Insurance Regulation Quiz 3
D.Fraud.
An insured falsely reports the theft of a valuable item in order to collect payment from the insurance policy. This is an example of AConcealment. BTwisting. CMisrepresentation. DFraud.
D.$500 fine for each violation
Any New York agent that is found guilty of a violation of insurance licensing laws will be subject to which of the following penalties? AImprisonment for up to one year BAutomatic license revocation C$5,000 fine for each violation D$500 fine for each violation
D.To service the existing business
For which of the following reasons can a temporary license be issued? ATo solicit new business BTo negotiate new insurance contracts CTo provide temporary help to a licensed producer DTo service the existing business
C.30 days
How long does a licensee have to notify the Superintendent of a change of address? A90 days BImmediately C30 days D60 days
D.6 years
How long must insurers keep records of claims? A3 years B4 years C5 years D6 years
A.Cease and desist order.
If the Superintendent finds a licensee in violation of an unfair method or unfair practice he or she will issue a Complaint record. BCease and desist order. CRebate. DRevocation of license.
D.The customer's associates, friends, and neighbors provide the report's data.
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports? AThey provide additional information from an outside source about a particular risk. BThey provide information about a customer's character and reputation. CThe customer has no knowledge of this action. DThe customer's associates, friends, and neighbors provide the report's data.
C.Discriminating in benefits and coverages based on the insured's habits and lifestyle
Which of the following will NOT be considered unfair discrimination by insurers? ACancelling individual coverage based on the insured's marital status BAssigning different risk classifications to applicants based on gender identity CDiscriminating in benefits and coverages based on the insured's habits and lifestyle DCharging applicants with similar health histories different premiums based on their ethnicity
A.The applicant must have two letters of recommendation attesting to trustworthiness, reliability and good reputation.
Which of the following qualifications for obtaining a resident insurance agent's license in the state of New York is FALSE? AThe applicant must have two letters of recommendation attesting to trustworthiness, reliability and good reputation. BThe applicant must be at least 18 years of age. CThe applicant must be a resident of the state of New York. DThe applicant must complete a minimum of 20 hours prelicensing training per line of authority.
B.$5,000
What is the maximum fine for violating a cease and desist order? A$2,500 B$5,000 C$10,000 D$1,000
D.Consumer report
Which of the following includes information regarding a person's credit, character, reputation, and habits? AConsumer history BInsurability report CAgent's report DConsumer report
B.Have a letter of recommendation attesting to the applicant's trustworthiness
Which of the following is NOT a qualification for licensing as an insurance producer in this state? ABe a state resident at the date of application BHave a letter of recommendation attesting to the applicant's trustworthiness CComplete the required minimum hours of prelicensing training DBe at least 18 years of age
D.That its policies are covered by a state Guaranty Association
Which of the following may NOT be included in an insurance company's advertisement? AThe policies' limitations or exclusions BThe name of a specific agent CAn identification of a limited policy as a limited policy DThat its policies are covered by a state Guaranty Association
A.Respond to the consumer's complaint.
Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must ARespond to the consumer's complaint. BDefend the report if the agency feels it is accurate. CChange the report. DSend an actual certified copy of the entire report to the consumer.
A.Oral statements cannot be considered fraud.
Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance? AOral statements cannot be considered fraud. BOmissions of material fact on insurance applications are fraud. CFalse statements about the financial condition of an insurer are unlawful. DStatements made with the intent to deceive are unlawful.