| A | B |
|---|
| Paul v. Virginia | 1869 |
| The Armstrong Investigation Act | 1905 |
| US v. South-Eastern Underwriters Association | 1944 |
| The McCarran Ferguson Act | 1945 |
| The Fair Credit Reporting Act | 1970 |
| Gramm-Leach-Bliley Act | 1999 |
| The Gramm-Leach-Bliley Act was also known as | Financial Services Modernization Act |
| USA Patriot Act | 2001 |
| USA Patriot Act stands for | Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act |
| National Do NOt Call Registry | 2003 |
| Patient Protection and Affordable Care Act is also known as | PPACA / Affordable Care Act ACA) |
| Patient Protection and Affordable Care Act | 2010 |
| The USA Patriot Act was in 2001 because | that was 9/11: 9/11/2001 |
| The Gramm-Leach-Bliley Act had 3 names and was in 1999 because | The 3 children, Ravi/Jewel/Kala, were born in the 1990's |
| US Supreme Court ruled that insurance transactions crossing state lines are NOT interstate commerce | 1869 Paul v. Virginia |
| You can remember that Paul v. Virginia is about crossing state lines because | we cross state lines going from WV to Virginia |
| This gave the authority to the STATES to regulate insurance | 1905 Armstrong Investigation Act |
| You can remember that the Armstrong Act has to do with STATES because | Denzel is in a different state |
| This ruled that insurance transactions crossing state lines ARE interstate commerce and thus subject to federal regulation | 1944 US vs. South-Eastern Underwriters Association |
| With the US vs. South-Eastern Underwriters Assoc. | the US won and federal govenment could regulate insurance transations across state lines |
| This states that while the federal government has authority to regulate the insurance industry, it WOULD NOT EXERCISE ITS RIGHT if the insurance industry was regulated effectively on the state level | The McCarran Ferguson act |
| Minimum penalty of a producer obtaining personal info about a client without having legitimate reason with The McCarran Ferguson Act was | $10,000 |
| The 1999 Gramm-Leach-Bliley Act repealed the Glass-Steagall Act and | allows Banks, Retail Brokerages and insurance companies to enter each other's line of business |
| You can remember the 1999 Gramm-Leach-Bliley act has to do with banks, brokerages and insurance companies able to enter each other's line of business because | the 3 children born in the 1990's can enter each other's rooms |
| The 2001 USA Patriot Act was designed to detect and deter terrorists and their funding by | imposing anti-money laundering requirements on brokerage firms and financial institutions |
| This was designed to detect and deter terrorists | 2001 USA Patriot Act |
| Insurance calls are NOT EXEMPT from this | 2003 National Do Not Call Registry |
| Represents one of the most significant regulatory overhauls and expansions of coverage in US history | 2010 Patient Protection and Affordable Care Act |
| insurance companies are required to notify applicants if credit check is made in | 1970 Fair Credit Reporting Act |
| With 1970 Fair Credit Reporting Act max. penalty for obtaining consumer information reports under false pretenses is a fine of | $5,000 |
| National Association of Insurance Commissioners | NAIC |
| organization of insurance commissioners from all 50 states, DC & 4 US territories | National Assocaition of Insurance Commissioners |
| NAIC aer responsible for the creation of the | Advertising Code and Unfair Trade Practices Act, & Medicare Supplement Insurance Minimum Standards Model Act |
| 4 broad objectives of NAIC: | encourage uniformity of state ins. laws, assist in administration of those laws/regulations by promoting efficiency, protecting policyowners, preserve state regulation of insurance business |
| This specifies certain words & phrases that are considered misleading and are not to be used | Advertising Code |
| gives chief financial officers the power to investigate insurance companies to impose penalties | Unfair Trade Practices Act |
| The Unfair Trade Practices Act | gives offices the authority to seek a court injunction to restrain insurers from using any methods believed to be unfair |
| National Association of Insurance and Financial Advisors | NAIFA |
| National Association of Health Underwriters | NAHU |
| NAIFA and NAHU are life & health agents dedicated to | supporting the industry & advancing the quality of service provided by insurance professionals |
| NAIFA & NAHU created a Code of Ethics | detailing the expectations of agents in their duties towards clients |
| Some standards & ethics | selling to needs, suitability of products, full & accurate disclosure, documentation, client services, buyer's guide & policy summary |
| Buyer's Guide | explains various types of life insurance products & other info such as premiums, dividends, benefit amts., etc. |
| Policy Summary | helps consumers evaluate the suitability of the recommended product |
| Difference between the buyer's guide and policy summary | buyer's guide compares various types but policy summary is just about one product |
| accounting measurement of an insurers future obligations to its policyholders | reserves |
| reserves are classified as _____ on the company's accounting statements | liabilities |
| Reserves are | set aside by an insurance company and designed for the payment of future claims |
| an insurer's ability to make unpredictable payouts to policyowners is | liquidity |
| established by all states to support insurers & protect consumers in case an insurer becomes insolvent | Guaranty Associations |
| Guaranty associations protect insureds in the event of insurer insolvency, or inability to | pay claims up to a certain limit |
| Examples of Independent Rating Services | AM Best, Moody's, Standard & Poor's, Fitch |
| credit rating agencies that rate or "grade" the financial strength & stability of insurer | Independent Rating Services |
| most rating services use this scheme | A to F letter grading |
