Quiz Insurance Regulation

Which of the following properties would be eligible for homeowners coverage through the Joint Insurance Association?

A newly built home

Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?

Consumer report

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?

Fair credit Reporting Act (governs what information can be collected and how the information can be used)

In Maryland, all of the following are continuing education (CE) requirements EXCEPT?

It allows for excess credit hours to be carried forward to the next reporting period.(3 hrs ethics course, records 4 years, satisfied every 2 years)

Which of the following acts created a federal program that would share the risk of loss from potential terrorist attacks with the insurance industry?

TRIA (Terrorism Risk Insurance Act)

An insured is involved in an accident with an uninsured driver. Not only is his car damaged, but an antique vase is also destroyed. Which of the following statements is true?

The vehicle and damaged vase are both covered by the policy

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

$2,500

An insurance producer has taken 5 more continuing education credit hours than he will need for this reporting period. How many of these hours can be transferred to the next reporting period?

0 (credits cannot carry over!!!)

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?

Ancestry

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

Before a producer can receive authority to place business with MAIF, the producer must comply with the following actions, EXCEPT?

Pay a $500 initiation fee

Which of the following is responsible for settling regulations pertaining to independent insurance producers and their required record retention?

The Commissioner

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

The Fair Credit Reporting Act (protects consumers)

If an individual is unable to purchase auto liability insurance from private insurers, which of the following may provide coverage?

The Maryland Auto Insurance Fund (MAIF)

An employer may satisfy the requirement of providing workers compensation insurance on their employees by all of the following methods EXCEPT?

The Monopolistic State Fund