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63 Cards in this Set
- Front
- Back
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The insurance commissioner is appointed by the governor and subject to confirmation by the ___.
Requires all insurers to file a report by ____ (date). |
Senate
March 1 |
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Commissioner has power to investiage the affairs of every person engaged in the biz of insurance in Colorado whenever...
May require a person to appear and show cause why... |
he/she feels appropriate
their license should not be suspended or revoked |
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T/F Commissioners may not revoke or suspend a license without first holding a hearing.
negligent violations: single fine $ willful violations: single fine $ |
True- must hold a hearing.
nv-single- $3,000/max 30,000 12mo wv- $30,000 max $75,000 12 mo |
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When can a producer's license be revoked?
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-fraud or misrepresentation
-forgery of anther's name, misappropriation of money -failure to pay state income taxes & child support |
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Who is required to be licensed?
Producers represent the ___ not the insured. |
People who solicit the policies of insurance, discuss policies, binds coverage, risks residing in the
state insured |
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Insurers must renew all producer appointments every __ years.
___ days prior to the renewal month, the Commissioner shall notify the producer, at the last address on file with the Commissioner, of the requirements necessary to continue the license |
every 2 years.
90 days |
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Licensees must inform the Division of Insurance of a name or address change within ___ days of the change/
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30 days
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Non-resident producer applicants must provide the commissioner with a _____ form.
Salaried officers of insurers who perform clerical functions and no not receive commissions, do or do not need license |
Consent to Service of Process
do not need license |
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Producers only selling pre-paid or travel accident do....
The insurance commissioner requiers the filing of an assumed name to be used by a produce ___ to use. |
do not have to be licensed.
PRIOR |
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Unauthorized or approved non-admitted insurers do/do not need certificate of authority.
Are unauthorized insurers covered by the State Guaranty Fund? |
Do not need certificate of authority
no unauthorized insurers are not covered |
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Finders fees to unlicensed persons are
No producer shall charge a separate fee for a service for which they are also receiving ___ from an insurer |
illegal
commission |
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All premiums belonging to insurers and all unearned premiums belonging to clients received by a producer must be held in a ____ capacity.
what is someone who the client has trust in |
Fiduciary capacity
A fiduciary is someone who the client has trust in |
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Fidicuiary duties of insurance producers include: Treatment of all premiums as trust funds; segregated from the producer's ___ funds.
_____ funds is not an unfair method of competition, it is a breach of a financiary duty |
personal funds (no commingling)
Commingling |
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How many hours of continuing education do you need every 2 years?
New licensees do not have to comply until _____ |
24 hours of C.E. ; 3 hours must be ethics
their second license renewel date- there after it is every 2 years |
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Prior to soliciting long-term care policies, producer must complete a one time ___ hour course on long term care which 8 hours must be held in ____ setting.
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16 hour, classroom
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An emergency cease and desist order may be issued on an authorized person meaning....
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an individual, corporation, association, or partnership that is engaging in the transaction of insurance yet not properly licensed
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Un-authorized entities are subject to an emergency cease as well as
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Jail time or fines
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What is using any business practice that results in an unreasonable restraint of trade
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Coercion
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Replacement of life insurance is legal if...
Replacement to the detriment of your client is illegal.. this is also called... |
all rules are followed
twisting |
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Misrepresentation DOES NOT include making written comparisons of policies which...
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Factually disclose relevant features by which a client may make an informed decision
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Unfair discrimination: Reductions in benefits in health insurance policies by adding an impairment rider unless..
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such classification is for the purpose of insuring family units or is justified by actuarial statistics.
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A blind applicant for life insurance cannot be charged a higher rate unless..
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they have a hazardous hobby or occupation
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Any oral or written statement which is false or maliciously critical as to the condition of any surer or producer which is calculated to injure reputation
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Defamation
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Paying any inducement (such as a return as part of a commission) to a client as an inducement to a purchase unless stated in a policy is illegal
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Rebating
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Dividends are/are not considered rebates since it is state the policy that the client might receive one
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dividends are not considered rebates
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Unfair claims practices can include:
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Misrepresenting policy provisions
Failing to acknowledge and act promptly on claims Refusing to pay a claim without research |
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___ benefits cannot be excluded based solely on the casual or non-professional activities of:
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Medical
activities of motocross, snowboarding, off highway vehicle riding, skiing or snowboarding |
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On or after Jan 1 1997, every admitted insurance company must
the plan must be submitted by ___ to the Insurance Commissioner |
prepare, implement, and maintain an Anti-Fraud Plan
March 1 |
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Fraud warnings are printed on
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the application, insurance policy, and claim form
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Fines for fraud may include
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imprisonment, fines, denial of insurance, and civil damages
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A producer may pay part of his commission to a partnership of which...
You can/can not lose your license for submitting business to a "non-admitted company" such a surplus lines insurer |
He is a member~ Partners must be members .
Can NOT |
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All insurers, except for surplus lines and reinsurance carriers, need ______ from the Colorado Insurance Commissioner in order to sell here.
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Certificate of Authority
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Is it an unfair claims practice to ask an insured to submit Proof of Loss before paying a claim?
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No
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Insurance is protection. It may not be referred to as
What is being falsely or maliciously critical of the financial condition of any insurance company or producer? |
Security, Investment, Retirement
Defamation |
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What is controlled business? Can you get a license?
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Insurance sold to yourself, your family, or your employees. No license, premiums cannot exceed other biz
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Unfair discrimination is when an insurer denies....
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Denies equal benefits to applicants in the same class without statistical justification.
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What is fair discrimination?
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Charging higher rates b/c can prove client is at more risk. 16 yr old driver
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what is the refusal of a financial institution to make a loan UNLESS the client also buys insurance from them. *unfair trade practice*
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Coercion ~ deny things unless you do something else along with it
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All returned premiums received by producers from insurers who decline to write a new app must be returned to the applicant within
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30 days
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It is an unfair trade practice to make projections of future dividends to policyholders who buy...
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Non-participating policies
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Failure of the insurer to send out required claim forms to be completed as proof of loss is ___
Agencies are responsible for acts of their ___ |
an unfair claims practice
acts of their producers. agency license may be suspended if they know what producer is up 2 |
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Representatives of Fraternal benefit societies are exempt from licensing if they sell...
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Sell less than $50,000 in the face amount
or not to more than 25 clients in a 12 month period and receive no commissions |
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Boycott, coercion, and intimidation are all considered to be
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Unfair trade practices
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the producer's license is ___ until canceled or revoked, subject to the payment of renewal fees & continuing education requrirements (2 years)
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Perpetual
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No producer may represent an insurer unless ____ by that insurer
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Appointed
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Surplus lines producers must post a $25,000 bond in favor of the state which...
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favor of the state which guarantees the timely payment of premium taxes to the state. (3% March 1)
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No person may pay a commission to ___.
No producer may accept a commission, unless |
An unlicensed producer
Unless producer is properly licensed |
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A producer's license can NOT be revoked without
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a hearing & administrative order
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Does prepaid legal insurance require a license to sell?
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No license to sell prepaid
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Producers with limited lines licenses are exempt from..
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The Continuing Education requirements.
HMO-travel ticket- bail bonds- title- credit- crop hial |
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A producer must hold at least __ appointment in order to receive a license.
A producer's first licensing period may be less than 2 years, but licenses must be renewed every __ years thereafter at the end of the month of his/her __. |
one appointment
2 years, end of the month of his/her birthday |
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Producers who reside in other states may apply for a Colorado non-resident producer license without examination subject to providing...
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a Consent to Service of Process Form- which allows subpoenas to be served on the CO commissioner.
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A resident license allows producers to write insurance on risks that...
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reside here, are located here, and are performing here
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If you hold the professional designation CLU or CPCU, you may become licensed by passing only ___ of the colorado law section.
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Part 2
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Applicants for Surplus Lines producer's licenses must first hold an...
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active individual Colorado producer's license, in addition to the 25,000 bond requirement
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Producers using "trade names" must register the name with the commissioner...
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prior to use
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Foreign insurers have their home office in another state, domestic in this state, and alien in ___
t/f The insurance commissioner may amend laws. |
another country. All need certificates of authority.
True |
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If an insurer violates a cease and desist order, the Insurance Commissioner may fine the insurer $.... for each and every act.
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$10,000
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If a producer violates a cease and desist order, the Insurance Commissioner may impose a fine of $... for each and every act.
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$500
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After a hearing, the maximum fine that the Commissioner may impose for a willful violation is $... for a single violation, and $.... for multiple in 12/mo
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30,000 ~ 750,000
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If you move out of state, you must...
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surrender your resident license to the state
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Producers must remit premium for the insured to the insurer within ___ days of the receipt
Your license will be in effect until revoked by the commissioner for failing to.. |
45 days
failing to pay fees, completing continuing education, or violation of insurance law |
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A person found guilty in a court of law for selling through an unauthorized company... will be subject to..
what is max sentence? |
Class I Misdemanor.
6 months in jail, $500 fine, or both max sentence: 18 months jail, 5,000 |
