Quiz: Life Insurance, Insurance Regulation

An insolvent insurer is one who is unable to pay its obligations when they are due or has fewer assets than liabilities for a period of A) 2 years B) 3 years C) 4 years D) 5 years

B) 3 years An insolvent insurer is one who, for a period of 3 years, is unable to pay its obligations when they are due or has fewer assets than liabilities, plus any required capital contributions ordered by the Superintendent.

Circulating deceptive sales material to the public is what type of Unfair Trade Practice? A) defamation B) coercion C) misrepresentation D) false advertising

D) false advertising This is considered to be false, deceptive, or misleading advertising.

What is the waiting period for rate filing before each rate may become effective? A) 14 days B) 30 days C) 45 days D) 90 days

B) 30 days The Superintendents will review filings as soon as reasonably possible; however, all rate filings are subject to a 30 day waiting period before they become effective.

How often must the Superintendent examine financial affairs of domestic insurers? A) 10 years B) 2 years C) 3 years D) 5 years

C) 3 years Domestic insurers must be examined at least once every 3 years regarding their condition, fulfillment of contractual obligations, and compliance with applicable laws.

Each person licensed as an agent or solicitor is required to complete how many hours of approved continuing education instruction every 2 years? A) 22 B) 26 C) 18 D) 24

D) 24 Each person licensed as an agent or solicitor is required to complete 24 hours of approved continuing education instruction, including 3 hours of ethics training, every two years. Agents holding a limited license for title insurance must complete 10 hours every two years.

For how long is the certificate of pre-licensing course completion valid? A) 180 calendar days B) indefinitely C) 120 days D) 2 years

A) 180 calendar days The certificate of pre-licensing course completion is valid for 180 calendar days from the completion of the course or passing of provider's self study proctored exam.

The Superintendent issues a cease & desist order. A hearing is held in order to determine whether the order should be continued. After the hearing, the Superintendent decides to continue the order. The agent wants to appeal this decision. Which of the following is true? A) The order can be appealed. B) the order cannot be appealed, but the duration of the order can be. C) There is not enough information to answer this question D) The order cannot be appealed at this point, since it is the final order.

A) The order can be appealed. A cease & desist order will set a date for a hearing, which must be within 15 days of the order date, to decide whether the order will be continued or revoked. The Superintendent will issue a final order continuing or revoking the cease and desist order within 15 days after receiving objections to the hearing officer's report. The Superintendent's final order is appealable.

In Ohio, a temporary license may be issued for any of the following reasons EXCEPT A) agent's retirement B) agent's death C) agent's disability D) agent's military service

A) agent's retirement A temporary license is not available for an agent's retirement

If a cybersecurity event has occurred, licensees must maintain records of the incident for no less than A) 2 years B) 5 years C) 8 years D) 10 years

B) 5 years After a cybersecurity event, an insurer or third-party service provider must conduct a prompt and thorough investigation. Once the event has been resolved, the insurer must maintain all records related to the event for no less than 5 years.

Which of the following best describes the unfair trade practice of defamation? A) refusing to deal with other insurers B) making derogatory oral statements about another insurer's financial condition C) assuming the name & identity of another person D) issuing false advertising material

B) making derogatory oral statements about another insurer's financial condition Making oral or written statements directly or indirectly which are derogatory or maliciously critical of another insurer would be an example of the unfair trade practice of defamation.

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce: A) without receiving written consent from a Federal judge B) without receiving written consent from an insurance regulatory authority C) under any circumstances D) unless they have served an appropriate prison sentence

B) without receiving written consent from an insurance regulatory authority Title 18, US Code, sections 1033-1034 makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce without receiving written consent from an insurance regulatory authority.

Who assumes control over an insurance company's funds and management if they become insolvent? A) the policyholders or stock owners of the company B) state attorney general C) National Association of Insurance Commissioners D) Department of Insurance

D) Department of Insurance In the event of an insurance company insolvency, the Department of Insurance will take over the management of the insurer in an effort to rehabilitate the company. If rehabilitation is not possible, they will liquidate the assets of the company.

By what date in each licensing period are agents required to renew their license? A) by the date CE courses are completed B) by the license anniversary date C) by the last day of their birth month D) by December 31st

C) by the last day of their birth month After initial requirements, agents must continue to renew their licenses biennially, on the last day of their birth month.

Who is an insurance agent? A) any person licensed to sell, solicit, or negotiate insurance B) any person licensed under the laws of another state C) any person appointed by an insurance company D) any person who represents the insured in the sale of insurance

A) any person licensed to sell, solicit, or negotiate insurance An insurance agent, or agent, is any person that--in order to sell, solicit, or negotiate insurance--is required to be licensed under the laws of this state, including limited lines insurance agents and surplus lines brokers.

Which of the following is NOT true regarding a temporary license in this state? A) it will continue for 180 days even if the owner disposes of the business B) it can be issued to a designee when a licensed agent enters active US military service C) it can be issued to a spouse of a deceased agent D) it does not require a written exam

A) it will continue for 180 days even if the owner disposes of the business A temporary license cannot continue in force after the owner of the business or the owner's personal representative disposes of the business. All of the other statements are true.