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chapter 6 part A
Illinois statutes and reg common to all line
| Question | Answer |
|---|---|
| Cease and desist | legal document asking for a discountinue or stopping of something |
| Coercion | threat or use of force to influnce a person to act against thier will |
| commission | a payment to the agent for insuring policy. usually is a percentage of premium |
| director | the head of state deparment of insurance appointed by the governer |
| disclosure | reveled info to help make an educated decision |
| exempt | no obligation |
| inducement | an offer to influnce other party |
| reciprocity | mutual interchange of rights and privileges. a legal act to exchange shares and is the same amount |
| statute | a law or policy passed by legislatives to govern and is found in the states insurance code |
| surplus lines insurance | insurance not avaliable from admitted insurers. is specialized coverage written by unlicensed, nonadmitted insurance companies to cover specific extraordinary items |
| role of the director | role is to enforce insurance laws and to protect the public from unfair trade practices.The Director of Insurance has any rights and powers necessary to enforce and execute the insurance laws of the State of Illinois. |
| responsibilites of a insurance director | 1. Make reasonable rules and regulations 2. Conductinvestigations and examinations 3. Institute any actions or proceedings as necessary to enforce Illinois insurance laws and regulations. |
| statment of charges/ conduct | the grounds of insurnace code violation |
| hold a hearing/ notice of hearing | held between 20-30 days after service of notice must contain a statment of conduct judicial court trail for the violation |
| violating a cease and desist order | fined ip to $1000 for each violation. may be recoverd in a civil action |
| violating insurance law two main penalties | 1. a cease and desist order 2. revoke or suspend a license or certificate |
| 5 specific duties of director | 1. supervise insurance busine 2. licensing 3. approve laws, policies, reforms and regu 4. enforce law, impose penalties for violation 5. conduct examination, investigations and hearings |
| violating directors order penalties | 1. subject to a new order 2. fined $100 fine per day of violation 3. continuation will result in a $5000 fine max |
| Examination of insurers books and records | to ensure business remain and conduct with compliance of state laws and regulations pretaining to licensing, policy forms, rates, claims and market conduct |
| nonfinancial business practices | examine transactions, people involved, people contracted by company, Any licensed orregistered producer, firm, or administrator. who adjusts losses or finances premiums. Any person,trust or organization that owns or controls information |
| Examination report | is verified under oath examines and documents persons, company, other info |
| requeting a hearing | the subjet of an examination may request a hearining within 10 in writing within 14 days of deplicate report |
| written order is done based on two things | 1. the examination report 2. upon the hearing must be done 90 days after report or heaing are over |
| Business offense: under the administative review law | 1. subject to judicial review 2. violates a written order under the market conduct and nonfinacial examination 3. fined up to $5000 (paid to general revenue fund) |
| Business offense: under the regulatory examination section | may be fined $20,000 with a license suspension or revocation |
| class A misdemeanor | a person knowingly violates procuders and offer advice, counsel or sells insurance without a license or qualification |
| class 4 felony | any person who miappropriates any funds collected is guilty |
| Exemption for license | any officer, director, or employee not involved in sale of insurance and do not receive any commissions |
| resident producer license | that authorizes the licensee to transact insurance in this state |
| nonresident license | non state residence may recive the license if they have good standing in thier state of licese, submit application, license request, pay fees, completes uniform application to the director |
| steps for examination of insuerers | 1. purpose and is solvent/ in compliance 2. provide free access to info related to company 3. subject requesting a hearing within 10 days 4. director conducts a hearing and issues report within 90 days |
| steps for regulatory examinations | 1. examine any person 2. examination report duplicate 3. request hearing within 14 calender days 5. business offense fined up to $20,000 |
| License: producer or agent | represents insurer, transact on behalf of insurer |
| license: busienss entity | corporation/ assocaiton/ parternship must have a designated agent |
| license: nonresident | differnt home state licensed to transact in resident and nonresident states |
| license: temporary | issued for continuation of existing business a short period of time and not renwable approved by the department |
| change of address | notification to the department file change of address and provide certification from the new residence state within 30 days after the change of legal residence |
| limited lines producer | a line of insurance that covers only a specific subject matter. must be designated by a company may represent more than one company prepetual limited lines producer license as long as fees are paid |
| Business entity | - fees ($150 every 2 years) - insurance producer must obtain an insurance producer license using the Uniform Business Entity Application. |
| two types of illinoise temporary license | 1. temporary license for producer applicants 2. temporary license for non-producers may not hold more than 1 in their life time |
| temporary license for producer applicants | for applicants who expect to become permanently licensed ip to 90 dyas |
| temporary license for non-producers | for continuation of business upon producers death or diability up to 180 dyas may not continue after the bsuiness is disposed of |
| agent licensing | - 18 yrs old - pass licensing exam (20 hrs course, 7.5 hr training class) -complete application and pays fees - be of good character |
| servicing of an insurance business | director may renwer temp insurance producer licensei for another 180 dyas if deemed necessary |
| a temporary producer license may be effected if | - director limits the authority - director refuses to grant it to an applicant with a company holding 50% of temp licenses fail to obatin a real one before expiration - or may not continue of owner disposes of business |
| producer licesing period | will last 2 years |
| Bond in favor of the people of Illinois | if an isnurance producer places business with an insurer without a producer contract the poducer must mainitn this bond |
| maintiang a license | 1. continuing education every licensing period 2. renwal every 2 years + fees 3. current name and address 3. reinstatment rules |
| continuing education (CE) rules | - 24hrs of CE every licensing period - 3hrs of classroom eithics instruction - every licensing period 2 yrs |
| reporting of actions | notification ot the department report administrative action against a producer report within 30 days provide doc if charged with criminal conduct |
| Felony convictions | must report a feloney to the director within 30 days wil relevant docs |
| reinstatment | if license has lapsed it can be reinstated within 12 months must pay double renewal fee $430 may be waived due to military service |
| Licese suspension, revocation or denial | written notification to applicant or license holder they can request hearing within 30 days of notice hearing must be held within 20-30 days after mailing notice |
| buisness entity license can be suspened, revoked or refused if | after hearing the director finds out the entity knew or should have knew of an individuals licensee's violation - civil penalty of up tp $10,000 for each cause max is $100,000 |
| revoked or denied license | cannot reapply for another 3 years cannot be employed or contracted by insurance related capacity |
Created by:
Hthabet