Chapter 15 California State Insurance Law

Front 1

Ethics

Back 1

A professional insurance person is one who demonstrate a high level of competence and practices high ethical standards

Front 2

Commissioner of Insurance

Back 2

The Commissioner is elected by the people of the state for a period of 4 years. He does not set rates brad has the power to subpoena witnesses

Front 3

insurer insolvency

Back 3

Insolvency means any impairment of minimum paid-in capital required of an insurer for the classes of insurance which it transacts

Front 4

Financial rating agencies

Back 4

5 of the most popular services are AM Best, standards and Poor's , moody investment services, Duff & Phelps credit rating and the weiss insurance ratings

Front 5

California Insurance Guaranty Association

Back 5

The purpose is to establish a mechanism to pay claims that are unpaid as a result of the insolvency of a member insurer

Front 6

Health insurance portability and Accountability Act HIPAA

Back 6

HIPAA was designed to provide coverage for people with pre-existing conditions

Front 7

Educational requirements

Back 7

Life & Health Agents must obtain 40 hours approved instruction on life insurance and 12 hours of instruction on ethics and code. Fire and casualty broker / agent 40 hours of fire and casualty and 12 hours of ethics and code. Personal line broker 20 hours of pre licensing course and 12 hours of ethics and code

Front 8

Continuing education

Back 8

Life or health agents 24 hours of lying specific CE per 2 year renewal period including four hours of ethics. Property and casualty agent broker same as life and health agent. Personal lines broker 24 hours including two hours of ethics.

Front 9

Agency name

Back 9

Every individual and organization applying for a license must file in writing with the Commissioner the true name and ficticious names under which they conduct business. The last word of an agency name can not be insurance or insurer.