Insurance Licensing and Regulation Flashcards

What DC government agency is responsible for regulating insurance companies and licensing insurance producers?

Answer: DC Department of Insurance, Securities and Banking (DISB)

The DC Department of Insurance, Securities and Banking (DISB) regulates all insurance activity in the District of Columbia.

A DC insurance producer license must be renewed every how many years?

Answer: 2 years

DC insurance producer licenses must be renewed every two years.

How many continuing education (CE) hours must a DC licensed insurance producer complete per renewal period?

Answer: 24 hours

DC requires licensed insurance producers to complete 24 hours of continuing education per two-year renewal period.

A DC non-resident producer who holds a valid license in their home state wants a DC license. What process typically applies?

Answer: Reciprocity—the producer may obtain a DC non-resident license without re-testing if DC has a reciprocal agreement with the home state

DC participates in reciprocal licensing—a non-resident holding a valid license in a reciprocal state can obtain a DC non-resident license without retaking the exam.

Which act requires insurers to provide policyholders with a notice of their privacy practices?

Answer: Gramm-Leach-Bliley Act (GLBA)

The Gramm-Leach-Bliley Act (GLBA) requires financial institutions, including insurers, to provide privacy notices and restrict sharing of nonpublic personal information.

What is the maximum civil penalty DISB may impose on a licensed producer for a single violation of DC insurance law?

Answer: $10,000

DISB may impose civil penalties of up to $10,000 per violation of DC insurance law for licensed producers.