quiz 20

All the following are true with regards to risk retention groups except: RRG's are owned by its members. RRG's act as insurance companies and retain risk. RRG's can insure members in only the state where they are domiciled. RRG's may not participate in the State insurance insolvency guarantee fund.

RRG's can insure members in only the state where they are domiciled.

An insurer upon receiving notice of claim must within 15 calendar days: All of these are correct. begin investigation Acknowledge receipt of such notice to the claimant unless payment is made within that period of time. furnish necessary forms

all correct

How much of the premium will be returned to the insured if the policy is rejected by the insurance company who has not been exposed to any risk of loss? 100% minus the policy fee. 100% 100% minus a prorata fee. 100% minus a cancellation fee.

100%

Life insurance, annuities or disability insurance policies offered for sale to individuals age 65 or older for disability, and age 60 for life and annuities, must provide a minimum free look period of how many days? 45 60 90 30

30

Upon acceptance of the claim every insurer shall immediately, but in no event more than ____ calendar days later, tender payment of the amount of the claim which has been determined and is not disputed by the insurer. 20 10 30 40

30

Upon receiving proof of claim, every insurer, shall immediately, but in no event more than ____ calendar days later, accept or deny the claim, in whole or in part. 20 40 10 30

40

Upon receiving proof of claim the insurer has how long to accept or deny? Up to 6 months 40 days 20 days 30 days

40 days

The minimum for Good Driver Discount is: None of the above 10% 25% 80% of standard rate

80% of standard rate

Which of the following are not events that require proof of financial responsibility? At the time of a vehicle registration. When requested by a police officer. After failure to pay a judgment from an DUI. At the time of any accident involving $750 or more in property damage.

After failure to pay a judgment from an DUI.

No company shall fail to renew a policy solely on the basis of: Age of the insured Excessive nonpayment of premiums Late payment of premiums Excessive traffic violations

Age of the insured

Which of the following is not true with regards to the California State Compensation Insurance Fund? Agents and brokers may place business with State Fund State Fund competes with the private sector for a share of the market Employers can purchase a policy directly from the Fund All insurers must participate and remain active with the Fund

All insurers must participate and remain active with the Fund

All of the following events would require proof of financial responsibility except: Major vehicle conviction such as a DUI Any accident causing property damage At the time of vehicle registration and registration renewal At the time a police officer has requested

Any accident causing property damage

It is against the law for any licensed agent to accept any of the following from a repair facility for referring clients to them except: A referral fee. Free repairs for their own car. A percentage of the total repair shop bill. Discount on repair cost for their clients.

Discount on repair cost for their clients.

Good driver discount requires 3 years experience with 18 months of it in: the United States Canada Neither United States or Canada Either United States or Canada

Either United States or Canada

If the insurer believes that the claimant has submitted a fraudulent claim then the number of calendar days specified shall be _______________. Increased to 80 days. Increased to 75 days. Increased to 45 days. Increased to 60 days.

Increased to 80 days.

For an auto policy to be cancelled all of the following except one may take place within 30 days of cancellation? Increase in the hazard insured against Driver's license has been suspended Fraud affecting the insured Late payment of at least 20 days

Late payment of 20 days

#34 What does LRRA stand for? Liability Risk Regulation Act Liability Retention Risk Act Liability Retention Regulation Act Liability Risk Retention Act

Liability Risk Retention Act

A private insurance that fills in the gaps of a government program would be: CAARP Fair Plan 24 hr Coverage Medicare Supplements

Medicare Supplements

If you paid for a auto policy that's effective next week but decide you want to cancel the day before it's effective, you get: The whole premium refunded The whole premium minus a penalty refunded The short rate portion refunded The pro rata portion refunded

The whole premium refunded

Along with the minimum liability coverages, what other auto insurance coverage is required to be offered? Uninsured motorist and underinsured motorist Uninsured motorist property damage Towing Comp and Collision

Uninsured motorist and underinsured motorist

Jason purchased a $2,500 floater on his golf equipment. What type of policy did Jason buy? Valued policy ACV policy Replacement cost policy Open policy

Valued policy

An insurer may non-renew a auto policy for which of the following reasons? Nonpayment of premium within 25 days. All of the above. Driver's license expired. Vehicle registration suspended.

Vehicle registration suspended.

The California Insurance Code defines 24-hour Coverage as jointly issuing a ___________ and a ___________ policy. Workers' Compensation and a Medicare Group Disability and a Group Health Workers' Compensation and a Health care Medicare and a Group Health

Workers' Compensation and a Health care

#33 When the value of the object being insured is not agreed upon this is a(n): open policy reporting policy market value policy running policy

open policy

A liability insurance company owned by its members would be: purchasing group Multiple Employer Trust a reciprocal risk-retention group

risk-retention group

An insurer must returned any unearned premium to the agent or insured: within 30 days within 15 days within 25 days within 10 days

within 25 days

Which of the following will not be used in determining if a person is eligible to receive the Good Driver Discount? Did they acquire their drivers license anywhere other than in the United States or Canada Driving record Annual miles driven Years of driving experience. Must be licensed for the previous three years

Annual miles driven

Any inquiry from the DOI concerning a claim, every licensee must: Both respond in writing and respond within 21 days. respond in writing respond within 21 days Refer inquiry to claims

Both respond in writing and respond within 21 days.

A risk-retention group is a liability insurance company owned by __________. The State Guarantee Association. State of CA. The stockholders. By the owners of the RRG.

By the owners of the RRG.

Which of the following would not be against the law for an agent/broker to accept from an auto repair shop for referrals? Discounts on their own personal repairs and services A gift certificate of $50 to the local mall Gratuity of $25 per referral given to the shop Invitation to the auto repair shop Christmas party where everyone receive a free dinner

Invitation to auto repair shop Christmas party where everyone receive a free dinner

Which one of the following would not be a Good Driver Discount requirement? Must be licensed for the previous five years. No DUI in the last ten years. Must not have more than one minor violation in the last three years. No at-fault accidents that resulted in bodily injury in the last three years.

Must be licensed for the previous five years.

___________ means notice of an action commenced against the insurer with respect to a claim. Obligee Notice of claim Claimant Notice of legal action

Notice of legal action

Concerning Seniors an acceptable insurance agency name would be: Over the Hill Agency Easter Seals Agency AARP R Us Agency Medicare Security Agency

Over the Hill Agency

The following items are acceptable ways to show financial responsibility in California except: Obtain a DMV issued self insurance certificate Purchase a fidelity bond for $35,000 from a California licensed insurer Deposit $35,000 in cash per vehicle with the DMV Purchase a auto liability policy with minimum coverage of 15,000/30,000/5,000

Purchase a fidelity bond for $35,000 from a California licensed insurer

Which of the following is not a variety of distribution system of insurance contracts? Home service systems Exclusive agents Direct response systems Self insured systems

Self insured systems