P&C Regulations

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

$2,500

Lines of authority an insurance producer may obtain a license?

-Credit -Personal Lines -Variable Life Products

According to the Fair Credit Reporting Act, all of the following would be considered negative information about a consumer

-Failure to pay off a loan -Tax delinquencies -Late payments

Who is considered a nonresident agent?

An agent who resides and is licensed in another state, but who is authorized to transact insurance in this state?

A state-issued document empowering an insurance company to become an admitted insurer is called what?

Certificate of Authority

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

Who requires that a prospective producer take and pass a written examination on the kinds of insurance business specified in the application?

Director

Which regulatory authorities participated in creating the National Do National Do Not Call Registry?

FTC

An applicant is denied insurance because of information on a consumer report. which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?

Fair Credit Reporting Act

The requirement that agents must account for an promptly remit all insurance funds collected is known as what type of agent responsibility?

Fiduciary

What is controlled business?

Insurance on the producer's own life or property, or the lives or property of the producer's family or business associates?

Which of the following best describes a misrepresentation?

Misrepresenting the true nature of a policy in order to induce the policyholder to replace it

Which of the following could be considered an adjuster?

Paid claim investigators

An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of

Rebating

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

Respond to the consumer's complaint

Who must be notified of a producer's change of address?

The Department of Insurance (Commissioner/Director/Superintendent)

The necessary proof of loss claim is submitted to an insurer. Assuming the claim is complete, how long does the insurer have to pay the claim without additional interest?

30 days

An insurer may charge a service fee beyond the premium for motor vehicle insurance policies that insure

7 cars

Which of the following policies must comply with the signature regulation for insurance policies?

An insured's initial policy with an insurer

If an insurer holds a Certificate of Authority , it is known as what type of insurer?

Authorized or admitted

What type of insurer is formed under the laws of another state?

Foreign

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 increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next 2 years. What term best describes tis act?

Fraud

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the company guilty of?

Misrepresentation

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

Who may share in the commission from the sale of an insurance policy?

Only producers properly licensed for the type of insurance transaction

An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?

Rebating

In order to solicit or issue insurance through a vending machine, producers must display evidence of their authority nearby. Which of the following does NOT need to be included in this notice?

The insurer's phone number

If an insurance policy does NOT have the proper countersignature,

The policy will still be considered valid.

To whom may a certificate of authority be issued?

To an insurer authorized to transact business in this state

When is controlled business legal?

When the commissions from controlled business do not exceed the aggregate commissions on all the other business (specific limits may vary from state to state)