Laws and Regulations
An insurance producer license is required of an individual to: correct
answersSolicit-
or ask person tosell
apply
Negotiate- confer/offer advice, quoting
rates
Sell- binding,
renewing
Give advice for a
fee
Receive
commission
Brokering correct answersbroker is a producer who arranges policies
for insureds
through insurance companies for which they do not have
agency contract
Disclosure correct answersAll insurance producers, limited lines producers,
business entities involved in sale must be identified
temporary,
in policy
Disclosure applies if sale was made by: correct answers1. Insurance producer
in person
2. call center phone insurance
3. online internet insurance
producer
producer
Penalty for not being licensed correct answers1. Class A
misdemeanor
2. Class 4
3. Injunction (restraining form selling
felony
insurance)
Penalty for not being licensed- Class A misdemeanor correct
answersActing
insurance agentaswithout
an license- fine up to $1,000 or 1 year in
jail (1 and 1)
Penalty for not being licensed- Class 4 felony correct answersActing as an
agent without a license AND misappropriating premiums- fine up to 5k
insurance
and/orinup
years to(5
jail 5 and
5)
Insurance producer license qualification correct answers1. at
least
2. not18committed acts that would be grounds for suspension,
revocation, denial of
licens
3. Pass state
e
exam
4. Purpose is NOT to sell controlled
business
, Controlled business correct answersinsurance sold to oneself, spouse,
employerown
persons or
business
Pre license requirements correct answers1. 20 hours of pre edu per line- 7.5
class, 12.5
sel
f2. Motor vehicle insurance- 12.5 hours only- 5 class,
7.5State
3. self certified
4. proof of
course
completion
Insurance continuing education correct answers24 hours continuous edu
every 2 year
license
term-
-3 hours ethics (classroom or
-webinar)
can be computer based interactive or
- self-study- open book final
classroom
exam
Business Entity correct answers"Insurance
agency"
Business entity license correct answers1.authorized licensed
individual
2. Complete Uniform Business Entity Application & pay $150 two
year
3. If brokering
fee insurance, must own
surety bond
Assumed name correct answersAny name other than producer or business
entity legal
nam
e
Change of address correct answersInsurance producer OR business entity
must report
change of address within 30 days to state insurance
director- no fee
Limited lines producer license correct answersCAN be licensed for
more than 1
insurance
company:
1. Baggage insurance, limited travel accident, trip cancellation
insurance
2. Rental car
3. industrial life
insurance
insurance
4. industrial
5. limited health service org
accident/health
plans
6. fire
7. legal expense
insurance
insurance
8. enroll public aid or medicare recipients in HMO
programs
Limited Lines producer license qualifications correct answers1.
18competent,
2. years trustworthy, good
business
3. NO EXAM,rep pre licensing edu, continued edu, bond
required
4. company must pay
$50