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27 Cards in this Set
- Front
- Back
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Temporary License |
In case of death, disability, or war, a temp 180 day license can be issued (w/ 1x renewal) |
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CE Requirements |
For life and health, 12 hours every 2 years (incl. 1 hour of ethics) |
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Cease and Desist Fines |
Unintentional: Up to $1000 per violation ($10,000 cap) per 6 months Intentional: $5000 per up to $50,000 |
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Company Audits |
The insurance commissioner must audit books 1x/5 years or as needed to evaluate solvency |
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Appeal of Hearing's Decision |
Appeal to any court in the county where the agent resides within 60 days. Note the agent pays for hearing costs if found guilty. |
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KIC's Oversight of Rates |
Does not set; only approves and monitors. Collects tax on all premiums = 2.5% on behalf of state treasurer |
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CE Requirement Failure |
License suspended up to 90 days Make-up all hours + $100 re-instatement fee |
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Termination of Appointment |
Once licensed, a company must appoint (certify) agent and this certification is renewed annually. If fired, agent retains license, and firm must de-certify agent within 30 days. |
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Unfair Trade Practices Act |
1. Misrepresentation 1a. Twisting: misrepping when replacing a policy 2. False Advertising 3. Rebating/Inducements 4. Defamation 5. Coercion |
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Ad Requirements |
Include agent's contact info. If ad relates to specific product, must incl. description of coverage and name of insurance company. |
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Ad Requirements (Firm) |
Insurance firm must: 1) submit letter of compliance with KID, 2) approve any ads before use, and 3) keep all ads on file for 4 years. |
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Application Denial or Increase of Premium |
Insurance company has 21 days to disclose reasons for denial of application or the need to increase premium |
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Fair Credit Reporting Act |
If application is declined due to credit, must disclose name of credit reporting agency (CRA). Applicant has six months to change any incorrect information with CRA. |
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Bankruptcy Filing by Agent |
License cannot be suspended or revoked due to insolvency. |
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Penalties in Lieu of License Suspension |
Unintentional: up to $500 per violation, max $2500 per six months Intentional: $1000-$5000 per violation Imprisonment up to 6 months possible under KS law |
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Insurance Consulting |
Must be written agreement btw agent and client that discloses all fees |
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Splitting Commissions |
Allowed so long as both agents have same type of license (health, life, etc.) |
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Complaint Records |
Firm must keep copies of all complaints by category of complaint on a calendar-year basis |
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KS Life & Health Guaranty Assoc. (KIGA) |
Covers claims of certain policies if insurer goes bankrupt. Mandatory participation by KS insurers. Funded by assessments based on pro-rata share of premiums from prior year (max 2%) |
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KIGA Coverage Limits |
Life: $300,000 death benefit, $100,000 net surrender value Annuities: $250,000 present value Health: $100,000 benefits |
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Use of KIGA Coverage in Sales |
Agent cannot use KIGA coverage in sales |
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Hearing Process |
Notice of Hearing = 15 days or within reasonable time frame Hearing Decision Penalties |
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Hearing Penalties |
Cease and desist order (cannot be issued w/o hearing) License revocation Fines Redress of injury Suspension |
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Appointment/Certification |
Insurance company appoints person as agent Within 30 days after appointment, insurance company must certify agent with insurance dept. Once appointed, agent can begin acting. If insurance company fails to certify within 30 days, there's no impact on agent but company must pay $25/day fine Annual recertification is required |
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Insurance Commissioner's Role
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Does not make law. |
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Licensed Agent Requirements
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Inform state insurance dept. of any changes (name, address, convictions, disciplinary proceeding in another state within 30 days. |
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Failure to Respond to Commissioner's Requests
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$1000 per violation + $500/week of ignoring request |
