Insurance rules and regulations

What is the minimum age for obtaining an insurance producer's license in this state?

18

Which of the following is true regarding Continuing Education required for those holding a Pennsylvania producer license?

24 hours each period

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

24 hours will be applied to the current reporting period, and 24 can be applied to the period immediately following. The excess 4 hours may not be carried over.

Licensees must make a report of any action taken against them in another jurisdiction or by another governmental agency in Pennsylvania within how many days of the final disposition of the matter?

30 days

For the purpose of examination by the department, insurers must keep a record of all financial files for at least

5 years

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

A salaried employee who advertises and solicits insurance

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?

defamation

An individual was just caught acting as an exclusive general agent - even though he is not properly licensed. Assuming that this occurred in a single day, what is the maximum penalty he faces?

A third degree misdemeanor and a 1,000 fine

Which of the following would be considered an unfair claims settlement practice?

Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered

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

Department of insurance

Which of the following authorities monitors the financial strength of insurers?

Department of insurance

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

Disputes regarding consumer report info

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

Having all employees complete continuing education courses once every 2 years.

In which of the following situations is it legal to limit coverage based on marital status?

It is never legal to limit coverage based on marital status.

If another governmental agency takes legal action against a licensee, whose responsibility is it to report the action?

Licensee

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

What was created to keep telemarketers from calling consumers who do not wish contacted?

National Do Not Call Registry

Which of the following licensees is classified as a representative of the insurance company and not allowed to represent an insured or claimant?

Producer

example of a producer's fiduciary responsibilities?

Promptly forwarding premiums to insurance company

The National Do Not Call Registry was created to regulate

Telemarketers

According to the privacy of consumer 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.

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's license must be renewed

biennially (2 years)

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?

fair credit reporting act

Example of an agents fiduciary responsibility

fowarding premiums to insurer

After a hearing, if the Commissioner finds that a licensee is in violation of the state insurance laws, the Commissioner can do any of the following EXCEPT

imprison the licensee

Which of the following does a producer NOT have the authority to do?

issues policies

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

obtain a temporary license

All of the following are penalties a producer may face for violating the insurance laws of this state EXCEPT

re-examination

Federal law makes it illegal for any individual convicted 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