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 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 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
Which of the following is not considered a misrepresentation as it pertains to unfair trade practices
Making comparisons between different policies
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
if an insurance policy does not have the proper countersignature
The policy will still be considered valid
All of the following are instances of fraud except
An insurer charing policyholder information
circulating deceptive sales material to the public is what type of Unfair Trade Practice
False advertising
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
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