Insurance Regulation

A producer sold an insurance policy. Subsequently, his license was suspended. In this case, how much of the commission will the producer receive? A all B half C quarter D none

A all

If an insurer appoints a producer, which authority must be notified? A department of insurance B federal directory of insurers C state insurance regulation board D commissioner

A department of insurance

All of the following are licensing requirements for a business entity, except A applying for a license in the same lines of authority as held by licnesed designees B having all of the employees complete continuing education once every 2 yrs C demonstrating general fitness, competence, and reliability D maintaining on staff at least 1 licensed person in good standing

B having all of the employees complete continuing education once every 2 yrs

How long does a temporary producers license last for the surviving spouse of a deceased producer? A 90 days B 150 days C 180 days D 365 days

C 180 days

Which of the following is an example of a producer's fiduciary responsibility? a. a produce promptly forwarding premiums to the insurance company b. a producer helping clients to file claims c. a producer reviewing his/her client's coverage d. a producer offering additional coverages to his client

a. a produce promptly forwarding premiums to the insurance company

it would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that info as a rating factor to determine insurability? a. address b. sexual orientation c. age d. gender

b. sexual orientation

All of the following could be considered rebates if offered to an insured in the sale of insurance except a. stocks, securities, or bonds b. an offer to share in commissions generated by the sale c. dividends from a mutual insurer d. an offer of employment

c. dividends from a mutual insurer

once it has been reasonably proven that a person has knowingly violated the insurance code regarding unfair methods of competition, the department may impose a civil penalty of a. $1000 for each violation b. $2000 for each violation c. $3000 for each violation d. $5000 for each violation

d. $5000 for each violation

Which of the following terms describes making false statement about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance? A slander B defamation C undercutting D twisting

B defamation

The Gramm-leach-billey act was passed to a. protect private customer info filed with a financial instituion b. define insurance as interstate commerce c. allow consumers access to credit and private consumer reports d. allow insurance companies to access medical info for underwriting purposes

a. protect private customer info filed with a financial instituion

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 a second degree felony and a $10,000 fine B a third degree misdemeanor and a $1,000 fine C a second-degree misdemeanor and a $1,000 fine D a third-degree felony and a $10,000 fine

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

How soon after the due date should the insurer pay the agent appointment fees? A immediately B within 10 days C within 30 days D within 60 days

C within 30 days

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial info? A unfair trade practices laws B the guaranty association C consumer privacy act D the fair credit reporting act

D the fair credit reporting act

Which of the following authorities monitors the financial strengths of insurers? A department of insurance B national association of insurance commissioners (naic) C financial industry regulatory authority (finra) D insurance companies

A department of insurance

Which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producers license? A forgery B speeding in an automobile C trespassing through a neighbors yard D public drunkness

A forgery

A producer licensed in another state wants to become a producer in PA. the other state gives the same privileges to PA producers wanting to be licensed in that state as it does its own agents. PA, therefore, extends privileges of its agents to the prospective agent of the other state. What is this called? a.equanimity b. reciprocity c. equality d. fair exchange

b. reciprocity

under which of the following circumstances can financial institutions share insurance coverage info with third parties, for the purpose of solicitation purchase of insurance? a. under no circumstances; nonpublic financial info cannot be shared with third parties b. if a consumers decides to opt out c. if a consumer does not sign and return the notice of disclosure within 30 days d. whenever it is requested by the commissioner

c. if a consumer does not sign and return the notice of disclosure within 30 days

Should an insurance company deny a claim submitted by an insured without providing to that insured a prompt and reasonable explanation of the claim the insurer would be in violation of a. twisting b. fiduciary responsibilities c. marketing practices provisions d. unfair claims methods and practices regulations

d. unfair claims methods and practices regulations

Which of the following entities must approve all continuing education courses in this state? A the appointing insurer B the state board of education C the commissioner D the naic

C the commissioner

What is the civil penalty for the first violation of the PA insurance fraud prevention act? a. $1000 b. $5000 c. $10000 d. $15000

b. $5000

licensees must make a report of any action taken against them in another jurisdiction or by another governmental agency in PA within how many days of the final disposition? a. 10 b. 30 c. 60 d. 90

b. 30

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? a. nothing; the license is automatically reinstated for an additional 6 months following return from military service b. nothing licensees of active duty military service personnel are automatically reinstated for a full licensing term c. the licensee must complete the continuing education requirement and pay the lapse renewal fees. requirements cannot be waived d. 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

d. 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 minimum age for obtaining an insurance producers license in this state? A 16 1/2 B 18 C 19 D 21

B 18

Which of the following does a producer not have the authority to do? A negotiate contracts of insurance B issue policies C deliver policies D solicit insurance contracts

B issue policies

Forcing a client to buy insurance from a particular lender as a condition of getting a loan is defined as a. coercion b. rebating c. misleading advertising d. defamation

a. coercion

If a licensee wants to transact insurance under a different name than that listed on his or her producer's license, which of the following must occur? a. the change must be reported to the commissioner b. the change must be reported to the federal producers directory c. the licensee must obtain a new license d. it is illegal to transact insurance under any name other than the one listed on the license

a. the change must be reported to the commissioner

For how long must a company maintain a complete file of all advertisements used? A at least 4 hrs B 90 days after the ad is first used C 30 days after the advertisement expires D no more than 3 years

A at least 4 yrs

Which of the following would not be considered an unfair and deceptive practice? A controlled business B rebating C defamation D misrepresentation

A controlled business

A producer has become disabled. in order to keep his business going, what must the producer's designee do? a. hire a temporary agent to run the business during the producer's disability b. obtain a temporary license c. solicit new business d. file for federal aid designed for this situation

b. obtain a temporary license