Chapter 7 Practice Questions

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?

8am

with regards to premium rates which of the following statements is not true?

The commissioner sets all insurance premium rates used in Pennsylvania

according to the privacy of consumer financial information regulation, if a consumer decides to opt out, this means

The consumer directs the licensee not to disclose the consumer's non-public personal financial information to a third-party

for the purpose of examination by the department, insurers must keep a record of all financial files for at least

5 years

forcing a client to buy insurance for my particular lender as a condition of granting a loan is defined as

coercion

which of the following will not be considered unfair discrimination by insurers?

discriminating in benefits and coverage is based on the insured's habits and lifestyle

which of the following would be considered false advertising

implying that the agent is the insurer

after a hearing, if the commissioner finds is that a licensee is in violation of the state insurance laws, the commissioner can do any of the following except

imprison a licensee

Paul is a producer in Ohio and wants to become a producer in Pennsylvania. The commissioner will waive certain examination requirements, provided that Ohio would waive the same requirements if a Pennsylvania producer sought licensure in Ohio. What term is used to describe this phenomenon?

reciprocity

what is the civil penalty for the first violation of the Pennsylvania insurance Fraud Prevention Act?

$5k

Which of the following is true regarding continuing education required for those holding a Pennsylvania producer license?

24 hours each licensing period

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?

30

A producer license in Pennsylvania must notified insurance department of any change of address in his or her residence or business address within how many days?

30 days

when a producer holding a certificate or a brokers license has a change in their residence or a business address, they must notify the department of insurance and any company for which the producer holds an appointment within

30 days

in which of the following situations is it legal to limit coverage based on marital status?

It is never legal to limit coverage based on marital status

Which of the following entities must approve all continuing education courses in this state?

the commissioner

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?

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

should an insurance company deny a claim submitted by an insured without providing to the insured a prompt and reasonable explanation of the claim denial, the insurer would be in violation of

unfair claims methods & practices regulations

How soon after the due date should the insurer pay the agent appointment fees?

within 30 days

which of the following would not be considered an unfair and deceptive practice?

controlled business

All of the following actions can be described as twisting except

explaining to client the advantages of permanent insurance over term and suggesting changing policies

which of the following would be required to be licensed as an insurance producer?

A salaried employee who advertises and solicits insurance

which of the following is an example of an agent's fiduciary responsibility?

forwarding premiums to insurer

which of the following does a producer not have the authority to do?

issues policies

an applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?

Fair Credit Reporting Act

all of the following could be considered a rebate if offered to an insured in the sale of insurance except

dividends from mutual insurer

and 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?

third degree misdemeanor & $1k fine

which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producer's license?

forgery