Chapter 10: Insurance Regulation
If an unlicensed person is impersonating an insurance agent and sells insurance policies without a license what is the maximum fine
$100
A business entity acting as an insurance producer is required to obtain
An insurance producers license
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information
Fair Credit Reporting Act
A person applying for a resident insurance producer license must make application to the commissioner on the uniform application and
Have successfully passed the exams for the lines of authority for which the person has applied
Which of the following is not correct regarding false statements by a person engaged in the business of insurance
Only written statements can be considered fraud
Willie, a private investigator was hired by an insurer to obtain a character report on Joan, an applicant. Willie pretends to be a reporter working on a full story about working women in Joan's town. During the conversation, Joan is asked a variety of question for which the answers will be used to determine the final underwriting decision. This is an example of
Pretext interview
Who does a life settlement broker represent?
The policy owner
What's is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act
$2,500
What is the continuing education requirement for producers during the initial licensing period of 36 months
60 hours including 3 hours in ethics
Which of the following reports will provide the underwriter with the information about an insurance applicants credit
Consumer report
When two 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
Discrimination
Which of the following policies would protect the owner of a mobile phone, laptop, tablet, or other similar device against the devices theft or malfunction
Portable electronics insurance
A temporary license may be issued for which of the following reasons
The agent is disabled and the disability keeps him from transacting insurance
A producer licensed in another state may receive a nonresident producer license in Massachusetts if all of the following are true except
The producers home state awards resident producer licenses to nonresidents of the state on the limited basis
If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if the notice of insurance information practices has been provided, the report may contain all of the following information except the applicants
ancestry