Regulation

When an individual obtains an insurance license for the primary purpose of writing their own insurance or the insurance for members of their immediate family, or business, this is called

Controlled business

A producer's license is revoked for a violation of the insurance Producer's licensing act. The producer may have to pay a fine up to

$1,000

In addition to any applicable denial, suspension, probation, or revocation of a license, a person who violates the Insurance Producers Licensing Act may receive a fine up to

$1,000

What is the maximum penalty for habitual willful compliance with the fair credit reporting act?

$2,500

Controlled business cannot exceed 30% of a person's commissions earned in what period of time

1 year

An insurance company cannot transact insurance until it obtains a

Certificate of Authority

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?

Misrepresentation

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 consumers complaint

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The costumer's associates, friends and neighbors provide the report's data

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

In order to get a nonresident license in this state, a producer must

Apply and pay a fee

Forcing a client from a particular lender as a condition of granting a loan in called

Coercion

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

Consumer report

A producer violated an insurance law and as a result has had a legal action taken against her. Which authority must be notified?

Director

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

Disputes regarding consumer report information

Paul is a producer in Washington and wants to become a producer in Oregon. The Director will waive certain examination requirements, provided that Washington would waive these same requirements if an Oregon producer sought licensure in Washington. What term is used to describe this phenomenon?

Reciprocity

To appoint an insurance producer as its agent, the appointing insurer must file a notice of appointment within how many days from the date of the first insurance application submitted to the agent?

15 days

Within how many days must an insurer acknowledge communication regarding an insurance claim?

15 days

Temporary producer license may be issued for the maximum of how many days?

180

Nebraska resident producers must complete a new set of continuing education requirements every

2 years

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

If the appointment of any insurance producer is to be terminated, the Director must be notified by the insurer within how many days of that termination?

30

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting 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

Which of the following charges a fee to advise people regarding the advantages and disadvantages, insurable risks, benefits, coverage, or provisions of any insurance policy that could be issued in the state?

Consultant

Which of the following authorities is responsible for issuing all certificates and licensing

Director

Which act bars agents, brokers, and companies from disclosing health, financial, or other information gathered in the underwriting process about the consumer to nay 3rd party without the consent o the consumer?

Privacy of insurance Consumer information act

If legal action is taken against an agent for violating an insurance law, within what period of time must a report be filed with the director

30 days

What is the maximum allowed percentage of commissions from controlled business

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

A banker is ready to close a costumers loan. The bank is prepared to differ the loan but only if the costumer purchases a life insurance policy from the bank in the amount of a loan. This is an example of

Coercion

If a producer wants to use an alias instead of his real name who must he notify

Director

Which of the following authorities is responsible for assessing the financial stability of an insurer

Director

Which of the following types of producers can legally bind coverage in Nebraska?

Property And Casualty

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

The fair credit reporting act

For how many years is the director appointed?

There is no set limit

A Certificate of Authority in Nebraska must be renewed on what kind of bias?

Annual

A producer's license may be revoked or suspended by the Director for all of the following reasons except

Failure to meet sales quota by the insurer

Which of the following is an example of an unfair claims settlement practice?

Failure to promptly settle a claim when liability has been clearly established

Producers must notify the Director of an address change within how many days?

30

The director denies an application for a license. If the applicant wants a contest this decision, written demand for a hearing must be made within how many days

30

The director conducts an examination of domestic every

5 years

Which of the following would be considered false advertising?

Implying that the agent is the insurer

Which of the following is an example of a producer being involved in an unfair trade practice of rebating

Telling a client that his first premium will be waived if he purchased the insurance policy today