Insurance Regulation Quiz

Property and casualty producers can usually do something for their clients that life and health producers cannot provide. What is this service?

Bind coverage

Which of the following is NOT a line of authority for an insurance producer may obtain a license? A. Personal Lines B. Commercial Property C. Variable Life Products D. Credit

B; Property and casualty are lines of insurance a producer may obtain a license for, but commercial property is not.

Who requires that a prospective producer take and pass a written examination on the kinds of insurance business specified in the application?

Director

If a producer waits more than 1 year to renew a license after it has expired, what is the producer required to do to be licensed again?

Retake a licensing exam; After 1 year, any application for the same license will be deemed a new application

In comparison to consumer reports, what is a unique characteristic of investigative consumer reports?

The customer's associates, friends, and neighbors provide the report's data; Both consumer reports and investigative consumer reports provide additional information from an outside source about a customer's character and reputation, and both types of reports are used under the Fair Credit Reporting Act. The main difference is that the information for investigative consumer reports is obtained through an investigation and interviews with associates, friends and neighbors of the consumer.

According to the telemarketing sales rules, what are the permissible calling hours for telemarketing calls?

8 am until 9 pm

An insurance policy or countersignature endorsement must be signed by any of the following EXCEPT A. Licensed insurance producer. B. Director of Insurance. C. Bail bond agent. D. Managing general agent.

B

If a premium payment is mailed, how can an insurer establish the date of payment?

The postmark on the envelope

A temporary license typically lasts for how many days in Arizona?

180 days

In order to solicit or issue insurance through a vending machine, producers must display evidence of their authority nearby. Which of the following does NOT need to be included in this notice? A. The insurer's phone number B. The insurer's name C. The producer's address D. The machine's identification number

A; The evidence of authority must specify the names and address of the insurer and producer - as well as the type of policy being sold, and the machine's identification number.

All of the following are true regarding rebates EXCEPT A. Dividends are not considered to be rebates. B. Rebates are allowed if it's in the best interest of the client. C. Rebates are only allowed if specifically stated in the policy. D. Rebating can be anything of economic value, given as an inducement to buy.

B; A rebate is an illegal act which involves returning something of value to the client as an inducement to buy, such as the commission. Rebates are only allowed if specifically stated in the policy. Insurance dividends are not considered rebates as the IRS considers it as a return of overpaid premium.

Which of the following is NOT a qualification for obtaining a producer's license? A. Must file an application with the Director B. Must pay the appropriate license fee C. Must be retained by a licensed insurance agency D. Must be at least 18 years old

C

Which of the following would NOT be considered a misrepresentation on the part of the insurer? A. Implying that term insurance has cash value B. Embellishing the benefits provided in the policy C. Overstating returns on policy dividends D. Backdating policies to secure a lower premium for the insured

D

According to CAN-SPAM, once a person requests to be excluded from a commercial e-mail list, this request must be honored within

10 business days

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

$2,500; An individual who willfully violates this Act enough to constitute a general pattern or business practice will be subject to a penalty of up to $2,500.