State Regulations Supplementations

In most jurisdictions, all of the following would constitute unlawful acts of rebating EXCEPT

A paying a bonus to a licensed employee for referring the policy owner to the producer

The head of the department of insurance can suspend a producer's license for the following reasons EXCEPT

B. Making conservation efforts regarding the replacement of policies

Regarding the insurance business, which of the following is an example of a self-regulatory body

B. National Association of Insurance Commissioners (NAIC)

To increase sales activity as a new agent, Norm offers 2 nights' stay at a nice hotel for the first 10 clients who purchase a homeowners, auto, and life insurance policy with his agnecy. Norm is guilty of?

B. Rebating

By examining an insurer's records, the head of the dept. of insurance assesses the insurer's

C. Compliance with State laws

The chief officer of the state insurance dept. is NOT responsible for

C. Enacting insurance laws

All of the following are considered to be unfair and deceptive trade practices EXCEPT

C. Issuing checks in full settlement of a claim that contain language releasing the insurer from liability

Exclusive agents do NOT have the responsibility for...

A. Licensing producers

An example of unfair discrimination is BEST demonstrated by which of the following situations?

B. an insurer assigns a premium rating to an applicant because studies that suggest members of the applicant's race have a "shorter than average" life expectancy

All of the following acts are prohibited EXCEPT

B. replacing one policy with another

A producer's license may be revoked for all of the following reasons EXCEPT

B. soliciting controlled business (e.g., close family members)

What is the minimum age to be licensed as an insurance producer?

C. 18

"An individual who negotiates insurance coverage for compensation on behalf of an insurer" best describes

D. An Agent

In order to do business in a state, an insurer must have a certificate of

D. Authority

All of the following are duties of insurance licensees EXCEPT

D. File the list of agency appointments with the Department of Insurance

Acts requiring a person to be licensed as a producer include all of the following EXCEPT

D. advertising insurance policies

Which of the following activities is NOT an example of misrepresentation?

B. an agent tells a prospect that the policy has achieved a certain level of dividends for the past 5 years

Which of the following statements regarding the payment of commissions is NOT correct?

C. a producer may not share commissions with a licensed nonresident producer

In order to sell insurance for an insurer, the producer must first

C. be appointed by that insurer

which of the following actions is NOT an unfair claims method?

B. Denying a claim within a reasonable time after a proof of loss statement was completed