G: Insurance Regulations

The Federal Fair Credit Reporting Act

Regulates consumer reports

You cannot include ____________ in an insurance company's advertisement

That its policies are covered by a state Guaranty Association

Which of the following is issued by the state Department or Insurance to show that the insurer has power to write insurance contracts in that state?

Certificate of Authority A Certificate of Authority is issued by the state Department of Insurance and shows that the insurer has power to write insurance contracts in that state.

How many hours of ethics educations are producers required to complete every licensing period?

3 Hours

Conservation effort

Discouraging policy holders from dropping existing policies

What would pay covered claims when an insurance company becomes insolvent?

Guaranty Association The Guaranty Association is made up of insurance companies authorized to write insurance in the state. Should a member company become unable to perform contractual obligations to their insureds because of impairment, each member company is assessed a portion of the amount necessary satisfy these obligations

At least once every 5 years, the Commissioner must fully examine each of the following organizations or persons EXCEPT

National Association of Insurance Commissioners

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...

Misrepresentation Issuing or circulating any sales material that is false or misleading would be considered misrepresentation and is illegal

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

Nonresident producer

If a licensee whose license has been temporarily suspended demands a hearing, the commissioner must hold the hearing demanded as according to all the following statements except

within 30 days of the license effective date

The Insurance Commissioner is empowered by the Washington Insurance Code to perform all of the following duties EXCEPT

Make revisions to the Insurance Code

What is NOT correct regarding false statements by a person engaged in the business of insurance?

Only written statements can be considered fraud According to Title 18, Sections 1033 & 1034 of the US Code, any oral or written statements by any person engaged in the business of insurance that are false or any omissions of material fact are considered unlawful insurance fraud.

Following the death of a producer, which of the following would NOT receive a temporary insurance license in order to continue the insurance business until someone is qualified for a permanent license?

Producer's 17 year old son In order to receive a temporary license, an individual must also be qualified for a permanent license, except for the experience, training, and examination. An individual under age 18 would not qualify.

Agent J offers his clients free tickets to sporting events in exchange for purchase of an insurance policy. J is guilty of...

Rebating Rebating is defined as any inducement offered in the sale of insurance products that is NOT specified in the policy. Rebates include money, prizes, or merchandise, and could also include reductions in commissions, promises, employment, dividends, stocks, and personal services. Rebating is a violation of insurance law

An application for life insurance usually requires the agent to ask if the proposed insurance will replace an existing life insurance policy. What is NOT true regarding the purposes for obtaining this information?

To ensure that at least three companies are involved so the policy owner gets competitive prices