Idaho statutes, rules, and regulations common to all lines

If an insurance premium is paid by the policy owner to the agent, and the agent fails to remit that premium to the insurer, which of the following statements is true?

The policy will not lapse since payment to the agent is the same as a payment to the insurer.

When the director conducts an examination of alien insurers, what is the typical extent of the examination?

Transactions occurring in the US only

After an insurer receives an itemized bill related to a valid motor vehicle policy claim, it must be paid within

20 days

Which of the following is the closest term to an authorized insurer?

Admitted Insurers who meet the state's financial requirements and are approved to transact business in the state are considered authorized or admitted into the state as a legal insurer.

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?

misrepresentation

If a producer receives a large sum of money (over $2000) in the form of cash that is not payable to the insurer or the policy owner, within what time. Must a producer deposit the money into a fiduciary fund account?

3 Business days

How long of a term does the director of insurance serve?

4 years

An individual currently licensed in South Carolina just moved to Idaho. In order to avoid a pre-licensing examination, how soon after establishing legal residence should she apply for a resident license?

90 days

An agent is acting ethically and all of the following situations except

Always representing the insured.

When an insurance agency published an advertising brochure, it emphasized the company's financial stability and sound business practices. In reality, it's financial health is terrible, and the company will soon have to file for bankruptcy. Which of the following terms best describes the advertisement?

False financial statement

A participating insurance policy may do which of the following?

Pay dividends to the policyowner. A participating insurance policy will pay dividends to the owner based upon actual mortality cost, interest earned and costs.

If an entity has the power to sell, solicit, or negotiate insurance, which license does it have?

Producer

Under the fair credit reporting act, if the consumer challenges the accuracy of the information in his or her report, and reporting agency must

Respond to the consumer's complaint

For a producer to share his commission with another producer, which of the following must be true

Both producers must be currently licensed for the same line of authority as the transaction.

Which of the following must an insurer obtain in order to transact insurance within a given state?

Certificate Authority

All of the following are regulated areas of the insurance industry except

Commissions

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

Consumer report

The requirement the producers must account for all insurance funds collected, and without the expressed consent of the insurance companies are not permitted to come in with those funds with their own funds is known as

Fiduciary responsibility

Who appoints a new director of insurance?

Governor

Insurance contracts or agreements between which two parties?

Insurer and Insured

Who might receive dividends from a mutual insurer?

Policyholders

The national do not call registry was created to regulate

telemarketers

What is the maximum penalty for habitual willfull noncompliance with the fair credit reporting act?

$2,500

If an applicant for an insurance producer license has been denied licensing, how long must the applicant wait to reply to a license?

1 year

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

10 years

When the director requests a hearing, written notice must be submitted how many days in advance?

14 days

After passing the State exam, an individual must apply for a license within

180 days

All of the following could be considered rebates if offered to an insured in the sale of insurance except

Dividends from a mutual insurer.

An agreement that is enforceable by law is known as a(n)

Legal Contract

Which of the following terms describes making false statements about the financial condition of any ensure that are intended to injure any person engaged in the business of insurance?

Defamation

Which of the following authorities has the power to approve or disapprove an application for a certificate of authority?

Director of Insurance

An applicant is denied insurance because of information found on the 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

An insurance company has published a brochure that in accurately portrays the advantages of a particular insurance company. What is this an example of?

False advertisement

When transacting business in this state an insurer formed under the laws of another country is known as a/an

alien insurer

If an insurer meets the states financial requirements and is approved to transact business in the state, it is considered to be

authorized

How many hours of CE must a producer complete every two years?

24

A policy owner provides a check to the producer for her initial premium. How soon from receiving a check must the producer remit it to the insurer?

Within 21 days

A producer has completed 30 hours of continuing education for the current licensing period. That six hours in excess of the required minimum. How many hours may the producer carryover for the next licensing.?

Zero hours CE hours cannot be carried over

In any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the

company

Which of the following insurance providers must be nonprofit and sell insurance only to its members?

fraternal

Which of the following is an agreement between an insured and an insurer, where the insurer agrees to indemnify the insured for specific losses in exchange for a premium?

insurance contract