5 Producer Licensing act

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5 Producer Licensing act
2011-02-14 21:58:55
Producer Licensing act

Producer Licensing act
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  1. Persons required to be _____ as a Producer
  2. Under the _______ __________ ________Act a person who “Transacts Insurance” in Oklahoma must be licensed in the appropriate line of insurance
    Oklahoma Producer Licensing Act
  3. Any of the following is considered “transacting Insurance”
    • 1.Solicit (prospecting)
    • 2. Negotiate (quoting)
    • 3. Effectuation of contract of insurance (application) “bind insurance”
    • 4. Transaction of matter “subsequent” to effectuation of the contract and arising out of it (service)
  4. Transacting insurance (4)
    • Prospecting
    • Quoting
    • Application
    • Service
  5. Persons exempt from licensing
    • Employees within an agency who receive no commission and devote full time to clerical or administrative services only.
    • Salaried employees within an insurance company (who receive no commission). No soliciting or negotiating insurance. Underwriter or actuary
  6. To receive a commission from an insurer:
    • Be licensed in the appropriate line of insurance
    • Have an insurer appointment
  7. The law of ____ pertains to contractual relationships where a person is authorized to perform certain acts for another.
    Law of agency
  8. Under the law of agency there are three parties involved:
    • 1. Principal: Insurer
    • 2. Producer (agent)
    • 3. Third Party: client or policy owner
  9. A___ is a temporary insurance contract.
  10. A binder is a temporary protection from a maximum period of ____ days.
    90 days
  11. A binder can be written or _____
  12. Insurance producers have a ____ responsibility to both the insurance company and the insureds they represent.
  13. A fiduciary is a person is a person held in trust and must place the other party’s interest above his/ ___ interest.
  14. Fiduciary responsibilities of a producer:
    • 1. Identifying financial risk to the insured.
    • 2. Selling the best policy coverage for the insured
    • 3. Explaining insurance coverage
    • 4. Collecting the initial premium.
    • 5. Delivering the insurance policy.
  15. A conflict of ____ can arise when a producer’s decision does not fulfill their fiduciary responsibility and is influenced by personal interests.
  16. Types of Oklahoma Licenses:
    • 1. Producer
    • 2. CSR
    • 3. Limited Insurance Rep
    • 4. Temporary Producer
    • 5. Surplus Lines Insurance Broker
    • 6. Insurance Consultant
  17. The term period of all Licenses are ____ months.
  18. Producer license categories (lines or insurance)
    Personal P&C, Commercial P&C, Life, accident & health, title insurance
  19. Limited Insurance Rep can sell, solicit, or negotiate what lines:
    Credit, travel, prepaid legal, car rental, vending machine
  20. Temporary producer license may be issued for ___ days.
    180 days
  21. Examples of temporary producers:
    Surviving spouse or court appointed personal rep of a licensed producer who dies or becomes disabled. A person designated by producer who is entering the Armed Forces. Any person the Commissioner determines would serve the public interest.
  22. ______ _____ ____ ______ is a person or legal entity that transacts insurance on behalf of a non admitted insurer.
    Surplus lines Insurance Broker
  23. If the type of insurance required cannot be obtain from an ____ insurance company, then the insured can purchase insurance from a unauthorized insurance company thru a surplus lines.
  24. Surplus lines insurance must be purchased through a ______ surplus lines broker and cannot be purchased directly with the non admitted insurance.
  25. Surplus lines policies issued by a non admitted company must contain ___ ____ type a notification stamped on the declarations page that this policy is a surplus lines policy and not subject to the protection of the Oklahoma property & Casualty Guaranty Association.
  26. A premium tax of __ % of the gross premium is charged on all surplus lines policies.
  27. The surplus lines broker collects the tax from, the insured and remits the tax to the Sate of OK on a ___ basis.
  28. ____ _____ is a person licensed to engage in the business of offering advice , counsel or opinion with respect to the benefits, advantages, disadvantages of an insurance policy.
    Insurance consultants
  29. Consultants are paid a __ by the client and can never receive a commission nor sell and insurance policy.
  30. Consultants must have a ____ _____ fro services, specifying fee and nature of the work.
    Written agreement
  31. Consultants cannot concurrently hold a consultant license and a?
    Producer license