Unlock eSignature Legality for Insurance Industry in the US

How to eSign a document: eSignature lawfulness for Insurance Industry in United States

hello hello everybody it is melissa here the insurance exam queen and i am excited here to go live today so i posted i was going to go live today and i asked what topic do you want and i got insurance regulation so let's go ahead and talk about that now if you're watching this on youtube please make sure to like subscribe share comment let me know if the video has helped at all if you are unaware of how to study for your state or you're struggling to pass please make sure you drop in the comments what state you're in so i can give you guidance on what it is that you need to know and study for your state what is most important to focus on and also make sure that you get any of my recorded classes that will help make sure that you can pass the exam um links in the descriptions and things like that you'll find it somewhere make sure you're in the facebook group getting help um and support from from other people so insurance regulations let's talk insurance regulations so the insurance this is this is this is usually a pretty decently sized chapter for for most people um some states can be as low as like five percent i think in arizona i i if i remember correctly and then it could be high as like 35 percent in wisconsin but for most people it ranges somewhere between 15 to 20 percent of the exam is going to be on um i want my hands so i got to scoot back a little bit 15 to 20 of the exam is going to be on insurance regulations now what is insurance regulations it's basically state law in fact your chapter may say um insurance regulations or com or north carolina common to all lines so whether it says common to all lines regulations or whether it says um just insurance regulations or a state law this chapter is going to completely switch gears from the other chapter hi i see four people watching hello hello hello um i recognize alex's picture hello alex um so there uh that this chapter will completely switch gears from any other chapter that you're studying so whether you're doing property or casualty life or health doesn't matter the this chapter um will be the same no matter what test you're taking actually so that's why it's a common to all lines so a line of authority is life is one line of authority health is one line of authority property is a line of authority casualty is a line of authority personal lines is a line of authority and that actually knowing that is actually part of this chapter because in order to be able to sell life or to sell health you need that line of authority on your license and you take the test to get that line of authority so you actually have one insurance license and then they will put on there your lines of authorities it's not like you i have a health license and i have a life license i have one license and my line of authority is life health property casualty so i i do have all four so whatever and and that chapter is all about that licensing insurance regulation state law so where every other chapter that you studied and learned was about policies policy rules policy provisions this chapter the state law chapter the insurance regulations chapter is going to be all about the laws of being an insurance agent the laws within the state um and and all of that okay so this this chapter is different than than all the other chapters all the other topics that you talked about now in the insurance regulation state law common to all lines chapter whatever it is named in your state it loves numbers numbers numbers numbers so it's going to be loaded with numbers it's going to be loaded with how um and and the the things that i say right now are things to write down and pay attention to as you're going through this chapter as you're going through the common to all lines insurance regulation state law chapter um these are the most important numbers so it's going to talk about the commissioner the commissioner or the director or the superintendent they all have different names um insurance is a state-run thing it is not federal it is not president it is not congress it is it is state-run more like governor and mayor type status and in fact the commissioner who runs the department of insurance is typically picked by the governor or elected alongside the governor and they serve usually the same term in in most states now the commissioner the director the superintendent whatever name they give him he is in charge of insurance in your state so insurance is a state-run thing the commissioner the director they are like the police and president of insurance in your state so the head of the department of insurance and most most states call it the department of insurance there's a couple states that have different names like florida they call it the financial something i don't know but most states call it the department of insurance he runs the department of insurance and determines all insurance law well he doesn't set the laws but he regulates the laws he monitors insurance um in everything that he is doing everything that he is doing is to protect the public protect the public okay his job is not to protect insurance companies his job is to protect the public from insurance companies protect the public from bad insurance agents okay so that is oh i got a notification i got a agency reaching out for help okay so um he his job and that's that's an answer that's an answer what is the job of the commissioner protect the public okay this is why he makes you take this exam because he's going to protect the public and make sure that you are knowledgeable enough to be able to sell policies to someone okay so he is protecting the public from bad insurance companies protecting the public from bad insurance agents and making sure that you are knowledgeable enough to be able to sell policies to a customer because when you think about insurance this is the financial industry it kind of blew my mind that my title at the corporate company at exam fx was financial services instructor i'm like i don't know nothing about financials but insurance is protecting assets which makes it part of the financial sector so if i own a car and it's worth ten thousand dollars insurance is protecting that ten thousand dollars you're protecting a financial asset that if it crashes or destroys insurance will help to fix it and replace it so insurance is a financial industry industry sector we are protecting people's assets we are protecting people's homes we are protecting people's incomes we are protecting people's families we are creating estates insurances i'm going to go on a tangent here my god i love insurance i love insurance and in order to to really be successful as an insurance agent you want to love insurance so if you don't love insurance start talking to me about all the reasons why you you want to love insurance insurance is amazing you could be dirt poor dirt poor but as long as you pay your life insurance premium every month for 25 bucks whatever whatever it might be you die your kids make money you will leave your family with wealth if you can just pay your life insurance premium you can't save worth the damn fine pay me every month your little life insurance premium and i will make sure your kids have money when you die right like that's amazing what we can do with with insurance um you you have a parent you have a single mom she's the only one earning an income in the family her children rely on her she has to be the one that works she becomes disabled she can't work if she has insurance she's okay she'll be set she'll have a disability income policy paying out to her you get a brand new home it's beautiful it's amazing it burns down insurance rebuilds it like insurance is amazing insurance is incredible it's what we all want we all scream we want medical and we need health insurance we wanted our insurance is amazing in fact i wish insurance ran the government half the time because they figured it out like they know how to protect everybody and to have enough money to do it all like what's really crazy with with if you think look at some companies like state farm state farm does not make money from the premium like they don't take money out of the premium the premium money that state farm collects is just for claims they take the premium money and put it in a bank account that grows interest and that is how state farm makes money not from their actual mutual customers because estate farm is a mutual which means that it's actually owned by the policy members but state farm doesn't take any money out of the premium they hold the premium reserve it for claims let it build interest and they only make money off of the interest so like that is so cool and then if there's money left over in the claim bucket at the end of the year state farm gives it back to all the policy holders that's a beautiful thing you're just like growing money off of money off of money and protecting people at the same time so i love insurance insurance is amazing you are saving people's lives you are protecting people you are helping them not lose their financials they're not lose their home you're making sure that they'll be okay if something disastrous were to happen to them or their family or their spouse were to die my sister has three young children her husband is the main earner of the family she does not work she takes care of the kids he earns all the income if he dies or he becomes disabled they're all stranded but with life insurance she's okay and in fact she'll be a millionaire when he talks because of how much insurance um i don't think it's that much i don't think it's that much um but and that's another thing too my my sister and brother-in-law if they both died if something both happened to them like they went to ireland um a few years ago and i was like if both of them died these kids are now mine and they both had life insurance though so like it was like it would be okay like we'll be okay so knowing that you have that will be okay that's what life that's what insurance is it is peace of mind it is peace of mind that if something terrible and bad work were to happen insurance will be there to take care of it like that's a beautiful thing knowing that you have this are you already solved the problem of your house burning down you already solved the problem of crashing your car you already solved the problem of having no income if your partner died you already solved the problem of becoming disabled and not being able to earn income by buying disability insurance because you can't really rely on the government if you learn in the course if we're talking about you know health insurance here the the social security disability is very hard to get most people really struggle they deny 75 of the applications that come in so you you have to have your own disability insurance set up to to be able to protect yourself so anyway um when i'm on a tangent there and turns is amazing insurance is amazing so talking about the department of insurance again i don't exactly remember exactly where i was at when i went on that long tangent but insurance is protected there we go protect the public so insurance is about protecting the public protecting the the job of the commissioner is to protect the public from bad insurance companies protect the public from bad insurance agents so anyway now one of the things that he does to protect the public is he does examinations and this is one of the numbers we talked about some very important numbers to remember and then i went off on a tangent about insurance this is one of the numbers that you want to write down now so if his job is to protect the public from bad insurance companies and bad insurance agents how does he do that he does that by going into the insurance companies and examining all their records checking all their files and seeing what policies they're issuing what premiums are they charging and are they collecting enough money and are they investing their money well are they saving enough money do they have enough money to be able to quit pay their claims having money is solvency having money is solvency so he's making sure that insurance companies are solvent insurance companies have to be solvent they have to have money solvency when you write the word solvency turn it into a dollar sign solvency means we have money so his job is to come into insurance companies examine all of their records look through all of the files and see how well they're managing their money and making sure that they are solvent if the insurance company doesn't have enough money they are known as insolvent insolvent means that you don't have enough money and if an insurance company is insolvent he can come in and take over the company and he can either fix it or shut it down so so his job is to examine the records making sure that insurance companies remain solvent so that they have enough money to pay their claims and if they don't have enough money to pay their claims they are labeled insolvent and he will either take them out or fix them or whatever and some states get into detail about insolvency in order to be deemed insolvent you need to be not able to pay your debts and claims for three years or something like that some get into a definition about insolvent but the main thing is knowing that insolvent means you don't have enough money to pay your claims now when and how often is he examining these records first it's important to know he will examine them anytime he damn well pleases so if he thinks that he needs to go into the insurance company if he hears that that they're doing something crazy and he's like what are they doing i need to go check that out he can go into the department or he can go into any insurance company at any time and he can um examine their records and take a look at what they're doing so anytime he needs to any time it's deemed necessary he can go in and examine their records now um but he's got to do it also on a regular basis now for most states that's every five years most states he is going in every five years there's like one or two states where i've seen three years so i don't want to say five always and forever because they're that's the thing about this chapter is that's very state specific so the numbers that you need to memorize are unique to you and your state i can tell you which numbers to pay attention to but i can't always tell you what the number is you need to look in your online course your pre-licensing state-approved course excel kaplan 80 banker exam fx whatever um adjuster pro all of those that that's where you find the state specific data i don't do that because i don't want to be state approved because then i'm going to be regulated by the state i don't want to be regulated by the state i want to be able to talk how i want to talk and say what i want to say anyway they will have the data that you need the exact number of what you need i will tell you which number to pay attention to so examinations are one of the important numbers how often is he coming in and examining the records how often is he coming to look at their files and rem and make sure that they are solving generally it's every five years and also whenever it's necessary okay but check your state okay the next thing that he does is um monitors licensing so your name will actually be printed on a report the year that you pass your exam and it'll be it'll be alex willard passed or signed up and got her license he will see that he monitors all the licenses he has to receive a report of everyone who has gotten their license and which insurance company that they have been appointed with that is all documented and recorded into an annual report that that he has and that's another thing some states focus on outs about half the states um want you to know that the commissioner has to have an annual report that he delivers to the governor either financial or just whatever um but that's only if your state talks about it so he monitors all the licensing that's going on in the the industry the insurance space now when you go to get your license there may or may not be state rules so there may or may not be state rules what i mean by that is some states for instance like new york want you to spend 90 hours in your property and casualty course you must pass the practice exam and a certificate exam and then you're allowed to take the state arizona is like whatever man show up and take the state exam who cares if you study they have zero requirement that somebody spend hours or take a practice test so your state will either have a requirement or or it will not um and and you you can you can find that by somewhere in your course it will say that or you can go to the you can um you know look look it up the the testing center if there's any uh requirements so some states will have requirements some will not if your state has requirements they call it pre-licensing before you get your license i am a pre-licensing education teacher that's that's my title that's my job i'm a pre-licensing um educator ple if your state has a ple requirement memorize the numbers like illinois you've got to have 20 hours i think it's like 10 or 20 hours per line of authority and 7.5 of them have to be in a physical classroom um the ohio you have to get a certificate exam you have to i don't know if they have an hours or things that you have to to memorize um but uh double check what it is in your state so if you have a pre-licensing requirement pay attention to what it is and memorize those numbers then you want to remember once you get and then you need to know who can get a license who can get a license be 18 pay the fee pass the test in order to get a license i have to be 18 i have to pay the fee i have to pass the test and then i can get an insurance license and also sometimes they throw in there you have to be a good person and what they mean by that is just no crazy like criminal record um now usually that question comes in the form of an accept question meaning they will say all of the following are needed to get an insurance license accept all of the following are needed to get an insurance license accept and the answer is the wrong answer remember with except questions if it's an accept question they are looking for the false answer the wrong answer so in that example all of the following are needed to get an insurance license accept the answer is actually a college degree or a diploma you don't need those it's not a requirement which is another reason why i'm so passionate about insurance because you don't need to go to college you don't even need a high school diploma you just need to be 18 and pass the test and you can have a job you don't need to prove that you know how to do book and stuff i mean other than like this test you don't need to have this like proving that you're doing all this this work so in order to get the license i need to be 18 pay the fee pass the test i don't need a diploma and i don't need a college degree i do need to be a good person as having like not a crazy criminal record now if you do have things on your criminal record there are some things that are okay and some that are not okay and it can be very state specific talk to your your mentor somebody who's hiring you into this or google it look it up i don't i don't know okay so knowing um how to get the license be a team pay the fee pass the test that's to get the license now once you get your license once you have your license it's going to be good for a certain period of time most states it's good for two years but a lot of states are three years so you again these are state-specific numbers that you're going to need to double check your state approved course excel all of that you have to double check what they say what the numbers are for most states it is 24 months though or two years and then so you have your how long is the license good for and that's how long that to if you take this test and you pass this test it will give you a license that is good for two years then to keep that license going and again it's not always two years you've got to pay attention to your estate so let's say though it's two years so they give you a license for two years at the end of the two years you need to do and you can actually do it during the two years you don't need to wait till the end although most people do i would encourage you not to do that though because i saw a lot of emails working at the corporate company that was like you guys didn't file my report and now i'm losing my license i'm like well you didn't do your ce a month ago you waited till the very last minute so don't wait to the last minute to do your ce um just as experienced from what i've seen but anyway your ce is continuing education so going back to the job of the commissioner is to keep you safe and to protect the public from bad insurance companies and bad insurance agents he wants to make sure that you are staying educated he wants to make sure that that melissa is smart enough and educated enough and knowledgeable enough to continue to sell insurance and that's what continuing education is is making sure that you're knowledgeable now it's not as difficult as studying for the state exam you basically just read questions do some quizzes pass a test is not tricky in most in most states and i recommend web ce for your ce hours um they tend to be a little bit easier i think for most people and also a lot of insurance agents need um eno insurance which is errors and emissions so if you're not working for a company and even if you are working for a company if you're working for like a salary position they will get eno for you but if you're working for yourself in any way if you're independent in any way you're probably going to need to get your own eno insurance which basically if you are selling a policy and you mess up you you misinform them you accidentally make an error you forget to add their car and then you get sued for that that's what the e and o will protect you from you need eno most of the time if you get your eno through a company called napa i believe that they will actually give you free ce so that's something to to look into as an insurance agent you're going to have to do your ce every few years if you get with a company who gives you the emo and gives you the free ce then that's awesome because you will you do have to pay for the ce it's just the same as like paying for paying for your excel course whatever you're going to have to pay for your your ce i don't know if excel does ce that's probably a good question okay um anyway um so you have to do your continuing education and how many hours do you need there some states will say you need 24 hours some will say you need 36 hours some will say you need 12 hours like the numbers can be very drastic this is where the numbers get really hairy when i say the examination is every five years in most states i am solid on that when we talk about continuing education i'm like it is it is you gotta look i don't have them remembered everyone is like different you've gotta look but a good chunk of them are two years um and 24 hours of continuing education so i like to say if your license is good for two years that's 24 months and you need 24 hours of continuing education 24-24 it's just a way to help you remember that and um so you spend your hours you do your your ce and that will allow you to renew your license for the next two years and then you'll do ce again at the you know before those two years are up so you want to know how many um how long is my license good for how many years is my license good for and then you want to know um how many hours of continuing education that you have to do now some states also have this thing called roll over well let's say you only need 24 but you took this certificate program that gave you 30. so you have six extra hours that you don't need you only needed 24. some states will allow you to roll that over some will say okay if you did extra this year you can roll them over to the next year every state some say no some say yes and then if they do say yes they might limit the number they might say you're only allowed to roll over 12 or you're only allowed to roll over you know six of them or or or let's say in one like you only need 24 and let's say you did 100 hours of ce they might say that you're only allowed to roll it over to the next period not not keep it forever and ever and ever like use up those use up 100 hours over the next five five renewal cycles you're not allowed to do that most of the time they will limit and say that you can only roll it over to the next period and they might limit how many um you can roll over like i'm pretty sure in cal colorado it's 12 that you can roll over but you got to check again you got to check your state approved excel course whatever course you have to to double confirm those numbers so those are numbers that are very important how often they're doing exams every five years how long is my license good for how many hours of continuing education do i need and if i'm allowed to roll any over and then ethics so as part of your pre-licensing education and your continuing education you have to learn ethics and ethics are like ways of behaving appropriately that you're not hurting people that you're being ethical ethical means that you're taking care of other people without putting yourself first that you're doing the right thing that that's ethical and so you need to learn ethics when it comes to insurance now for most of your pre-licensing it's built in it's part of your course california has a whole separate ethics course and by the way if you're in california know that the separate ethics course is not on the exam it's just an hour requirement you just have to read it for i believe 12 or 20 hours and that's it you don't actually have to pass a test in it or when that stuff won't even be on the test but anyway so when you are renewing your license um so you get your license and it's good for two years let's say when it's time to renew it they may say you need 24 hours and three of those hours have to be in ethics and that's true for most states that that three of the 24 or three of however many you have have to be in ethics and i like to say three for e ethics three for e ethics it reminds me that i need three hours for ethics now it's it's one thing to remember if if your state says 24 because that's the most common again you have to check your state numbers if it says you need 24 those three hours are part of the 24 it's not 24 plus three it's 24 and three of the 24 are in ethics three for e ethics okay um another thing with that is some states will say that you have to do a certain because many people are licensed in all the lines life health property casualty like i have that's another thing to note when you are doing continuing education you're doing 24 hours or whatever the hours are regardless of your lines of authority you don't do ce for each line of authority you do your ce for your license so if you if you were listening back from the beginning i said how you you have one insurance license and then on it it will list your lines of authority i i have a line of authority in life and health and property and casualty i can sell all four if i wanted to so i have all those lines of authority you don't do ce per line of authority you do ce per license so whether you are only licensed in life or licensed in all four life health property casualty you're all you're both doing 24 hours of continuing education you don't have to do extra because you have multiple lines of authority however some states will say that when you do your ce a certain number of them have to be directly about what you sell so like if you're a property and casualty licensed agent you have that line of authority and you're doing ce you can't just read all life insurance ce you can do some because they let you you know like when i was um selling car insurance i remember doing ce on liquor liability i just was curious about learning about that how does it work when bars serve alcohol and they're responsible if people drive away drunk i wanted to to learn about that so i did dram shop lick liquor um it's called dram shop is the name of the insurance liquor license and getting your liquor insurance i was selling auto i wasn't selling liquor but i wanted to do it so like you can take your ce on anything related to insurance but some states will say that it has to be like if you're selling homeowners you have to spend 12 hours in homeowners that's some states so just double check your um text for that so license numbers um pre if you have pre-licensing you need to know those numbers how long is your license good for how many hours of continuing education three of those hours have to be for ethics are you allowed to roll over any um and do you have any specific line of authority hours that you have to spend and then and the life and health side of things they usually want you to do certain out if you're going to sell annuities for instance you have to take extra courses for annuities or if you're going to sell medicare you have to take extra medicare hours so your state will say that um if it's if it's required the other thing about that is knowing when they say that your license is good for every two years they usually are going to base it off of your birthday your birth month i'm sorry not birthday birth month and not the day you got the license so most when you get your license that's not the date that your license renews at your license will renew based on your birth month because it makes it easier for you and them to remember and keep it organized so um and so they will usually say your license is due if you have an odd number year then every every odd year you have to do ce if you have an even number on your birthday like mine is 87 i would be odd so an odd number year i would have to do i would have to do my ce every odd number a one a three a five a seven a nine and if you have an even number birthday if it ends in like 88 then you would need to do your ce on every year that ends on a zero a two a four a six or an eight an even number so and then it's usually due by your the last day of your birth month for most most states they say your ce is due every 24 months every two years on the odd or even number of your birthday um at the end of your birth month so you have the whole birth month to um get it done it's not based on your birthday nor is it based on your license um day and i'm pretty sure that's true across the board for most states that they they do it based on your your birth month all right what else do we need to know from this chapter now those are the main numbers for sure for sure um and then also a couple for um fair credit reporting act there's a couple of numbers i need you to remember that but those are the main numbers for the department of insurance the the examinations the license requirements um how many hours of continuing education how many um months is my license good for three hours for ethics do i have any hours to roll over are there any specific hours i have to do for my line of authority those are the the biggest most important numbers then you're going to read a lot of stuff about hearings about penalties about fines these numbers will be harder to know and memorize because they could be all over the place what i recommend is that you when you're reading a section so let's say you're reading a section about hearings and it'll be like 30 days blah blah 15 days blah blah 30 days blah blah 30 days blah blah in the whole paragraph oh my gosh i got the doberman eating the chihuahua all right we're just watching watching that right now you're gonna have this whole paragraph of um text written out here let me show you real quick just you can see what i've seen oh they're so cute anyway i might need to go save them um riker no okay you went away um you're gonna read this whole paragraph of things that are written out in a bunch of different numbers circle or look for the number that you see the most and just remember that number so like if you see 30-day 30-day 30-day and by the way always pick 30-day if you don't know it's the most common answer is 30 days if you don't know you're more likely to be correct if you choose 30 than than not and that's for like everything um okay so you uh so i'm being distracted by the puppy at a texas came in 30 days yes so find the number that is most um that you see the the most often the one that you see the most remember that number and say okay when i read the hearings chapter when i read the section that was all about hearings i saw the number 30 the most so when i take my exam and they ask me about a hearing i'm just going to choose 30 and hope that it works and most of the time you'll be correct when you get to a section about fees and fines what number do you see the most commit that number to memory um and every state will kind of be different with their with their fees and their fines now the other big numbers to remember and this sometimes is not in the insurance regulation chapter it's in the general insurance chapter it's usually though on every exam regardless of what chapter it comes in is rules about the fair credit reporting act so this is uh the fair credit reporting act insurance companies are allowed to pull our credit they are allowed to look at our credit report look at our credit score and use that to determine our premium rates because people with bad credit are more likely to file claims than people with good credit so if you have bad credit if you have a low credit score they will um put up a higher premium if you have good credit you will have a lower premium because you're less likely to file a claim so what that means though is that they are pulling our credit they are looking at our credit report now all credit reports are called consumer reports so everything is a consumer report there is a specific special type of consumer report called investigative consumer reports so you have you have consumer reports which represents all types of reports and then you have a unique special type which is called investigative now what's unique and special about investigative is that it requires an interview you have to actually interview your friends and family or the insurance company sorry we'll interview your friends and family to confirm that you are a person that is trustworthy or whatever now this is not typically done in most cases an investigative consumer report is generally only done when someone is asking for millions of dollars of life insurance if you're a millionaire asking for millions makes sense but if you're not a millionaire and you're asking for millions they wanna they wanna double ch are she just trying to get insurance so she can kill herself like what's happening so they wanna do an investigative consumer report when you're asking for a lot of insurance so it's not very common but it is part of the exam so you need to know about it so you have all consumer reports which pull from generally public sources your job history your credit report things like that and then inside the consumer report you have the special little investigative consumer report and what makes it special is that you are interviewing your friends and family they're interviewing your friends and family what kind of habits habit hobbies habits what kind of habits does she have what is her lifestyle is she trustworthy is she someone of good character what is her reputation these are all the things that they're looking at in an investigative consumer report and they're interviewing your friends and family now the numbers that are really important is when they're going to do an investigative consumer report if they are going to interview your friends and family they have to tell you they're going to do it three days in advance so if they are going to do an investigative consumer report on you before they give you insurance to confirm that they want to give you insurance they have to tell you three days before they do the investigative consumer report and then after they complete the report if you call and you say i want to know what's in the report they have five days to show you what's in the report they don't have to give you an actual copy of it but they have to tell you to show you what's in the report so my memory trick for that is i think investigative consumer report three to tell five to show i have three days to tell them i'm gonna do it i have five days to show them the report once it's done so three to tell five to show for in investigative consumer report the next number that's important and by the way with also with um the fair credit reporting act when insurance companies pull our credit and they look at our credit and they judge us based on that if there's something on our credit report that they let's say that they pull my credit and they see that i have a loan that i never paid off i took out a loan i never made a loan payment it's in default it's in collections and then they use that against me to determine my premium and i see that my premium skyrocketed and i'm like what the heck i get my renewal paperwork i'm like what the heck this doubled so i call the insurance company i say why did my premium double and they say well we did the renewal we we pulled your credit and it looks like you have this loan that you never paid off and so it made the premium go up i'm like i never took out a loan what the heck are you talking about they will then tell me what company they used now there's different companies for insurance companies like lexington and things like that but for the sake of our peace of mind of what we already know and understand i'm going to say things like equifax and transunion because most people are familiar with them the credit reporting companies so let's say they say well transunion told us that you had this bad loan so you then have a right to challenge the report you have a right to go to transunion and say trans union why did you tell my insurance company i have this bad loan i don't have a bad loan as a consumer as a customer as part of the fair credit reporting act you have the right to challenge the report so you say that's not my loan so they'll investigate they look into it let's say they come back and they say melissa you're so sorry we're right someone with your same name um got a loan somehow it got under your report we will take it off then the reporting agency transunion will have to send a new report to my insurance company and in fact they have to send that report to everybody in the last two years who asked for my information to update the correct information and then let them know that hey sorry uh transunion tells the insurance company hey sorry we accidentally put this bad loan on melissa's account and she doesn't have it then the insurance company has to go and fix my premium they have to recalculate my premium with the correct credit score and refund me any money that they may have overcharged me for having the bad faulty information on the report so a key thing there is that the consumer has a right to challenge the report they have a right to know what is in the report and the insurance the the reporting agency the the company that the insurance company got the fair the reporting from like transunion equifax whatever they they have to investigate they are required to look into it if you challenge the report now the number that is important there is violating the fair credit reporting act and by the way i forgot this in the definition you want to know the definition of the fair credit reporting act which is that it protects consumers against the circulation of inaccurate or incomplete personal or financial information so i'm going to say that again a couple of times because it is a question that is on your exam and in fact i tell people to tattoo this to their forehead so they don't forget the fair credit reporting act protects consumers against the circulation of inaccurate or incomplete personal or financial information the purpose of the fair credit reporting act is to protect consumers against the circulation of inaccurate or incomplete personal or financial information okay that is the purpose is to protect protect people from the circulation of outdated uh in or inaccurate information oh those are some more numbers um when they talk about that that is to what what is um inaccurate or obsolete that was the word i didn't i was like i say i'm saying the definition wrong but i couldn't figure it out where it was the purpose of the fair credit reporting act is to protect consumers against the circulation of inaccurate or obsolete personal financial information what is obsolete or outdated it's any negative information that is seven years old like you defaulted on a loan you forgot to make payments whatever that is uh seven years negative information and then ten years for a bankruptcy so if you had a bankruptcy they'll put that on your credit and if it's 10 years old an insurance company is not allowed to use it to determine your premium rates so they are not allowed to use any information any negative information that is seven years old and they are not allowed to use any bankruptcies that are 10 years old to judge you for your premium rates on with your credit score the one last final number for the fair credit reporting act is uh 2500 willful violation so if as an insurance agent you're working for an insurance company who pulls people's credit you have access to be able to look at people's credit potentially depending on how your insurance company does this and if you go in there and you look at it and use that information like let's say your friend is like hey i'm going on a blind date with this guy i know he has insurance with you can you look him up or whatever and you go into the oh he has a great credit score you should get with him that is a violation of the fair credit you cannot just go looking at someone's information for for a non-business need you know or you're not allowed to judge someone on their seven years of negative information if you willfully violated that report if you willfully violated the rules of the fair credit reporting act it's a twenty five hundred dollar fine and that is another important number and that's a federal number so it's not state specific so it's a twenty five hundred dollar um purposely violating the fair credit reporting act okay one last number that i want to go over for insurance regulation and state law is do not call list now this is not in every state about half of you will have this but insurance is basically in the telemarketing field so whether i mean you may not call yourself a telemarketer but a lot of insurance companies are telemarketers they just call and they market on the phone so they have to follow telemarketing rules and telemarketing rules basically we we have a law in the um us called the do not call list and if a telemarketer calls you and you say do not call me put me on the do not call list they must delete your number out of their system they must mark it as not allowed to call you and that's a a rule within the united states and only works in the united states there are some tricky questions i think i saw this on the arizona exam um you're calling a customer in britain what hours do you have to call them they don't they don't care the do not call doesn't apply over there so what the do not call says one the do not call says if a customer says to put put them on the do not call list you put them on the do not call us the other thing is the do not call list sets hours for when you're allowed to call people like how early you could call people and how late you can call people and it's eight to nine so you're not allowed to call people earlier than 8 a.m their time and you're not allowed to call people later than 9 9 p.m their time so eight to nine and when i took my my insurance uh my my arizona they asked me how early eight they asked me how late nine and then they asked me in between eight to nine they asked me three times about the do not do not call so that is that is something to uh pay attention to um if your state has a do not call not every state has a do not call okay so that's a that's a rundown on the insurance regulations um chapter the commissioner you guys may have been commenting but for some reason facebook doesn't allow me to see comments i'm gonna try and comment so i can see my own comment but yeah for some reason i'm not able to see live comments when you guys um are watching so if you have made any comments or questions i will capture them once i get off and then again if you have any questions or comments please drop them below so that we can give you the help and the support that you need and if you're struggling to pass your exam make sure you sign up for some study buddy sessions with angela she is amazing she is a little fierce um she is a little strong but she helps people make sure that they they pass their exam and we've had many celebrations of people passing after many attempts she is able to help them secure a pass in addition to the recorded videos and that's a key thing is that she wants to stress with people is you got to watch my videos first and not just my youtube videos but when you book a session with her my video will be my at least in the group study buddy sessions my video link to watch my class will be available in that so instead of buying my all access and buying study buddy sessions you could just buy the studybuddy session to get the recorded class in there but you're only going to get the one specific to that topic so if you were to book thursday for instance which is general insurance and pnc basics insurance terms related concepts you're only going to get the recorded class for that concept for that um study buddy session but anyway love you all sending you all the loves and vibes to pass your exam um and i'm really loving coming live every day so drop the next topic that you want me to come live on tomorrow later tonight whatever whenever i feel like it i'm loving this so love you all have a fantastic day finish finish oh my gosh it's not letting me hit the blade hit the budget