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MINNESOTA LAWS, RULES, AND
REGULATIONS COMMON TO LIFE,
HEALTH, PROPERTY, AND CASUALTY
INSURANCE RATED A
Powers and Duties of Commissioner
Appoints the Commissioner of Commerce ✔✔Governor
Powers and Duties of Commissioner
The Commissioner is empowered to_________________. (1 of 8 things) ✔✔enforce insurance laws
Powers and Duties of Commissioner
The Commissioner shall examine the affairs and conditions of every insurer licensed in Minnesota at least once every ________ ________. ✔✔five years
Powers and Duties of Commissioner
When conducting an examination, the Commissioner may retain attorneys, appraisers, independent actuaries, or independent certified public accountants as examiners; the cost is paid by_______________. ✔✔the company being examined
Powers and Duties of Commissioner
Once the records have been examined, the Commissioner will issue an _____________ _____________. Once issued, this report can be used as evidence in any legal proceeding. ✔✔examination report
Powers and Duties of Commissioner
Any person who violates or aids and abets any violation of a written order may be fined up to _______________ the violation continues. ✔✔$10,000 for each day
Powers and Duties of Commissioner
A _____________ ____________ ____________ is not for profit and exists solely for the benefit of its members. ✔✔fraternal benefit society
Definitions
An insurance company that has obtained a certificate of authority. ✔✔Admitted Carrier
Definitions
Insurance companies must obtain a ______________ ___ ____________ to transact business in the state of Minnesota. ✔✔certificate of authority
Prelicensing
Exam results are valid for ________ ________ from the date of the exam. ✔✔three years
Prelicensing
Minnesota law now requires both resident and nonresident accident/health insurance producers selling long-term care policies in Minnesota to complete a one-time, eight-hour partnership course and a four-hour refresher course every ________ _______ _________ the initial training. ✔✔two years after
Continuing Education
Producers must complete a minimum of ____ _________ ________ of commissioner-approved courses during each two-year licensing period. At least THREE of those hours must be in a class or classes in the are of ethics. ✔✔24 credit hours
Continuing Education
Only ______ the credit hours may be obtained through company-sponsored courses. ✔✔half
License Expiration
A nonresident producer who moves from one state to another must file a change of address and provide certification from the new resident state within ____ ______ of legal residence. No fee or license application is required. ✔✔10 days
Types of Licenses
Hires producers, supervises a territory, is responsible for agent activities, and must be licensed as an insurance producer. ✔✔Managing General Agent (MGA)
When Commissioner non-renews or denies a license application
The license applicant or licensee has ____ _______ to file a written request for a hearing to determine the reasonableness of the Commissioner's action. ✔✔30 days
When Commissioner non-renews or denies a license application
The hearing must be held within _____ _______, and will be in front of an administrative law judge. ✔✔30 days
Revocation or Suspension of License
A license is ____________ for any period of not less than THREE months. ✔✔suspended
Revocation or Suspension of License
A person whose license is REVOKED is prohibited from license reapplication for at least ______ ________ from the effective date of the revocation. ✔✔two years
Revocation or Suspension of License
As a condition of reapplication the producer must obtain a performance bond of at least _________ with the state of Minnesota as obligee. ✔✔$20,
Revocation or Suspension of License
In addition to taking action against a producer's license, the Commissioner may fine a producer up to __________ _____ ___________. ✔✔$10,000 per violation
An insurer that terminates a company appointment for any reason must notify the Commissioner within ____ _____ following the effective date of the termination. ✔✔30 days
Termination of Appointment
Within ____ ______ of notifying the Commissioner, the insurer must send written notice of the termination to the producer. ✔✔15 days
Termination of Appointment
Within ____ _______ after receiving notice of the termination, the producer may file written comments concerning the termination with the Commissioner. ✔✔30 days
Termination of Appointment
Any insurer that fails to file a company appointment is penalized _____ _____ _________. ✔✔$25 per offense
Termination of Appointment
The maximum penalty per unappointed producer ______. ✔✔$
Termination of Appointment
If the insurer fails to pay a penalty within _____ _______ after notice from the Commissioner, the insurer's authority to transact business in Minnesota will be revoked until the penalty is paid. ✔✔10 days
Maintenance and Duration of License
Insurance producer licenses are valid for a period of ____ _________. ✔✔24 months
Notification Requirements
The producer must notify the Commissioner within ____ _______ of a change of name, address, or any other information that was provided on the initial license application. ✔✔10 days
An individual producer whose license lapses may, within _____ _________ from the due date of the renewal fee, reinstate the license without having to pass a written exam. ✔✔12 months
Trade Practices
Offering or giving any rebate of premiums, dividends, stock, bonds or securities, or anything else of value as an inducement to buy insurance. ✔✔Rebating
Trade Practices
Replacing insurance to the detriment of the insured. ✔✔Twisting
Agent Conduct
Producers may accept a loan from an individual with whom the producer met in the course of the producer's business, provided the loan agreement is in writing. All records relating to the loan must be kept on file for at least _____ ________ after repayment. ✔✔six years
Agent Conduct
Policies must be delivered or mailed to the insured within _____ ________ ______ of the producer's receipt from the insurer. ✔✔30 working days
Agent Conduct
A producer who is convicted of a felony, gross misdemeanor, or misdemeanor involving moral turpitude must report it to the Commissioner within ____ _________ ______ of the conviction. ✔✔10 working days
Agent Conduct
Financial and complaint records must be kept on file for _____ ________. ✔✔six years
Agent Conduct
A producer who receives a policy cancellation request must make or initiate the refund within ____ _______ of the request. ✔✔10 days
Upon policy termination, all unearned premium must be delivered to the insured within ____ _______ following the insurer's receipt of the insured's cancellation request. ✔✔30 days
Fair Credit Reporting Act
Most adverse information remains in a credit report for ________ ________. Bankruptcy information remains in the report for 10 years. ✔✔seven years
Required Disclosures
Requires insurance companies to disclose their privacy policy, and how a customer's personal (non-public) information may be used and shared with affiliates and third parties. The Act requires companies to provide their privacy policy when a policy is issued, and at least once a year thereafter. ✔✔Gramm-Leach-Billey Act
Required Disclosures
The purpose of the Minnesota Insurance ____________ ______________ is to protect policyholders from an insurer's inability to pay claims due to insolvency or bankruptcy. ✔✔Guaranty Association
Guaranty Association
The notice of policyholder rights must be given either at the time of application; if the application is not taken in person, notice must be sent within _____ _________ of taking the application, or may be given at delivery. ✔✔72 hours
