Insurance Regulation

Certificate of Authority

A France-based insurer would like to do business in Louisiana. What document must it first receive?

She must be appointed specifically by CGIC

Charla wants to serve as a producer for Commissions Galore Insurance Company. In addition to obtaining her producer's license, what else must happen before she can officially transact insurance for CGIC?

180 Days

Temporary licenses can last for how long?

25%

The limit on controlled business is

$1,000

The minimum fine for violating the Insurance Code is

To Protect the Public

What is the main justification for the existence of the State Insurance Department?

3

What is the minimum required number of continuing education credits in ethics every licensing period?

Consumer Report

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

Defamation

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?

30 Days

A nonresident producer moves to another state. The producer must notify the Department of Insurance of the address change within how many days?

10 Days

A producer has been notified by the Commissioner to stop using an unapproved trade name. How many days does the producer have to change the trade name before having to pay an additional fine?

10 Hours

A producer has completed 40 hours of continuing education this licensing period. How many credit hours may be carried over to the next licensing period?

Reciprocity

A producer in another state wants to become a producer in Louisiana. The other state gives the same privileges to Louisiana producers wanting to be licensed in that state as it does to its own producers. Louisiana, therefore, extends the licensing privileges to the prospective producer of the other state. What is this called?

After the revocation period

A producer's license has been revoked a second time for violating the Insurance Code. When can the producer apply for a new license?

$1 Million

A trucking company owns a large fleet of trucks that transport oil across state lines. According to the financial responsibility requirements set by the Motor Carrier Act of 1980, what is the minimum amount of insurance the company must carry on vehicles that transport oil and certain categories of hazardous waste?

$750,000

According to the financial responsibility requirements set by the Motor Carrier Act of 1980, what is the minimum amount of insurance the company must carry for the transportation of nonhazardous property?

Explaining to a client the advantages of permanent insurance over term and suggesting changing policies.

All of the following actions can be described as twisting EXCEPT

The insurer will have to pay the claims anyway

An insurer conducts business in Louisiana without a certificate of authority. Hundreds of policies are sold, and claims start rolling in. Which of the following is true?

$25,000

Andy the producer violates the Insurance Code very intentionally, in order to substantially increase his commissions. How much would he likely be penalized?

5 Years

Existing and replacing life insurers are required to keep copies of all summaries, notices, and statements used in sales transactions until the conclusion of their next examination by the Insurance Department, or for a period of at least...

Coercion

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

The Commisioner

If a company wants to appoint a producer, which entity must it notify?

24 Hours

If authorized to write life and property and casualty insurance, how many hours of continuing education instruction are producers required to complete every 2 years?

5 Years

Insurer examinations must occur no less frequently than every

Misrepresentation

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

Regulates Consumer Reports

The Federal Fair Credit Reporting Act

Protect private customer information filed with a financial institution.

The Gramm-Leach-Bliley Act was passed to

It does not protect the individual owner from loss to personal property owned exclusively by the unit owner.

The Residential Condominium Building Association Policy (RCBAP) is used for residential condominium building associations to cover the entire building under one policy. Which of the following statements about RCBAP is true?

A producer's retirement

This state provided for a temporary license for all of the following EXCEPT

That has met the minimum floodplain management guidelines

To be eligible for coverage under the National Flood Insurance Program, an insured must live in which of the following communities?

Respond to the consumer's complaint

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...

$250

What is the fine for using an unapproved assumed name by a producer?

Calls based from outside of the United States

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

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?