Kentucky State Regulations of Insurance Practice Exam |100% Correct|

Kentucky State Regulations of Insurance Practice Exam |100% Correct| Many life and health insurance products and procedures are somewhat common to all states. Many legal requirements are also similar from one state to another, either because *Ans* -they are federal laws that apply nationwide, such as ERISA (the pension law that explicitly pre-empts state law) or the securities laws that apply to variable insurance products that are enforced by the Financial Industry Regulatory Authority (FINRA); or -they are based on NAIC model laws that have been adopted by most state legislatures. Kentucky Department of Insurance Executive Director [304.2-020] *Ans* The Commissioner is the head of the Department of Insurance and is appointed by the governor to a four-year term. The Department of Insurance is divided into the following divisions, which are headed by directors appointed by the Secretary of the Public Protection Cabinet and approved by the governor: Property and Casualty Division Health and Life Division Division of Financial Standards and Examination Division of Agent Licensing Division of Insurance Fraud Investigation Consumer Protection Division Division of Kentucky Access Duties of the Insurance Commissioner Examination of Insurers and Producers [304.2-220, 230] *Ans* The Commissioner can examine the books and records of an insurer as often as necessary to determine whether they have complied with the law. The Commissioner can also examine the books and records of the following: -insurance holding companies -individuals holding shares of voting stock or proxies as voting trustees -agents, surplus lines brokers, adjusters, consultants, administrators, reinsurance intermediary brokers or managers -individuals who manage or control an insurer (as voting trustee or otherwise) -individuals who are involved in the promotion, formation, or financing of an insurer or holding company -The Commissioner may appoint examiners to conduct an examination and can hire actuaries, appraisers, attorneys, and accountants to aid in the examination.