Insurance Regulation Questions

For how many years must an insurance producer be licensed prior to adding surplus lines to their repertoire? A 1 year B 3 years C 4 years D 2 years

B In this case, a producer must be licensed for 3 years, during the 4 immediately preceding the date of application.

Which of the following does a life insurance producer have the authority to do? A Bind coverage B Receive an application C Transact insurance for nonadmitted insurers D Modify coverage

B Property and casualty producers can usually bind coverage for their clients. Life and health producers, however, are authorized to solicit, receive, and forward applications for insurance to their companies, but they generally do not have authority to bind coverage or to alter or modify coverage.

An insurance company must notify the Commissioner whenever it terminates an agent's appointment within how many days of the termination? A 15 days B 30 days C 90 days D 10 days

B An insurer that terminates the appointment, employment, contract or other insurance business relationship with a producer for any reason must notify the Commissioner within 30 days of the effective date of the termination.

The National Do Not Call Registry was created to regulate A Insurance solicitors. B Telemarketers. C Field underwriters. D Insurers.

B The National Do Not Call Registry was created to allow consumers the choice to not be contacted by telemarketers.

Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called? A Law of large numbers B Misrepresentation C Adverse selection D Discrimination

D Permitting individuals of the same class to be charged a different rate for the same insurance is the unfair trade practice of discrimination.

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 The FTC established the do-not-call list in order to protect consumers against unwanted solicitations.

All admitted insurance companies in this state are subject to fiscal examinations by the Commissioner A At least every 5 years. B Once a year. C Biennially. D Every 3 years.

A An examination of every insurer licensed in this state must be conducted at least once every 5 years.

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 Consumers must be advised that they have a right to request additional information concerning investigative consumer reports, and the insurer or reporting agency has 5 days to provide the consumer with the additional information.

The Federal Fair Credit Reporting Act A Regulates consumer reports. B Protects customer privacy. C Regulates telemarketing. D Prevents money laundering.

A The Federal Fair Credit Reporting Act regulates consumer reports, also known as consumer investigative reports, or credit reports.

Producers must complete 24 continuing education hours prior to license renewal every A 5 years. B Year. C 2 years. D 3 years.

C All insurance producers and brokers must successfully complete a minimum of 24 continuing education course credit hours every 2 years, prior to license renewal.

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 Anyone engaged in the business of insurance whose activities affect interstate commerce, and who knowingly makes false material statements may be fined, imprisoned for up to 10 years or both. If the activity jeopardized the security of the accompanied insurer, the punishment can be up to 15 years.

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? A 10 days B 3 days C 5 days D 7 days

C Consumers must be advised that they have a right to request additional information concerning investigative consumer reports, and the insurer or reporting agency has 5 days to provide the consumer with the additional information.

How many hours of continuing education per licensing period must all licensees complete in order to renew their licenses? A 8 hours B 10 hours C 12 hours D 24 hours

D All licensees must complete 24 hours of continuing education in order to renew their licenses every 2 years. Any additional hours cannot be applied to any other licensing period.