Insurance regulation

Producers are required to keep records of insurance transactions for what time period?

3 years

Every producer licensed inArizona must notify the Director if change of address within

30 days

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?

8am

According to the telemarketing sales rules, what are the permissible calling hours for telemarketing calls?

8am until 9pm

Which of the following is a legal use of determining benefit eligibility based on marital status?

Defining those who are eligible for dependent benefits

An insurance policy or counter signature endorsement must be signed by any of the following EXCEPT

Director of Insurance

injunction

A court issued order to stop committing an act or violation

Statute

A formal written law enacted by legislature; insurance statutes can be found in the state Insurance code

FBI (Federal Bureau of Investigation)

A government agency that serves as a criminal investigative unit and an internal intelligence agency

Every producer must maintain a place of business in Arizona

Accessible to the public

When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of

Defamation

All of the following could be considered rebates if offered to an insured in the sale if insurance except

Dividends from a mutual insurer

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

Fair credit reporting act

An insurance company assures it's new policyholders that their premium costs will not increase for a period of at least 5 years. However, due to increasing financial strain, they plan to raise premium costs for all insurers by 10% over the next 2 years. What term best describes this act?

Fraud

All of the following are considered business entities EXCEPT

Sole proprietorship

Director

The head of the state Department of Insurance

Coercion

forceful act or threat aimed to influence a person to act against his or her will

What is the maximum penalty for habitual willful noncompliance with the fair credit reporting act?

$2,500

A producer's insurance license was due for renewal but she failed to pay the required license renewal fees. Seven months later, the producer decided to pay her renewal fee. How much can she expect to pay in addition to the renewal fee?

100$

What is the minimum age for obtaining an insurance producer's license in this state?

18

How many hours of training is a producer required to take before soliciting annuity products

4 hours

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

Home state

A state in which an insurer is organized and has its main place of business

On a rainy night, a producer gets into an automobile accident and is injured. He is considered to be physically disabled and unable to work. His wife, currently unemployed, is now the family's sole source of income. What could the Director issue her so she can continue her husband's business?

A temporary producer's license

What piece of legislation requires that any commercial e-mail must contain an opt-out mechanism?

CAN-SPAM

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

Which of the following is true about the CAN-SPAM act?

It protects consumers from receiving unwanted solicitations from companies.

Exempt

Not subject to an obligation

Commission

Payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium

Which of the following lines of authority describes property and casualty insurance sold for non commercial purposes?

Personal lines

The Gramm-Leach-Bliley Act was passed to

Protect private customer information filed with a financial institution.

Any inducement offered to the insured in the sale of insurance products that is not specified in the policy is called:

Rebating

Who decides if a licensed property or casualty producer can be licensed as a resident surplus lines broker?

The Director

Which of the following entities established the Do-NOt-call registry?

The federal trade commission

A premium payment is due on the Saturday before Memorial Day. What is the latest the insurer can mail the payment for i to be considered in time

Tuesday after the due date

Insolvent

Unable to meet financial obligations

Procure

to obtain

Cease and desist

to stop or discontinue

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?

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

A newly licensed producer decided to hold a cookout for friends and family. At the event, the producer gave a short presentation about his company and specific insurance products that they offer. Some interest was generated. In this scenario, the producer was

Soliciting

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 after that time limit has expired. Which of the following is true?

The company will be fined at least $250 for each e-mail

Deficiency

lack of incompleteness

CAN-SPAM legislation requires that any commercial email must contain an opt out mechanism, how many days does a company have to cease their distribution?

10 business days

Which of the following policies must comply with the signature regulation for insurance policies?

An insureds initial policy with an insurer

In order to get a nonresident license in this state a producer must

Apply and pay a fee to a nonresident state that reciprocates

A producer is in the Army Reserves and is called to active military service. She makes a request that her license be placed in inactive status while she is away. The written statement she provides must have all of the following information except

Information about her next of kin or spouse

Which of the following is not considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

A producer who omits a statement which may mislead or deceive the persons addressed has committed

Misrepresentation

inducement

an offer that attempts to influence the other party

Who requires that a prospective producer take and pass a written examination on the kinds of insurance business specified in the application?

director

How many days after an initial pre trial hearing date, does an insurance producer have to report any criminal prosecution to the director?

30

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 except the applicant's

Ancestry