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24 Cards in this Set
- Front
- Back
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Who is considered a nonresident agent? |
An agent who resides and is licensed in another state, but who is authorized to transact insurance in this state |
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If a producer makes maliciously critical statement about another insurer, what is this illegal practice called? |
Defamation |
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When can the Commissiiner or Director examine insurers? |
Whenever deemed necessary, but at least once every few years. |
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An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of? |
Rebating |
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If an insurer meets the state's financial requirements and is approved to transact business in the state , it is considered what type of insurer? |
Authorized or admitted |
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Who is an insurance agent? |
Person authorized to sell, solicit, and negotiate insurance contracts |
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Who may share in the commission from the sale of a life insurance policy? |
Only producers properly licensed for the type of insurance transaction |
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What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is? |
Misrepresentation |
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2 individuals who are in the same risk and age class are charged different rates for their insurance policies due to an insignificant factor. What is this called? |
Discrimination |
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Who is responsible for cost associated with the examination of insurers? |
The insurer who is being examined |
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What type of licensee represents the insured? |
Broker |
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If an insurer holds a Certificate of Authority, it is known as what type of insurer? |
Authorized or admitted |
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What type of licensee represents the insurance company? |
The agent |
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On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of? |
Misrepresentation |
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Who can usually be granted a temporary license? |
Produce's spouse or designee in case the licensed producer dies or becomes disabled |
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Who must be notified of a producer's change of address? |
The Department of Insurance |
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What is the purpose of a cease and desist order? |
To prevent a producer or insurer from further violating laws for transacting insurance |
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The whom may a certificate of authority be issued? |
To an insurer authorized to transact business in this state |
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If the Commissioner/Superintendent finds a licensee engaging in an unfair method of competition or an unfair practice, what order will be issued? |
Cease and desist order |
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What are the most common penalties for violations of insurance statues? |
A cease and desist order, a fine, and license suspension or revocation |
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What type of misrepresentation persuades and insured, to his or her detriment, to cancel, lapse, or switch policies from one to another? |
Twisting |
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In general, who can be excluded from a producer licensing and examination requirements? |
Employees who do not transact insurance and who do not receive commissions for their services |
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What are producers required to do in order to renew their license? |
Complete continuing education hours and pay a renewal fee |
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For what reason can a temporary license be issued? |
For continuation of business in case the licensed producer dies or become disabled |
