Chapter 17: Insurance Regulation

The Federal Fair Credit Reporting Act Regulates telemarketing. Prevents money laundering. Regulates consumer reports. Protects customer privacy.

Regulates consumer reports.

A licensed agent has completed 30 hours of continuing education (CE) in one licensing period. How many hours can be carried over into the next CE period? 0 3 6 Unlimited

0

Due to gross misconduct, an insurer has terminated the contract of an independent agent. How long is the time period during which the agent may renew any policies still in force? The agent can renew any policies indefinitely. 1 year 3 years The agent cannot renew any policies.

1 year

How many continuing education credit hours must cover ethics? 3 5 10 2

3

Which of the following statements does NOT accurately describe an insurance broker? A broker is not a direct representative of an insurer. A surplus lines broker cannot bind coverage. A broker is employed by clients, not companies. None of the above. All are true.

A broker is employed by clients, not companies.

Which of the following qualifications is NOT among those that may be needed for an insurance license? Passing the required written exam Being competent, trustworthy and financially responsible Providing a Letter of Clearance Being at least 17 years old

Being at least 17 years old

When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of Misrepresentation. Discrimination. Nothing, unless the remarks were in writing Defamation.

Defamation.

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of? Twisting Defamation False advertising Unfair claims

False advertising

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 Concealment. Unfair claim practice. Rebating. Misrepresentation.

Misrepresentation.

Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance? False statements about financial condition of an insurer are unlawful. Statements made with the intent to deceive are unlawful. Only written statements can be considered fraud. Omissions of material fact on insurance application are fraud.

Only written statements can be considered fraud.

All of the following are true regarding rebates EXCEPT Dividends are not considered to be rebates. Rebates are allowed if it is in the best interest of the client. Rebates are only allowed if specifically stated in the policy. Rebating can be anything of monetary value given as an inducement to purchase insurance.

Rebates are allowed if it is in the best interest of the client.

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as False advertising. Coercion. Rebating. Twisting.

Rebating.

If a person has been convicted of a felony involving dishonesty and wants to obtain an insurance license, which of the following is true? The NAIC must conduct a special review of the person's eligibility. If a person has been convicted of a felony, he or she is permanently prohibited from obtaining an insurance license. Special permission must be granted by the Superintendent. If a person has been convicted of a felony, he or she is prohibited from obtaining an insurance license for 5 years after the date of conviction.

Special permission must be granted by the Superintendent.

An agent has held an active license in good standing for the past 10 years, but this year, the agent's appointment with his insurer has been terminated for over 60 days. Which of the following is true of the agent's license? The license will expire. The license must be surrendered to the insurer. The license will be active, but the agent cannot receive any commissions from the insurer. The license will remain active as long as continuing education requirements are met.

The license will expire.