Insurance Regulation Quiz 2

A.3 days

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? A3 days B5 days C10 days D14 days

D.Fiduciary responsibility to their clients.

All agents, brokers, and reinsurance intermediaries have a/an AOwnership relationship with their clients. BFinancial relationship with their clients. CControlled responsibility to their clients. DFiduciary responsibility to their clients.

B.Controlled

An insurance producer just sold an insurance policy to his sister. What kind of business is this? APersonal BControlled CIllegal DInternal

B.To service the existing business

For which of the following reasons can a temporary license be issued? ATo provide temporary help to a licensed producer BTo service the existing business CTo solicit new business DTo negotiate new insurance contracts

B.Insurance Guaranty Association

Which of the following entities protects policyowners, insureds, and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment? AConsumer Protection Agency BInsurance Guaranty Association CInsurance Consumer Protectorate DInsurance Solvency Association

D.Consumer report

Which of the following includes information regarding a person's credit, character, reputation, and habits? AConsumer history BInsurability report CAgent's report DConsumer report

D.Have a letter of recommendation attesting to the applicant's trustworthiness

Which of the following is NOT a qualification for licensing as an insurance producer in this state? AComplete the required minimum hours of prelicensing training BBe at least 18 years of age CBe a state resident at the date of application DHave a letter of recommendation attesting to the applicant's trustworthiness

B.The applicant must have two letters of recommendation attesting to trustworthiness, reliability and good reputation.

Which of the following qualifications for obtaining a resident insurance agent's license in the state of New York is FALSE? AThe applicant must complete a minimum of 20 hours prelicensing training per line of authority. BThe applicant must have two letters of recommendation attesting to trustworthiness, reliability and good reputation. CThe applicant must be at least 18 years of age. DThe applicant must be a resident of the state of New York.

C.Agent C uses her license to write only business other than controlled.

Which of the following would NOT be a violation of state insurance regulations? AAgent A uses her license to write only insurance for herself and her immediate family. BAgent B charges his clients a consulting fee, in addition to the premium for placing a policy. CAgent C uses her license to write only business other than controlled. DAgent D collects premiums due on policies and deposits the funds in his own personal account.

A.A producer who owns his own field office.

Who is included in the definition of an agent? AA producer who owns his own field office. BA salaried employee of the insurer who does not solicit insurance or receive a commission CAn agent who devotes only 25% of his time to the solicitation of insurance contracts and does not receive commission DAgents of title insurance companies.

B.On the agent's birthday every odd-numbered year

An insurance agent was born in 1983 and obtained his New York insurance license in 2014. When will the agent's license expire? AEvery 2 years on the license issue date BOn the agent's birthday every odd-numbered year CJanuary 1 every even-numbered year DEvery year on the license issue date

D.5 days

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? A7 days B10 days C3 days D5 days

B.Cease and desist order.

If the Superintendent finds a licensee in violation of an unfair method or unfair practice he or she will issue a AComplaint record. BCease and desist order. CRebate. DRevocation of license.

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

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports? AThe customer has no knowledge of this action. BThe customer's associates, friends, and neighbors provide the report's data. CThey provide additional information from an outside source about a particular risk. DThey provide information about a customer's character and reputation.

D.Fraud.

Intentionally misrepresenting or concealing a material fact to induce an insurance company to make a contract is known as AAvoidance. BMisrepresentation. CConcealment. DFraud.