Property & Casualty- Arizona State Laws
Arizona is a "_____ and _____" state for rates.
"use and file"
2011 Homeowners Policy: Limit for business property away from residence is _______.
$1,500
An expired license can be renewed within 1 year with payment of license fee, late fee of _____ with application, and proof of completion of any CE.
$100
Inducements of prizes, merchandise or tangible property valued in excess of _____ is prohibited.
$25
2011 Homeowners Policy: Limit of $_____ for media used with electronic equipment in a vehicle.
$250
If a 1st party claim is not paid within ____ days of receipt of adequate proof, the insurer must pay interest from the date the claim was received.
30
Must complete investigation within _____ days of receiving notice.
30
Written notice to correct personal information must be acted upon or replied to within _____ days.
30
You must notify the Director within _____ days if you change your residence or business address.
30
Must provide insured with forms/instructions within ______ working days.
10
Receipt of a claim must be acknowledged within _____ working days.
10
2011 Homeowners Policy: Personal property in self-storage until is limited to ____% of Coverage A.
10%
A license candidate not passing their exam for the fourth attempt must wait _______ months before attempting it again
12
A revoked license cannot be considered for reinstatement for at least _______ months.
12
Must inform claimant of acceptance or denial within _______ working days.
15
Must respond to the Director on a claim within ______ working days.
15
How old must you be to hold a producer or adjuster license in Arizona?
18 years
A temporary insurance producer license can be issued for a period not exceeding ________.
180 days
An insurer or producer must reply to an applicant's written request for an explanation of an adverse underwriting decision within _____ days.
21
Telemarketers must keep records of calls for ____ months.
24
Business records must be retained for ____ years and available for inspection by the Director.
3
A dwelling or homeowner nonrenewal based upon the condition of the premises must give the insured _____ days to fix the identified conditions.
30
A producer must report any administrative action or criminal prosecution that occurs in any jurisdiction to the Director within _____ days.
30
Cancellations and nonrenewals of dwelling and homeowner policies must be sent a _____ day notice.
30
Insurers must notify insureds of approaching time limit expirations: 1st party claimants need ____ days notice and 3rd party claimants need ____ days notice.
30, 60
A producer license is up for renewal every _____ years on the last day of the licensee's month of birth.
4
Incomplete investigations are continuous until settled; notice must be sent every _____ days and must include the reason more time is needed to complete the investigation.
45
The Director must audit every domestic insurance company not less than once every _____ years.
5
Auto insurance cannot be cancelled or nonrenewed after it is in effect for ____ day sunless there is a specific allowed reason.
60
Beyond _____ days a dwelling or homeowner policy cannot be cancelled or nonrenewed except for specific reasons.
60
Prior to being in effect for ____ days, an auto policy can be cancelled for nonpayment, if the premium is not received beyond the 7-day grace period.
60
Proof of loss on property claims must be submitted within _____ days.
60
2011 Homeowners Policy: Theft coverage includes student property at a school residence if the student has been present in the past ______ days.
90
A licensed insurance producer moving into Arizona must apply for a resident license within ______ days of canceling the current resident license.
90
Binders cannot be effective beyond policy issue date or _____ days, whichever is shorter.
90
_______ is a member of the Western Association of Automobile Insurance Plans.
Arizona
All authorized insurers offering auto and workers' compensation insurance in Arizona must participate in the ______ ______ Plan.
Assigned Risk Plan
________ business name must be filed with the Director prior to use.
Assumed
When is the notice of information practices required?
At application, policy delivery, annually, and upon reinstatement or change in benefits
_______ unlicensed employees cannot make coverage changes.
Clerical (salaried)
48 hours (including 6 hours of ethics) of _______ ______ is required at license renewal.
Continuing Education
The ______ may suspend, revoke permanently, or refuse to renew a producer license for up to 12 months following a hearing.
Director
True or False: A cancellation occurs after the renewal date.
False A cancellation occurs prior to the renewal date.
True or False: If coverage under a policy has terminated or expired it is unfair to deny a claim.
False If coverage under a policy has terminated or expired it is NOT unfair to deny a claim.
True or False: Insurer can charge extra for electronic communications.
False Insurer cannot charge extra for electronic communications.
True or False: Reporting agencies under the FCRA may furnish reports to anyone.
False Reporting agencies under the FCRA may only furnish reports to those entitled to receive them.
True or False: The assigned risk plan will not cover those who have been rejected by two or more insurers.
False The assigned risk plan offers coverage for insured's that have been rejected by two or more insurers.
The telephone sales rules are enforced by the ______ _______ _______.
Federal Trade Commission
_______ ____/_______ endorsement covers losses up to $200/day for lost income, to a total of $5,000.
Identity theft/fraud
The ________ fund covers unpaid covered claims of bankrupt insurers of $100 to $300,000 and unearned premium refunds of $25 to $10,000.
Guaranty
_______ __________ members are assessed their proportional share, to cover claims of insolvent insurers.
Guaranty fund members
What is insurance?
Insurance is a contract to pay a specified amount upon the occurrence of a specified loss.
A _____ ______ _______ is responsible for hiring, training, firing, and general supervision of the business of an insurance company in a particular territory.
Managing General Agent (MGA)
A ______ ________ ________ is required to have a surety bond as a condition for licensing
Managing General Agent (MGA)
A licensed P&C producer (resident or non-resident) with an Arizona business location may be licensed as a __________ surplus lines broker.
Mexican
_________ is a Class 5 felony under Arizona law.
Misrepresentation
______ _______ is a covered occurrence or offense to the policy's standard liability coverage for BI and PD.
Personal injury
______ _____ may be used as long as they are filed with the Director and the Director has not disapproved them withing 30 days.
Policy forms
______ can vary based upon age of the applicant.
Rates
______ should ensure a reasonable profit (not too high or too low).
Rates
_____ _____ brokers must be licensed as resident P&C insurance producers.
Surplus lines
________ licenses generally arise in the event of a producer death disability, or military service.
Temporary
______ _______ includes: solicitation, inducement, negotiation, effectuation, selling, and transactions subsequent to any of these being initiated by anyone else
Transacting insurance
True or False: Auto policy can be cancelled if a covered auto is put to commercial use.
True
True or False: Binders can be oral or written.
True
True or False: Business Pursuits and Home Day Care exclusions apply if the insured is using the excluded items (draft or saddle animals or watercraft, etc.) for instruction in their use, or there is negligent supervision in their use.
True
True or False: Cancellation of an auto policy is effective on the date the notice is mailed.
True
True or False: Costs of the Guaranty Fund are not general obligations of the state.
True
True or False: Evidence of insurance coverage may be delivered by electronic means, with the recipient's consent.
True
True or False: In addition to a cease and desist order, the Director may order payment of a civil penalty of up to $500/violation, to a total of $10,000.
True
True or False: Insurable interest must exist at the time of loss.
True
True or False: It is fair to advertise differences between insurance companies and contracts.
True
True or False: Unsolicited emails must clearly reveal they are advertisements and provide easy means for the recipient to "opt-out."
True
The _____ _______ ______ Act applies to anyone submitting materially false financial reports and documents with insurance regulators.
Violent Crime Control Act
runner, capper, or steerer
a person who fraudulently procures patients to obtain services under an insurance contract so that a 3rd party may submit a claim
non-resident licensee
a person whose home state is not Arizona
A commercial policy in effect for 60 days or more cannot be cancelled for which of the following reasons? a. Adverse claim history b. Loss of reinsurance c. Nonpayment of premium d. Substantial change in the risk
a. A commercial policy in effect for 60 days or more cannot be canceled for an adverse claim history. It can be cancelled for the other reasons listed and also be cancelled for fraud, conviction of a crime increasing the insurance hazard, increase in hazard due to grossly negligent acts by the insured, and breach of contractual duties
Within what time frame must a nonresident producer apply for a resident producer license upon moving to Arizona? a. 90 days b. 60 days c. 30 days d. 10 days
a. A nonresident must apply for a producer license within 90 days of becoming a resident if they wish to act as an insurance provider in this state.
A temporary license may be issued to a designated individual for all of the following reasons, except: a. A resident license applicant is unable to pass the license exam b. The disability of an individual licensed on behalf of a business entity c. An insurance producer enters active service in the Armed Forces d. The death of a licensed producer for the purpose of selling the business
a. A temporary license will not be issued to an individual who cannot qualify based on the licensing requirements
Which of the following statements regarding using an assumed business name is NOT correct? a. A producer may use an assumed name at any time b. An assumed business name may not be misleading or deceptive c. A trade name must be lawfully registered d. The Director may deny the use of an assumed name
a. In order to use an assumed name, the producer must notify the Director before it can be used because the Director may deny the use of the assumed name
Which of the following is NOT a prohibited insurance practice? a. Giving a client a $5 gift card as a thank you for buying an insurance policy b. Denying insurance because a person is blind c. Charging a higher premium because of an applicant's marital status d. Offering a client season tickets to the Dallas Cowboys in exchange for buying insurance
a. Providing merchandise or prizes valued in excess of $25 is prohibited
Before granting a license, the Director may require which of the following? a. Fingerprints b. Proof of a college degree c. Verification of medical history d. Copy of tax returns
a. The Director may order a criminal background check, including fingerprints.
The Drive Other Car endorsement is used to insure which of the following? a. A person who doesn't own any car b. A person who occasionally borrows the car c. A person who is visiting for 6 months d. A person who co-titled the car
a. The Drive Other Car endorsement is for the person who does not own the car and will be provided coverages, including uninsured motorist higher limits of coverage
Of the following, which is not a required condition to be considered an occupational disease? a. Disease appears to have originated in the work place and it must be foreseen or expected b. Disease can be fairly traced to the employment as the proximate cause c. Direct casual connection between work conditions and disease d. Incidental to the business and not independent of the relation of the employer and employee
a. The disease origin need not be foreseen or expected, does not come from a hazard to which workers would have been equally exposed outside, and it can be seen to have followed as a natural incident of work
In Arizona, the minimum limits of a liability are ________. a. 15/30/10 b. 25/50/25 c. 30/60/25 d. 50/100/25
a. The minimum liability limits in Arizona are 15/30/10, or $15,000 for bodily injury of one covered person, $30,000 for bodily injury of 2 or more covered persons, and $10,000 for property damage to covered property in a single occurance
Which of the following acts is a violation of the CAN-SPAM Act? a. Sending a commercial email to 100 insurance prospects with a phony email address and sender name b. Sending a personal email to 100 people using a phony email address c. Using one's own personal computer to send multiple emails that contain false information d. Using own's work computer to send a nasty email to a commercial client
a. Using materially false header information in multiple commercial electronic mail messages and intentionally initiating the transmission of such messages is a violation of the CAN-SPAM Act
certificate of authority
an insurer's authorization to sell insurance in Arizona
All domestic, foreign, and alien insurance companies must file _______ _______ _______ with the Director.
annual financial statements
Attempting to settle a claim by ______ is a reasonable claim practice.
arbitration
If an individual wants to transact business as an insurance producer, he/she must meet all of the following requirements EXCEPT: a. Be at least 18 years old b. Apply for a license within 2 years of passing the licensing exam c. Pay all required fees d. Not commit any act that is grounds for denial
b An applicant must apply for a license within 1 year of passing the licensing exam.
For auto insurance, a ________ day written notice of cancellation or nonrenewal must be provided to the insured. a. 7 b. 10 c. 14 d. 30
b. A 10-day written notice of cancellation or nonrenewal to the insured must be provided
A personal property policy that has been in effect for _________ days or more can be cancelled for nonpayment or premium. a. 30 b. 60 c. 90 d. 120
b. A personal property policy that has been in effect for 60 days or more can be cancelled for nonpayment of premium, and the insurer must give the insured 10 days' notice
A producer may share commissions with another producer: a. As long as there is a contract between the producers b. Only if they are both licensed in the same line of insurance c. Only if they represent the same insurer d. After permission is granted by the insured
b. A producer may only share commissions with another producer if they are licensed in the same line. A contract is not required; they do not have to represent the same insurer and the insured does not grant permission.
A self-insured employer is required to purchase a guaranty bond in the amount of _______. a. $50,000 b. $100,000 c. $250,000 d. $500,000
b. A self-insured applicant must also submit an application for authority to self-insure, file an indemnity agreement, provide a financial statement, and make a security deposit with the Commission
Which of the following is true about the Dwelling Policy Special Provisions- Arizona endorsement? a. The insurer has 60 days to pay a covered property loss b. The insurer can subrogate against the person who caused domestic violence c. Fire department service charges are covered d. Intentional loss to property applies to a loss caused by domestic violence
b. An insured receiving payment for a loss caused by domestic violence cannot waive the insurer's right to subrogation against the perpetrator of the violence
The waiting period to become eligible for disability compensation is the first ______ days after the injury. a. 3 b. 7 c. 8 d. 14
b. No benefits will be paid the first week. If the disability extends beyond 7 days, compensation will begin on the 8th day. If the disability extends another week beyond the first 7 days, compensation will be computed from the date of the injury
The Assigned Risk Plan is for which of the following? a. A person who has no prior insurance b. A person who has been rejected by two insurers c. A person whose current insurance company increased the premium more than 50% d. A person who requires higher liability limits
b. The Assigned Risk Plan is available for individuals who have been unable to obtain auto insurance through normal markets
Which of the following employees is not eligible for Workers' Compensation coverage? a. Member of Arizona military forces b. Domestic servant c. State government worker d. Volunteer fireman
b. The Workers' Compensation laws apply to any entity that employs workers or operatives under contract for hire, including employees pursuant to the professional employer agreement, except domestic servants
What is an employee's "exclusive remedy" against an employer? a. Sue employer for costs of injuries and lost wages b. Paid Workers' Compensation benefits c. Sue due to employer's negligence d. Reject Workers' Compensation
b. The employee's exclusive remedy is the right to recover compensation from Workers' Compensation, however, if the injury is caused by the employer's willful misconduct, the injured employee has the option of either claiming compensation or suing the employer
Which of the following is a true statement about the Arizona uninsured/underinsured motorist coverage? a. A volunteer worker's injuries from an uninsured driver are excluded b. Uninsured motorist coverage can be rejected by the insured c. Underinsured motorist coverage applies if the insurer for the negligent party is insolvent d. If more than one policy applies to the same accident, the coverage will be proportionate based on the limits of liability
b. The insurer must offer uninsured and underinsured motorist coverage, but the insured can reject it in writing
The Identity Fraud Expense endorsement will pay up to ______ for expenses the insured incurs as a result of identity theft or fraud. a. $5,000 b. $15,000 c. $20,000 d. $25,000
b. The insurer will pay up to $15,000 for expenses incurred by an insured as the direct result of any one identity theft/fraud first discovered or learned of during the policy period
Between what times can telephone solicitation occur in the time zone of the customer being called?
between 8:00 am and 9:00 pm
Premium due dates falling on Saturday, Sunday, or legal holidays are considered timely if sent the next ____ _____.
business day
The 2011 Homeowner policy included which of the following revisions? a. Personal property in a self-storage facility is limited to 5% of Coverage A b. The special limit for business property away from the residence premises is now $500 c. The homeowner policy now covers discs used in a motor vehicle d. A student away at school is covered for theft losses as long as the student was in residence during the past 30 days
c. A coverage limit of $250 has been added for antennas, tapes, wires, records, disks, or other media used with electronic equipment in or upon a motor vehicle; the self-storage limit is 10% of Coverage A, the business property away from the residence is $1,500, and the student is 90 days
A vehicle with a load capacity in the excess of ______ pounds is not an eligible motor vehicle in Arizona. a. 900 b. 1,000 c. 1,500 d. 2,000
c. A motor vehicle is defined in Arizona as a licensed, land, motor-driven vehicle with a load capacity of no more than 1,500 pounds, used as a public or livery conveyance, or in business transporting passengers for hire or primarily transporting property or equipment
Proof of financial responsibility does not include which of the following? a. An insurance ID card issued by the insurer b. A bond c. A person with no insurance but money in the bank that verifies required limits d. A copy of the Declarations Page
c. A person with no insurance can qualify only if they provide a certificate of self-insurance and file a surety bond in the amount of $250,000 with the Director
A resident license: a. Must hold a resident license in another state b. Is issued a license without examination c. Must have a residence or principal place of business in this state d. Cannot hold a nonresident license at the same time
c. A resident license does not hold a resident license in any other state and must have a residence or place of business in this state. They must pass an examination and can request a nonresident license in any other state.
An insurer can only ______ ______ to licensed producers.
pay commissions
Choose the correct statement regarding the benefits provided by Workers' Compensation: a. The benefit for permanent partial disability is 66 2/3% of the employee's average weekly wages b. Upon notice to the employer, every injured employee will receive medical benefits within 30 days c. An employer is not liable if the injury was contributed to by the employee's use of alcohol d. A widow who remarries will receive 1 year compensation in a lump sum upon remarriage
c. An employer is not liable where the injury, disability or death was contributed to by the employee's use or consumption of alcohol or any controlled substances
A binder cannot be effective beyond the policy issue date or ______ days, whichever is shorter. a. 30 b. 60 c. 90 d. 120
c. Binders can be made orally or in writing and cannot be effective beyond policy issue or 90 days, whichever is shorter
In order for a business entity to obtain a producer license, it must comply with which of the following requirements? a. Provide the name and address of the company's clients b. Only disclose the names of the company's CEO c. Ensure that all employees acting as producers are licensed as producers d. Pay fees after submitting an application license to the Commissioner
c. Business entities must ensure that all employees who act as producers are licensed.
The benefit amount for temporary total disability is _______ of the employee's weekly wages. a. 35 1/2% b. 55% c. 66 2/3% d. 71 3/4%
c. For temporary total disability, the benefit amount under Workers' Compensation is 66 2/3% of the employer's weekly wages
An injury claim must be filed with the Workers' Compensation insurer within ________ of the loss. a. 3 months b. 6 months c. 1 year d. 3 years
c. Injuries are to be reported by an employee to an employer promptly, and claims are to be filed with the insurer within 1 year of the loss
Which of the following is false about insurable interest? a. It is substantial economic interest in property free from loss b. It is required in order to insure property c. A person can have a substantial but non-economic interest in the property d. The insurance contract is not enforceable without a valid insurable interest
c. Insurable interest means any actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or financial damage or impairment
Which state plan provides coverage to employers who cannot obtain insurance in the normal market? a. Arizona Workers' Compensation Fund b. Industrial Commission c. Assigned Risk Plan d. Workers' Compensation Insurance Plan
c. The Assigned Risk Plan provides Workers' Compensation coverage to employees who are unable to procure insurance in the normal markets after being refused coverage by 2 or more insurers
The Director may take any of the following disciplinary actions, EXCEPT: a. Suspend a license if the producer provided incorrect or incomplete information on a license application b. Order a payment of fines up to $2,500 if the license committed an intentional violation of insurance law c. Suspend a license for up to 2 years if the producer is convicted of a misdemeanor d. Suspend or revoke a license if the licensee forged a client's signature on an application
c. The Director may only suspend a license for up to 12 months and may revoke a license for a felony conviction
An insured has three cars but only one is insured with towing and the insured is renting a car on vacation. Will the Personal Auto Policy extend the towing to the non-owned vehicle? a. Yes, but only up to 1/3 of the total bill b. No, all cars must have towing in order for it to apply to a non-owned vehicle c. Yes, the broadest coverage will apply which is full towing coverage d. No, towing is not extended to non-owned cars
c. The PAP will provide the broadest towing and labor coverage for a non-owned vehicle that is provided for any of the insured's owned vehicle(s) on the policy
Telephone solicitation calls under the Telemarketing Sales Rules can be made: a. Between the hours of 8 am and 5 pm in the time zone of the solicitor b. Between 8 am and after 9 pm in the time zone of the customer c. Between 8 am and 9 pm in the time zone of the customer d. Between 8 am and 9 pm in the time zone of the solicitor
c. The Telemarketing Sales Rules limit the solicitation hours to between 8 am and 9 pm in the time zone of the customer
The Auto Medical Payments endorsement covers which of the following? a. Domestic employee with underlying Workers' Compensation b. The insured's son broke a leg exiting a covered auto he is using as premises c. Domestic employee without underlying Workers' Compensation d. Insured's employee injured in an accident driving the insured's car to pick up the mail
c. The insurer will cover bodily injury to domestic employees if not entitled to Workers' Compensation Benefits
Which of the following violates the Gramm-Leach-Bliley Act? a. Allowing customers to opt-out of the sharing of their nonpublic personal information b. Refusing to disclose a customer's nonpublic personal information to non-affiliated third parties c. Disclosing a customer's nonpublic personal information without consent d. Providing an annual disclosure notice
c. Unless permitted to do so by law, financial institutions may not share nonpublic personal information without a customer's consent
An insurer cannot _____ or ______ a motor vehicle policy solely because of location of residence, age, race, color, religion, sex, national origin, or ancestry.
cancel or nonrenew
Violation of a _____ and ______ order following a hearing increases the civil penalty to $10,000/violation, to a total of $50,000.
cease and desist
A director issued _____ of _______ authorizes an insurer to do business in Arizona.
certificate of authority
An insurer cannot deny a ____ because of an altered application.
claim
P&C insurers must have policies ______ by a resident licensed producer if issued on property located in Arizona.
countersigned
Scheduled personal property endorsement
covers newly acquired jewelry, furs, cameras, and musical instruments reported within 30 days
All of the following statements about obtaining a nonresident license are correct, except: a. It is issued to a person whose home state is not Arizona b. An examination is not required as long as the resident state is reciprocal c. The applicant's resident license must be valid and in good standing d. The application fees are waived for nonresident licenses
d. A nonresident applicant must submit an application and pay the required fees
When may an insurance company discriminate based on blindness? a. At the time of application or insurance b. When cancelling insurance c. When changing premium rates d. Never
d. An insurer may not discriminate solely based on blindness or partial blindness
Under the Scheduled Personal Property endorsement, the Fine Arts coverage territory is which of the following? a. Anywhere in the world b. United States, Mexico and Canada c. North America d. United States and Canada
d. Coverage for fine arts is limited to the United States and Canada, and must be on the described location or at another address shown in the endorsement schedule, whereas the other classes of property under this endorsement are covered anywhere in the world
Which of the following acts constitutes an unfair claims settlement practice? a. Regularly denying claims when the insured is not liable b. Frequently denying claims based on facts and law c. Often settling claims for amounts higher than the claimant expects d. Routinely settling claims without conducting an investigation
d. Failing to adopt and use reasonable standards for the prompt investigation of claims is an unfair claims settlement practice when it is a regular business practice.
Which statement about insurance information and privacy protection is TRUE? a. Personal information may be given to a third party at any time b. Personal information may be disclosed over the telephone at any time c. An insurer may not investigate criminal or fraudulent activity d. An insurer must provide written privacy protection disclosures
d. Insurers must provide all disclosures about privacy protections in writing
The funding for the Arizona Property and Casualty Insurance Guaranty Association comes from which of the following? a. Assessment of policyholders b. State legislature c. Director of insurance d. Assessment of members
d. The funding of the Arizona Property and Casualty Insurance Guaranty Association comes from the assessment of member companies
The insurer's right to recover payment under Medical Payments does not apply to the first ______ paid. a. $500 b. $1,500 c. $2,000 d. $5,000
d. The insurer's right to recover payment, or subrogate, under Medical Payments is limited to payments after the first $5,000 is paid
An insurer or producer may charge fees for services not customarily provided if they file the fee with the Director and meet the following conditions, except: a. The services are in addition to those normally performed for insureds b. The specific services and their related charges are disclosed in writing to the insured c. The service charges are reasonable with respect to the cost of the service performed d. The services required the producer to spend more time than usual explaining coverages
d. This is a service customarily provided
Renewal or _____ _______ may be paid if the person was licensed at the time of the transaction.
deferred commissions
postmark of a premium payment
determines the timeliness of premium payment (if there is no postmark, the payment date is assumed to be 5 days prior to the date the insurer receives the payment)
It is prohibited to _____ on basis of gender, blindness, or HIV information.
discriminate
The Director is responsible for ______ the insurance code, and does not write or pass insurance laws.
enforcing
A telemarketer is prohibited from making phone calls to numbers entered in what?
entered in the National Do-Not-Call Registry
CAN-SPAM
established Federal rules for regulating unsolicited commercial e-mails
A court finding a person guilty of ____ allows the attorney general to recover a civil penalty of up to $5,000/violation.
fraud
A ______ is required before a license can be revoked or suspended.
hearing
A _______ is conducted by the Director, not a court of law.
hearing
material facts
if known, would cause a policy to be denied or issued at a significantly different premium
coercion
illegal because it is considered restraint of trade
Notice of a claim on property insurance must be ______.
immediate
A licensee on ____ _____ may not solicit insurance, but may continue to receive commissions earned from renewals.
inactive status
Do-Not-Call Registry
includes the names and phone numbers (not Social Security or other personal information)
defamation
includes verbal or written statements that are false or intended to injure
The Director will place an insurer under its supervision if it is determined to be ______ or a hazard to the public.
insolvent
Martial status must not impact the availability or amount of _______ ________ available.
insurance coverage
The civil penalty limit for _____ acts is $2,500/violation up to $15,000.
intentional
Terrorism Risk Insurance Act
is a federally backed reinsurance program for Commercial Property/Casualty and Workers' Compensation risks (not Life or Health or Personal insurance)
Your ____ must be displayed at your business entity location.
license
Within 30 days of operating as a ____ ______ _____, the licensee must notify the Director.
life settlement broker
A vendor selling portable electronics insurance must hold a ______ _______ license.
limited lines
2011 Homeowners Policy: in
nesting or infestation, or discharge, or release of waste or secretions by any animals
A salaried (clerical) office employee is not a producer if the majority of their time is on things other than soliciting insurance and they receive _____________.
no commissions
A _______ ________ is not required to take the Arizona producer exam, if their license is in good standing in their home state.
non-resident licensee
A ______ would occur at the end of the policy period.
nonrenewal
Producers may charge fees for services ____ _____ _______ if they file the fee with the Director and the proposed services meet certain conditions.
not customarily provided
controlled business
obtaining a license solely to purchase insurance for self or immediate family to save premium cost; is prohibited
pretext interview
pretending to be someone you are not
Telemarketing Abuse Prevention
prohibits unsolicited calls that are abusive and requires the caller to clearly disclose the purpose of the call
Fair Credit Reporting Act
protects consumers by requiring notification and methods for correcting personal information; notice is required at the time of application
Final ______ _______ are set by the insurer.
rate classifications
Insurers may charge ______ any time as long as they are filed with Director 30 days prior to use.
rates
Producer _____ are not open to the public.
records
rebating
refunding or paying a client something of value not specified in the contract; it is prohibited
brokers
represent the insured
agents
represent the insurer
A licensed producer can only ________ _________ with another licensed producer in the same line.
share commissions
A commission may only be _____ with other producers holding the same license.
shared
Cancel or nonrenewal of auto insurance must include what?
specific reasons notice of the insured's rights to appeal to the Director within 10 days of receipt of notice notice of possible eligibility in Arizona Automobile Insurance Plan refund of unearned premium
An insured receiving payment for loss caused by domestic violence cannot waive the insurer's right to ______ against the perpetrator of the violence.
subrogation
If you move away from Arizona you must ______ your producer license.
surrender
All admitted P&C insurers must be members of what?
the Arizona P&C Guaranty Fund
What homeowner policy has Arizona adopted?
the ISO 2011 Homeowners Policy
What is the Director's purpose?
to protect the public
Not included in ______ ______: lawful transaction of surplus lines or reinsurance, attorneys
transacting insurance
Sharing competitor information with a customer is not an _____ ____ ______.
unfair trade practice
The civil penalty limits for ________ acts is $250/violation up to $2,500.
unintentional
2011 Homeowners Policy: out
vermin
Gramm-Leach-Bliley
was established to require financial institutions to protect consumer's personal information
cease and desist
what the Director may issue to any person paying commissions to anyone not licensed
How soon after passing your exam must you apply for a license?
within 1 year