Chapter 6-E: Insurance Rules and Regulations

The HIPAA was enacted by the US Congress in _________. A. 1996 B. 1986 C. 2003 D. 1967

A. 1996

Loggers, roofers, and coal miners would fall into which of the following categories? A. High-risk employees B. High-maintenance employees C. Low-risk employees D. Low-maintenance employees

A. High-risk employees

Which of the following is NOT an acceptable reason for the Commissioner of Insurance to revoke an adjuster's license? A. Taking on too many claims at one time B. Having been convicted of a felony C. Intentionally misrepresenting the terms of a contract D. Forging another's name on an insurance document

A. Taking on too many claims at one time

Third Party Administrators: A. are not subject to the FL Department of Financial Services. B. do not assume any risk for the policies they handle. C. do not underwrite policies. D. are not licensed in Florida.

B. do not assume any risk for the policies they handle.

Which of the following is NOT true about the National Association of Insurance Commissioners? A. It is a non-profit coalition of state insurance agencies B. It works to harmonize state insurance laws and regulations C. It provides benefits for insurance commissioners D. It drafts model legislation that is frequently adopted by most states

C. It provides benefits for insurance commissioners

When a company collects a consumer's personal and financial information, the methods for that collection, as well as the ways in which the information is used and shared, are all regulated by the: A. Equal Credit Opportunity Act (ECOA). B. Health Insurance Portability and Accountability Act (HIPAA). C. Insurance Information and Privacy Protection Act (IIPPA). D. Fair Credit Reporting Act (FCRA).

D. Fair Credit Reporting Act (FCRA).

Jill wants to start an insurance agency selling property insurance. As such, she must belong to a Guaranty Association, of which there are a few different types. Which of these groups would best fit Jill's needs? A. Florida Property Insurance Guaranty Association B. Florida Workers' Compensation Insurance Guaranty Association C. Florida Life & Health Insurance Guaranty Association D. Florida Insurance Guaranty Association

D. Florida Insurance Guaranty Association

Rachel is starting an insurance company in Naples, Florida. She has a great business model and has begun recruiting some fantastic sales people. In addition to submitting to occasional financial audits in the future, Rachel's company must also: A. operate in at least one other state. B. have a physical office with a minimum of 2,500 square feet. C. become a Lloyd's plan insurer. D. become a member of a Guaranty Association.

D. become a member of a Guaranty Association.

Which of the following is NOT one of the roles of the Florida Department of Financial Services? A. Licensing and regulating insurance companies B. Licensing adjusters and agents C. Investigating insurance fraud D. Acting as receiver for insolvent insurers

A. Licensing and regulating insurance companies

Eric works in Florida for Gemutlich Insurance. His company is licensed to sell insurance in Florida, but is based out of Munich, Germany. Gemutlich Insurance was formed under German law, but follows all applicable Florida laws and possesses a Florida Certificate of Authority to sell their product. Which type of insurer does Eric work for? A. Surplus Insurer B. Alien Insurer C. Foreign Insurer D. Domestic Insurer

B. Alien Insurer

In Florida, once an insurer has received all pertinent information about a claim, it must accept or deny the claim within 90 days. If the insurer needs more time to come to a decision, it must: A. request arbitration. B. notify the claimant as to why it needs more time. C. accept or deny the claim within the subsequent ten days. D. accept or deny the claim within the subsequent three months.

B. notify the claimant as to why it needs more time.

The main purpose of an Insurance Guaranty Association is: A. to make sure that policyholders are able to pay their premiums. B. to make sure that insurers are able to pay claims, even in the event of insolvency. C. to punish insolvent insurers. D. to oversee the Insurance Commissioner.

B. to make sure that insurers are able to pay claims, even in the event of insolvency.

Which of the following would NOT result in disciplinary action from the Department of Financial Services? A. Failing to pay child support B. Providing false information on a license application C. Accepting advance premiums D. Committing unfair trade practices

C. Accepting advance premiums

Bill is going to switch employers, and therefore switch healthcare providers. Which federal law ensures that he won't be denied coverage when he switches health plans? A. FICA B. IIPPA C. FCRA D. HIPAA

D. HIPAA

The set of patient privacy rules that all health care providers, insurance companies, physicians offices, hospitals, and pharmacies must follow is called the _____________. A. IIPPA - Insurance Information and Privacy Protection Act B. FIGA - Florida Insurance Guaranty Act C. FCRA - Fair Credit Reporting Act D. HIPAA - Health Insurance Portability and Accountability Act

D. HIPAA - Health Insurance Portability and Accountability Act

The Insurance Guaranty Association is a mechanism that covers claims in the event of: A. an insured's bankruptcy. B. government intervention. C. an insurer's insolvency. D. catastrophic disaster.

C. an insurer's insolvency.

Which of the following is NOT a rating factor for a personal auto liability policy? A. The condition of the vehicle B. The location of use C. The driving record D. The driver's age

A. The condition of the vehicle

Which of the following would NOT affect the rating for comprehensive and collision coverage on a vehicle? A. The model of the vehicle B. The age of the vehicle C. Where the vehicle is driven D. The color of the vehicle

D. The color of the vehicle

Risk retention groups do NOT: A. have the support of state Guaranty Funds. B. provide liability insurance. C. spread liability exposure to their members. D. have permission to operate in Florida.

A. have the support of state Guaranty Funds.

Guaranty Associations are funded by: A. insurers. B. the state. C. the federal government. D. the insurance commissioner.

A. insurers.