Code 36 to 52 - Section 20
A Special Surplus Line broker may transact all of the following Aircraft insurance Insurance on property being exported by land or water. Insurance on property that engage in interstate commerce thru railroad operations. except:
Insurance on antique automobiles
Which of the following statements are true with regards to rate approval in the State of CA?
Insurers are required to deliver evidence that the rates are reasonable and fair.
This law was the first to recognize that state regulation of the insurance industry was in the public's best interest.
Paul vs. Virginia
For an insurer to be solvent they must have enough assets to cover:
liabilities. reinsurance. paid-in-capital. All of these.
HIPPA addresses how licensees must protect clients:
medical information. HIPPA established rules for protecting personal medical information.
A unwillful violation of Unfair Practice can be fined up to:
$5,000 per violation
Which of the following statements are not true?
Full repayment to victims can be required instead of the fine amount.
All of the following are types of Valuations used by insurers: Replacement Cost Value. Agreed Value. Stated Value. Except:
Market Value minus the depreciation.
An Insurance Claims Analysis Bureau shall perform the following functions:
Promote training. Disseminate information Gather information. All of the above.
What is the main role of the Commissioner and the Department of Insurance?
Regulate the conduct of agents and insurers in California
What type of Valuation would this statement be: An appraised $200,000 house burns and is a total loss? The insurance company pays $230,000 to rebuild the house
Replacement cost value
Advising a client to obtain the services of an attorney is considered to be:
acceptable
According to the Code the fastest growing area of fraudulent activities is:
auto insurance fraud
The insurance Commissioner is elected at the same time as the:
Governor
Which one of the following would be considered an acceptable actuarial classification for discrimination?
How much someone weighs
CIGA protects policyholders against insolvency of all the following, Auto Insurers Burglary insurance Marine Insurers except:
Self-insurers
The specific classifications which cannot exist include the following: Sexual orientation. Religion. Ancestry. Except:
Sexual orientation
Which of the following is not true with regards to Surplus lines?
Surplus lines insurers are admitted insurers who specialize in offering insurance to the high risk market
The penalties for the insurer for unfair discrimination violation determined to be a general business practice is:
$15,000-$100,000
Which of the following CIGA claims would be covered and paid in full?
A workers' compensation claim in the amount of $90.
The follow are all responsibilities of the Commissioner of Insurance Oversee the DOI, directing all its affairs and staff in compliance with the code. Issue regulations that establish how the DOI intends to interpret and enforce the law Appoint people to negotiate settlements with agents or insurers who have violated the code except:
Authority to change the code but may not write new laws
Every company in California is required to report its financial condition to the Commissioner:
Every year, on or before March 1st
No rate shall be approved or remain in effect that contains all of the following except:
Excessively higher than the competition
Cal-GLBA affects many aspects of agents business How firm markets, collects, and shares information. How client files are secured. An Opt in and Opt out system. EXCEPT:
How the agent services, defends, and pay claims. Cal-GLBA is the California adoption of the Gramm-Leach-Bliley Act and has nothing to do with paying claims.
In order to purchase P/C insurance, you must be able to show insurable interest. Which of the following would not meet the insurable interest requirement?
In P/C, you must be able to show some ownership or financial interest in a property or exposure. Relationships or family ties do not count for insurable interest with P/C
The following are fair discriminations which would allow an insurer to increase the insured's auto rate except?
Insured has been divorced
This law recognized that state regulation of the insurance industry was in the public's best interest and EXEMPTED the insurance industry from the federal regulation required for most interstate commerce industries.
McCareen-Ferguson Act of 1945
Public Law 15 exempted insurers from most federal regulation is known as:
McCarran-Ferguson Act
The following are true in regards to the California Insurance Guarantee Association: The association is funded by its member insurers The maximum claim covered would be $500,000 or the policy limit. The purpose of the association is that each member be provided with insolvency insurance Except:
The Association is directed by a 9 member Board of Governors who are elected by voters for a two year term
All of the following are true regarding the Gramm-Leach-Bliley Act. The GLB act gives authority eight federal agencies. The GLB allows the administration of the Financial Privacy Rule and the Safeguards Rule. The GLB is also know as the Financial Modernization Act of 1999. except:
The GLB includes provisions to protect consumers against insurance companies financial failure.
Since C A uses the Prior Approval system in filing rates, what happens if the Commissioner fails to respond within 60 days?
The company may use the filed rates and may consider them approved.
Which of the following means Insolvency?
The inability of the insurer to meet its financial obligations when they are due
Which of the following statements with regards to the CIGA is true?
The maximum claim covered is $500,000.
What regulates trade practices in the insurance business accordance with the intent of Congress?
Unfair Practices Article
California Privacy Act established standards concerning insurance for:
disclosure of information. collection of information. use of information. All of the above