insurance quiz 2
In Florida, properly licensed and appointed agents may act as brokers in insurance transactions, in which case they may legally represent the insurer the applicant and insured the state office of insurance regulation themselves
the applicant and insured
The head of a state office of insurance regulation is generally responsible for all the following EXCEPT licensing and supervising agents and brokers overseeing insurance companies' marketing practices issuing rules and regulations making insurance laws
making insurance laws
Who is responsible for reporting suspicious activity concerning money laundering? the insurance company the producer no one the producer and the company
the producer and the company
Which of the following is not a service provider? HMO Benefit plans offering medical services to subscribers Lloyd's of London PPO
Lloyd's of London
Which of the following statements regarding types of insurers is NOT correct? Reinsurers usually deal with group policy owners. Mutual insurance companies are "owned" by their policy owners. Stock insurance companies seek a profit for their shareholders. Fraternal benefit societies must be nonprofit organizations.
Reinsurers usually deal with group policy owners.
In addition to the state, the organization that regulates variable life and variable annuities is the Federal Trade Commission (FTC) National Association of Insurance Commissioners (NAIC) Securities and Exchange Commission (SEC) Federal Communications Commission (FCC)
Securities and Exchange Commission (SEC)
Producers are expected to adhere to all of the following standards to protect consumers and promote suitable sales EXCEPT selling to customers' needs determining the suitability of recommended products assessing prospects financial ability to pay commissions full and accurate disclosure
assessing prospects financial ability to pay commissions
A reinsurer is a company that accepts all the risk from another insurer assumes a portion of the risk from another insurer cedes the risk does not take any risk
assumes a portion of the risk from another insurer
All of the following methods support the sale of insurance through agents and brokers EXCEPT independent agency system personal producing general agency system career agency system direct selling system
direct selling system
An insurance company organized and headquartered in Florida can be described as what type of company in Florida? Alien Home-based Foreign Domestic
domestic
The Buyer's Guide is intended to accomplish all of the following EXCEPT helps buyers choose the most suitable plan explain basic product features provide information about the recommended policy ensures that buyers obtain the lowest price for insurance
ensures that buyers obtain the lowest price for insurance
How many hours of continuing education in law and ethics does an agent need every two years? five hours seven hours 20 hours 24 hours
five hours
A life insurance company, organized in Illinois, with its home office in Philadelphia, is licensed to conduct business in Florida. In Florida, this company is classified as a(n) domestic company alien company foreign company regional company
foreign company
In an insurance transaction, licensed agents legally represent which of the following? insurer applicant and insured state office of insurance regulation themselves
insurer
Which of the following is not true concerning a Risk Retention Group? it insures a group of separate businesses it insures members of the same occupation is a mutual company all insureds own the company
it insures a group of separate businesses
The State Guaranty Association guarantees that a policy will be issued that the claim will be paid if the insurer becomes insolvent that dividends will be paid the rate of return on a policy
that the claim will be paid if the insurer becomes insolvent
Regarding landmark cases and laws involving the regulation of insurance, which of the following statements is NOT correct? Insurers are required to disclose when an applicant's consumer/credit history is being investigated. the Securities and Exchange Commission (SEC) may regulate insurers that sell variable annuities and variable life insurance. the Federal Trade Commission (FTC) directly supervises all insurance marketing activities. the McCarran-Ferguson Act (1945) led directly to our current understanding that the insurance industry is predominantly regulated by the states
the Federal Trade Commission (FTC) directly supervises all insurance marketing activities.
Which of the following statements regarding the National Association of Insurance Commissioners (NAIC) is NOT correct? the NAIC is empowered to prosecute and punish criminal violators in the insurance industry. the NAIC seeks to preserve state rather than federal regulation of the insurance industry. the NAIC promotes uniformity in state insurance laws and regulations. the NAIC seeks to promote efficient administration of insurance laws and regulations.
the NAIC is empowered to prosecute and punish criminal violators in the insurance industry.