Insurance Regualtion
The Federal Fair Credit Reporting Act
Regulates consumer reports
In the transaction of insurance, ___ is considered to be representing the client.
The broker
Which of the following insurance providers must be nonprofit and sell insurance only to its members?
Fraternal
Anyone who willfully violates a cease and desist order can be fined up to
$100 per day
Fine levied by the director in lieu of license revocation or suspension must be paid within
30 days
A contract in which an insured cannot negotiate with the insurer and the only option is to accept or reject the policy is called.....
A contract of adhesion
__ is owned by a corporation to serve that organization's needs at lower rates than would otherwise be available with commercial insurance?
Captive insurer
An insurance company that doesn't issue insurance policies but provides a meeting place for underwriters to conduct business is known as a
Lloyd's Association
What is the term which best describes when a person develops a formal program identifying, evaluating, and funding its losses?
Self-insuring
When an individual purchases insurance, what risk management technique is he or she practicing?
Transfer
an individual's tendency to be dishonest would be indicative of a
moral hazard
In an __ contract, unequal amounts are exchanged between payments and benefits.
Aleatory
Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?
Implied
In order to transact insurance business in this state, an agency must meet all of the following requirements except
obtaining an insurance AGENCY license
What is the maximum penalty for habitual willful noncompliance with the Fair Crediting Reporting Act?
$2,500
An insurance company sells an insurance policy over the phone in response to a TV ad. What is this act called?
Direct response marketing
Events or conditions that increase the chances of an insured loss occurring are referred to as
hazards
A producer failed to complete the required continuing education credit hours for this compliance period. Within what time period after the deadline may the license be reinstated? (and if a penalty fee has been paid)
6 months
What is foreign insurer?
An insurer with a home office in another state ( Guam, PR)
__ describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?
Defamation
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
The reduction, decrease or disappearance of value of the person or property insured in a policy by a peril insured against is known as
Loss
All of the following are unfair claims settlement practices except
Suggesting negotiations in settling the claim
Who is responsible for covering the expenses associated with the examination of domestic insurers?
The examined insurer
The Director must conduct an examination of each insurer in this state at leat
every 5 years or as often ad deemed appropriate.
__ is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?
Fraternal benefit society
All of the following are true of the Insurance Fraud Act except
Requires reports of insurance fraud to be available for public inspection.