PA Surplus Lines flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Eligible surplus lines insurer
- An insurer that appears on the Pennsylvania Insurance Department's current list of insurers permitted to write surplus lines business in the state; placement with an unlisted insurer violates the Insurance Code.
- Non-admitted insurer
- An insurer not licensed in Pennsylvania; it may write surplus lines only if it is on the Department's eligibility list and the placement meets diligent search requirements.
- Diligent search
- Documented effort to place a risk with admitted insurers authorized in Pennsylvania before resorting to surplus lines; declinations from admitted markets must be recorded and retained.
- Surplus lines eligibility list
- A Department-maintained roster of surplus lines insurers meeting financial and reporting standards; an insurer is removed when it falls below those standards.
- Stamping office function
- The state-designated office that receives and verifies surplus lines policy filings; the producer remains responsible for the accuracy of the filed information.
- Premium fiduciary duty
- A producer holding surplus lines premium acts as a fiduciary; premium must be held in trust or escrow and may not be commingled with the producer's general funds.
- Placement date eligibility check
- The insurer's eligibility status must be confirmed as of the policy effective date, since a later delisting does not cure an ineligible placement.
- Insurer annual statement
- Financial reporting filed by the surplus lines insurer with its domestic regulator and the NAIC; Pennsylvania does not approve the insurer's rates or forms before use.
- Resident producer license
- A Pennsylvania license issued after completing required prelicensing education and passing the applicable licensing examination for the line of authority requested.
- Nonresident reciprocity
- A producer licensed in good standing in a home state may obtain a Pennsylvania nonresident license without taking the Pennsylvania examination, under reciprocal arrangements.
- Biennial renewal
- Pennsylvania producer licenses renew every two years on the Department-assigned renewal date; transacting business after expiration is unlicensed activity subject to penalty.
- Producer appointment
- An insurer's authorization for a producer to act on its behalf; appointment and termination notices are filed with the Department by the appointing insurer.
- Address change reporting
- A licensee must notify the Department of a change of name or address within the period set by statute or regulation; failure can affect renewal and license status.
- Designated responsible producer
- A licensed individual who is accountable for a business entity licensee's compliance with Pennsylvania insurance laws; the entity license does not replace individual licenses.
- Unlicensed activity penalty
- Transacting insurance without a valid Pennsylvania license exposes the person to civil penalties and possible criminal liability, and may bar future licensure.
- License lines of authority
- The specific categories of insurance a producer is licensed to sell, such as life, accident and health, property, casualty, and surplus lines; each line carries its own requirements.
- Twenty-four CE credit hours
- Pennsylvania resident producers must complete 24 approved continuing education credit hours during each two-year license term to renew their license.
- Ethics CE requirement
- At least three of the required 24 continuing education credit hours each term must be in ethics instruction approved by the Pennsylvania Insurance Department.
- Approved course requirement
- Continuing education credit is granted only for courses approved by the Department and completed within the current term; unapproved coursework does not count.
- Home state CE reciprocity
- Nonresident producers generally satisfy Pennsylvania continuing education by meeting their home state's requirement, provided the home state extends reciprocal treatment.
- CE attestation at renewal
- The producer certifies continuing education completion when renewing; false attestation or incomplete credits blocks renewal and may require penalty before reinstatement.
- Instructor CE credit
- Credit for teaching or authoring an approved continuing education course may be claimed, subject to Department limits on how much such credit counts per term.
- CE record retention
- Producers must keep certificates and records of completed continuing education courses and produce them if the Department audits compliance.
- Duplicate credit rule
- A producer holding multiple lines of authority must satisfy continuing education for each line, but the same course cannot be counted twice for the same requirement.
- Surplus lines disclosure notice
- A required statement in the policy that the insurer is not licensed in Pennsylvania and is not covered by the Pennsylvania Insurance Guaranty Association.
- Guaranty fund exclusion
- Unauthorized insurers are not members of the Pennsylvania Insurance Guaranty Association, so claims against an insolvent surplus lines insurer receive no guaranty fund protection.
- Surplus lines premium tax
- A tax on surplus lines premium collected and remitted as the statute requires; failure to collect or remit the tax is a violation of Pennsylvania insurance law.
- Department bulletin effect
- Notices and bulletins published by the Insurance Department bind licensees from their effective date; compliance is judged against that date, not the date the licensee learned of it.
- Prohibited rebating
- Offering or giving anything of value not specified in the policy as an inducement to purchase insurance is prohibited under the Pennsylvania Insurance Code.
- Department examination authority
- The Insurance Department may examine licensee records, including diligent search files, and impose penalties, suspension, or revocation for violations found.
- Diligent search record retention
- Documentation of declinations, placement details, and premium must be kept for the period set by regulation and produced on demand during a Department examination.
- Misrepresentation prohibition
- Stating false or misleading policy terms, benefits, or insurer status, including implying a surplus lines insurer is licensed in Pennsylvania, violates state insurance law.