Insurance Regulation
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice? A Defamation B Illegal C A legal advertising strategy D Unfair Discrimination
B
Which of the following does a producer NOT have the authority to do? A Deliver policies B Solicit insurance contracts C Negotiate contracts of insurance D Issue policies
D
Which of the following entities must approve all continuing education courses in this state? A The NAIC B The appointing insurer C The State Board of Education D The Commissioner
D
Insurers are required to keep records. When may the Department examine these records? A At any time B Never C Every 1 year D Every 5 years
A
The National Do Not Call Registry was created to regulate A Telemarketers. B Field underwriters. C Insurers. D Insurance solicitors.
A
Who is responsible for paying producer appointment fees? A The Department of Insurance B The producer C The appointing insurer D The Commissioner's office
C
If an insurer changes a form that it uses to transact insurance, it must do which of the following? A File the form with the NAIC for approval B Submit it to the Department of Insurance so it can be kept in the insurer's official records C Nothing, as long as the insurer has a Certificate of Qualification. D File the form with the Commissioner for approval
D
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 A Concealment. B Unfair claim practice. C Rebating. D Misrepresentation.
D
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as A Coercion. B Rebating. C Misleading advertising. D Defamation.
A
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? A 5 days B 7 days C 10 days D 3 days
A
Licensees must make a report of any action taken against them in another jurisdiction or by another governmental agency in Pennsylvania within how many days of the final disposition of the matter? A 10 B 30 C 60 D 90
B
Prior to license renewal, all insurance producers must successfully complete a minimum of A 12 credit hours of CE. B 24 credit hours of CE. C 18 credit hours of CE. D 20 credit hours of CE.
B
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her 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
Which of the following best describes a misrepresentation? A Discriminating among individuals of the same insuring class B Issuing sales material with exaggerated statements about policy benefits C Making a deceptive or untrue statement about a person engaged in the insurance business D Making a maliciously critical statement that is intended to injure another person
B
With regards to premium rates, which of the following statements is NOT true? A If a premium rate is disapproved, the Commissioner must hold a hearing if requested by the insurer. B The Commissioner sets all insurance premium rates used in Pennsylvania. C Pennsylvania is a "prior approval" state in that premiums rates must be filed with the Insurance Department and approved by the Commissioner. D After a premium rate is filed, the insurer must wait 30 days or until approval is received from the Commissioner before using the new rate.
B
According to the Fair Credit Reporting Act, all of the following would be considered negative information about a consumer EXCEPT A Late payments. B Failure to pay off a loan. C Disputes regarding consumer report information. D Tax delinquencies.
C
How soon after the due date should the insurer pay the agent appointment fees? A Immediately B Within 10 days C Within 30 days D Within 60 days
C
Insurance producers that do not have company appointments are considered a/an A Agent. B Producer. C Representative of the consumer. D Managing General Agent.
C
A producer has become disabled. In order to keep his business going, what may his designee do? A Suspend operations B File for federal aid designed for this situation C Hire a temporary producer to run the business during the producer's absence D Obtain a temporary license
D
How often must the Commissioner examine rating organizations? A Annually B Every 2 years C Every 3 years D Every 5 years
D
Which of the following entities established the Do-Not-Call Registry? A The Better Business Bureau B The NAIC C The Consumer Protection Agency D The Federal Trade Commission
D
A person applying for a manager or exclusive general agent license must meet all of the following criteria EXCEPT A Be responsible for at least 25% of total commissions collected by the office that he or she manages. B Have an authority to act on the insurer's behalf. C Be found sufficiently fit, competent and reliable by the Department of Insurance. D Have paid all applicable fees.
A
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 A 3 years. B 5 years. C 10 years. D 12 years.
C
According to the telemarketing sales rules, what are the permissible calling hours for telemarketing calls? A 8am until 9pm B 10am until 10pm C 7am until 7pm D 7am until 9pm
A
All of the following are requirements for producer license renewal EXCEPT A Renewal examination. B Up to date continuing education. C Renewal fees. D Record of fingerprints.
A
All of the following are licensing requirements for a business entity, EXCEPT A Applying for a license in the same lines of authority as held by licensed designees. B Having all employees complete continuing education courses once every 2 years. C Demonstrating general fitness, competence, and reliability. D Maintaining on staff at least 1 licensed person in good standing.
B
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information? A Consumer Privacy Act B The Fair Credit Reporting Act C Unfair Trade Practices Law D The Guaranty Association
B
Which of the following reports will provide the underwriter with the information about an insurance applicant's credit? A Any federal report B Consumer report C Agent's report
B
Which of the following authorities is authorized to issue a temporary insurance producer's license? A Federal Insurance Licensing Association B State Insurance Board C Commissioner D NAIC
C
Which of the following statements is INCORRECT? A The fee charged by the licensee must be disclosed in advance in writing to the person and must be reasonable in relationship to the services provided. B A licensee may charge a fee in addition to a commission to a person for the sale, solicitation or negotiation of a contract of insurance for commercial business. C A licensee is barred from charging a fee in addition to a commission to a person for the sale, solicitation or negotiation of a contract of insurance for commercial business. D No insurance producer may charge a fee for the completion of an application for a contract of insurance.
C
A licensee serving in the military is unable to fulfill her continuing education requirement. What would the licensee have to do to renew the license? A The licensee may submit a request to the department to have requirements and fees waived. The department will then determine if the request is permissible. B Nothing; the license is automatically reinstated for an additional 6 months following return from military service. C Nothing; licenses of active duty military service personnel are automatically reinstated for a full licensing term. D The licensee must complete the continuing education requirements and pay the lapse renewal fees. Requirements cannot be waived.
A
If a licensed person is moving to Pennsylvania, he or she may become licensed as a resident if they submit a completed application within how many days of establishing residence in Pennsylvania with proof of licensing from their prior home state? A 60 B 90 C 180 D 30
B
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports? A The customer has no knowledge of this action. B The customer's associates, friends, and neighbors provide the report's data. C They provide additional information from an outside source about a particular risk. D They provide information about a customer's character and reputation.
B
A producer has successfully completed 52 hours of CE. How many hours can the producer apply to her current reporting period, and how many hours can she carry forward to the next reporting period? A 26 hours will be applied to the current reporting perio and the remaining 26 can be applied to the period immediately following. B Only 24 hours of the 52 earned may applied to this reporting period. C 24 hours will be applied to the current reporting period, and 24 can be applied to the period immediately following. The excess 4 hours may not be carried over. D 28 hours will be applied to the current reporting period, and 24 can be applied to the period immediately following.
C
An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? A Conditional receipt B Disclosure rule C Fair Credit Reporting Act D Consumer Privacy Act
C
An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act? A Unfair discrimination B Errors and omissions C Fraud D Defamation
C
When a producer holding a certificate or a broker's license has a change in his/her residence or business address, he/she must notify the Department of Insurance and any company for which the producer holds an appointment within A 7 days. B 15 days. C 30 days. D 3 days.
C
Which of the following would be considered an illegal inducement to purchase insurance? A Listing the insurance companies the agency represents in a letter B Inviting prospective clients to the grand opening of the producer's new office C Confirming future dividends in a life insurance proposal D Mailing an agency brochure to a prospective client
C
Paul is a producer in Ohio and wants to become a producer in Pennsylvania. The Commissioner will waive certain examination requirements, provided that Ohio would waive these same requirements if a Pennsylvania producer sought licensure in Ohio. What term is used to describe this phenomenon? A Equality B Fair exchange C Equanimity D Reciprocity
D
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? A 3 days B 5 days C 10 days D 14 days
A
f a licensed person is moving to Pennsylvania, he or she may become licensed as a resident if they submit a completed application within how many days of establishing residence in Pennsylvania with proof of licensing from their prior home state? A 60 B 90 C 180 D 30
B
Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance? A False statements about financial condition of an in Statements made with the intent to deceive are unlawful. C Only written statements can be considered fraud. D Omissions of material fact on insurance application are fraud.
C
The requirement that an agent not co-mingle insurance monies with their own funds is known as? A Premium accountability. B Express authority. C Accepted accounting principal. D Fiduciary responsibility.
D
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? A $1,000 B $100 per violation C Revocation of license D $2,500
D
If a licensee wants to transact insurance under a different name than that listed on his or her producer's license, which of the following must occur? A The change must be reported to the Commissioner. B The change must be reported to the Federal Producer's Directory. C The licensee must obtain a new license. D It is illegal to transact insurance under any name other than the one listed on the license.
A
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 Ancestry. B Credit history. C Habits. D Prior insurance.
A
Which of the following is an example of an agent's fiduciary responsibilities? A Helping clients to file claims B Performing a review of clients' coverage C Offering additional coverage to a client D Forwarding premiums to the insurer
A
Which of the following persons is required to hold a producer license? A A person who negotiates insurance contracts B A person who creates insurance advertisements C A person who takes messages related to claims D A person who administers employee benefits
A
For the purpose of examination by the department, insurers must keep a record of all financial files for at least A 4 years. B 5 years. C 7 years. D 3 years.
B
Which of the following would be required to be licensed as an insurance producer? A An insurance company director who performs executive, administrative and managerial duties B A salaried employee who advertises and solicits insurance C A person whose activities are limited to producing insurance advertisements D A salaried full-time employee who furnishes information for group insurance
B
