5 Producer Licensing act

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Author:
drewokc
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66198
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5 Producer Licensing act
Updated:
2011-02-14 21:58:55
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Producer Licensing act
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Producer Licensing act
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  1. Persons required to be _____ as a Producer
    Licensed
  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.
    Binder
  10. A binder is a temporary protection from a maximum period of ____ days.
    90 days
  11. A binder can be written or _____
    Verbal
  12. Insurance producers have a ____ responsibility to both the insurance company and the insureds they represent.
    Fiduciary
  13. A fiduciary is a person is a person held in trust and must place the other party’s interest above his/ ___ interest.
    Own
  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.
    Interest
  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.
    24
  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.
    Admitted
  24. Surplus lines insurance must be purchased through a ______ surplus lines broker and cannot be purchased directly with the non admitted insurance.
    Licensed
  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.
    BOLD FACE TYPE:
  26. A premium tax of __ % of the gross premium is charged on all surplus lines policies.
    6
  27. The surplus lines broker collects the tax from, the insured and remits the tax to the Sate of OK on a ___ basis.
    Quarterly
  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.
    Fee
  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

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