Chapter 7 Quiz Questions

which protects consumers against the circulation of inaccurate or obsolete personal or financial info?

the fair credit reporting act

Which authorities are responsible for determining whether an insurer is financially stable enough to safely conduct business?

B & C.

Which of the following would NOT be considered an unfair and deceptive practice?

Controlled business

The primary purpose of licensing is to:

Ensure high standards to the insuring public

All are violations that may result in an agents imprisonment EXCEPT:

Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.

How many days does an insurer have to file a notice of appointment for a producer?

15 days

To become consultants, in the years leading up to the date of application, an applicant must have done work that prepared him to act as consultants for at least:

3 of the 4 years

Which would NOT be considered a misrepresentation on the part of the insurer?

backdating policies to secure a lower premium for the insured

Who assumes control over an ins. company's funds and management if it becomes insolvent?

dept. of ins.

According to the Fair Credit Reporting Act, all would be considered negative info about a consumer except:

disputes regarding consumer report information

Which of the following would be considered false advertising?

Implying that the agent is the insurer (person using a name that suggests they are the insurer)

commissioner examines an ins. company every:

5 years

Which of the following entities established the Do-Not-Call Registry?

The Federal Trade Commission

Which of the following would NOT be considered an exception to the National Do Not Call List?

Calls based from outside of the United States

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

5 days

Existing and replacing life insurers are required to keep copies of all summaries, notices, and statements used in sale transactions until the conclusion of their next examination by the insurance dept., or for the current calendar year plus:

3 years

Applicants for producer, broker, or consultant licenses must show the commissioner they satisfy all EXCEPT

Are a citizen of the USA...this isnt needed

An insurer devises an intimidation strategy in order to corner a large portion of the ins. market. Which of the following best describes this practice?

illegal

Under the Fair Credit Reporting Act, individuals rejected for ins. due to info contained in a consumer report:

Must be informed of the source of the report

What was created to keep telemarketers from calling consumers who do not wish to be contacted?

National Do Not Call Registry

Which term describes an individual who is domiciled and licensed as a resident producer in a state other than Utah?

Nonresident producer

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

In comparison to consumer reports, which of the following describes a unique characteristic of the investigative consumer reports?

The customer's associates, friends, and neighbors provide the report's data.

Federal Law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of ins. affecting interstate commerce:

without receiving written consent from an ins. regulatory authority

All could be considered rebates if offered to an insured in the sale of ins. EXCEPT:

dividends from a mutual insurer.

Which does a life insurance producer have the authority to do?

receive an application