CH18 INS REGULATIONS
all of the following are true about the ins frauds prevention act EXCEPT -the super has the power to designate one or more units for the purpose of preventing fraud -the super has the power to conduct investigations outside of the state -every insurer must file a fraud prevention plan within 150 days -the act is intended to permit the superintendent and department to utilize their expertise to investigate and discover insurance fraud
C [120days]
an independent adjuster may include which of the following
a firm who acts on behalf of the insurer
an independent adjuster may include
a firm who acts on behalf of the insurer [in the work of investigating and adjusting claims]
Who may share in the commission from the sale of a life insurance policy?
a licensed life ins agent of the same insurer involved with the sale of the transaction
which of the following individuals must pass a written examination to be licensed as a life insurance agent?
a resident of NY wishing to transact business in NY [want to act as an agent]
the superintendent is
appointed by the governor
all of the following are true about the insurance frauds prevention act EXCPT
every insurer must file a fraud prevention plan within in 150 days [120 DAYS]
who represents the insured in the investigating of a claim?
public adjuster 理赔人 [=a person, firm, association or corp, who for a commission, acts on behalf of the insured in negotiating a settlement of a claim for loss or damage to property]
the super may refuse to issue a license in all of the following situations EXCEPT if the proposed licensee
is from another state [MAY refuse if not trustworthy, competent, no prerequisite]
What is it called when an agent offers compensation to an applicant in exchange for business
rebating
all of the following are cause for the insurance superintendent to suspend or impose conditions upon the continuance of an agent's license EXCEPT -the applicant has been shown to be a poor personal credit risk -demonstrated incompetence or untrustworthiness to act under the license -obtaining a license through fraud -conviction of fraudulent or dishonest practiced
A
who must pass the written examination to be licensed
a producer previously licensed in NJ is applying for a NY license 120 days after becoming a resident of this state [allowed more than 90days to lapse since becoming a resident of NY]
which of the following would be required to be licensed as an insurance producer?
a salaried employee who advertises and solicits insurance [a person does not require an insurance producer license if he only advertises without intent to solicit insurance]
if an individual's license has been revoked, how soon can he or she obtain a new license
after 1 year of revocation [or one year after judgement]
which would nOT be a violation of state insurance regulation?
agent c uses her license to write only business other than controlled [the purpose of a license is to primarily write business other than controlled business]
which cannot be the reason to terminate agent's certificate of appointment
an agent becomes disabled and is unable to complete his duties for the duration of the disability [a temporary license may be issued to a spouse or personal representative to complete old business]
which would NOT be considered an insurance producer?
an insurer's officer [officer are NOT required to be licensed]
In order for nonresident applicants to be eligible for an insurance producer license in this state, they MUST:
apply within 90 days of becoming a resident
how are state insurance guaranty association funded
by their members - authorized insurers
which is not qualified for licensing as an ins producer
have a letter of recommendation attesting to the applicant's trustworthiness
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
illegal under any circumstances [when a company criticizes the financial situation of another company with the intention of injuring that company, it has committed an illegal trade practice called defamation]
agent has recently changed his email address. what must the agent do to comply with the regulation for change of address?
inform the department within 30 days
an agent who includes a statement or omits a statement which, when taken in context of the whole presentation, may tend to mislead or deceive the persons addressed has committed
misrepresentation
Under the Fair Credit and Reporting Act, individuals rejected for insurance due to information contained in a consumer report
must be informed of source of the report
according to the insurance frauds prevention act, will the person who suspects a fraudulent transaction be penalized for reporting it to the super
no, as long as the act is reported in good faith, no civil liability will be placed against the person who reported it
an insurance agent was born in 1983. he obtained his NY ins license in 2014. when will the agent's license expire?
on agent's birthday every odd-numbered year [出生在双数年的will在双数年过期]
under the fair credit reporting act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must
respond to the consumer's complaint
in this state a temporary license may be issued all of the following reasons except -agent's disability -time in military service -retirement -death
retirement [a temporary license is not available for an agent's retirement]
every insurance company in the state of NY must file annually with the office of the super to show that it is
solvent
which of the following qualifications for obtaining a resident insurance agent's license in NY is false
the applicant must have two letters of recommendation attesting to trustworthiness, reliability and good reputation
a spouse was granted a temporary license for her deceased husband's agency on 3/1. on 5/1 she processed an application for life insurance on a new applicant. which is true
the application was processed without a valid license [ONLY used to service existing business, not to solicit, negotiate or procure new business]
in order to qualify for a certificate of authority, every person firm association corp or joint stock comp must meet all of the following requirements EXCEPT
the entity must be part of the NY labor union
For which of the following reasons can a temporary license be issued
to service the existing business
the superintendent will not renew an agent or broker's license upon finding that the license has been used to write controlled business. which of the following would be a violation of controlled business practices?当发现代理人或经纪人的执照已被用于撰写受控业务时，该主管将不会续签。 以下哪项违反受控商业行为？
15% of agent's annual commission is from business fold to the agent's family代理商年度佣金的15％来自业务部门到代理商的家庭 [controlled business is when an agent receives more than 10% of the aggregate commissions during a 12month period from insurance business sold to family, or business associated and their family members]
which person is required to hold a producer license?
a person who negotiates insurance contracts [persons who perform clerical tasks that are NOT related to soliciting or negotiating insurance contracts are not required to be licensed]
who is included in the definition of an agent? -agents of title insurance companies -a producer who owns his own field office -a salaried employee of the insurer who does not solicit insurance or receive a commission -an agent who devotes only 25% of his time to the solicitation of insurance contracts and does not receive commission
a producer who owns his own field office [all are not EXCEPT a producer who owns his own office. ownership of an insurance field office does not exclude a producer from the definition of an agent]
how often must an insurance agent licensed in NY renew the license
every 2 years
the NY super has the responsibility to make sure each entity transacting insurance in this state remains solvent. insurers are required to file a statement with the super
annually on or before 3/1
an insurance producer just sold an insurance policy to his sister. what kind of business is this
controlled [it is legal as long as premiums paid these policies do not exceed the prem that the producer writes for other business]
all of the following will terminate an agents's appointment EXCEPT -an agent's license expires and is not renewed -a termination issued by the appointing insurer -an agent's license is suspended or revoked by the depart of fin services -a new super is put into office
d
which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance
defamation诽谤
if an agent fails to promptly remit the premiums collected from the insured to the insurer, the agent may be found guilty of which of the following
embezzlement [=criminal act of taking money belonging to someone else. in addition to revocation of license, criminal penalties will be imposed]
which entities protects policyowners, insured, and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment?
insurance guaranty association [created to protect policyowners, insureds and beneficiaries under life, health, annuities and supplemental contracts]
an insurance agent was born in 1983. he obtained his NY insurance license in 2014. when will the agent's license expire
on the agent's birthday every odd-numbered year [lasts for 2 years, so will expired on odd numbered year]
who does the agent represent
the insurer
fed 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
without receiving written consent from an insurance regulatory authority
can the superintendent investigate fraudulent claims if they occurred outside of the resident's state according to the insurance fraud prevention act?
yes, the super has the power to make an investigation within this state OR outside of the state
for the protection of public interest, the super may examine the books and records of any of the following EXCEPT -fraternal benefit societies -producers -policyowners -domestic insurers
C
which is nOT a prerequisite for an ins license in NY?
at least 21 [18]
which of the following is NOT correct regarding false statements by a person engaged in the business of insurance
only written statements can be considered fraud [according to title 18, section 1033&1034 of us code, any oral or written statements by any person engaged in the business of insurance that are false or any omissions of material fact are considered unlawful insurance fraud]
if the superintendent finds a licensee in violation of an unfair method or unfair practice he or she will issue a
cease and desist order [must stop violation he or she is suspected of doing]
the requirement that agents must account for all insurance funds collected and are not permitted to commingle those funds with their own funds without the express consent of the insurance company is know as
fiduciary responsibility
the continuing education (CE) requirement in this state:
consists of completing 15 hours of continuing education each biennium
which of the following is an approved written document that identifies procedures in place to keep the insurer's information system safe
cybersecurity policy
who represents the insured in the investigating of a claim
public adjuster [for purpose of settlement a claim for loss or damage to property]
an agents in another state wants to become an agents in NY. The other state gives the same privileges to NY agents wanting to be licensed in that state as it does its own agents. NY, therefore, extends the privileges of its agents to the prospective agents of the other state. what is this called
reciprocity
what is the maximum penalty for habitual willful noncompliance with the fair credit reporting act
$2500
what is the maximum fine for violating a cease and desist order违反停止和制止令
$5000
Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to
10 years [if the activity jeopardized危机 the security of the accompanied insurer, the punishment can be up to 15 years]
how long does a license have to deliver information requested by the super of fin service?
15 days
what are the CE requirements for licensed insurance agents in NY
15 hours every 2 years
a client's policy lapsed in 2012 without being renewed. in what year can the insurance company destroy the file on this policy?
2018 [longer of 1) not renewed 2)filling of a review of the record]
the superintendent can examine an authorized fraternal benefit society and property/casualty insurance company once every
3years [domestic life insurer must be examined at least every 5 years]
a candidate for a life and health agent license would need to complete how many hours of prelicensing education?
40 [20 for each, 90 for 3]
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days