South Carolina Rules

Office of insurance regulation

insures companies license to do business and states are financially variable, operate within the law and regulations of the insurance industry

Office of insurance relegation also?

make sure insurance policy products are fair and adequate rates which should not unfairly discriminate against the buy in public

unauthorized entities

The States reasons for concern

• potential criminal activity within insurance business

• adverse economic impact on unauthorized insurance

• the potential for unpaid claims due to dishonesty

Marketing practices

Agent responsibilities

agent responsibilities

Notice of replacement

Free look

Buyer’s guide

Notice of replacement

new annuity or insurance is purchased the existing life insurance or annuity will be replaced

Free look

specified number of days from the delivery date of the policy to look over a new policy in return for a full refund if dissatisfied for any reason

buyers guide

provides basic information about an insurance policy.

What also should a buyers guide have

Policy summary

when do you give the buyers guide?

before accepting the applicant initial premium or upon the clients request

Agents may not submit applications to an insurance company without the following:

• Insurance companies name on the first page

• The agents license number

agent ethics

The information must be legible, and the copy of the application must be provided to the applicant

What must a Group certificate contain

Group policy number

Description of the insurance protection

name of insured, beneficiaries, and dependents

rights and conditions

Cobra/Conversion

Federal law that requires employer with 20 or more employees to include a continuation of benefit provisions for former employees and their dependence

what can one do in the event Group plan is terminated because of a qualifying event?

Cobra/Conversion guarantees that the participants can continue the group coverage at their own expense, at group rates

examination of records

Director must examine the financial affairs of each insured operating South Carolina prior to issue in a certificate of authority.

minimum examined once every five years

notice and hearing

The Director may call and hold hearing for any purpose deemed necessary. notice of hearing must be given to the person at least 30 days prior to designated date

Cease or Desist order

on anybody found to have committed an unfair or deceptive act or has violated a state insurance law

certificate of authority

Director will exam the financial affairs of all insurance before issuing a certificate of authority to transact business in South Carolina

Solvency

The Director will suspend certificate of authority of any insure that becomes insolvent, is threatened with insolvency, or is delinquent and claims payment

Rates

The director has the authority to say reasonable standards for rate making

policy forms

It is illegal to use policy forms until they have been submitted to and formally approved by the Director. Director will notify ensure within 30 days as to whether the policy forms are approved or disapproved

reinstatement( sc)

May be registered within six months of the renewal date, however, a penalty fee will be requiring in addition to the renewal fee

Address/Name Change

producers must report a change in address or name to the department of insurance within 30 days of the change

Reporting of actions

Producers must report any bankruptcy, felony, convictions, or any other administrative actions that occurs in South Carolina or another jurisdiction to the insurance department within 30 days

Producer records

all producers shall maintain full correct transaction records of the business done by them for a period of five years

shared commissions

a producer may share a commission with another producer when the other producer license in the same line of business

fiduciary responsibility

responsibility for all funds collected from clients

Records maintenance

Producers must keep full accurate records of volunteer business in which they are involved. Record must be kept for at least five years.

domestic insurance company

home office is located in it’s state

forged insurance company

A company that home office is located in another state

Alien insurance company

headquarters in any country other than the United States.

authorized insurer

An insurance company that has qualified and received a certificate of authority from the insurance department to sell insurance in this state

Unauthorized insurer

an insurance company that has been denied or not yet applied for a certificate of authority and may not sell insurance in the state

stock insurance company

are controlled by stockholders, the stockholders provide the capital and share profit or losses

Mutual life insurance companies

an insurance company owned a controlled by its policy owners

misrepresentation

misrepresention about any fact about the insurance policy.

terms, benefits, value, cost,

false advertising

is an illegal practice to falsely advertising insurance products or service in any way

deformation of insurer

there is an illegal practice to make any public statements or advertisement that contains falls or molecular information or unstained criticism about an insurance company

Boycott, Coercion, Intimidaiton

is illegal to publish any false financial statement regarding a person or an entity

unfair discrimination

illegal practice to unfairly discriminate against a person in any way on a insurance related matter

Twisting

Involves making any false written or oral statement for the purpose of replacing an existing policy to the detriment of the insured

Insurance fraud act

illegal to commit an act of insurance fraud, which is defined as any intentional act occurring in the course of insurance business

prohibited inducuments

legal to promise employment, profit, or returns as a way to include at the sale of an insurance product .

can no exceed $25

claims

must be paid within 30 days by the insurer after proof of loss is received

reinstatement

a lapsed policy may be retained within three years from the due date upon evidence of insurability and all pet premiums are paid with interest

Incontestability Period

A provision that the policy terms shall be incontestable after it’s been in force for a period of 2 years form its date issued

entire contract

A provision that the policy and application shall constitute the entire contract between the parties

A life policy loan in South Carolina cannot charge a fixed rate of interest higher than?

8%

T purchased a life insurance policy. T has is entitled to review the policy and return if for full refund at?

10 days after delivery of policy

A temporary producer license issued in South Carolina is vaild up to?

180 Days