Term
| The Purpose of Statutes and Regulations |
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Definition
| To promote and protect the public welfare |
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Term
| Commissioner of Insurance |
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Definition
| The voters of the State elect the Commissioner to a 4 year term, if the office becomes vacant the Governor apoints a replacement |
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Term
| The Commissioners General Responsibilities |
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Definition
1. Assure that laws are adhered to. Has the power to issue subpoenas and oaths, and may institute civil actions or criminal prosecution through the Attorney General
2. Monitor the financial stability of admitted companies through annual financial review
3. Make sure companies and agents are competent to conduct business
4. Regulate Unfair trade practices
5. Approve rates and forms of insurance, for PAP and Residential policies
6. Conduct hearings/investigations MUST PROVIDE 10 DAYS PRIOR WRITTEN NOTICE
7. May SUSPEND an agent's or adjuster's license PRIOR to hearing. May REVOKE a license AFTER violation of insurance law |
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Term
| Regulations Regarding Insurance Transactions |
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Definition
1. Records are subject to inspection, ALL RECORDS MUST BE MAINTAINED FOR 5 YEARS
2. Proof of Loss - Within 15 Days
3. TWISTING- misrepresentation of a policy's terms and values to induce lapse or replacement of an existing policy, to the insured's DETRIMENT
4. Rebate- Inducement offered to the insured to get them to purchase insurance
5. It is illegal to charge excess premium- unless signs are posted and the insured is told |
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Term
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Definition
Applicant must be 18 or older and live in NC, Applicant must complete 20 Hours of Pre-Licensing education
- Failure to Compete CE results in lose of license
- 4 Hours of CE must be done every 2 years with 1 Hour being flood |
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Term
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Definition
| 180 Days, you must pass state exam within that time |
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Term
| Change of Residency (Address Change) |
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Definition
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Term
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Definition
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Term
| Appointment Cancellations |
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Definition
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Term
| Purpose of "Unfair Trade Practices Act" |
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Definition
| Prohibits unfair competition or deceptive practice |
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Term
| Examples of Unfair Trade Practices |
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Definition
1. Misrepresentation or False Advertising
2. Defamation
3. Boycotting, Coercion and Intimidation
4. False Financial Statements
5. Unfair Discrimination
6. Rebating
7. Misuse of Confidential Info. |
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Term
| How many days in advance does the Commissioner have to give written notice for Unfair Trade Practices Complaint? If Guilty what can he issue, and what is the fine? |
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Definition
| 10 Days Written Notice, Cease and Desist, and $5000 per day |
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Term
| Adverse Underwriting Decision |
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Definition
1. When insurance HAS BEEN REJECTED
2. POLICY TERMINATION
3. Placing coverage with RESIDUAL MARKET (Beach Plan, Fair Plan, Facility)
4. Failure to place coverage with REQUESTED COMPANY
5. Charging higher premium based on info. that differs from insured provided info. NOT DUE TO INCREASED HAZARDS |
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Term
| What is it called when an individual does NOT reveal their identity or pose as someone else to obtain information? |
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Definition
| Pretext Interview *Prohibited except in Claims investigation* |
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Term
| What Outlines procedures to be used to protect the confidential nature of information processed in the insurance industry? |
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Definition
| The Privacy Act (Insurance Information and Privacy Protection Act) |
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Term
| The Beach Plan, Fair Plan, and the Facility are all examples of? |
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Definition
| A Residual Market Mechanism |
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Term
| This summarizes the applicant's rights under the act including the right to know what information was gathered by whom, and the right to dispute info. felt to be inaccurate. |
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Definition
| The Notice of Information Practices |
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Term
| This grants permission for the Insurance company to to obtain and/or release specific non-public information. With a MAXIMUM EFF. TIME of 12 Months |
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Definition
| Disclosure Authorization Form |
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Term
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Definition
Actual monetary loss caused by the physical damage to or destruction of tangible property.
ex. FIRE |
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Term
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Definition
Result as a consequence of a direct loss
ex. loss of rental income due to fire |
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Term
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Definition
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Term
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Definition
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Term
| Insurable Interest (Financial Interest) |
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Definition
| Must exist at the time of the loss |
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Term
| Standard Fire Policy (SFP) |
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Definition
Named peril policy covering direct losses caused by:
-Fire
-Lightning
-Removal *open peril up to 5 days* |
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Term
| Proximate Cause (Concurrent Causation) |
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Definition
Events leading from "cause" to "effect".
Ex. Explosion caused by FIRE |
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Term
| Proof of Loss Must be submitted within... |
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Definition
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