property & casualty quiz 4

Which of the following describes use and file as a type of rating law?

An insurance company uses the rate they determine appropriate first and then file that rate with the commission.

Which one of the following is not one of the three principal parts to the privacy requirement of the Gramm-Leach-Bliley Act?

Credit Reporting

Penalty for violation of a summary seizure would be:

any and/or all of these

CIGA pertains to

insurer's insolvency

According to the Code a "Notice of Claim" is a(n):

either qualify

All of the following are incorrect penalties for violating the Unfair Practices article EXCEPT:

$5,000 fine for each act in violation; $10,000 fine for willful violation

Which of the following is a penalty for violating the Insurance Information and Privacy Protection Act?

$50,000 fine for violations committed with regularity showing they are a general business practice

Upon receiving any written or oral inquiry from the Department of Insurance concerning a claim, every licensee shall immediately, but in no event more than _______ calendar days of receipt of that inquiry, furnish the Department of Insurance with a complete written response based on the facts as then known by the licensee.

21

Once insured an insurer are in agreement payment must be made within:

30 calendar days

Insurer has up to how many days to accept or deny a claim?

40 days

Which is not a violation of Unfair Practice?

Age discrimination

Which of the following statements about insolvency is TRUE?

An insurer cannot escape the condition of insolvency by being able to provide for its liabilities and reinsurance of all outstanding risks.

The State of California requires that all admitted insurers be a member of the:

California Insurance Guaranty Association

Who administers the California Administrative Code of Regulations?

Commissioner

All of the following are efforts the Department of Insurance takes to combat insurance fraud EXCEPT:

Each company is required to submit a complete record of fraudulent claims made to the business each year.

How is the Insurance Commissioner put into office?

Elected by the citizens

Which of the following is NOT considered an unfair practice?

Failing to display the license in a clearly visible place for the public to see.

To change the California Insurance Code a bill is brought before the Assembly and the Senate. After both parties vote on the bill and it is approved, it moves on to the:

Governor

Which of the following is NOT a type of rating law?

Legal Competition

Which court case reversed the Paul vs. Virginia case of 1868?

SEUA case of 1944

What is the role of the Commissioner and the Department of Insurance in relation to consumers?

The Commissioner and the DOI are responsible for regulating the conduct of agents and insurers.

What is the significance of the SEUA case of 1944?

The court decided the federal government should regulate insurance

Which of the following describes prior approval as a type of rating law?

The insurer files policy rate information with the Department of Insurance. After filing, the insurer delivers evidence that the rates proposed are reasonable and fair. Then the insurer waits (30-60 days) for approval.

Which of the following is NOT a purpose of the Unfair Practices Article?

To determine the punishment for an agent found guilty of unfair practices in insurance.

Which of the following is a responsibility of the Commissioner?

To enforce the law of insurance.

Unless expressly otherwise provided, any personal notice required by any provision of the insurance code may be given by any of the following EXCEPT:

a third party

Rates shall remain in effect if they are:

all of the following

Solvency requires the insurer to have enough assets to cover:

all of these

According to the Code, the word "person" means:

any person, association, organization, partnership, business trust, limited liability company, or corporation.

When the Commissioner takes over a company that is insolvent, his/her first responsibility is to:

attempt to restore the company if possible.

A subsequent violation of a cease and desist would result in:

license suspension

Every company in California is required to report its financial condition to the Commissioner every year:

on or before March 1.

All of the following are penalties for unfair discrimination EXCEPT:

prison

An example of a self-regulatory authority of the insurance industry is:

the NAIC

If convicted of insurance fraud:

the fine can be up to $150,000 and up to 5 years in state prison.