Insurance

Why: Promote

Professional competence of insurance producers

Why: Providing

Maximum freedom of marketing methods for insurance.

Why: Preserving

and encouraging competition at the consumer level

Why: Regulating

Insurance marketing practices

Why: Governing

qualification and prcedures for the licensing of insurance producers.

Why: Promoting

Uniform licensing requirements betwen the several states.

Process

Make and application (one type one authority), Submit fees, and pass all examinations. Fulfill character requirements.

Producer/Agent

a person who sells insurance to the public

Consultant

a person who provides advice concerning insurance and charges a fee for the advice. Must be licensed. Can not act as a producer. Not needed by lawyers.

Adjusters

involved with determining the dollar amount of a property/casualty loss. Employees of insurance company do not need this license.

Independent Adjuster

represents the insurance company in the adjusting process

Public Adjuster

represents the policyholder in the adjsuting process and can only adjust property claims.

Surplus Lines

allows property/casualty producers to act in the capacity of a “broker”. This means the person represents the applicant in the insurance transaction and does not represent the insurer.

Limited Licenses

Usually doesn’t require an exam. Credit life and/or disability, motor club, travel insurance, and legal expense, etc.

Nonresidents

Issued for people living in Utah who already have a license in their home state. Terminates at the time of termination of the other state license.

Renewal

Expiration date of the last day of the month in which it was originally issued. Spans 2 years. Reinstatement can happen but on a case to case basis.

CE Extension

Any licensee continuously licensed prior to 04/01/1970 can apply for this

CE Producers and Consultants

24 total hours two years, 3 hours must be ethics, 12 hours from classroom, 12 must be from a provider that’s not their employer.

CE Title Producers

<20 years: 12 hours, 3 for ethics, 6 classroom; >20 years: half of those

Reinstatement

If the license lapsed or is voluntarily surrendered; within 1 year: pay fees including late penalties, complete all CE, Submit CE certificates. Can be done without penalty if the person has military service, voluntary service, and long term medical disability.

Change of Records

Insurance department must be notified within 30 days of the change. Notification is also required for criminal prosecution.

License Termination

You could be asked to surrender in lieu of administrative action by the department.

Suspension

No more than a 12 month period, the person must comply with the laws. They must do everything as normal but they can not act with authority on the license.

Revocation

License no longer exists, the period is 5 years. If the person wants it back they have to meet every requirement of a new license.

Probation

Action taken by the insurance department. Usually done after a suspension, can’t be for more than 24 months. Violation of this leads to immediate revocation.

Monetary Forfeiture

the department can fine any licensee twice the amount of any profit made from an act that violates any law or rule. In addition they can also be fined $2,500 per violation per day.

Commissioner General Duties

Appointed, not elected, follows the governor. Issues an annual report concerning hte state of the insurance market.

Commissioner Powers

Can use all specified powers in order to enforce the statues and rules of insurance, establish rules of enforcement, hold hearings to make rules, and issue orders for the purpose of compliance. CAN NOT make or change laws.

Company Regulation

The commissioner has the power to oversee insurance companies.

Solvency

Insurance companies must keep certain amount of money on deposit with regulators before a certificate of authority can be issued. Must be established every 5 years.

Rates

Can not be excessive, inadequate or cause an unfair discrimination. Do not have to be submitted and get a prior approval from the department in order to implement new ones.

Changing Rates

the company establishes a rating method and informs the insurance department of the method. Filing paperwork includes how it was calculated and must be submitted within 30 days of the effective date.

Reviewing Rates

If the department determines that it is either too high or too low, an order is issued to change it. The department can also order a refund for policyholders.

Policy Forms

anything of a written nature that an insurance company uses in the course of conducting its business and is used with the public. All are submitted to the department to make sure the verbiage is compliant. Upon a discontinuance, compliance must be done within 15 days.

Appointment

a producer can not act with authority until they become a representative of the insurance company. If the agency is a producer, one natural person needs this.

Termination of Appointment

The company cancel for a producer and so can the insurance department. This requires paperwork and there is a fee for this removal. Reporting must be completed on or before July 1st of each odd numbered year.