Utah Property-Insurance Regulation

Which of the following would be considered an unfair claims settlement practice? a) Requesting the insured swear under oath concerning the facts of the claim b) The settlement of the claim is delayed for 30 days in order for the insured to conduct an investigation c) A claims adjuster advises the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered d) Requesting the insured to submit a signed, proof of loss statement, after the insured has already verbally advised the insurer of the claim.

C-Violation under Unfair Settlement Practices

Which of the following types of discrimination would be considered legal? a) In policy benefits on the basis of life expectancies b) In policy benefits on the basis of marital status c) In rates for persons within the same class d) In premiums for persons within the same life expectancy.

A

A producer's license may be renewed every a) yr. b) 2 yrs. c) 3 yrs. d) 5 yrs.

B-2 yrs.

All of the following violations may result in agent's imprisonment EXCEPT a) Engaging in the business of insurance after being convicted of breach of trust b) Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction c) Embezzling funds from the insurer d) knowingly obtaining info about a consumer under false pretenses.

B-Failing to report. Agents are required to notify the dept. but it will not result in imprisonment.

Which of the following protects consumers against the circulation of inaccurate or obsolete information? a) The Inchmaree Clause b) The Fair Credit Reporting Act c) Loss Settlement Provision d) Commercial Package Policy

B-Fair Credit Reporting Act

Under the Fair Credit Reporting Act, a consumer report could be used for all of the following EXCEPT a) An insurance application b) Preparation of a lawsuit c) A loan application d) An employee background check

B-Lawsuit

Any licensed person who knowingly makes false material statements related to the business of insurance may be fined and imprisoned for up to a) 3 yrs. b) 5 yrs. c) 10 yrs. d) 12 yrs.

C-10 yrs.

Producers must complete 24 continuing education hours prior to license renewal every a) 5 years b) year c) 2 years d) 3 years.

C-2 years

If an insurer wants to raise its premium rates, the new rates must be submitted to the Commissioner for the review and will take how many days to go into effect? a) 10 b) 20 c) 30 d) 60

C-30 day waiting period

All admitted insurance companies in this state are subject to fiscal examinations by the Commissioner a) biennially b) every 3 yrs. c) at least every 5 yrs. d) once a yr.

C-At least every 5 yrs.

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 a) Under any circumstances b) Unless they have served an appropriate prison sentence c) Without receiving written consent from a Federal Judge d) Without receiving written consent from an insurance regulatory authority.

D-Written consent from insurance regulatory authority

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 insured's by 10% over the next two years. What term best describes this act? a) fraud b) defamation c) unfair discrimination d) errors and omissions

A-Fraud

Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance? a) False statements about financial condition of an insurer are unlawful b) Statements made with the intent to deceive are unlawful c) Only written statements can be considered fraud d) Omissions of material fact on insurance application are fraud.

C-Can be oral statements as well

A banker is ready to close on a customer's loan. The bank is prepared 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 a) Defamation b) Twisting c) Coercion d) Loading.

C-Coercion

An agent offers his client free tickets to the Super Bowl game in exchange for the purchase of an insurance policy. The agent is guilty of a) twisting b) controlled business c) rebating d) coercion

C-Rebating