Chapter 10: Insurance Regulation

Any license person who activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to

10 years

Any licensed person whose activities affect interstate commerce and who knowingly make false material statements related to the business of insurance may be imprisoned for up to

10 years

How long does a temporary producer license last for the surviving spouse of deceased producer

180 days

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be contained

3 days

A producer license in PA must notify the insurance Department of any change of address in his or her resident or business address within how many days

30 days

Licensees must make a report of any action taken against them in another jurisdiction or by another governmental agency in PA within how many days of the final disposition

30 days

Within how many days must a producer respond to an inquiry from the commissioner?

30 days

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

5 days

If a telemarketer wants to make an unsolicited sales call to a potential customer, what is the earliest time the telemarketer can call the prospect's residence?

8AM

What is fiduciary responsibility?

A fiduciary is someone is position of trust. More specifically, it is illegal for insurance producers to commingle premiums collected from the applicants with their own personal funds

Under which of the following circumstances can financial institutions share insurance coverage information with third parties for the purpose soliciting the purchase of insurance

If a consumer does not sign and return the notice of disclosure within 30 days

After a hearing, if the commissioner finds that a licensee is in violation of the state insurance laws, the commissioner can do any of the following EXCEPT

Imprison the licensee

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

Coercion

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

Disputes regarding consumer report information

Which of the following is an example of an unfair claims settlement practice?

Failure to promptly settle a claim when liability has clearly been establish

What is embezzlement?

Failure to submit funds appropriately could constitute embezzlement

What is the purpose of the Fair Credit Reporting Act

ensure that records are confidential, relevant, and properly use. The law also protects consumers against the circulation of inaccurate or obsolete financial information