Insurance Regulation

Who is included in the definition of an agent?

A producer who owns his own field office.

How long does a licensee have to deliver information requested by the Superintendent of financial Services?

15 days

What are the continuing education requirements for licensed insurance agents in New York State?

15 hours of approved instruction every 2 years.

The Superintendent will not renew an agents 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?

15% of the agents annual commission is from business sold to agent's family. Controlled business is when an agent receives more than 10% of the aggregate commissions during a 12- month period sold to family or business associates

If licensees have administrative action taken against them, they must report this to the Superintendent within A 45 days B 50 days C 20 days D 30 days

30 days

Which of the following is NOT true concerning the purpose of the Insurance Fraud Prevention Act? A It helps stop fraudulent acts more effectively. B It helps the insurers to not sell policies to those applicants who are high risks. C it permits the Dept to receive assistance from federal and state law enforcement agencies. D It permits the Superintendent and depart to investigate ins fraud

B It helps the insurers to not sell policies to those applicants who are high risks.

How are stated Insurance Guaranty Associations funded? A By the dept of Insurance B NAIC C Govt D By their members - authorized insurers

By their members - authorized insurers

At a hearing, a person has the opportunity to do all of the following except A Give evidence why an order should not be made B Obtain witnesses on his on her own behalf C File for dismissal of charges D Appear in person and by counsel.

C File for dismissal of charges.

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

Fraud.

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies.

Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must

Respond to the consumer's complaint.

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.

Without receiving written consent from an insurance regulatory authority.

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

5 days

What is the maximum fine for violation a cease and desist order? A 2,500 B 5,000 C 10,000 D 1,000

5,000

If the Superintendent finds a licensee in violation of an unfair method or unfair practice, he/she will issuse a

Cease and desist order Order means the licensee must stop violation he/she is suspected of doing.

All of the following are true about Insurance Frauds Prevention Act EXCEPT

Every Insurer must file a fraud prevention plan within 150 days. Every insurer must file a fraud prevention plan within 120 days.