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26 Cards in this Set

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WHERE MUST THE AGENT MAINTAIN HIS PRINCIPAL OFFICE?
TIME ALLOTED TO NOTIFY THE CDI OF AN ADDRESS CHANGE?
*** TEST QUESTION ***
- In CA

- 30 DAYS
WHEN MUST A LICENSEE FILE A RENEWAL APPLICATION?
- On or before the last day of the current license period.
CONTINUING EDUCATION REQUIREMENTS FOR AGENTS...
JUNIOR(licd under 4yrs)- 25hrs
SENIOR(4+yrs)- 30hrs in 2yrs
PERSONAL LINES BROKER-10 hrs
CIRCUMSTANCES THAT A COMMISSIONER MUST GIVE A HEARING BEFORE DENYING AN APPLICATION...
*** TEST QUESTION ***
- not qualified to perform duties.
- against public interest.
- not of good business reputation.
- lacks integrity.
- denied a professional, occupational or vocational license by another licensing authority.
- seeks a license to avoid/prevent enforcement of the Insurance Code.
- knowingly/willfully made a misstatement on the app.
- previously engaged in fraudulent/dishonest business.
- has shown incompetence/untrustworthiness in conducting business.
- knowingly misrepresented the terms of an insurance policy.
- conv of a felony or misdemeanor or the insurance code (no final judgement yet)
REASONS FOR TERMINATING LICENSES...
*** TEST QUESTION ***
- when the license is surrendered to the CDI.
- upon Death of the licensee.
- dissolution of the corporation/association.
- upon termination.
- disolution or change of partners in a partnership (w/in 30 days)
THE CODE DEFINITION OF:
TRANSACTING INSURANCE
- Solicitation.
- Negotiation before inception of a policy.
- Execution of the contract.
- Transactions after execution.
DIFFERENCE BETWEEN AN AGENT & A SOLICITOR
- AGENTS are appointed by the insurer & transact business on the insurers behalf.
- SOLICITORS is not appointed and has no direct authority. The solicitor can only assist the agent.
WHY THE CDI MAY DISAPPROVE OF A FICTITIOUS NAME...
- similar to another licensee's name.
- may mislead the public.
- states/implies that the licensee is an u/w.
- implies that the licensee is an insurer.
- applicant already has 2 names apprvd by the CDI.
(cpcu or clu ok)
APPARENT AUTHORITY
- results from the principals failure to protest when the agent exceeds his Expressed Authority.
FIRE & CASUALTY LICENSEE
- may transact all classes of insurance, EXCEPT Life.
2. IMPLIED
assumes the agent to have, but is no specifically granted in the contract.
EX. If agent doesn't have the authority to collect premium, but does so anyways, the courts would deem in favor of ni due to Implied Authority.
REQUIREMENTS FOR DISPLAYING A LICENSE NUMBER...
*** TEST QUESTION ***

- on business cards, written price quotes & printed advertisements.
- must be same size type as the address, fax & phone number.
- must use the license # of an organization.
MANAGING GENERAL AGENT
- licensed agent appointed by an admitted insurer w/ the authority to handle certain company functions w/in a specific territory.
- functions include appointing/terminating local agents, collecting premiums, accepting/declining risks.
INSURANCE AGENT
- Appointed by & transacts insurance on behalf of the insurer.
- The license becomes active as soon as a company appointment is made.
- Has the authority to bind coverage.
INSURANCE SOLICITOR
- a natural person employed to aid a broker or agent.
BROKER-AGENT
If the insurer has filed a "notice of appointment" this person is deemed to be acting as an agent.
- any other situation, this person would be deemed as a broker.
ADMINISTRATOR
- has a contract w/ an insurer to handle medical insurance premium collections & claims
- must meet life agent requirements.
- must have an "Administrator Certificate" from the DOI.
INSURANCE BROKER
- transacts insurance w/ an insurer on behalf of another person.
- Can NOT Bind coverage.
- Must carry $10,000 Brokers Bond.
PUBLIC ADJUSTER
- acts of behalf of an insured to negotiate & settle claims.
- compensated by the insured.
- usually gets a % of the settled claim
INDEPENDANT ADJUSTER
- adjusts claims on behalf of an insurer
- must be licensed
SURPLUS LINE BROKER
*** TEST QUESTION ***
- can do business w/ a non-admitted insurer.
- must have $50,000 brokers bond.
- It is a misdemeanor for anyone other than this person to:
-Act as an Agent for a non-admitted.
- Advertise a non-admitted
- Aid a non-admitted in transacting insurance
RELATIONSHIP BETWEEN:
PRINCIPAL &
AGENT
AGENT - a person who is authorized to act on behalf of another.
PRINCIPAL - an insurer.
AN AGENT HAS 3 KINDS OF AUTHORITY:
1. EXPRESS
EXPRESS - specifically granted in a contract.
EX. issue policies, collect premium, adjust 1st party losses
CIRCUMSTANCES THAT A COMMISSIONER MAY DENY A LICESNE W/OUT A HEARING...
*** TEST QUESTION ***
- a final conv of a felony.
- a final conv of a misdemeanor violation of the insurance code.
- had a previous license application denied w/in 5 yrs.
- had a previous license suspended or revoked w/in the last 5 yrs.
SPECIAL LINES SURPLUS BROKER
*** TEST QUESTION ***
- may place insurance w/ a non-admitted insurer, but authority is restricted to only certain types of coverage.
- re-insurance
- ocean marine
- avaiation
- property
- $10k Brokers Bond required.
PERSONAL LINES LICENSEE
- may only transact personal LOB's