Insurance Regulation

An agent voluntarily surrendered her license. How soon after this surrender can her license be reinstated?

B. "1 year" Both a lapse and voluntarily surrendered license may be reinstated within 1 year of the day it becomes inactive.

A producer's license may be renewed every A. Year B. 2 years C. 3 years D. 5 years

B. A producer's license may be renewed every 2 years. In order to renew, proper renewal forms must be submitted, accompanied by payment of the required fees and proof that the continuing education requirements have been met.

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports? A. The customer has no knowledge of this action. B. The customer's associates, friends, and neighbors provide the report's data. C. They provide additional information from an outside source about a particular risk. D. They provide information about a customer's character and reputation.

B. Both consumer reports and investigative consumer reports provide additional information from an outside source about a customer's character and reputation, and both types of reports are used under the Fair Credit Reporting Act. The main difference is that the information for investigative consumer reports is obtained through an investigation and interviews with associates, friends and neighbors of the consumer.

Which term describes an individual who is domiciled and licensed as a resident producer in a state other than Utah?

B. Nonresident producer

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

B. The Fair Credit Reporting Act

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

B. Without receiving written consent from an insurance regulatory authority.

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 A. Habits B. Prior Insurance C. Ancestry D. Credit History

C. "Ancestry"

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

C. "Must be informed of the source of the report." Under the Fair Credit Reporting Act, if an insurance policy is declined or modified because of information contained in a consumer report, the consumer must be advised and provided with the name and address of the reporting agency.

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

C. 10 years

When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered

C. Discrimination

Which of the following would be considered an illegal inducement to purchase life insurance? A. Listing the insurance companies the agency represents in a letter B. Inviting prospective clients to the grand opening of the producer's new office C. Confirming future dividends in a life insurance proposal D. Mailing an agency brochure to a prospective client

C. It is illegal to make, permit, or offer to make any contract of insurance or life annuity or agreement concerning such a contract with terms other than those stated in the contract. A participating life insurance policy may pay a portion of its net earnings to a policyholder , but dividends cannot be guaranteed.

What documentation grants express authority to an agent?

D. "Agent's contract with the principal".

A resident agent licensed in another state may obtain a nonresident license in Utah without taking the examination provided that

D. "All of these requirements are met." Utah law provides for licensing nonresidents provided that the state of the applicant's residence affords the same privilege to residents of Utah.

Which of the following does a life insurance producer have the authority to do? A. Transact insurance for non admitted insurers B. Modify coverage C. Bind coverage D. Receive an application

D. "Receive an application" Property and casualty producers can usually bind coverage for their clients. Life and health producers, however, are authorized to solicit, receive, and forward applications for insurance to their companies, but they generally do not have authority to bind coverage or to alter or modify coverage.

According to the Fair Credit Reporting Act, all of the following would be considered negative information about a consumer EXCEPT

D. Disputes regarding consumer report information

The primary purpose of licensing is to

D. Ensure high standards to the insuring public.