Term
(Process)
What are the preexamination education requirements?
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Definition
1.) minimum of 24 credit hours
2.) proof of completion
3.) submit
a. completed application indicating lines of authority
b. copy of approved study certificate
c. exam fee |
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Term
(Process)
What are the application requirements? |
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Definition
- completing application indication lines of the authority
- applicant's fingerprints (criminal history records)
- documentation noting applicant past test
- licensing fee ($55 resident, $110 non-resident)
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Term
(Process)
What are the qualifications for the license? |
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Definition
- 18 yrs of age
- no acts permitted under state insurance laws
- satisfied pre-examination requirements
- passed/exempt insurance producer exam
- payed all applicable fees
- has general fitness competence & reliability
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Term
(Types of Licenses)
Who is not allowed to be licensed as a producer? |
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Definition
- insurer
- employee of an insurer that inspects rates, classifies risks, supervises training
- officer/director/employee that has executive, administrative, managerial or clerical & are only indirectly related to the sale/solicitation/negotiation of insurance
- employer/trustees of an employee who are engaged in the administration of employee benefits program
- person who advertised insurance if the person does not sell, solicit, negotiate insurance
- non-resident who sells commercial property and casualty insurance to an insured w/ risks in other states
- salary, full-time employee who cancels/advices his employer on the employer's insurance issues
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Term
(Types of Licenses)
What is a non-residence producer? |
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Definition
An individual who is currently licensed as a producer in another state may apply for a non-residence license for equivalent lines of authority. |
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Term
(Types of Licenses)
What is a temporary license?
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Definition
It is in the public interest and if the candidate is worthy to receive a producer license. |
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Term
(Types of Licenses)
Who does the Department issue a temporary license to?
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Definition
- spouse/court-appointed rep (if producer becomes mentally/physically disabled, or dies)
- owner, partner, or employee of a business entity (upon death/disability of producer)
- designee of an individual licensee who enters active service in the armed forces
- any other person when the Commissioner deems public interest
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Term
(Types of Licenses)
What is the period of time for a temporary license to still be valid?
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Definition
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Term
(Types of Licenses)
What happens to a person acting as a manger/exclusive general agent w/o a license?
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Definition
| third-degree misdemeanor, punishable up to $1000 per day |
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Term
(Maintenance and duration)
When is the renewal of a license?
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Definition
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Term
(Maintenance and duration)
What does the licensee remit to the department for renewal of license?
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Definition
- completed renewal form
- required fee
- verification the licensee has completed continued education
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Term
(Maintenance and duration)
When should a licensee report action to the Department?
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Definition
| any administrative action taken against the licensee must be reported w/in 30 days of the final disposition of matter |
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Term
(Maintenance and duration)
What should a licensee provide to the Department due to criminal conduct?
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Definition
w/in 30 days of being charged w/ criminal conduct they must report...
- copy of criminal complaint
- copy of order resulting from a pre-trial hearing
- report of the final disposition of the charges
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Term
(Maintenance and duration)
Under what name should a producer be licensed?
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Definition
| Only in the name of the applicant or business entity |
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Term
(Maintenance and duration)
When must a licensee notify the Department of an address change?
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Definition
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Term
(Maintenance and duration)
What are the requirements of continuing education?
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Definition
| Must complete 24 credit hours of approved continuing education for each 2 yr license period |
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Term
(Disciplinary Actions)
When the Commissioner finds a person is violating any provisions of the cease and desist order, what will the notice that he sends state? What opportunities does the person have after the notice is received? |
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Definition
Notice states time & place for hearing (not be less than 30 days from date of notice)
The person has the opportunity to be heard and show cause why an order should not be made and why administrative penalties should not be assessed.
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Term
(Maintenance and duration)
What can the Commissioner do upon determination by hearing that cease and desist order has been violated?
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Definition
| Issue an order requiring the person to cease and desist from engaging in such violation; if such violation is a method of unfair competition, suspend or revoke the person's license |
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Term
(Maintenance and duration)
What takes place if a violator fails to comply to cease and desist?
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Definition
| The Commissioner may file an injunction in the Commonwealth Court or the Court of Common Pleas of the county in which the violation occurred |
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Term
(Maintenance and duration)
What does the Department do upon revocation, suspension, non-renewal, or denial of license?
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Definition
The Department will notify the violator. The notice must state the nature of the violate and fix a time and place at least 10 days when a hearing will be held.
After the hearing or upon failing of the person appearing at the hearing the Commissioner may...
- deny, suspend, refuse to renew, revoke the license of a person
- a civil penalty not to exceed $5,000
- an order to cease and desist
- any other conditions the Commissioner deems appropriate
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Term
(Maintenance and duration)
When does the Commissioner issue fines for civil penalties?
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Definition
When the person knows/reasonably should have known...
1. not more than $5000 for each violation
2. not to exceed an total penalty of $50,000 in any six-month period
When the person does not know...
1. not more than $1000 for each violation
2. not to exceed an total penalty of $10,000 in any six-month period
For each violation ordered by the commissioner while such order is in effect...
1. a penalty of not more than $10,000
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