Chapter 10: Insurance Regulation

If an unlicensed person is impersonating an insurance agent and sells insurance policies without a license what is the maximum fine

$100

A business entity acting as an insurance producer is required to obtain

An insurance producers license

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information

Fair Credit Reporting Act

A person applying for a resident insurance producer license must make application to the commissioner on the uniform application and

Have successfully passed the exams for the lines of authority for which the person has applied

Which of the following is not correct regarding false statements by a person engaged in the business of insurance

Only written statements can be considered fraud

Willie, a private investigator was hired by an insurer to obtain a character report on Joan, an applicant. Willie pretends to be a reporter working on a full story about working women in Joan's town. During the conversation, Joan is asked a variety of question for which the answers will be used to determine the final underwriting decision. This is an example of

Pretext interview

Who does a life settlement broker represent?

The policy owner

What's is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act

$2,500

What is the continuing education requirement for producers during the initial licensing period of 36 months

60 hours including 3 hours in ethics

Which of the following reports will provide the underwriter with the information about an insurance applicants credit

Consumer report

When two brothers applied for life insurance from company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this the company charged him a higher rate for his insurance. This practice is considered

Discrimination

Which of the following policies would protect the owner of a mobile phone, laptop, tablet, or other similar device against the devices theft or malfunction

Portable electronics insurance

A temporary license may be issued for which of the following reasons

The agent is disabled and the disability keeps him from transacting insurance

A producer licensed in another state may receive a nonresident producer license in Massachusetts if all of the following are true except

The producers home state awards resident producer licenses to nonresidents of the state on the limited basis

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if the notice of insurance information practices has been provided, the report may contain all of the following information except the applicants

ancestry