Colorado Life Insurance Law

A license is deemed to be used for controlled business if, during any 12 month period, the total premiums on controlled business ____ the total premiums on all other business. - answer-Exceed A producer must remit premiums to insurer within ____ days after receipt. - answer-45 A producer must return all premium to the insured within ____ days. - answer-30 After the policy has been in force ____ year, the insurer may not deny death benefits (other than accidental death) due to suicide. - answer-1 An insurer has an additional ____ days to notify the producer - answer-15 (45 total) Any administrative actions or criminal prosecutions must be reported to Commissioner within - answer-30 days Certificate of authority expires on - answer-June 30 each year, renew annually Change of address (resident producers) must be reported in writing within - answer-30 days Commissioner Examinations - answer-Conduct formal financial examination of every insurer license in CO at least every 5 years, examinations outside of the state will be paid by insurance company, refusal to comply license could be suspended, revoked, denied, or non-renewed Commissioner must examine every licensed insurer at least once every - answer-5 years Commissioner's Duties - answer--Maintaining records that insurers are required by law to file in Commissioner's office, annual report by March 1 -Requiring domestic insurers to keep adequate records and complies with the law -Certificate of authority- insurer's license to transact insurance business, expires on June 30 and renewed annually -Investigating violations of insurance laws and presenting findings -Transmitting funds collected by Division of Insurance to state Department of Treasury -Oversee operation of electronic data interchange projects for billing and health benefit coverage's -Adopting rules and regulations -Determining whether rates are excessive, inadequate, or unfairly discriminatory Controlled Business - answer-Insurance written in licensee's own interests or interests of spouse or employer, if total during 12 month period premiums on controlled business exceed the total premiums on all other business, Commissioner will not grant or renew any license used for controlled business Conversion Rights for Group Policies - answer-If group policy terminates insurance of any class, each insured in that class who has been insured for at least 5 years before termination is entitled to an individual life policy Defamation - answer-Making oral or written statements that are false, maliciously critical, or derogatory to financial condition of insurer or intended to injure anyone in insurance business -Misdemeanor -Fine $500, imprisonment 12 months, or both Division of Insurance records and requests inquiries must be answered within ____ calendar days. - answer-20 Education documents must be retained for ____ years - answer-5 Emergency Cease and Desist Order - answer-Without a hearing if an unauthorized person is engaged in insurance business without license or in violation of a rule and appears to be fraudulent, creates immediate danger, or is about to cause significant public injury False Testimony - answer-Max of $5,000, 3 months imprisonment, or both Falsifying Books or Documents - answer-Max of $5,000, between 2 and 12 months imprisonment, or both First-party property and casualty claims must be paid by insurers within ____ days of receipt unless disputed, unfair claims practices. - answer-60 Fraudulent Claims and Arson Information Reporting Act - answer-Insurer must maintain antifraud plan that outlines specific procedures to prevent, detect, investigate fraud, educate employees about fraud detection and company's plan, hire one or more fraud investigators, and report suspected or actual insurance fraud Free-look for life insurance - answer-15 days Free-look for life insurance replacements - answer-30 days Grace period for group life insurance - answer-31 days In no beneficiary, the insurer may pay up to ____ to anyone who incurs verifiable funeral expenses. - answer-$5,000 Insurance Commissioner - answer-Appointed by and serves at the will of the governor, hires employees to help carry out duties, deputy commissioner steps in when commissioner is out Insurance Producer - answer-Person who solicits, negotiates, effects, procures, delivers, renews, continues, or binds insurance policies for risks in CO, membership in certain health care prepayment plans, or membership in certain health care plans Insurer must give a policyholder _____ days notice before an individual life insurance policy will lapse du e to nonpayment of premium. - answer-25 Insurers must maintain files of all advertisements for at least _____ years (or until next DOI examination, whichever is longer). - answer-5 years Interest on Proceeds - answer-Insurers pay interest on death benefits, any other life insurance policy benefits withh have interest rate of 2% or more above federal discount rate when remain unpaid more than 30 days after insurer receives insured's request for payment Investigating Possible Violations - answer-Commissioner is allowed free access to books and documents relating to insurer's business and may subpoena witnesses and administer oaths during an investigation Investigation of Application for Insurance Producer License - answer-Commissioner can examine/investigate person who is applying for license to determine if person has violated insurance laws or rules of the state or any other state Maximum number of hours that may be carried over to next CE period - answer-12 hours Minimum age for license - answer-18 Non-resident producers moving from one state to another must file change in address and provide certification from new resident state within - answer-30 days Payment of Benefits - answer-Insurers must pay first party claims under property and casualty policies within 60 days of receiving valid and complete claim -$20 penalty on claims under $100 -8% annual interest on claims more than $100 from date of claim until date claim is paid Penalty for any person applying for/holding and insurance producer license found to have violated insurance laws or rules of state or any other state - answer-Civil penalty of up to $3,000 per violation Prelicensing Education Requirements - answer-50 hours life insurance 50 hours accidental and health insurance 100 hours life, accident, and health insurance 50 hours property and casualty Minimum 3 hours ethics per 50 hour course Producer license is not required of fraternal benefit society representative if did not receive sales compensation and - answer--Preceding calendar year, representative sold society life insurance contracts with face value of $50,000 or less -Sold any other kind of insurance on behalf of society to 25 or fewer individuals and received no compensation Producer's license continually renewed as long as proper fees and continuing education requirements are met for how long? - answer-2 years Producers must complete a _____-hour annuity stability training course. - answer-4 Rate Regulation Laws - answer-Created to protect public by ensuring insurance rates are not excessive, inadequate, or unfairly discriminatory -Prohibit price fixing agreements (anti-competitive behavior) -Provide rates that are responsive to competitive market conditions -Improve availability and reliability of insurance Rebating - answer-Practice of giving something of value to a prospective insurance applicant in exchange for purchase of policy, considered unfair method of competition Records and Requests for Information - answer-Must be maintained for current calendar year plus 2 years prior Replacement Forms - answer-When new policy is written to take place of an already in force policy -Notice Re