AD Banker Property and Casualty [ State Laws ]Well Answered

Certificate of Authority - ANSWERSIs required for insurers transacting business in Connecticut. To be granted a certificate of authority, an insurer must submit an application stating the lines of insurance it intends to underwrite, accompanied by a certified copy of its charter, a statement concerning the insurer's present financial condition. Certificates are renewed annually on May 1. Disciplinary Actions Cease and Desist Order - ANSWERSIf the Commissioner has reason to believe that a producer is in violation of law, a statement of charges may be sent. A hearing must be held within 30 days of the producer's receipt of the statement. At the hearing, an individual will have an opportunity to prove why the Commissioner should not issue a Cease and Desist Order. If after a hearing, the Commissioner determines that an individual is in violation of insurance law, a copy of the findings and a Cease and Desist Order will be issued. Any producer violating a Cease and Desist Order may be fined $5,000 for each violation and/or have their license suspended or revoked. Maintenance and Duration Renewal All producer licenses remain in effect unless revoked or suspended, provided appropriate fees are paid and continuing education requirements are met by the due date. - ANSWERS Licensing Process - ANSWERSThe purpose of the licensing process is to protect the public's interest by ensuring that the producers, agents and consultants are competent and qualified to hold a license and are held accountable for their actions. Application for License - ANSWERSa resident insurance producer license must 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's knowledge. The Commissioner will not approve the application unless the individual: - ANSWERSIs at least 18 years of age Has not committed any act that is a ground for denial, suspension or revocation Has completed a prelicensing course of study for the lines of authority applied for Has paid all required fees Has successfully passed the examinations A prelicensing course must consist of 40 hours for each line of insurance applied for, or equivalent experience or training as determined by the Commissioner. Examinations An insurance producer license must pass a written examination on the lines of authority for which application is made, the duties and responsibilities of an insurance producer and the insurance laws and regulations of Connecticut. - ANSWERSAn applicant who does not pass the examination must reapply and remit all required fees and forms before being scheduled for another examination. Business Entity The Commissioner will not approve the application unless the business entity: - ANSWERSHas paid the required fees Has designated a licensed producer responsible for compliance with the insurance laws, rules and regulations of the state of Connecticut Other Licenses A person or business entity desiring to act within the state as any of the following must make a written application to the Commissioner for a license: - ANSWERSPublic adjuster Casualty adjuster Motor vehicle physical damage appraiser Certified insurance consultant Surplus lines broker Applicants must be financially responsible and of good moral character, must pass a written exam, and pay all applicable fees. Exemptions The Commissioner may waive the examination and prelicensing education requirement for the following: - ANSWERSAn applicant for a limited license An applicant for a resident producer license who was previously licensed in the same line of insurance within the previous 12 months A nonresident producer who holds a valid license in his/her home state An applicant for a Certified Insurance Consultant license who holds either a CLU, CPCU, CIC or AAI professional designation Types of Licensees - ANSWERSResident Producer The lines of authority that require a producer license are: Life Accident and Health Variable Life/Variable Annuities (Life authority required) Property and Casualty Personal Lines Appointment - ANSWERSAn insurance producer must be appointed by an insurer to act as an agent for that insurer. To appoint a producer as its agent, the insurer must file a notice of appointment with the Commissioner no later than 15 days after the date the agency contract is executed or the first insurance application is submitted. The insurer must pay an appointment fee and remit renewal appointment fees for each insurance producer appointed by that insurer. Certified Insurance Consultant - ANSWERSA Certified Insurance Consultant must have a written agreement with a client that specifies the fee and what advice is to be given. Any violation of this provision shall subject the consultant to a fine of between $250 and $2,500. A Certified Insurance Consultant may not receive a commission for the sale of insurance to a client who is being charged a fee for the service. Violation of this provision will subject the consultant to a fine of $250 to $2,500 and/or imprisonment of 30 - 90 days. Nonresident Producers A nonresident will be exempt from prelicensing and examination requirements - ANSWERSIf the licensee holds a license for the same line or lines of insurance in his/her home state. To obtain a license, the nonresident producer must submit a completed application, with proper certification of appointment if necessary, and the licensing certification letter from his/her home state. A letter of certification not more than 90 days old from that state's insurance department is the only proof of licensing required. Continuing education requirements - ANSWERSWill be waived if the licensee provides a certification letter indicating continuing education compliance in the home state. If a nonresident does not hold an equivalent license in any other state, they must satisfy the same prelicensing course and examination requirements required of a resident producer. Temporary License + In certain cases, the Commissioner may issue a temporary agent's license without requiring the applicant to pass a written examination. Temporary licenses are issued for a period not to exceed 180 days. - ANSWERSA temporary license may be issued to: The surviving spouse or court-appointed personal representative of a licensed producer who dies or becomes physically or mentally disable The designee of a licensed producer entering active service in the armed forces of the United States An employee of a business entity licensed as a producer upon death or disability of someone designated in the business entity's license Surplus Lines Broker + Must be currently licensed and in good standing as a Connecticut Property and Casualty Producer and pass a surplus lines broker's examination. - ANSWERSThere are no continuing education requirements for surplus lines licensees. A surplus lines broker's license authorizes the licensee to procure, from insurers not authorized to transact business in this state. The Commissioner maintains an Exportable List of those lines of insurance for which coverage is generally unavailable from licensed insurers. The Commissioner maintains an Exportable List of those lines of insurance for which coverage is generally unavailable from licensed insurers. The Commissioner will republish the list and make it available to all licensees every 6 months. The producer and the insured must execute a signed statement (formerly called an affidavit) showing that the insured and producer were unable to procure, from any authorized insurer, and showing the amount of insurance procured from an unauthorized insure. These signed statements must be filed in electronic format with the Commissioner on February 15th, May 15th, August 15th, and November 15th of each year. Maintenance and Duration - ANSWERSAll producer licenses remain in effect unless revoked or suspended, provided appropriate fees are paid and continuing education requirements are met by the due date. Renewal - ANSWERSAny license issued to an insurance producer renews on licensee's birthday every 2 years. Prior to May 1 of even numbered years, insurance companies must provide the Commissioner with a list of all producers whose appointments will continue. Any insurance company that cancels or does not renew an appointment must notify the Commissioner, producer, and agency in writing, within 30 days of the action. A licensee who wishes to reinstate beyond 12 months of the due date must complete new prelicensing and examination requirements. Certified Insurance Consultant licenses expire September 30 each odd-numbered year. A public adjuster's license may be renewed by paying the required $125 renewal fee. Change in Name/Address - ANSWERSA licensee must notify the Commissioner within 30 days of any change in the following: Name , Business or residence address Employer Licensed personnel of a business entity Reporting of Actions no later than 30 days after the final disposition of the matter. The report must include a copy of the order, consent to order or other relevant legal documents. Assumed Names Any name used in the business of insurance that uses the same tax identification number as the licensed producer, need only be registered with the Department as an assumed name, trade name or DBA name. Continuing Education Credits Required - ANSWERSAll producers must fulfill 24 hours of continuing education (CE) biennially (every 2 years). Of the 24 hours, 3 must include laws, regulations, or ethics, and 6 must be specific to each line of authority the producer holds. Deadlines All requirements must be completed by the producer's birthday every other year. Extensions Producers are not entitled to any extension of time to complete CE requirements, unless they are unable to complete requirements on time due to military service. Exemptions - ANSWERSThe following are exempt from CE requirements in Connecticut: A nonresident licensed producer who has fulfilled the CE requirements of the home state Producers licensed only for limited lines Certified Insurance Consultants Viatical Settlement Brokers Penalties - ANSWERSPrior to suspension, the Commissioner must provide 30 days written notice, Issue a cease and desist order, with a penalty of $5,000 for each violation up to a total of $50,000. For knowing violations, the penalty may be increased to $25,000 per violation up to a total of $250,000 in any 6-month period. Revoke or suspend a person's or company's license. Commissioner may impose a fine not to exceed $5,000. Issue a fine up to $4,000 and/or up to 6 months in jail for negotiating, continuing, or renewing any insurance contract with an unauthorized company, an insurance license is suspended or revoked Issue a fine up to $500 and/or up to 6 months in jail for neglecting to make or willfully falsifying a required affidavit or statement. Issue a fine up to $5,000 and/or imprisonment up to 30 days for twisting Issue a fine up to $10,000 for the first offense, and $20,000 for each subsequent offense if an insurance company or health care center advertises funds Hearings - ANSWERSThe Commissioner may conduct investigations and hearings. He/she may issue subpoenas, administer oaths, compel testimony The Commissioner may not revoke or suspend a license or impose a fine without prior notice and an opportunity for a ne books and records. A hearing must be held within 30 days of the producer's receipt of the statement. Suspension, Revocation or Refusal to Issue or Renew, Fines - ANSWERSThe Commissioner may place on probation, suspend, revoke, refuse to issue or renew an insurance producer's license, or levy a civil penalty of up to $5,000, When denying a license, the Commissioner must notify the applicant of the denial and reason for denial in writing. The applicant may make written demand upon the Commissioner, no later than 30 days after the notice, for a hearing to determine the reasonableness of the action, to be held no later than 20 days after receipt of such request. Commissioner's General Duties and Powers - ANSWERSThe Connecticut Commissioner of Insurance is vested with the following duties and powers: Issuing Certificates of Authority to domestic insurers in compliance with the laws Issuing, refusing, revoking or suspending licenses or Certificates of Authority Ensuring that state insurance laws are executed Adopting new insurance regulations as necessary to implement the insurance law effectively Administering oaths Recommending changes in the insurance law to the general assembly Directing the Division of Consumer Affairs within the Insurance Department to receive and review complaints Commissioner's General Duties and Powers - ANSWERSIssuing Certificates of Authority to domestic insurers in compliance with the laws Issuing, refusing, revoking or suspending licenses or Certificates of Authority Ensuring that state insurance laws are executed Adopting new insurance regulations as necessary to implement the insurance law effectively Administering oaths Recommending changes in the insurance law to the general assembly Directing the Division of Consumer Affairs within the Insurance Department to receive and review complaints Unfair Claim Settlement Practices - ANSWERSCompelling insureds to litigate to recover amounts due by offering substantially less than the amounts recovered in similar actions brought by legal process Attempting to settle a claim for less than that which a reasonable person would believe they are entitled Attempting to settle claims based on an altered application Making known to insureds or claimants a policy of appealing from arbitration awards Making claim payments to insureds without indicating the coverage under which payment was made Delaying investigation or payment of a claim by requiring submission of a preliminary claim report Failing to promptly settle a claim where liability has become reasonably clear under one portion of the policy in order to influence settlements under other portions of the policy Failing to promptly provide a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim Not considered unfair claim practices: - ANSWERSFailing to pay a claim prior to the receipt of a proof of loss Failing to pay a claim for services received prior to the effective date of the coverage Failing to pay a claim when a policy is in a lapsed status Settlement of a claim by arbitration