exam

if a telemarketer wants to make an unsolicited sales call to a potential customer, what is the earliest time the telemarketer can call the prospect's residence

8am 8-9pm are hours

a licensed producer moving to pennsylvania may become licensed as a resident if the producer submits a completed application within how many days of establishing residence in pa with proof of licensing from their prior home state

90

which of the following best describes a misrepresentation

issuing sales material with exaggerated statements about policy benefits

the term 'fiduciary capacity' refers to a producer's

position of financial trust to clients and insurance company

which of the following entities must approve all continuing education courses in this state

the commissioner

which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another

twisting

what is the civil penalty for violating a cease and desist order of the commisioner

$10,000

what is the maximum penalty for habitual willful noncompliance with the fair credit reporting act

$2,500

once it has been reasonably proven that a person has knowingly violated the insurance code regarding unfair methods of competition, the department may impose a civil penalty of

$5,000/violation

to avoid violations of unfair claims settlement regulations, insurers are required to acknowledge the receipt of a claim within how many days

10 days

what is the minimum age for obtaining an insurance producer's license in this state

18

how long does a temporary producer's license last for the surviving spouse of a decease producer

180 days

if an insurer terminates a producer's appointment, the commissioner must be notifies within how many days

30

with regards to premium rates, all of the following are true

PA is a 'prior approval' state in that premiums rates must be filed with the insurance department and approved by the commissioner after a premium rate is filed, the insurer must wait 30 days or until approval is received from the commissioner before using the new rate if a premium rate is disapproved, the commissioner must hold a hearing if requested by the insurer

which of the following acts created a federal program that would share the risk f loss from potential terrorist attacks with the insurance industry?

TRIA terrorists risk insurance actall

which of the following persons is required to hold a producer license

a person who negotiates insurance contracts

which of the following is an example of a producer's fiduciary responsibilities

a producer promptly forwarding premiums to the insurance company

which of the following would be required to be licensed as an insurance producer

a salaried employee who advertises and solicits insurance

an individual was just caught acting as an exclusive general agent- even though he is not properly licensed. assuming that this occurred in a single day, what is the maximum penalty he faces

a third-degree misdemeanor and a $1,000 fine

the commissioner of insurance is placed in office by which means

an appointment by the governor

a producer's license must be renewed

biennially- every 2 years

all of the following considered unfair trade practices in the business of insurance

boycott, rebating, defamation

forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as

coercion

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

if an insurer appoints a producer, which authority must be notified

department of insurance

which of the following authorities monitors the financial strength of insurers

department of insurance -in order to determine whether the continued operation of any insurer might be financially hazardous to policyholders, creditors, or to the public in general

according to the fair credit reporting act, all of the following would be considered negative info about a consumer EXCEPT

disputes regarding consumer report info

how often the commissioner examine rating organizations

every 5 years whenever deemed necessary but at least once every 5 years

circulating deceptive sales material to the public is what type of unfair trade practice

false advertising

after a hearing, if the commissioner finds that a licensee is in violation of the state insurance laws, the commissioner can do any of the following

impose a civil penalty, issue a cease and desist order, suspend or revoke the license cannot imprison the licensee!!

an insurer devises an intimidation strategy in order to corner a large portion of the insurance market. which of the following best describes this practice

just straight up illegal maaan

if an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information

prior insurance, credit history, habits cannot include applicant's ancestry due to fair credit reporting act

which of the following licensees is classified as a representative of the insurance company and not allowed to represent an insured or claimant

producer- always classified as a representative of the insurance company for whom they transact insurance

the federal fair credit reporting act

regulates consumer reports

the federal faircredit reporting act

regulates consumer reports

according to the privacy of consumer financial information regulation, if a consumer decides to opt out, this means

the consumer directs the licensee not to disclose the consumer's nonpublic personal financial information to a third party

which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information

the fair credit reporting act

on its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. the company is guilty of

misrepresentation

prior to license renewal, all insurance producers must successfully complete how many hours of continuing education

24 credit hours

which of the following would be considered an unfair claims settlement practice

advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered

a producer sold an insurance policy. subsequently, his license was suspended. in this case, how much of the commission will the producer receive?

all- if licensed at the time of sale, and suspended after

all of the following considered rebating

an agent offers the use of his lake house to a client as an inducement to buy an insurance policy from him, an agent offers to share his commission with a policyholder, an agent offers tickets to a baseball game as an inducement to buy insurance

exceptions to the national do not call list

calls which are not commercial or do not include unsolicited advertisements, calls by or on behalf of tax-exempt nonprofit organizations, calls for which the consumer has given prior written permission

which of the following authorities is authorized to issue a temporary insurance producer's license?

commissioner

which of the following includes information regarding a person's credit, character, reputation, and habits

consumer report

if an insurer changes a form that it uses to transact insurance, it must do which of the following

file the form with the commissioner for approval all forms filed this way, if 30 days pass without response, form was approved

which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producer's license

forgery

An insurance company assures its new policyholders that their premium costs will not increase for a period of at least 5 years. However, due to increase financial strain, they plan to increase premium costs for all insureds by 10% over the next 2 years. What term best describes this act?

fraud

a producer licensed in another state wants to become a producer in PA. the other state gives the same privileges to PA producers wanting to be licensed in that state as it does its own agents. PA, therefore, extends the privileges of its agents to the prospective agent of the other state. what is this called?

reciprocity when the state in which the person resides accords the same privilege to residents of PA

insurance producers that do not have company appointments are considered

representative of the consumer

all of the following considered to be a misrepresentation as it pertains to unfair trade practices

stating the the insurance policy is a share of stock, exaggerating the benefits provided in the policy, stating that the competitors will arbitrarily increase their premiums each year

which of the following is an example of a producer being involved in an unfair trade practice of rebating

telling a client that his first premium will be waived if he purchases the insurance policy today defined as offering any inducement in the sale of insurance products that is not specified in the policy--both the offer and acceptance of a rebate are illegal

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

the consumer's associates, friends, and neighbors provide report's data

a licensee serving in the military is unable to fulfill her continuing education requirement. what would the licensee have to do to renew the license

the licensee may submit a request to the department to have requirements and fees waived. the department will the determine if the request is permissible

when the commissioner suspects that a person is violating an insurance law or other regulation, what can be issued that would order the person to stop committing the act of violation

cease and desist order

a banker is ready to close on a customer's loan. the bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. this is an example of..

coercion

a producer who fails to separate premium monies from his own personal funds is guilty of

commingling

all of the following are licensing requirements for a business entity, EXCEPT

having all employees complete continuing education courses every 2 years -must only have 1 in good standing at a time

all of the following are penalties a producer may face for violating the insurance laws of this state

license revocation, monetary fine, imprisonment

if a licensee wants to transact insurance under a different name than that listed on his or her producer's license, which of the following must occur

the change must be reported to the commissioner

for the purpose of examination by the department, insurers must keep a record of all financial files for at least

5 years

under the fair credit reporting act, individuals rejected for insurance due to information contained in a consumer report

must be informed of the source of the report