DC Insurance Licensing and Regulation 2 — Questions and Answers
Question 1: What DC government agency is responsible for regulating insurance companies and licensing insurance producers?
- DC Department of Consumer and Regulatory Affairs (DCRA)
- DC Department of Insurance, Securities and Banking (DISB) (Correct answer)
- DC Office of the Attorney General
- DC Department of Health
Correct 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.
DISB is DC's primary financial services regulator, overseeing insurance companies, insurance producers, securities dealers, and banking institutions operating in the District.
Question 2: A DC insurance producer license must be renewed every how many years?
- 1 year
- 2 years (Correct answer)
- 3 years
- 5 years
Correct answer: 2 years
DC insurance producer licenses must be renewed every two years.
DC producer licenses expire on a two-year cycle. Licensees must complete continuing education requirements and pay the renewal fee before the expiration date to maintain their license in good standing.
Question 3: How many continuing education (CE) hours must a DC licensed insurance producer complete per renewal period?
- 12 hours
- 16 hours
- 24 hours (Correct answer)
- 30 hours
Correct answer: 24 hours
DC requires licensed insurance producers to complete 24 hours of continuing education per two-year renewal period.
DC's CE requirement is 24 hours per two-year renewal period, including at least 3 hours of ethics. These must be completed through DISB-approved providers. Failure to complete CE prevents license renewal.
Question 4: A DC non-resident producer who holds a valid license in their home state wants a DC license. What process typically applies?
- Full DC pre-licensing exam required regardless of home state license
- Reciprocity—the producer may obtain a DC non-resident license without re-testing if DC has a reciprocal agreement with the home state (Correct answer)
- Must work for a DC-domiciled agency for one year before applying
- Non-residents are not permitted to hold DC insurance licenses
Correct 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.
Under DC's reciprocal licensing framework, non-resident producers from states with which DC has a reciprocity agreement may apply for a DC non-resident license without retaking the DC examination, provided their home state license is in good standing.
Question 5: Which act requires insurers to provide policyholders with a notice of their privacy practices?
- Gramm-Leach-Bliley Act (GLBA) (Correct answer)
- HIPAA
- Fair Credit Reporting Act (FCRA)
- Sarbanes-Oxley Act
Correct 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.
GLBA requires insurers to disclose their privacy policies to policyholders and limit the sharing of nonpublic personal financial information. It is the primary federal privacy law applicable to insurance. HIPAA applies to health information specifically.
Question 6: What is the maximum civil penalty DISB may impose on a licensed producer for a single violation of DC insurance law?
- $500
- $1,000
- $5,000
- $10,000 (Correct answer)
Correct answer: $10,000
DISB may impose civil penalties of up to $10,000 per violation of DC insurance law for licensed producers.
DC insurance statutes authorize DISB to impose civil penalties of up to $10,000 per violation for individual producers and higher amounts for insurers. Willful violations or fraud can lead to license suspension, revocation, and criminal charges.
DC Insurance Licensing and Regulation 2
What DC government agency is responsible for regulating insurance companies and licensing insurance producers?