Chapter 8: Insurance Regulation Quiz

C. An appointment with the company

7. A producer CANNOT receive a commission from an insurance company without which of the following? A. A signed contact B. A Certificate of Authority C. An appointment with the company D. A paid premium

C. To aid insurance agents in transacting insurance

1. What is the main role of a solicitor of insurance? A. To manage general agents B. To serve as the agency administrator C. To aid insurance agents in transacting insurance D. To legally represent the insurance company

C. Sharing commissions with another agent

10. A producer's license may be suspended or revoked for all of the following reasons EXCEPT: A. Misappropriating funds belonging to insureds or the insurer B. Lying on insurance application C. Sharing commissions with another agent D. Engaging in an unfair method of competition

A. Stop committing a particular violation

3. If the Department issues a cease and desist order, that means the insurer must: A. Stop committing a particular violation B. Surrender its certificate of authority C. Terminate all agent appointments D. Suspend all insurance transactions in this state

D. The owner

4. In a life settlement contract, whom does the life settlement broker represent? A. The life settlement intermediary B. The beneficiary C. The insurer D. The owner

B. 3 hours

5. How many continuing education hours must a producer complete on the subject of ethics every licensing period? A. 2 hours B. 3 hours C. 5 hours D. 12 hours

C. 5 years

6. According to the California Insurance Code, life-only agents must keep records of their transactions for: A. 12 months B. 3 years C. 5 years D. 7 years

A. Immediately

8. If a licensee changes his or her residence address, within how many days must the Department be notified? A. Immediately B. 30 days C. 90 days D. The Department only needs to be notified if an agent's business address changes

B. Mandatory

9. According to California Insurance Code, the term "shall" describes what kind of actions? A. Permissive B. Mandatory C. Implied D. Directive

C. Settling premium rates

2. The Commissioner of Insurance is responsible for all of the following actions EXCEPT: A. Issuing Certificates of Authority B. Enforcing the Insurance Code C. Settling premium rates D. Conducting examinations of insurers