insurance regulation questions
the maximum penalty for habitual willful noncompliance with the fair credit reporting act?
$2500
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 If the activity jeopardized the security of the accompanied insurer, the punishment can be up to 15 years
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
7am permissible calling hours for telemarketer are between 8am-9pm
which of the following would be considered an unfair claims settlement practice? A. Advising the insured that if the claim goes to arbitration, the insured would probably receive less that what is currently being offered B. Requesting the insured to submit a signed proof of loss statement, after the insured has already verbally advised the insurer of the claim C. Requesting the insured swear under oath concerning
Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered
a banker is ready to close on a customer's loan. The bank is repaired to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. this is an example of
Coercion
if an insurer appoints a producer, which authority must be notified
Dept. of insurance
Which of the following would be required to be licensed as an insurance producer A. a salaried employee who advertises and solicits insurance B. a person whose activities are limited to producing insurance advertisements C. A salaried full- time employee who furnishes information for group insurance D. An insurance company director who performs executive, administrative and managerial duties
a salaried employee who advertises and solicits insurance
which of the following would NOT be considered an exception to the national do not call list? A. calls which are not commercial or do not include unsolicited advertisements B. calls by or on behalf of a tax exempt non profit c. calls based outside of the US D. calls for which consumer has given prior written permission
calls based outside of the US
which of the following is an example of an unfair claims settlement practice A. making claims payments which clearly indicate under which coverage payment has been B. using arbitration when the insured and insurer cannot reach agreement C. Failure to prompt settle a claim when liability has been clearly established D. Denying coverage after a reasonable investigation has been conducted
failure to prompt settle a claim when liability has been clearly established
an insurance company assures its new policyholders that their premium costs will not increase for a period of at least 5 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
under which circumstance can financial institutions share insurance coverage information with third parties, for the purpose of soliciting the purchase of insurance
if a consumer does not sign and return the notice of disclosure within 30 days
which of the following does a producer NOT have the authority to do? A. solicit insurance contracts B. Negotiate contracts of insurance C. Issue policies D. Deliver policies
issue policies
the Gramm- Leach - Bliley Act was passed to
protect private customer information filed with a financial institution
under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report
must be informed of the source of the report
a producer has become disabled. In order to keep his business going, what may his designee do?
obtain a temporary license
How many days must a producer respond to an inquiry from the commissioner
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. the licensee must complete the continuing education requirements and pay the lapse renewal fees. Requirements cannot be waived. B. 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 C. Nothing; the license is automatically reinstated for an additional 6 months following return from military service. D. Nothing; licenses of active duty military service personnel are automatically reinstated for a full licensing term
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
If a licensed person is moving to PA, he or she may become licensed as a resident if they submit a completed application within how many days of establishing residency in PA with proof of licensing from their prior home state
90
Terrorism Risk Insurance Act of 2015 has extended TRIA to the year
2020
what is the minimum age for obtaining an insurance producer's license in this state
18
When a producer died, his surviving spouse needed to maintain the insurance agency until it could be sold. Without testing, she could qualify for a temporary license for a maximum period of
180 days
Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended TRIA to the year
2020
Which of the following is true regarding Continuing Education required for those holding a Pennsylvania producer license?
24 hours each licensing period
A producer has successfully completed 52 hours of CE. How many hours can the producer apply to her current reporting period, and how many hours can she carry forward to the next reporting period?
24 hours will be applied to the current reporting period, and 24 can be applied to the period immediately following. the excess 4 hours may not be carried over
within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained
3 days
a person applying for a manager or exclusive general agent license must meet all of the following criteria EXCEPT A. Have an authority to act on the insurer's behalf B. Be found sufficiently fit, competent and reliable by the Department of Insurance C. Have paid all applicable fees D. Be responsible for at least 25% of total commissions collected by the office that he or she manages
Be responsible for at least 25% of total commissions collected by the office that he or she manages
which of the following is an example of unfair claims settlement practice? A. denying coverage after a reasonable investigation has been conducted B. making claims payments which clearly indicate under which coverage payment has been made C. using arbitration when the insured and insurer cannot reach agreement D. Failure to promptly settle a claim when liability has been clearly established
Failure to promptly settle a claim when liability has been clearly established
the insurance code identifies all of these as prohibited acts that can cause suspension, revocation or denial of an insurance producer license for a licensee or applicant, with the exception of
commission of any misdemeanor
two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called
discrimination
if a licensee wants to transact insurance under a different name than that listed on his of her producer's license, which of the following must occur
The change must be reported to the Commissioner
Which of the following authorities is authorized to issue a temporary insurance producer's license
Commissioner The Commissioner has the power to issue and revoke all types of licenses, including those that are temporary
When a producer was reviewing a potential clients coverage written by another company, the producer made several remarks that were maliciously critical of other insurer. The producer would be guilty of
defamation
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 of his insurance. This practice is considered
discrimination
which of the following best describes a misrepresentation? A. making a maliciously critical statement that is intended to injure another person B. discriminating among individuals of the same insuring class C. issuing sales material with exaggerated statements about policy benefits D. making a deceptive or untrue statement about a person engaged in the insurance business
issuing sales material with exaggerated statements about policy benefits
pertaining to insurance, what is the definition of a fiduciary responsibility
promptly forwarding premiums to the insurance company
Paul is a producer in Ohio and wants to become a producer in Pennsylvania. The Commissioner will waive certain examination requirements, provided that Ohio would waive these same requirements if a Pennsylvania producer sought licensure in Ohio. what term is used to describe this phenomenon
reciprocity
the federal fair credit reporting act
regulates consumer reports
under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must
respond to the consumer's complaint
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports
the customer's associates, friends, and neighbors provide the reports data
How soon after the due date should the insurer pay the agent appointment fees
within 30 days
for the purpose of examination by the department, insurers must keep a record of all financial files for at least
5 years
Which of the following entities established the Do-Not-Call Registry
the Federal Trade Commission FTC established the do-not-call list in order to protect consumers against unwanted solicitations
who is responsible for paying producer appointment fees?
the appointing insurer a fee of $15 will be billed to the insurer annually for each producer appointed during the previous year
should an insurance company deny a claim submitted by a insured without providing to that insured a prompt and reasonable explanation of the claim denial, the insurer would be in violation of
unfair claims methods and practices regulation
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
with regards to premium rates, which of the following statements is NOT true? A. The Commissioner sets all insurance premium rates used in Pennsylvania B. Pennsylvania is a "prior approval" state in that premiums rates must be filed with the Insurance Department and approved by the Commissioner C. After a premium rate is filed, the insurer must wait 30 days or until approval is received from the Commissioner before using the new rate D. If a premium rate is disapproved, the Commissioner must hold a hearing if requested by the insurer
the Commissioner sets all insurance premium rates used in Pennsylvania All premium rates must be filed with the Commissioner. The insurer must wait 30 days before using the filed rate, or until the approval is received. If, after 30 days, the filing has not been disapproved, the insurer may use the filed rate
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 consent from an insurance regulatory authority
the commissioner of insurance is placed in office by which means
an appointment by the governor
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 applicants A. credit history B. habits C. prior history D. ancestry
ancestry
with regards to premium rates, which of the following statements is NOT true A. If a premium rate is disapproved, the commissioner must hold a hearing if requested by the insurer B. The commissioner sets all insurance premium rates in PA C. PA is a "prior approval" state in that premium rates must be filed with the insurance dept. and approved by the commissioner D. After a premium rate is filed, the insurer must wait 30 days or until approval is received from the commissioner before using a new rate
the commissioner sets all insurance premium rates in PA
under the unfair credit reporting act, if the consumer challenges the accuracy of the info contained in his report, the reporting agency must
respond to the consumer's complaint