ACCIDENT AND HEALTH INSURANCE
AGENT TRAINING STUDY SHEET 2026
UPDATED QUESTIONS AND ANSWERS
◉Suspension, Revocation, and Nonrenewal (2110). Answer: The
Superintendent may refuse to renew, revoke, or may suspend, for a
period the Superintendent determines, the license of any insurance
producer, insurance consultant or adjuster, if, after notice and
hearing, the Superintendent determines that the licensee or any sub-
licensee has:
1. violated any insurance laws, regulation, subpoena or order of the
Superintendent of Insurance or of another state's Insurance
Commissioner, or has violated any law in the course of his dealings
in such capacity;
2. provided materially incorrect, materially misleading, materially
incomplete or materially untrue information in the license
application;
3. obtained or attempted to obtain a license through
misrepresentation or fraud;
4. has used fraudulent, coercive or dishonest practices,
demonstrated incompetence, demonstrated untrustworthiness, or
demonstrated financial irresponsibility in the conduct of business in
this state or elsewhere;
,5. improperly withheld, misappropriated or converted any monies
or properties received in the course of business in this state or
elsewhere;
6. intentionally misrepresented the terms of an actual or proposed
insurance contract or application for insurance;
7. has been convicted of a felony;
8. admitted or been found to have committed any insurance unfair
trade practice or fraud;
9. had an insurance producer license, or its equivalent, denied,
suspended or revoked in any other state, province, district or
territory;
10. forged another's name to an application for insurance or to any
document related to an insurance transaction;
11. improperly used notes or any other reference material to
complete an examination for an insurance license;
12. knowingly accepted insurance business from an individual who
is not licensed;
13. failed to comply with an administrative or court order imposing
a child
◉Penalties (2127):. Answer: The Superintendent, in lieu of revoking
or suspending the license of a licensee, may in any one proceeding
by order, require the licensee to pay a penalty in a sum not exceeding
$500 for each offense, and a penalty in a sum not exceeding $2,500
in the aggregate for all offenses.
,Upon the failure of such a licensee to pay such penalty ordered
within 20 days after the mailing of such order, postage prepaid,
registered, and addressed to the last known place of business of
such licensee, unless such order is stayed by an order of a court of
competent jurisdiction, the Superintendent may revoke the license
of such licensee or suspend the same for such period as he
determines.
◉Superintendent's General Duties and Powers (2404, Financial
Services 201, 202, 301). Answer: The Superintendent is empowered
to:
Examine and investigate into the affairs of any person in order to
determine whether the person has violated or is violating the
insurance and regulations of this state. Responses to requests for
information by the Superintendent should be made not less than 15
business days.
The Superintendent is authorized, after notice and hearing, to levy a
civil penalty against such person in an amount not to exceed $500
per day for each day beyond the date specified by the
Superintendent for response, but in no event will such penalty
exceed $10,000.
In the event the Superintendent levies five separate civil penalties
against any one person within five years for failure to comply with
this section, the Superintendent is authorized, after notice and
hearing, to levy an additional civil penalty against not to exceed
$50,000.
, The Superintendent is also authorized to levy additional civil
penalties not to exceed $50,000, after notice and hearing, against
such person for every five subsequent violations of this section
within a five year period. Any licensee may surrender his or her
license in lieu of payment of any civil penalty imposed by the
Superintendent.
◉Certificate of Authority (1102). Answer: The certificate of
authority is an insurer's license to transact insurance in this state as
an authorized insurer.
◉Solvency (307). Answer: It is required that each insurer file annual
financial statements for review by the Superintendent to determine
the continued solvency of the insurer.
◉Unfair Claim Settlement Practices (2601; Reg. 64, Part 216.3-
216.6). Answer: Unfair settlement practices include:
Knowingly misrepresenting to a claimant pertinent facts or policy
provisions related to the coverages at issue. Failing to acknowledge
within reasonable time, communications with respect to claims
arising out of its policies.
Failing to adopt and implement reasonable standards of prompt
investigation of claims arising out of an insurer's policies. Claims
must be promptly investigated to determine liability.
AGENT TRAINING STUDY SHEET 2026
UPDATED QUESTIONS AND ANSWERS
◉Suspension, Revocation, and Nonrenewal (2110). Answer: The
Superintendent may refuse to renew, revoke, or may suspend, for a
period the Superintendent determines, the license of any insurance
producer, insurance consultant or adjuster, if, after notice and
hearing, the Superintendent determines that the licensee or any sub-
licensee has:
1. violated any insurance laws, regulation, subpoena or order of the
Superintendent of Insurance or of another state's Insurance
Commissioner, or has violated any law in the course of his dealings
in such capacity;
2. provided materially incorrect, materially misleading, materially
incomplete or materially untrue information in the license
application;
3. obtained or attempted to obtain a license through
misrepresentation or fraud;
4. has used fraudulent, coercive or dishonest practices,
demonstrated incompetence, demonstrated untrustworthiness, or
demonstrated financial irresponsibility in the conduct of business in
this state or elsewhere;
,5. improperly withheld, misappropriated or converted any monies
or properties received in the course of business in this state or
elsewhere;
6. intentionally misrepresented the terms of an actual or proposed
insurance contract or application for insurance;
7. has been convicted of a felony;
8. admitted or been found to have committed any insurance unfair
trade practice or fraud;
9. had an insurance producer license, or its equivalent, denied,
suspended or revoked in any other state, province, district or
territory;
10. forged another's name to an application for insurance or to any
document related to an insurance transaction;
11. improperly used notes or any other reference material to
complete an examination for an insurance license;
12. knowingly accepted insurance business from an individual who
is not licensed;
13. failed to comply with an administrative or court order imposing
a child
◉Penalties (2127):. Answer: The Superintendent, in lieu of revoking
or suspending the license of a licensee, may in any one proceeding
by order, require the licensee to pay a penalty in a sum not exceeding
$500 for each offense, and a penalty in a sum not exceeding $2,500
in the aggregate for all offenses.
,Upon the failure of such a licensee to pay such penalty ordered
within 20 days after the mailing of such order, postage prepaid,
registered, and addressed to the last known place of business of
such licensee, unless such order is stayed by an order of a court of
competent jurisdiction, the Superintendent may revoke the license
of such licensee or suspend the same for such period as he
determines.
◉Superintendent's General Duties and Powers (2404, Financial
Services 201, 202, 301). Answer: The Superintendent is empowered
to:
Examine and investigate into the affairs of any person in order to
determine whether the person has violated or is violating the
insurance and regulations of this state. Responses to requests for
information by the Superintendent should be made not less than 15
business days.
The Superintendent is authorized, after notice and hearing, to levy a
civil penalty against such person in an amount not to exceed $500
per day for each day beyond the date specified by the
Superintendent for response, but in no event will such penalty
exceed $10,000.
In the event the Superintendent levies five separate civil penalties
against any one person within five years for failure to comply with
this section, the Superintendent is authorized, after notice and
hearing, to levy an additional civil penalty against not to exceed
$50,000.
, The Superintendent is also authorized to levy additional civil
penalties not to exceed $50,000, after notice and hearing, against
such person for every five subsequent violations of this section
within a five year period. Any licensee may surrender his or her
license in lieu of payment of any civil penalty imposed by the
Superintendent.
◉Certificate of Authority (1102). Answer: The certificate of
authority is an insurer's license to transact insurance in this state as
an authorized insurer.
◉Solvency (307). Answer: It is required that each insurer file annual
financial statements for review by the Superintendent to determine
the continued solvency of the insurer.
◉Unfair Claim Settlement Practices (2601; Reg. 64, Part 216.3-
216.6). Answer: Unfair settlement practices include:
Knowingly misrepresenting to a claimant pertinent facts or policy
provisions related to the coverages at issue. Failing to acknowledge
within reasonable time, communications with respect to claims
arising out of its policies.
Failing to adopt and implement reasonable standards of prompt
investigation of claims arising out of an insurer's policies. Claims
must be promptly investigated to determine liability.
