Insurance Test 10

Under the Fair Credit Reporting Act, if the consumer challenges the correctness of the information contained in his/her report, the reporting agency must

Respond to the consumer complaint.

The director may require a producer to submit fingerprints in all of the following situation except

Upon insurer insolvency

Which of the following would be considered an illegal inducement to purchase insurance is Arizona

a $50 voucher toward a policyholder's next transaction with an agent

which of the following qualifications for selling insurance in the state of arizona is not correct

The applicant must have two letters of recommendation attesting to trustworthiness, reliability, and good reputation

If a producer changes his or her residential address, the director must be notified of the change

30

CAN-SPAM legislation requires that any commercial e-mail must contain an opt-out

10 business days

Which of the following is not a line of authority for an insurance producer may obtain a license

Commercial property

When twin brothers applied for life insurance from company A

Discrimination

Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance?

Oral statements cannot be considered fraud

A producer who omits a statement which may mislead or deceive the persons addressed has committed

Misrepresentation

What is the maximum penalty for habitual willful non compliance with the fair credit reporting act?

$2,500

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

18

A temporary license typically last for how many days in AZ

180

Any person who knowingly attempts to obtain money, goods, or any other thing of value with the intent to cheat and defraud is guilty of

A felony

which of the following would not be accepted as a document showing that an applicant for a license

A social security card

Which of the following would be considered an illegal inducement to purchase insurance?

Confirming future dividends in a life insurance proposal

An insurance policy or countersignature endorsement must be signed by any of the following Except

Director of insurance

Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?

Discrimination

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

Dividends from a mutual insurer.

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

National Do Not Call Registry

All of the following are true regarding rebates EXCEPT

Rebates are allowed if it's in the best interest of the client.

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 purchased the insurance policy today

A premium payment is due on the saturday before memorial day

tuesday after the due date

How many days after initial pretrial hearing date does an insurance producer have to report any criminal prosecution to the director

30

Which of the following would NOT be accepted as a document showing that an applicant for a license is in the United States legally

A valid credit card with a major United States credit company

All of the following are instances of fraud except

An insurer charing policyholder information

All of the following are requirements for producer license renewal EXCEPT

Renewal examination

a newly licensed producer decided to hold a cookout for friends and family

Soliciting

A producer could be licensed as a surplus lines producer in which of the following situations

The producer holds a property and casualty license

intentionally misrepresenting or concealing a material fact to induce an insurance company to make a contract is known as

fraud

If an insurance company sends e-mail solicitations to potential customers, and if a customer chooses to opt out of the list, then how much time will the company have to remove the person from solicitation lists

10 days

Which of the following would NOT be considered an exception to the National Do Not Call List?

Calls based from outside of the United States

When a new insurance company wishes to transact business in the state

Obtain approval of each of its corporate officers and executives

the federal fair credit reporting act

Regulates consumer reports

If a telemarketer wants to make an unsolicited sales call to a potential customer, what is the earliest time the telemarketer can call the prospect's residence?

8 am

if a property and casualty producer has less than 2 years left on his or her existing license, what percentage of the surplus lines broker license fee will the producer be charged for the addition of that license

50%

An insured falsely reports the theft of a valuable item in order to collect payment from the insurance policy. This is an example of

Fraud

if an insurance policy does not have the proper countersignature

The policy will still be considered valid

Which of the following is not considered a misrepresentation as it pertains to unfair trade practices

Making comparisons between different policies

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

Must be informed of the source of the report

Which of the following is a qualification for an adjuster's license

Must be at least 18 years old

insurance institution and producers must provide notice of their information gathering practices to applicants and policyholders no later than

The time the policy is delivered

Which of the following is not a qualification for obtaining a producer's license

Must be retained by a licensed insurance agency

Giving a client an inducement to a sale not stated in the policy is an unlawful practice known as

rebating

circulating deceptive sales material to the public is what type of Unfair Trade Practice

False advertising

A licensed producer is granted an inactive license during military service. He is in active duty for 365 days. For how long will the time period for submission of the license renewal fee be extended

365 days

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

All of the following are considered business entities except

sole proprietorships

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

The Fair Credit Reporting Act

The producer or broker must keep must keep at the place of business the usual and customary records

Three years

if any insurer believes an act of fraud is being committed the insurer should

File a report with the director

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