Which of the following persons is required to hold a producer license?
A person who negotiates insurance contracts
. Persons who perform clerical tasks that are not related to soliciting or negotiating insurance contracts are not required to be licensed.
Which of the following is a requirement to attain a nonresident producer license in Indiana?
which of the following is a requirement to obtain a nonresident producer license on indiana?
the producer’s state of residence must have reciprocity with indiana
.
Which of the following would be required to be licensed as an insurance producer A?
Explanation: As per the question, in order to be a licensed insurance producer one requires ‘
a salaried employee who could advertise and solicit insurance
‘ as people would then only could get to know about the variety of insurance plans that are being offered by him.
Which of the following licenses is required for a surplus lines producer?
To obtain a surplus lines license, a person must be
licensed as a property and casualty producer
. Surplus lines producers may only charge fees to originating brokers that have been approved by the Commissioner.
Who is considered a nonresident agent?
Nonresident Agent —
an agent who is licensed in a domicile in which he or she does not reside
.
What are the two components of a universal policy?
Universal life insurance has two components:
death benefit coverage and an accumulating cash value
. When you pay your monthly premium, it’s split between the two parts of your policy, with a portion going to each.
Which is an example of an unfair claims settlement practice?
Typical Example of Unfair Claims Practice
The insurance company delays payment
, rendering the business owner unable to repair any of the damage. The insurance company continues using delay tactics to avoiding making a payment.
What is an example of rebating?
An example of rebating is
when the prospective insurance buyer receives a refund of all or part of the commission for the insurance sale
. Rebates can be made in the form of cash, gifts, services, payment of premiums, employment, or almost any other thing of value.
A Certificate of Authority (CA) is a license issued
by the state to an insurance company
that allows the company to conduct its business. Insurance companies acquire COAs by sending an application to the state along with all of the required documentation.
What states have reciprocity for insurance license?
| Alaska Iowa North Carolina | California Maine Oklahoma | Colorado Michigan Pennsylvania | Connecticut Minnesota South Dakota | Delaware Mississippi Utah |
|---|
Are surplus lines insurers licensed?
Surplus lines insurance protects against a financial risk that is too high for a regular insurance company to take on. … Unlike normal insurance, this insurance can be bought from an insurer not licensed in the insured’s state. However, the surplus lines insurer
requires a license in the state where it is based
.
Who regulates surplus lines insurance?
While solvency regulation is the responsibility of the surplus lines insurer’s domiciliary state or country, the surplus lines transaction is regulated through
a licensed surplus lines broker
.
What is surplus for an insurance company?
Surplus —
the amount by which an insurer’s assets exceed its liabilities
. It is the equivalent of “owners’ equity” in standard accounting terms. The ratio of an insurer’s premiums written to its surplus is one of the key measures of its solvency.
What is an agent non resident insurer?
INCOME OF NON-‐RESIDENT GENERAL INSURERS
The person who pays the premium to the insurer
(or to some other person), or a person who provides a bank with funds that pays the premium, is treated as the agent of the insurer.
How much do insurance agents make?
According to that data from the Bureau of Labor Statistics: The
median annual wage for insurance agents was $48,150
. The highest paid 10% of insurance agents earned more than $116,940 annually. The lowest paid 10% of insurance agents earned less than $26,120 annually.
Which of the following are the authorities that an agent can hold? The powers and authorities that an agent holds are express and implied.
Apparent authority
is the appearance of, or the assumption of, authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.
