Insurance Regulations
List of Department of Insurance Correct Answer: - Insurance commissioner
- Admission of insurance companies
- Examination of insurance companies
- Insurance guaranty association
List of Licensing Laws Correct Answer: - Types of licensees
- Duties of a producer
- Maintenance and duration
Producer/company compliance Correct Answer: - Unfair competition law
- Unfair claims settlement practices
- Insurance fraud regulation
- Privacy of consumer financial information
- Disciplinary actions
Department of Insurance Correct Answer: - Was created to take charge of the organization,
supervision, regulation, examination, rehabilitation, liquidation, and conservation of all insurance
companies authorized to do business in Indiana, and to enforce, administer and excute the
provisions of the state statues applicable to insurance companies the insurance department or to
the insurance commissioner
- Its best interest and safety of the public
- Will promulgate rules
Statue Correct Answer: - Formal written law enacted by legislature, insurance can be found in
the state insurance code
Branches of department of insurance Correct Answer: - Legislative - making laws
- Executive - enforcing laws
- Judicial - interpreting laws
Insurance Commissioner Correct Answer: - Chief executive and administrative officer of the
insurance department
- Control the power, duties, management of the insurance department
- Is appointed by the governor
- Has legislative and judicial power
Duties of the commissioners Correct Answer: - Adopt rules and regulation to enforce provision
of the insurance code
- Conduct examination, investigations, and hearings to determine whether any person has
violated any provision of the code
- Maintain confidentiality of documents, materials, or other information used in regulatory or
legal action
,- Issue a cease and desist order if any person is believed to have violated any provisions of the
code
- Issue insurance licenses and certificates of authority and take action against fine or suspend the
license of any company and or producer
- Disseminate information concerning insurance laws of this state and provide assistance to the
public in obtaining information about insurance products
Commissioner of insurance (SLAEC) Correct Answer: - Supervise insurance business
- Licensing
- Approve policies and forms
- Enforce insurance laws and impose penalties for violation
- Conduct examination, investigations, hearings
Admitted/authorized Correct Answer: - Is an insurance company that has qualified and has
received a certificate of authority from the department of insurance to transact insurance in the
sate
Certificate of authority Correct Answer: - When an insurance company has proven that it is
compliant with Indiana insurance laws
- Its illegal for an insurance company to transact insurance without it
Certificate of authority can be issued when Correct Answer: - The company has submitted a
sound plan of operation
- General character and experience of the incorporators, directors, and proposed officers assures
reasonable promise of a successful operation. There is no good reason to believe that they are
affiliated through ownership, control, management, reinsurance transactions, other insurance or
manipulation of asset accounts or reinsurance
- Must notify commissioner or the election or appointment of every NEW director within 30
days if possession of certificate of authority
- Commissioner may impose a max civil penalty of 25k if operate without a certificate
Location of incorporation Correct Answer: - Insurance companies are classified according, must
obtain certificate of authority before transacting insurance within the state
Domestic insurer Correct Answer: - Is an insurance company that is incorporated in this state
Foreign Insurer Correct Answer: - Is an insurance company that is incorporated in another state
or territorial possession
Alien Insurer Correct Answer: - Is an insurance company that is incorporated outside the US
Examination of insurance companies Correct Answer: - Purpose is to ensure that the companies
remain solvent and conduct business of insurance in compliance with state laws and regulation
pertaining to licensing, policy forms, rates, claims, and market conduct
- Commissioner may conduct any examination
- Every insurer licensed in Indiana must conduct once every 5 years
, Commissioner may accept an examination report under the following Correct Answer: -
Insurance department that prepared the report was at the time of the examination accredited
under the NAIC financial regulation standards and accreditation program
- Examination is performed with the participation of one or more examiners who are employed
by an accredited state insurance department and who after a review of the examination work
papers and report state under oath that the examination was performed in a manner consistent
with the standards and procedures required by their insurance department
Life and health guaranty association Correct Answer: - Created to protect policyowner against
insolvent insurers within certain limitation.
- Any company selling LIFE and or HEALTH insurance must belong to this group
- If a company goes bankrupt, group contribute and help financially the policyowners of the
insolvent company
Association's Liability Correct Answer: - May not exceed the lesser of the contractual
obligations
- 300k in life insurance death benefit, but not more than 100k in net cash surrender and net cash
withdrawal value for life insurance
- 300k in health insurance benefit, but not more than 100k in any net cash surrender and net cash
withdrawal values
- 100k in the present value of annuity benefits, including net cash surrender and net cash
withdrawals values
- If a single owner owns more than one non group policy on multiple persons, the guaranty
association will not pay more than 4mill to any one owner. This limit also applies to unallocated
annuity contracts issued to or in connection with a government lottery.
Unfair trade practice Correct Answer: - To make any statement that an insurer's policies are
guaranteed by the existence of the insurance guaranty associations
Types of licenses Correct Answer: - Producers
- Resident vs nonresident
- Consultants
- Producer acting as consultant
- Temporary
- Limited lines
- Insurance company
Producers Correct Answer: - Are individuals or business entities that are licensed to sell, solicit,
or negotiate insurance . from a legal standpoint, they represent their respective insurance
companies, not their customers.
Resident insurance producer Correct Answer: - Should submit an application to the
commissioner on the uniform application and declare under penalty of refusal, suspension, or
revocation of the license that the statements made in the application are true, correct, and
complete to the best of the individual knowledge and belief
List of Department of Insurance Correct Answer: - Insurance commissioner
- Admission of insurance companies
- Examination of insurance companies
- Insurance guaranty association
List of Licensing Laws Correct Answer: - Types of licensees
- Duties of a producer
- Maintenance and duration
Producer/company compliance Correct Answer: - Unfair competition law
- Unfair claims settlement practices
- Insurance fraud regulation
- Privacy of consumer financial information
- Disciplinary actions
Department of Insurance Correct Answer: - Was created to take charge of the organization,
supervision, regulation, examination, rehabilitation, liquidation, and conservation of all insurance
companies authorized to do business in Indiana, and to enforce, administer and excute the
provisions of the state statues applicable to insurance companies the insurance department or to
the insurance commissioner
- Its best interest and safety of the public
- Will promulgate rules
Statue Correct Answer: - Formal written law enacted by legislature, insurance can be found in
the state insurance code
Branches of department of insurance Correct Answer: - Legislative - making laws
- Executive - enforcing laws
- Judicial - interpreting laws
Insurance Commissioner Correct Answer: - Chief executive and administrative officer of the
insurance department
- Control the power, duties, management of the insurance department
- Is appointed by the governor
- Has legislative and judicial power
Duties of the commissioners Correct Answer: - Adopt rules and regulation to enforce provision
of the insurance code
- Conduct examination, investigations, and hearings to determine whether any person has
violated any provision of the code
- Maintain confidentiality of documents, materials, or other information used in regulatory or
legal action
,- Issue a cease and desist order if any person is believed to have violated any provisions of the
code
- Issue insurance licenses and certificates of authority and take action against fine or suspend the
license of any company and or producer
- Disseminate information concerning insurance laws of this state and provide assistance to the
public in obtaining information about insurance products
Commissioner of insurance (SLAEC) Correct Answer: - Supervise insurance business
- Licensing
- Approve policies and forms
- Enforce insurance laws and impose penalties for violation
- Conduct examination, investigations, hearings
Admitted/authorized Correct Answer: - Is an insurance company that has qualified and has
received a certificate of authority from the department of insurance to transact insurance in the
sate
Certificate of authority Correct Answer: - When an insurance company has proven that it is
compliant with Indiana insurance laws
- Its illegal for an insurance company to transact insurance without it
Certificate of authority can be issued when Correct Answer: - The company has submitted a
sound plan of operation
- General character and experience of the incorporators, directors, and proposed officers assures
reasonable promise of a successful operation. There is no good reason to believe that they are
affiliated through ownership, control, management, reinsurance transactions, other insurance or
manipulation of asset accounts or reinsurance
- Must notify commissioner or the election or appointment of every NEW director within 30
days if possession of certificate of authority
- Commissioner may impose a max civil penalty of 25k if operate without a certificate
Location of incorporation Correct Answer: - Insurance companies are classified according, must
obtain certificate of authority before transacting insurance within the state
Domestic insurer Correct Answer: - Is an insurance company that is incorporated in this state
Foreign Insurer Correct Answer: - Is an insurance company that is incorporated in another state
or territorial possession
Alien Insurer Correct Answer: - Is an insurance company that is incorporated outside the US
Examination of insurance companies Correct Answer: - Purpose is to ensure that the companies
remain solvent and conduct business of insurance in compliance with state laws and regulation
pertaining to licensing, policy forms, rates, claims, and market conduct
- Commissioner may conduct any examination
- Every insurer licensed in Indiana must conduct once every 5 years
, Commissioner may accept an examination report under the following Correct Answer: -
Insurance department that prepared the report was at the time of the examination accredited
under the NAIC financial regulation standards and accreditation program
- Examination is performed with the participation of one or more examiners who are employed
by an accredited state insurance department and who after a review of the examination work
papers and report state under oath that the examination was performed in a manner consistent
with the standards and procedures required by their insurance department
Life and health guaranty association Correct Answer: - Created to protect policyowner against
insolvent insurers within certain limitation.
- Any company selling LIFE and or HEALTH insurance must belong to this group
- If a company goes bankrupt, group contribute and help financially the policyowners of the
insolvent company
Association's Liability Correct Answer: - May not exceed the lesser of the contractual
obligations
- 300k in life insurance death benefit, but not more than 100k in net cash surrender and net cash
withdrawal value for life insurance
- 300k in health insurance benefit, but not more than 100k in any net cash surrender and net cash
withdrawal values
- 100k in the present value of annuity benefits, including net cash surrender and net cash
withdrawals values
- If a single owner owns more than one non group policy on multiple persons, the guaranty
association will not pay more than 4mill to any one owner. This limit also applies to unallocated
annuity contracts issued to or in connection with a government lottery.
Unfair trade practice Correct Answer: - To make any statement that an insurer's policies are
guaranteed by the existence of the insurance guaranty associations
Types of licenses Correct Answer: - Producers
- Resident vs nonresident
- Consultants
- Producer acting as consultant
- Temporary
- Limited lines
- Insurance company
Producers Correct Answer: - Are individuals or business entities that are licensed to sell, solicit,
or negotiate insurance . from a legal standpoint, they represent their respective insurance
companies, not their customers.
Resident insurance producer Correct Answer: - Should submit an application to the
commissioner on the uniform application and declare under penalty of refusal, suspension, or
revocation of the license that the statements made in the application are true, correct, and
complete to the best of the individual knowledge and belief
