or personal property.
An applicant for an insurance license must submit:
Department of Insurance Application form, fees, and certificates showing completion of the necessary course material.
The California Department of Insurance has jurisdiction under this act to consider requests for written consent filed by prohibited persons who propose to participate in the business of insurance in California with a domestic insurer or a resident license
-File a 1033 consent waiver application
-Pay the application fee
-Provide all required documentation
-Receive written consent before engaging in such business
When does a license terminate?
1. A licensee voluntarily surrenders his license.
2. A licensee dies.
3. A co-partnership is dissolved.
4. A licensee surrenders his appointments.
1, 2, and 3
True of False:
Every licensee must immediately notify the commissioner in writing of any change in his residence address, business address, or mailing address
True
If a licensee violates any provision relating to twisting, concealment, or misrepresentation, he may be imprisoned for up to____ months
12 (one year)
A licensee misrepresents the financial condition of an insurer. This is an example of:
Unfair Trade Practices (which are considered to be unfair, deceptive, or misleading)
Insurance Information and Privacy Protection Act (IPPA):
The purpose of this article is to establish standards for the collection, use, and disclosure of information gathered in connection with insurance transactions by insurance institutions, agents or insurance-support organizations; to maintain a balance bet
Gramm-Leach-Bliley Act:
The Financial Modernization Act of 1999, known as the "Gramm-Leach-Bliley Act" or GLB Act, has provisions to protect consumers' personal financial information held by financial institutions. There are three main parts to the privacy requirements. They are
California Financial Information Privacy Act:
The intent of this act is to afford greater privacy protections than those provided by the GLBA (Gramm-Leach-Bliley Act). It unites the federal GLBA with the Insurance Information Privacy and Protection Act (IPPA) contained in the insurance code. Enacted
Opt-In =
Opt-Out =
No-Opts =
Opt-In=Company must receive consumer permission first.
Opt-Out=Consumers can stop sharing if they object.
No-Opt=Consumers cannot stop the sharing
A fiduciary is:
a person who is in a position of financial trust.
A person who makes a fraudulent claim or assists in making a fraudulent claim is guilty of a criminal act and may be imprisoned for how many years?
2, 3, or 5 years
True or False
The commissioner may inspect any record at any time
True
Claimant:
Any person who asserts a right of recovery under a surety bond, an attorney, any person authorized by operation of law to represent the claimant, or any of the following persons properly designated by the claimant: an insurance adjuster, a public adjuster
Insolvency
means any impairment of minimum "paid-in capital" required of an insurer for the class(es) of insurance which it transacts. An insurer cannot escape the condition of insolvency by being able to provide for all its liabilities and for reinsurance of all ou
Paid-in capital
is capital received from investors in exchange for stock as distinguished from capital generated from earnings or donated. According to the code, a foreign mutual insurer must have the value of its assets in excess of the sum of its liabilities for losses
Conservation:
means the commissioner thinks an insurer can be saved from insolvency. The commissioner may apply to the superior court of the county in which the insurer has its principal office and become the conservator of the business. The commissioner will take over
Liquidation
means the commissioner feels it would be futile to proceed as conservator of the insurer and applies to the court for an order to liquidate and wind up the business of the insurer.
What is the purpose of the California Life and Health Insurance Guarantee Association ?
The purpose of the association is to protect policyowners, insureds, and beneficiaries against loss when a member company is financially impaired and cannot pay its contractual obligations under life insurance, health insurance, and annuity contracts
What is the purpose of the California Insurance Guarantee Association ?
The purpose of the association is to protect the interests of policyholders and beneficiaries against loss because an insolvent insurer is unable to pay its contractual obligations under property and casualty insurance policies.
Concealment entitles the injured party to rescind the contract under which conditions?
When the concealed facts are material whether intentional or unintentional.
Insurance solicitor
A natural person employed by an agent/broker to aid in transacting insurance other than life insurance is an:
The commissioner may deny a license if the applicant has had a previous application denied or had a previous license suspended or revoked for cause within _____ before the filing of the application.
5 years
True or False
An agent may advertise that his insurance company is a member of a Guarantee Association.
False