Illinois Insurance Producer Licensing and Regulations, Exams of Nursing

Download Illinois Insurance Producer Licensing and Regulations and more Exams Nursing in PDF only on Docsity! Property and Casualty Exam- Illinois Laws and Regulations Property and Casualty Exam- Illinois Laws and Regulations Exam Questions (111 Terms with Certified Solutions 2024-2025. An insurance producer license is required of an individual to: - Answer: Solicit- sell or ask person to apply Negotiate- confer/offer advice, quoting rates Property and Casualty Exam- Illinois Laws and Regulations Sell- binding, renewing Give advice for a fee Receive commission Brokering - Answer: broker is a producer who arranges policies for insureds through insurance companies for which they do not have agency contract Disclosure - Answer: All insurance producers, limited lines producers, temporary, business entities involved in sale must be identified in policy Disclosure applies if sale was made by: - Answer: 1. Insurance producer in person 2. call center phone insurance producer 3. online internet insurance producer Penalty for not being licensed - Answer: 1. Class A misdemeanor 2. Class 4 felony 3. Injunction (restraining form selling insurance) Penalty for not being licensed- Class A misdemeanor - Answer: Acting as an insurance agent without license- fine up to $1,000 or 1 year in jail (1 and 1) Property and Casualty Exam- Illinois Laws and Regulations Limited Lines producer license qualifications - Answer: 1. 18 years 2. competent, trustworthy, good business rep 3. NO EXAM, pre licensing edu, continued edu, bond required 4. company must pay $50 Temporary Insurance producer license - Answer: - Issued for 90-day period - cannot be renewed - Only ONE temp license per lifetime - Qualified training program= each 6-month period, 50% of temp producers obtain insurance license prior to expiration of temp Temporary insurance producer requirements - Answer: 1. Insur Company must apply- $50 2. Must be in process of fulfilling pre license edu 3. Must be enrolled in qualified training program Situations where no license required - Answer: 1. Attorneys offering clients legal advice incidental to insurance 2. bank trust officers 3. Actuaries/ certified public accountants Property and Casualty Exam- Illinois Laws and Regulations 4. licensed public adjusters 5. executive, administrative 6. sponsor or administer group insurance or employee benefit programs 7. persons who live in & licensed in another state who sell commercial ins. on property located in IL, but property owner's principal place of business is IL How insurance company is owned - Answer: 1. Stock- owned by stockholders 2. Mutual- owned by policy holders 3. Fraternal- owned by fraternal society What does it mean when an insurance company is admitted vs. not admitted? - Answer: Admitted- Licensed in state which sale is to be made, non-admitted is they are not licensed or authorized in state which sale is to be made Surplus Lines Producer Licese - Answer: special, additional license required to sell policies non-admitted in state which sale is occurring Premium finance company license - Answer: loaning customers premium money - if producer allows more than 10% of a/r to go over 90 days from due date, he/she is financing premiums. - A/r are total premiums due to insurance producer by clients Property and Casualty Exam- Illinois Laws and Regulations - Penalty for financing without license= civil penalty up to 1000 The Unfair Claims Practices Act - Answer: prohibits insurance companies from delaying unreasonably in settling insurance claims - specifies time periods which insurance companies must respond to insureds on certain types of claims Rebating - Answer: It is illegal to offer/give something, reduce premium, or accept something: - of material value and - to someone not licensed as an insurance producer, - paid out of a producer's commission - only if the recipient buys an insurance policy ` Rebating penalty - Answer: $500 or 6 months in jail (1/2 and 1/2) Prohibited activity penalty - Answer: - Civil penalty up to $5000 per offense, not to exceed $20,000 - temp suspension of license - revocation of license Property and Casualty Exam- Illinois Laws and Regulations IL insurance guarantee fund - Answer: if your insurance company loses money and can't pay your claim, they guarantee benefits and the assessment of funds- protect policy holders and assure quick settlement of claims --500,000 max per claim --10,000 max unearned premium - FULL amount for workers comp Property Insurance- Notice of cancellation (by insurance companies) - Answer: 10 day notice- no matter how long policy has been in effect for cancellation due to nonpayment of premiums 30 days notice- required during first 60 days policy is in effect for reasons other than nonpayment of premiums 60 day notice- required after policy been in effect for 60 days or renewed if the cancellation is for reasons other than nonpayment of premiums. after 60, cancellation can only be nonpayment of premiums or other reasons outlined by law Notice of cancellation by insurance co- required - Answer: - notice must be mailedto insured at last known address - insured cannot protest a cancellation on basis that they didnt receive notice if insurance co has some type of proof of mailing - copy of notice cancellation mailed to producer of record Property and Casualty Exam- Illinois Laws and Regulations - notice of cancellation contain explanation What length of time (notice) is requred by insurance companies when changes occur in premium, premium payment plan, deductible, limits of liability - Answer: 60 days Reasons a property insurance policy cannot be cancelled - Answer: can never be cancelled mid-policy solely due to too many claims Cancellation due to nonpayment of premium - Answer: 10 days notice is required no matter how long the policy has been in effect cancellation during first 60 days of a property policy is in effect - Answer: 60 days in effect, can be cancelled with a 60 day notice only if: 1. policy obtained by misrepresentation or fraud 2. an act which has measurably increased risk as originally acepted Reasons a property insurance policy cannot be nonrenewed - Answer: - age of property - location of property - discrimination as to the occupants Nonrenewal of property insurance policy during first 5 years - Answer: CAN BE nonrenewed within 60 days notice by insurance company for any reason except discrimination Property and Casualty Exam- Illinois Laws and Regulations Nonrenewal of fire insurance policy after it has been in effect 5 years - Answer: After the first 5 years a property insurance policy is in effect it can be nonrenewed with 60 day notice by insurance co for following reasons - policy obtained by misrepresentation/fraud - An act which increased risk as originally accepted - **After property insurance policy in effect for 5 years, cannot be nonrenewed for any other reason Pro Rata - Answer: When an insurance company cancels policy, unearned premium is returned pro rata Short Rate - Answer: when an INSURED cancels policy, unearned premium can be calculated on short rate basis which will be less than pro rata return Short rate cancellation recommended by producer - Answer: if recommended to insured at any time other than policy anniversary/expiration date, producer must inform insured in writing of additional cost (short rate) Refusal of coverage due to hate crimes - Answer: insurance co cannot refuse to issue/renew or refuse/ cancel insurance policy bc insured made claims for damage caused by hate crime Property and Casualty Exam- Illinois Laws and Regulations __ days is required for cancellation for all reasons other than nonpayment of premium after auto insurance policy has been in effect for 60 ays - Answer: 60 days __ days is always required for nonrenewal - Answer: 60 or 30 Eligibility for automobile insurance plan - Answer: - IL registered vehicle - Valid drivers license - Rejected for auto insurance from 3 diff companies - assigns policy to insurance company A ____ must be submitted by auto insurance company to IL secretary of state if person involved in accident without insurance or is convicted of driving without insurance- must be submitted to avoid license suspension - Answer: SR-22 form and certificate of coverage Penalties for not filing insurance plan or self insurance workers comp plan - Answer: employee may sue employer in court (common law) - employer loses all his/her normal legal defenses Workers comp act - Answer: 1. Medical benefits including rehab 2. Temporary total disibility benefits 3. Permanent partial disability relief 4. Survivor benefits Property and Casualty Exam- Illinois Laws and Regulations Other states coverage (workerscomp) - Answer: provides automatic coverage if employee injured in a state other than the one designated to policy Common law employer's liability - Answer: Covered not to exceed employer's workers com policy Workers Compensation Commission - Answer: State agency separate from dept of insurance - all plans must be filed with WCC - Approves all claim settlements Workers comp assigned risk pool - Answer: assure availability of workers comp insurance to all employers including employers that have been rejected by insurance companies **Rejected by 2 companies Workers comp assigned risk pool eligibility - Answer: - must pay at leas 25% premium down - comply with all public laws relating to safety of employees - employer must not have been canceled within 12 months for nonpayment of premium on workers comp policy. Property and Casualty Exam- Illinois Laws and Regulations What is is called when an individual appliying for a non resident insurance license is not required to take an exam because their resident state does not require an exam - Answer: Reciprocity Penalties for violating order issued by state insurance director - Answer: license suspension license revocation Fine up to $10,000 Held guilty of a business offense Who does Uninsured Motorists and Underinsured Motorists coverage protect? - Answer: The insured and all members of their household anywhere redlining - Answer: refusing to write property insurance soley on basis of geographic locations The director must examine an insurer at least once every __ years - Answer: 5 Maximum fine for refusal to submit to an examination by director - Answer: $2,000 Companies may request hearings within __ days of receiving examination report - Answer: 10