Chapter: Insurance Regulation
The minimum fine for violating the Insurance Code is
$1,000
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
How many hours of continuing education does a licensed insurance producer have to complete?
24 hours every 2 years
What is the minimum required number of continuing education credits in ethics every licensing period?
3
A nonresident producer moves to another state. The producer must notify the Department of Insurance of the address change within how many days?
30
The Commissioner is elected to a term that lasts for how many years?
4
What is the maximum amount of time that could pass before an insurer's financial stability would be examined?
5 years
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice.
How are state Insurance Guaranty Associations funded?
By their members - authorized insurers
How can a person become the Commissioner?
Election
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?
False advertising
Which of the following best describes a misrepresentation?
Issuing sales material with false statements about policy benefits
A Louisiana insurance company ran an advertisement in June 2008. When could the company discard the file on this advertisement?
June 2012
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. The company is guilty of
Misrepresentation.
Which of the following documents must be provided to the policy owner or applicant during policy replacement?
Notice Regarding Replacement
Which of the following would be a violation of life policy illustration regulation?
Providing a customer with an incomplete illustration
The National Do Not Call Registry was created to regulate
Telemarketers
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
Which of the following is true regarding statistics used in an advertisement?
The source must be identified.
What is the main justification for the existence of the State Insurance Department?
To protect the public
The producer's license has been revoked for a violation of the Insurance Code. When can the producer apply for a new license?
Within 1 year of the revocation
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 written consent from an insurance regulatory authority.
If an insurance company wishes to order a consumer report on an applicant to assist in underwriting, all of the information will be on the consumer report except a. ancestry b. credit history c. habits d. prior insurance
a. ancestry
