Chapter Quiz: Health & Accident Insurance Regulation

For how long is the certificate of pre-licensing course completion valid? A) 180 calendar days B) indefinitely C) 120 days D) 2 years

A) 180 calendar days The certificate of pre-licensing course completion is valid for 180 calendar days from the completion of the course or passing of provider's self-study proctored examination

How many hours of pre-licensing education are required for applicants seeking a resident agent license for a single line of insurance? A) 20 B) 32 C) 40 D) 50

A) 20 Resident applicants must complete 20 hours of pre-licensing education for each of the following lines of authority: life; accident & health; property; casualty personal lines

How often must the Superintendent examine financial affairs of domestic insurers? A) 3 years B) 5 years C) 10 years D) 2 years

A) 3 years Domestic insurers must be examined at least once every 3 years regarding their condition fulfillment of contractual obligations, and compliance with applicable laws.

By what date in each licensing period are agents required to renew their license? A) by the last day of their birth month B) by 12/31 C) by the date CE courses are completed D) by the license issue anniversary date

A) by the last day of their birth month After initial requirements agents must continue to renew their licenses biennially, on the last day of their birth month.

Which of the following is NOT true regarding a temporary license in this state? A) it will continue for 180 days even if the owner disposes of the business B) it can be issued to a designee when a licensed agent enters active US Military service C) it can be issued to a spouse of the deceased agent D) it does not require a written examination

A) it will continue for 180 days even if the owner disposes of the business A temporary license cannot continue in force after the owner of the business or the owner's personal representative disposes of the business.

If a cybersecurity event has occurred, licensees must maintain records of the incident for no less than: A) 2 years B) 5 years C) 8 years D) 10 years

B) 5 years After a cybersecurity event, an insurer or third-party service provider, must conduct a prompt and thorough investigation. Once the event has been resolved, the insurer must maintain all records related to the event for no less than 5 years.

Which of the following has the authority to issue a cease and desist order? A) Federal Insurance Regulation Board B) Superintendent C) State police D) department of Insurance

B) Superintendent In certain instances, the Superintendent has the power to issue an order that requires a person to cease and desist from an activity. The cease & desist order must specify the act or practice that is subject to the order.

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? A) rebating B) misrepresentation C) concealment D) unfair claim practice

B) misrepresentation Issuing or circulating any sales material that is false or misleading would be considered misrepresentation and is illegal

Under the Fair Credit Reporting Act if a consumer challenges the accuracy of the information contained in a consumer investigative report, the reporting agency must A) send an actual certified copy of the entire report to the consumer B) respond to the consumer's complaint C) defend the report if the agency feels it is accurate D) change the report

B) respond to the consumer's complaint The consumer has the right to request the information on the report, the reasons for turn down, and any adverse underwriting decisions. The reporting agency is required to respond to the consumer's complaint and, if necessary, to reinvestigate the report.

How many hours of continuing education must be completed in ethics? A) 12 B) 2 C) 3 D) 5

C) 3 Each person licensed as an agent or solicitor is required to complete 24 hours of approved continuing education instruction, including 3 hours of ethics training, every 2 years.

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 applicant's: A) habits B) prior insurance C) ancestry D) credit history

C) ancestry The Fair Credit Reporting Act regulates what information may be collected and how the information may be used. Consumer Reports include written and/or oral information regarding a consumer's credit, character, reputation and habits collected by a reporting agency from employment records, credit reports, and other public sources. Ancestry is not relevant information in these reports.

Who is an insurance agent? A) any person appointed by an insurance company B) any person who represents the insured in the sale of insurance C) any person licensed to sell, solicit or negotiate insurance D) any person licensed under the laws of another state

C) any person licensed to sell, solicit or negotiate insurance An insurance agent is any person that--in order to sell, solicit, or negotiate insurance--is required to be licensed under the laws of this state, including limited lines insurance agents & surplus lines brokers

Each person licensed as an agent or solicitor is required to complete how many hours of approved continuing education instruction every 2 years? A) 22 B) 26 C) 18 D) 24

D) 24 Each person licensed as an agent or solicitor is required to complete 24 hours of approved continuing education instruction, including 3 hours of ethics training, every 2 years. Agents holding a limited license for title insurance must complete 10 hours every 2 years.

Which of the following would be sufficient violation to warrant rejection, revocation, or suspension of an insurance agent's license? A) acting as a fiduciary B) an unintentional misrepresentation of the terms of a contract C) a moving violation ticket D) a denied license in another state

D) a denied license in another state From these options only a denied license in another state would be sufficient violation to deny, revoke or suspend an agent's license

The National Do Not Call Registry was created to regulate A) field underwriters B) insurers C) insurance solicitors D) telemarketers

D) telemarketers The registry was created to allow consumers the choice to not be contacted by telemarketers