Insurance Regulation
An insured is dissatisfied with her insurance policy and wants to negotiate certain provisions of the contract. What entity would her producer represent?
The insurer
How are state Insurance Guaranty Associations funded?
By their members - authorized insurers
What was created to keep telemarketers from calling consumers who do not wish contacted?
National Do Not Call Registry
Which of the following is true regarding statistics used in an advertisement?
The source must be identified
What is the fine for using an unapproved assumed name by a producer?
$250
Continuing education requirements must be met every
2 years
Insurers must keep files of all advertisements used in Louisiana for how many years?
4
Insurance examinations must occur no less frequently than every
5 years
All of the following would be considered rebating EXCEPT
An agent misrepresents policy benefits to conceive a policyowner to replace policies
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
$2,500
The widower of an agent was issued a temporary license 30 days ago. How much longer can he legally serve under this license?
150 days
Temporary license can last for how long?
180 days
A license just renewed his license. How much time will pass before he will have to renew it again?
2 years
What is the minimum required number of continuing education credits in ethics every licensing period?
3
What is the maximum amount of time that could pass before an insurer's financial stability would be examined?
5 years
This state provided for a temporary license for all of the following EXCEPT
A producer's retirement
Which of the following individuals must be licensed as an insurance agent?
An employee of an insurer who receives commissions only on a few policies a year
A California insurer wants to transact business in Louisiana. What document must it first receive?
Certificate of Authority
Bill made his living as an insurance producer at one time but is no longer licensed. Under which of the following circumstances would it be acceptable for him to accept a commission?
If he receives a deferred commission from insurance that he transacted while he was licensed
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?
Making comparisons between different policies
A producer was originally licensed on April 1st, 2001. The producer's birthday is on October 17th. The producer last renewed her license in 2012. By what date must the producer renew her license again?
October 31st, 2014
All of the following are considered unfair trade practices in the business of insurance EXCEPT
Sharing commissions
All of the following are unfair claims settlements practices EXCEPT
Suggesting negotiations in settling the claim
An insurer conducts business in Louisiana without a certificate of authority. Hundreds of policies are sold, and claims start rolling in. Which of the following is true?
The insurer will have to pay the claims anyway
A producer is charged with committing several crimes in Louisiana. Who is required to report the charges to the Commissioner?
The producer
After a hearing, if the Commissioner finds that a licensee is using Unfair Methods of Competition, the Commissioner may issue a Cease and Desist order against that person and levy a fine of how much?
Up to $1,000 for each violation
A nonresident producer moves to another state. The producer must notify the Department of Insurance of the address change within how many days?
30
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of
Coercion
A producer has completed 40 hours of continuing education this licensing period. How many credit hours may be carried over to the next licensed period?
10 hours
A temporary license is good for
180 days
In order for Wild Life of Havana to do business in this state, it must apply for and obtain
A certificate of authority
If the Commissioner believes that a producer may be in violation of an insurance law of regulation, what may be issued?
Cease and desist order
According to agency law, the producer always represents the
Insurance company
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
Which of the following documents must be provided to the policyowner or applicant during policy replacement?
Notice Regarding Replacement
ABC Insurance Company wishes to begin transacting business in Louisiana. Before it can do so, it must do which of the following?
Obtain a certificate of authority
A temporary license may be issued without examination to all of the following, EXCEPT
The spouse of a retired producer
The regulation of the insurance industry primarily rests with
The state
If a resident producer or solicitor has a change of residential or business address, how soon must the licensee notify the Commissioner?
Within 30 days
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report
Must be informed of the source of the report
The purpose of insurance regulation is to
Promote the public welfare.
The National Do Not Call Registry was created to regulate
Telemarketers
Which of the following is an example of a producer being involved in an unfair trade practice of rebating?
Telling a client that his first premium will be waived if he purchases the insurance policy today
The Gramm-Leach-Bliley Act was passed to
Protect private customer information filed with a financial institution.
If an insurance company cancels a producer's appointment, the
Commissioner must be notified within 30 days
A producer has been notified by the Commissioner to stop using an unapproved trade name. How many days does the product have to change the trade name before having to pay an additional fine?
10 days
Existing and replacing life insurances are required to keep copies of all summaries, notices, and statements used in sales transactions until the conclusion of their next examination by the Insurance Department, or for a period of at least
5 years
Insurance companies that hold a Certificate of Authority to transact insurance in Louisiana must be examined how often?
Every five years or as the Commissioner feels is necessary
Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
False advertising
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?
Illegal
A licensed life producer has completed 12 of his continuing education hours for this period. How many more will he have to finish?
12
If authorized to write life and property and casualty insurance, how many hours of contributing education instruction are producers required to complete every 2 years?
24
The Insurance Department has received complaints about a particular producer regarding policy-selling conduct. What can be issued that would legally force the producer to stop the acts in violation?
Cease and desist order
How often must producer licenses renew in Louisiana?
Every 2 years
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
Misrepresentation
Which of the following would not be a violation of Louisiana insurance regulations?
Producer C uses her license to write only business other than controlled
A producer in another state wants to become a producer in Louisiana. The other state gives the same privileges to Louisiana producers wanting to be licensed in that state as it does to its own producers. Louisiana, therefore, extends the licensing privileges to the prospective producer of the other state. What is this called?
Reciprocity