Insurance Regulation quiz study set

Which of the following will NOT be considered unfair discrimination by insurers?

discriminating in benefits and coverages based on the insured's habits and lifestyle

According to the Fair Credit Reporting Act, all of the following would be considered negative information about a consumer EXCEPT

disputes regarding consumer report information

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

making comparisons between different policies

All of the following are true regarding rebates EXCEPT

rebates are allowed if it is in the best interest of the client

A agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of

rebating

All of the following are considered unfair trade practices in the business of insurance EXCEPT

sharing commissions

Producers will be deemed to be using their license primarily to write controlled business if, during any 12-month period

the total premiums on controlled business exceeds the total premiums on all other business written

what are the illegal ways producers can get customers to buy?q

twisting, defamation, false advertising, unfair claims, coercion

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

$2,500

A producer committed a violated the insurance code. The act she committed was so uncommon that no specific penalty is attached to it. In this case, what is the maximum fine that could be leveled?

$5,000

An agent voluntarily surrendered her license. How soon after this surrender can her license be reinstated?

1 year

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

In a circumstance that would warrant license suspension, the Commissioner may instead decide to put the license on probation. What is the maximum number of months that the probation could last?

24

How many hours of continuing education per licensing period must all licensees complete in order to renew their licenses?

24 hours

Existing and replacing life insurers are required to keep copies of all summaries, notices, and statements used in sale transactions until the conclusion of their next examination by the insurance department, or for the current calendar year plus

3 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?

30

Which of the following is an example of a producer's fiduciary responsibilities?

a producer promptly forwarding premiums to the insurance company

When twin 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 authorities is responsible for determining whether an insurer is financially stable enough to safely conduct business?

B & C

which term describes an individual who is domiciled and licensed as a resident producer in a state other than Utah?

Nonresident producer

The Gramm-Leach-Bliley Act was passed to

Protect private customer information filed with a financial institution.