Ky life insurance law

The commissioner of insurance is appointed by

The governor with the support of the Senate

How long is the commissioner of insurance's term

4 years

How often can the commissioner of insurance examine authorized insurance carriers compliance with state laws

As often as needed

During examinations or hearings, the commissioner has the authority to

Take depositions subpoena witnesses administer oaths examine individuals under oath and compel the production of records

Who can be exempt from licensing requirements

Executives managers clerical employees- people who are not actively soliciting or selling insurance

What is an agent

A person appointed by an insurer to sell or solicit insurance products

What is an insurance producer

A person or business entity required to be licensed under Kentucky law to sell solicit or negotiate insurance or annuity contracts

Can an agent be a producer

Yes an agent could be a producer but not all producers are agents

What is a non-resident license

A license issued by the commissioner to a qualified non-resident producer

When a non-resident producer moves to another state, how long do they have to file a change of address

30 days

What are the producer license requirements

Must be at least 18 years old. Have not committed any act that is ground for revocation denial or suspension of a license, complete pre-licensing education, complete application and pay required fee, pass examinations

What is required for a business entity license

The business entity must file a application with the commissioner and pay the required fee, designate an individual licensed agent who will be responsible for their compliance

What is a consultant

A person who provides insurance counseling or advice for a fee paid by the consumer not the company

Do insurance consultants have to be licensed

Yes and must have at least 5 years experience as a licensed agent

What is controlled business

Controlled business is the sale of insurance products by an agent to themselves, family members or employees, AKA people you know personally

Concerning controlled business, at what point will the commissioner not Grant or renew a license

If 50% or more of cases for the agent are controlled business

How often must an agent renew their license

Every 24 months

What is required for an agent to renew their license

24 hours of continued education with 3 hours in ethics

How often do business entities need to renew their license

Business entities must renew their license by March 31st every other year

If a company terminates its relationship with an agent, how long do they have to notify the commissioner

30 days

How many hours of ethics are required for your continued education

Three

How long is a temporary producer's license

180 days

What business can you perform under a temporary producer's license

You can service existing accounts but cannot sell new insurance

How long must license keep complete records

At least 5 years

How long do you have to inform the commissioner's office of a name change or address change

30 days

What must a business entity do if one of their licensees is surrendered or terminated under threat of disciplinary action in regard to their license

Notify the commissioner in writing immediately

If a licensee receives administrative action in another state or criminal prosecution, how long do they have to report it to the commissioner

30 days

What must an insurer do before testing for HIV

Disclose in writing the intent to test the applicant for HIV

How long must an agent or company keep their advertisement material

All ads must be kept for 3 years

What is the first rule of advertising regulation

All advertisements must be truthful and may not imply that policy dividends are guaranteed

It is illegal to offer something of value to entice someone to purchase a policy or upgrade this is called

Rebating

What is the price cap for any gifted prizes, goods where merchandise or property.

$250

If a person appears to be violating the insurance code, the commissioner May issue a

Cease and desist order

Regarding insurance fraud, if the amount of fraud is $500 or less, what is the penalty

Misdemeanor, imprisonment for up to one year, a fine of no more than $100 per individual or $5,000 for corporation

In regards to insurance fraud, if the amount of fraud is greater than $500, what is the penalty

Felony, imprisonment for up to 5 years, a fine fine of no more than $10,000 per individual, or 100,000 per corporation, both imprisonment and a fine

Regarding insurance fraud, if a person is found to estab lish or maintain a criminal syndicate or facilitate any of its activities in organized crime. What is the penalty

Class b. Felony, imprisonment for no less than 10 years and no more than, $10,000 fine per individual or 100,000 per corporation, both imprisonment and a fine

What is the penalty for any person who violates any provision of the insurance code

A sign of no less than $100 or twice the amount of the gain from the commission of the violation, whichever is greater and be subject to revocation of certificate of authority, license or both

In addition to suspension or revocation of any code violation where the commissioner has the power to revoke or suspend a license, the commissioner may also impose what following civil penalties

For insurers up to a $10,000 fine per violation, for agents up to $1,000 per violation, for adjusters up to $2,000 per violation

What is the purpose of the life and health guarantee association

To protect policy owners and beneficiaries against insurers who become financially impaired or insolvent

What is the guarantee association's maximum liability regardless of the number of policies

300,000 in life insurance. Death benefits

What is a replacement

When you reduce the value of a policy in any way so you can purchase another policy

All agents who initiate replacement applications must do what

Fill out notice of replacement, get copies of all existing coverages, make three copies of replacement application, one for record, one for the insurance company and one for the client

How many copies of a replacement application must be made

Three. One for record, one for the insurance company, one for the client

How long is the free look period on replacements

30 days

How long must an insurer keep copies of replacement notices and replacement registers

At least 5 years or until the next examination by the department of insurance, whichever is later

What does the commissioner of insurance do

Protect the public