State Laws

Term
1 / 41
Four things TDI does
Click the card to flip 👆
Terms in this set (41)
Four things TDI does
regulated business of insurance, administers work comp systems, insures fair treatment of customers, ensures fair competition
domestic insurance
in the state of texas
foreign insurance
another state
alien insurance
another country
mutual insurance
owned by policyholders
in order for a company to operate they need
certificate of authority
if insurer violates the law the COMMISSIONER can
cease violations, pay restitution, suspend for up to a year, revoke certificate of authority
how often does the insurance companies get financial examinations
5 years
purpose of guaranty fund
provide payment for covered claims, avoid financial loss, detect insolvency, collect funds to pay claims
4 guaranty funds
property casualty, life and health, self insurer, unauthorized
other insurance companies can be required to raise their premiums up to how much by much to pay for a different company going broke2%guaranty fund will not pay forjudgement interest or bad-faith damagesCommissioner canadopt rules, regulate rates, controls violations, regulate licensescommissioner is alsochief executive and administrative officerwho appoints commissionersenatehow long is the commissioners term2 yearshow many years of experience must the commissioner have5 year experiencepeople who solicit insurance applications arent required to be license but they mustregister as a home office employee and acquire 15 continuing education hoursagents license is required whenthey solicit or accept applications for claims, explains policy coverageyou don't need a license toform a company, to get a certificate to do bussiness, officer of company,in order to apply for a license18, resident, pass the examinsurance office will need$250k E&O policy or bondcommissioner can take away yourlicenseinsurance company can take yourappointmenthow long is a insurance license good for2 yearsto renewpay fee and complete 24 hours of continuing educationafter how many years of having a license are you exempt from the CE20 yearshow much of the CE must be done in the classroom50%who may grant CE exemptionscommissionerif your license is expired for more than 90 days but less than a yearpay additional feeif your license is more than a year expiredretake exam and reapplyage of majority14is it legal to state that a policy is "approved by the dept. of ins."NOinsurance cannot boycotttruean insurer cannot state thatdividends will be paidif license is revoked you cannot reapply for how many yearswait 5 yearscommissioner determines the amount oftime a license is revokedMGAmanaging general agentMGA's are the only people who canappoint agentssubagents mustpass the examcommissioner can only transfer funds up to$500k