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Terms in this set (76)
is appointed and serves at the pleasure of the Governor of Indiana
and enforces the insurance laws of this state.
Who liquidates a failing insurance company?
What can the Commissioner issue and administer?
Subpoenas and oaths
An admitted company shall be examined
once every 5 years
For foreign or alien companies, the Commissioner may accept an examination prepared by the
in the company's state of domicile, as long as they follow NAIC
Domestic insurance company:
A company that resides and is incorporated under the laws of the state
in which its home office is located.
Foreign insurance company:
A company whose home office is located in another state or U.S.
Alien insurance company:
A company that is chartered and organized in any country other than the United States.
Admitted insurer: also called an authorized insurance company
An insurance company that has qualified and received a Certificate of Authority from
the Insurance Department to sell insurance in this state.
Non-admitted insurer: also called a unauthorized insurance company
An insurance company that has been denied or not yet applied for a Certificate of Authority and may not sell insurance in this state.
Guaranty Association will provide: $300,000 in
life insurance death benefits
Guaranty Association will provide: $300,000 for
health insurance benefits
Guaranty Association will provide: $100,000 in
Guaranty Association will provide: $100,000 in present
value annuity benefits
There is a limitation of
$300,000 in total benefits given to any one person
Who is eligible for a temporary license?
Producer's surviving spouse, court-appointed personal rep, or business owner/partner/employee
A temporary license is valid for a maximum of
Licensed agents moving to Indiana from another state have
90 days within cancelling their previous
license to apply for a resident license here.
A consultant sells
insurance advice for a fee
No person shall act as an insurance consultant until
a license as an insurance consultant has been issued
Who does not have to have a license as a consultant?
attorneys, insurance Producers or brokers, trust officers of a bank, actuaries, or CPA's
In order for a Licensed Resident Producer to sell insurance advice,
they must make full
disclosure in writing at the outset of the transaction about how they will be compensated
In order for a business entity to be licensed as a Producer in Indiana
it must designate an individual licensed Producer who will be responsible for the business entity's compliance
A limited lines producer is a person authorized by the Commissioner to sell, solicit, or negotiate limited lines insurance, such as
credit life and health, title insurance, flight insurance, pre-need life insurance for
a funeral home, and crop hail insurance.
Producers must complete
24 hours of CE every 2 years by the last day of their birth month
Producers who allow their license to lapse for less than
12 months will be assessed a penalty of 3 time the normal renewal fees
Insurers are responsible for submitting an appointment notice to the Insurance Commissioner
within 15 days of an agent's appointment or submission of first insurance application.
Commissioner will verify within
30 days if a Producer is eligible for appointment
Insurer that terminates an agent appointment must notify Commissioner within
30 days of date of termination
Within 15 days of such notice, insurer must mail a copy of the notice to the terminated agent,
after which the agent will have 30 days to submit written comments to the Commissioner
Controlled Business is limited to
25% of the Producer's commissions income in a 12 month period
Producers must report a change in address or name to Insurance Commissioner
within 30 days of the change
Producers must report any bankruptcy, felony conviction, or any other administrative action that occurs in Indiana or another jurisdiction to the Insurance Department within
When is someone considered delinquent in child support?
If 3 months in arrears
It is an illegal practice to make any public statement or advertisement that contains false information or unsubstantiated criticisms about an insurance company.
inducing a policyowner to lapse, forfeit, or surrender a life insurance policy for the purpose of taking out another policy with another company.
Penalties for these
Up to $25,000 per violation
When is it up to $50,000
if person knew they were in violation at the time of the occurrence or for consistent violations
Penalty for violating cease and desist order?
Up to $25,000 per violation
What right does the Producer have if they are found by the Commissioner to have violated Insurance Code?
The right to a Judicial Review of the Insurance Commissioner's decision.
If the Indiana Insurance Commissioner receives a complaint about an alleged Unfair Claim Settlement
the Commissioner is required to notify the Insurance Company involved within 10 days.
The max allowable fixed interest rate and max variable interest rate charged by insurers is
8% in Indiana
All statements made by the insured in the application are deemed to be representations, not
Life insurance policies must provide a minimum free-look period of
10 days upon policy delivery
Policies cannot be backdated more than
6 months from the date of issue
If a death claim payment is not received within 30 days, interest will begin to accrue from the
date of the insured's death
Minors age 16 and 17 can enter into an insurance contract
so long as it's to the benefit of himself,
spouse, parents, siblings, or grandparents
Grace Period for premium payments
A provision that states the application and policy with its riders shall constitute the entire contract of a life insurance contract
A provision that the policy terms shall be incontestable after it has been in force for a period of 2 years
from its date of issue
Employers have insurable interest
in the lives of their employees
Employer must disclose that it may keep the policy in force after the employee retires
and during the period he/she receives employer-sponsored retirement benefits
A married person has insurable interest
in the life of his or her spouse
charts, graphs, and numerical data that depict the non-guaranteed elements of a policy
Non-guaranteed elements are premiums, benefits, values, credits, or charges under
of life insurance that are not guaranteed or not determined when the policy is issued.
What must producer's provide to applicants and prospects of Life Insurance?
Buyer's Guide and Policy Summary
Advertising (Rule 13) states that
life insurance advertising prohibits life insurance policies from being referred to as
Solicitation (Rule 24), concerning Life Insurance Solicitation,
is to ensure that consumers have necessary info to make comparisons regarding the relative cost of insurance
enables applicants to compare different life insurance policies and help them choose
which policy is best for their needs.
Insurers must pay a life insurance claim within
2 months after receipt of a proof of loss
Reinstatement of a lapsed life insurance policy is allowed within a
3 year period of the policy lapse
All overdue premium with interest paid must be provided for a lapsed policy,
as well as satisfactory proof of insurability
Replacement (Rule 16.1)
Life Insurance replacement is not prohibited, however it's strictly regulated in Indiana with Rule 16.1
A Notice Regarding Replacement
must be signed by both applicant and Producer
Other items that need to be documented include a
copy of all sales proposals as well as a list of all insurance policies currently in force
Replacing Producer must present to the applicant
a Comparative Information Form prior to submission of application for new insurance
He must also send a copy of the Form to existing insurer
within 3 days of date of application
If a new policy is replacing an existing one, the insured is given the right to return for a full refund
of at least 20 days after policy delivery
Allows someone that a physician certifies as terminally ill to access the death benefit.
Amount of Accelerated Benefit received
will be tax free
Allows someone with a terminal illness to sell their existing life insurance policy to a third party for a
percentage of the face value.
The original insured person (policyowner)
is the new third party owner
If an applicant's HIV test results are positive,
the insurer can only report to the MIB that the applicant had abnormal test results
Eligible groups for Life insurance=A trust or trustees of a fund established by
at least 2 employers or at least 1 labor union or similar employee organization
In case of employment termination
a person can convert their group policy to an individual policy within the conversion period of 31 days without proving insurability
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