Insurance Regulation

Director's General Duties and Powers

-Supervise and regulate. -licensing -approve policies and forms -enforce insurance laws and impose penalties for violations -conduct exams, investigations, and hearings

Solicit

-attempting to sell insurance -asking or urging a person to apply for a particular kind of insurance from a particular company

Payment of an insurance premium will be marked as paid on the date on the ____. The payment was mailed __ days before the insurer received it.

-postmark -5 days

Producer Records

-producers must maintain a place of business in AZ accessible to the public -must keep records of transactions of their license at the place of business -must keep it available for inspection by the Director of insurance after 3 years of the date of the completion

trasact

-solicitation and inducement -preliminary negotiations -Effectuation of a contract of insurance -transactions subsequent to the effectuation of the contract

Each domestic insurer must be exanimated at least once every __ years

5 years

If a consumer requests additional info 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) 5 days

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 info practices has been provided, the report may contain all of the following info EXCEPT the applicant's A) Ancestry B) Credit history C) Habits D) Prior insurance

A) Ancestry

Transacting insurance could include all of the following except: A) designing insurance advertisements B) negotiating insurance C) receiving an application for insurance D) effectuating a contract

A) designing insurance advertisements

Sharing commissions

An AZ insurer may only pay commission or other compensation to a licensed agent of the company/agency or broker

According to the NAIC Insurance Date Security Model Law, licensees are required to report cybersecurity events to the state insurance department w/in what time period of discovery? A 24 hours B) 72 hours C) 5 days D) 10 days

B) 72 hours

If a telemarketer wants to make an unsolicited sales call to a potential customer, what is the earliest time the telemarketer can call the prospect's residence? A) 7am B) 8am C) 9am D) Noon

B) 8am

In Arizona, the director of Insurance is A) Elected by Arizona voters B) Appointed by the governor C) Appointed by the insurance and industry committee of the state legislature D) elected by the state legislature's banking and insurance committee

B) Appointed by the governor (to serve a 6 year term)

If a married woman wishes to transact insurance under the name her maiden name, what must she do in order to be legal? A) Sign all papers w/ her real name and her assumed business name B) File papers with the director stating she will be operating under an assumed business name C) Legally change her name back to her maiden name D) She is not allowed to conduct insurance business under a name other than her own

B) File papers with the director stating she will be operating under an assumed business name

Which of the following would be considered an insurance transaction? A) Writing a report comparing the policies of different companies B) Receiving an application for insurance C) Passing an insurance agent's card to a friend D) Visiting the office of an insurance agent

B) Receiving an application for insurance

If a producer waits more than 1 year to renew a license after it has expired, what is the producer to do be licensed again? A) become appointed by an insurer B) retake a licensing exam C) pay a late fee of $100 D) submit a license renewal application to the director

B) retake a licensing exam

A person requests that an insurance company quit sending him e-mail solicitations. According to the law, the company has 10 days to stop e-mailing the complainant. However, the company sends him four more e-mails that time limit has expired. Which of the following is true? A) the company will be fined $6,000 B) the company will be fined at least $2,500 for each email C) the company will be asked to cease business operations for 10 days D) the company will not be penalized, but it will be put on a public "warning list"

B) the company will be fined at least $2,500 for each email

Which of the following entities established the DO-Not-Call registry? A) The consumer protection agency B) the federal trade commissions C) The better business bureau D) The NAIC

B) the federal trade commissions

If the Director decides an insurer charged too much for fees, A) the insurer will lower prices for future services to the customer B) the insurer will refund the fee to the customer C) the insurer will be put on probation D) the insurer will be prohibited from providing those services for a year

B) the insurer will refund the fee to the customer

All of the following would be considered unfair settlement practices EXCEPT A) Failing to act upon insurance claim communications in a reasonable timeframe. B) Withholding affirmation or denial of claims coverage after proof of losses submitted C) Denying coverage to the terminally ill or disabled D) Not attempting to affect prompt and equitable settlements

C) Denying coverage to the terminally ill or disabled

In life insurance, producers are permitted to share or split commissions, providing that A) The insured knows and agrees to the arrangement B) the insurance department knows of the arrangement C) There is a written agreement between the producer D) Both are properly licensed for the line of insurance

D) Both are properly licensed for the line of insurance

When may an insurer charge extra fee for services? A) If changes will affect more than 10% of the policy B) If changes are made to the policy w/in 10 days of its effective date C) if the policyholder has a negative credit history D) If the services are not customarily provided in the transaction of the insurance

D) If the services are not customarily provided in the transaction of the insurance

All of the following are requirements for producer license renewal EXCEPT: A) Continuing education B) renewal fees C) record of fingerprints D) renewal examination

D) renewal examination

The federal Fair credit reporting act

Regulates consumer reports

Sell

exchange a contract of insurance for money or its equivalent on behalf of an insurer

Negotiate

the act of conferring directly w/ or offering advice directly to a purchaser of a particular contract of insurance to buy insurance