CH 15: Insurance Regulations

The Gramm-Leach-Bliley Act was passed to A Protect private customer information filed with a financial institution. B Define insurance as interstate commerce. C Allow consumers access to credit and private consumer reports. D Allow insurance companies access to medical information for underwriting purposes.

A Protect private customer information filed with a financial institution

All of the following are requirements for producer license renewal EXCEPT ARenewal examination. BUp-to-date continuing education. CRenewal fees. DRecord of fingerprints.

A Renewal examination

Licensees must make a report of any action taken against them in another jurisdiction or by another governmental agency in Pennsylvania within how many days of the final disposition of the matter? A 10 B 30 C 60 D 90

B 30

An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act? A Unfair discrimination B Errors and omissions C Fraud D Defamation

C Fraud

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as A Twisting. B False advertising. C Coercion. D Rebating.

D Rebating

An individual was just caught acting as an exclusive general agent - even though he is not properly licensed. Assuming that this occurred in a single day, what is the maximum penalty he faces? A A second-degree felony and a $10,000 fine B A third-degree misdemeanor and a $1,000 fine C A second-degree misdemeanor and a $1,000 fine D A third-degree felony and a $10,000 fine

B A third-degree misdemeanor and a $1,000 fine

The Commissioner of Insurance is placed in office by which means? A By NAIC nomination B An appointment by the Governor C An election at the same time that other state officials are selected D Through a bid process

B An appointment by the governor

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to A 3 years. B 5 years. C 10 years. D 12 years.

C 10 years

The requirement that an agent not co-mingle insurance monies with their own funds is known as A Accepted accounting principal. B Fiduciary responsibility. C Premium accountability. D Express authority.

B Fiduciary Responsibility

A producer has successfully completed 52 hours of continuing education (CE). How many hours can the producer apply to her current reporting period, and how many hours can she carry toward the next reporting period? AOnly 24 hours of the 52 earned may applied to this reporting period. B24 hours will be applied to the current reporting period, and 24 can be applied to the period immediately following. C24 hours will be applied to the current reporting period, and 28 can be applied to the period immediately following. D26 hours will be applied to the current reporting period, and the remaining 26 can be applied to the period immediately following.

B24 hours will be applied to the current reporting period, and 24 can be applied to the period immediately following.

When the Commissioner suspects that a person is violating an insurance law or other regulation, what can be issued that would order the person to stop committing the act of violation? A Limitation of Authority Order B Suspension of Power Order C Cease and Desist Order D Stop Action Order

C Cease and Desist Order

Under which of the following circumstances can financial institutions share insurance coverage information with third parties, for the purpose of soliciting the purchase of insurance? A Under no circumstances; nonpublic personal financial information cannot be shared with third parties B If a consumer decides to opt out C If a consumer does not sign and return the notice of disclosure within 30 days D Whenever it is requested by the Commissioner

C If a consumer does not sign and return the notice of disclosure within 30 days

A licensee serving in the military is unable to fulfill her continuing education requirement. What would the licensee have to do to renew the license? A Nothing; licenses of active duty military service personnel are automatically reinstated for a full licensing term. B The licensee must complete the continuing education requirements and pay the lapse renewal fees. Requirements cannot be waived. C The licensee may submit a request to the department to have requirements and fees waived. The department will then determine if the request is permissible. D Nothing; the license is automatically reinstated for an additional 6 months following return from military service.

C The licensee may submit a request to the department to have requirements and fees waived. The department will then determine if the request is permissible.

The state Insurance Code identifies all of the following as prohibited acts that can cause suspension, revocation or denial of an insurance producer license EXCEPT ACommitting any misdemeanor. BFailing to pay state income taxes. CFailing to pay child support obligations. DCommitting a felony or its equivalent.

A Committing any misdemeanor

If a telemarketer wants to make an unsolicited sales call to a potential customer, what is the earliest time the telemarketer can call the prospect's residence? A 7 am B 8 am C 9 am D Noon

B 8 am