Insurance Regulation

Calling hours for telemarketers

8am-9pm

Which statement is incorrect?

A licensee is barred from charging a fee in addition to a commission to a person for the sale, solicitation or negotiation of a contract of insurance for commercial business.

Which of the following persons is required to hold a producer license?

A person who negotiates insurance contracts

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

A) Failure to pay off a loan B) Disputes regarding consumer report information C) Tax delinquencies D) Late payments B) DISPUTES REGARDING CONSUMER REPORT INFORMATION

Insurers are required to keep records. When may the Department examine these records?

At any time

A person applying for a manager or exclusive general agent license must meet all of the following criteria EXCEPT

Be responsible for at least 25% of total commissions collected by the office that or she manages

Which of the following includes information regarding a person's credit, character, reputation, and habits

Consumer report

A producer licensed in another state wants to become producer in PA. The other state gives the same privileges to PA producers wanting to be licensed in that state as it does its own agents. PA, therefore, extends the privileges of its agents to the prospective agent of the other state. What is this called?

Reciprocity

If a licensee wants to transact insurance under a different name than listed on his or her producer's license, which of the following must occur?

The change must be reported to the Commissioner

According to the privacy of customer financial information regulation, if a consumer decides to opt out, this means

The consumer directs the licensee not to disclose the consumer's nonpublic personal financial information to a third party

A producer sold an insurance policy. Subsequently, his license was suspended. In this case, how much of the commission will the

All

If an insurer appoints a producer, which authority must be notified?

Department of Insurance

Which of the following is an example of an agent's fiduciary responsibilities?

Forwarding premiums to the insurer

Under the Fair Credit Reporting Act, individuals rejected for insurance due to info contained in a consumer report

Must be informed of the source of the report

The Federal Fair Credit Reporting Act

Regulates consumer reports

Fiduciary Responsibility

The legal duty of a representative to manage property in the interest of the owner

Should an insurance company deny a claim submitted by an insured without providing to that insured a prompt and reasonable explanation of the claim denial, the insurer would be in violation of

Unfair claims methods and practices regulations

a producer who allows his or her license to lapse may reinstate the license withing _______ year(s) by submitting a renewal form

1 year

Which of the following authorities is authorized to issue a temporary insurance producer's license?

Commissioner

What is the CIVIL PENALTY for violating a CEASE AND DESIST ORDER of the commissioner?

$10,000

When a producer died, his surviving spouse needed to maintain the insurance agency until it could be sold. Without passing an exam, she could qualify for a temporary license for a maximum period of

180 days

A producer has successfully completed 52 hours of continuing education. How many hours can the producer apply to her current reporting period, and how many hours can she carry toward the next reporting period?

24 hours will be applied to the current period and 24 can be applied to the period immediately following

All of the following are licensing requirements for a business entity, EXCEPT

Having all employees complete continuing education courses once every 2 years

A producer has become disabled. In order to keep his business going, what may the producer's designee do?

obtain a temporary license

Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must

respond to the consumer's complaint

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

$2,500

What is the CIVIL PENALTY for the first violation of the PA INSURANCE FRAUD PREVENTION ACT?

$5,000

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

3 days

If an insurer terminates a producer's appointment, the commissioner must be notified within how many days?

30 days

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

30 days

a PRODUCER's license must be renewed

Biennially

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

The Fair Credit Reporting Act

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

a salaried employee who advertises and solicits insurance

Reciprocity occurs....

when the state in which the person resides accords the same privilege to residents of PA

How soon after the due date should the insurer pay the agent appointment fees?

within 30 days

A licensed producer moving to PA may become licensed as a resident if the producer submits a completed application within howe many days of establishing residence in PA with proof of licensing from their prior home state

within 90 days of establishing residence in PA

Federal law makes it illegal for any individual convincted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

without receiving written consent from an insurance regulatory authority