Chapter 10: Insurance Regulation

Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?

Consumer report

All of the following actions can be described as twisting EXCEPT

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

The requirement that an agent not co-mingle insurance monies with their own funds is known as

Fiduciary responsibility.

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

30

A producer's license must be renewed

Biennially

Which of the following would NOT be considered an unfair and deceptive practice?

Controlled business

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.

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

$2,500

The insurance code identifies all of these as prohibited acts that can cause suspension, revocation or denial of an insurance producer license for a licensee or applicant, with the exception of

Commission of any misdemeanor.

Which of the following would be required to be licensed as an insurance producer?

A salaried employee who advertises and solicits insurance

Which of the following best describes the unfair trade practice of defamation?

Making derogatory oral statements about another insurer's financial condition

What was created to keep telemarketers from calling consumers who do not wish contacted?

National Do Not Call Registry

Paul is a producer in Ohio and wants to become a producer in Pennsylvania. The Commissioner will waive certain examination requirements, provided that Ohio would waive these same requirements if a Pennsylvania producer sought licensure in Ohio. What term is used to describe this phenomenon?

Reciprocity

With regards to premium rates, which of the following statements is NOT true?

The Commissioner sets all insurance premium rates used in Pennsylvania.

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

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