insurance regulation

When a producer died, his surviving spouse needed to maintain the insurance agency until it could be sold. Without passing an examination, she could qualify for a temporary license for a maximum period of

180 days

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

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

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?

8 am

A licensed producer moving to Pennsylvania may become licensed as a resident if the producer submits a completed application within how many days of establishing residence in Pennsylvania with proof of licensing from their prior home state?

90

Which of the following licensees is classified as a representative of the insurance company and not allowed to represent an insured or claimant?

Producer

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.

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

$2,500

What is the civil penalty for the first violation of the Pennsylvania Insurance Fraud Prevention Act?

$5,000

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.

How long does a temporary producer's license last for the surviving spouse of a deceased producer?

180 days

Which of the following persons is required to hold a producer license?

A person who negotiates insurance contracts

Which of the following is an example of a producer's fiduciary responsibilities?

A producer promptly forwarding premiums to the insurance company

An 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?

A third-degree misdemeanor and a $1,000 fine

Which of the following would be considered an unfair claims settlement practice?

Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered

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

Ancestry

A producer's license must be renewed

Biennially

Which of the following would NOT be considered an exception to the National Do Not Call List?

Calls based from outside of the United States

Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?

Consumer report

Which of the following terms 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

If an insurer appoints a producer, which authority must be notified?

Department of Insurance

Which of the following authorities monitors the financial strength of insurers?

Department of Insurance

All of the following violations may result in an agent's imprisonment EXCEPT

Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.

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

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of

False advertising

An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?

Fraud

Which of the following does a producer NOT have the authority to do?

Issue Policies

Which of the following does a producer NOT have the authority to do?

Issue policies

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

Which of the following best describes the unfair trade practice of defamation?

Making derogatory oral statements about another insurer's financial condition

Which of the following is the term used when a person in a fiduciary position has used assets in manner for which they were not intended such as the wrongful taking or use of money belonging to another?

Misappropriation of funds

In which of the following situations would punishment include imprisonment?

Omission of a material fact with intent to embezzle funds

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.

The Gramm-Leach-Bliley Act was passed to

Protect private customer information filed with a financial institution.

A producer licensed in another state wants to become a producer in Pennsylvania. The other state gives the same privileges to Pennsylvania producers wanting to be licensed in that state as it does its own agents. Pennsylvania, therefore, extends the privileges of its agents to the prospective agent of the other state. What is this called

Reciprocity

The Federal Fair Credit Reporting Act

Regulates consumer reports.

All of the following are requirements for producer license renewal EXCEPT

Renewal examination.

Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must

Respond to the consumer's complaint.

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

The Fair Credit Reporting Act

Which of the following entities established the Do-Not-Call Registry?

The Federal Trade Commission

Which type of misrepresentation persuades an insured, to their detriment, to cancel, lapse, or switch policies from one to another?

Twisting

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

Without receiving written consent from an insurance regulatory authority

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

Without receiving written consent from an insurance regulatory authority.

It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability?

sexual orientation