AmPro Chapter 6
nder the Federal Do Not Call Registry, telemarketers must update their Do Not Call Lists every: Select one: a.7 days b.14 days c.21 days d.31 days
31 days
Under the Do Not Call List rules, telemarketers may only call consumers between the hours of: Select one: a.8 a.m. and 9 p.m. in the time zone of the consumer b.9 a.m. and 7 p.m. in the time zone of the telemarketer c.9 a.m. and 8 p.m. in the time zone of the telemarketer d.10 a.m. and 7:30 p.m. in the time zone of the consumer
8 a.m. and 9 p.m. in the time zone of the consumer
Which of the following may enforce the federal Violent Crime Control Act? Select one: a.U.S. Attorney General b.State attorney general c.U.S. Secretary of State d.State Insurance Regulators
: U.S. Attorney General
Who established the MIB (which used to be called the Medical Information Bureau)? Select one: a.The federal government. b.A group of doctors. c.The insurance commissioner. d.A group of insurance companies.
A group of insurance companies.
The Fair Credit Reporting Act: Select one: a.Prohibits Insurers from obtaining credit reports without consent of the applicant. b.Allows consumers to insert a corrective statement in a consumer report. c.Requires Insurers to provide the applicant with copies of all reports. d.Allows an Insurer to obtain consumer investigative reports without notifying the applicants.
Allows consumers to insert a corrective statement in a consumer report.
Each of the following statements regarding MIB (Medical Information Bureau) is correct EXCEPT? Select one: a.MIB was formed by member insurance companies. b.An applicant's MIB report may show the amount of insurance for which the applicant previously applied. c.MIB is regulated by the Fair Credit Reporting Act. d.MIB information is supplied by member insurance companies.
An applicant's MIB report may show the amount of insurance for which the applicant previously applied.
Who can alter an insurance policy? Select one: a.The agent. b.An executive officer of the company.
An executive officer of the company.
The Federal Fair Credit Reporting Act requires the Insurer to warn the Insured in advance that: Select one: a.A credit report will be obtained. b.An inspection report will be obtained.
An inspection report will be obtained.
To protect the applicant's privacy and confidentiality, some information is given to the underwriter and not to the Producer. Which of the following is the ONLY item that the Producer would have access to in the normal insurance transaction? Select one: a.Results of the physical exam b.Application c.Credit report d.MIB report
Application
Which law requires businesses to provide an opt-out provision in all unsolicited commercial email messages? Select one: a.Violent Crime Control Act b.USA Patriot Act c.Can-Spam Act d.Gramm-Leach-Bliley Act
Can-Spam Act
to determine the applicant's financial standing, an underwriter would most likely use a/an? Select one: a.Investigative Report. b.Credit report.
Credit report
Each of the following statements regarding the Fair Credit Reporting Act is true EXCEPT? Select one: a.FCRA allows consumers to dispute information within their Credit Report. b.FCRA requires Insurers to notify an applicant if a Consumer Investigative Report will be used. c.FCRA governs the Consumer Reporting Agencies that assemble information about consumers. d.FCRA requires Insurers to share credit report information with the applicant.
FCRA requires Insurers to share credit report information with the applicant.
Which federal agency monitors and regulates the Do Not Call List? Select one: a.Federal Trade Commission b.Interstate Commerce Commission c.Federal Communications Commission d.Department of Commerce
Federal Trade Commission
Which federal law encourages uniformity in state insurance licensing standards and regulates insurance privacy? Select one: a.Violent Crime Control Act b.Can-Spam Act c.USA Patriot Act d.Gramm-Leach-Bliley Act
Gramm-Leach-Bliley Act
Which of the following statements regarding MIB is CORRECT? Select one: a.MIB provides applicant credit information to Insurers. b.Medical information is supplied to MIB by the member insurance companies. c.MIB provides a method for applicants to compare prices among various insurance company premiums. d.MIB provides applicant financial information to Insurers.
Medical information is supplied to MIB by the member insurance companies.
An applicant is rejected for life insurance due to a prior medical condition. The Producer may do each of the following EXCEPT: Select one: a.Obtain a receipt from the applicant when returning the premium. b.Return the applicant's premium. c.Notify MIB that the applicant was rejected. d.Notify the applicant of the rejection.
Notify MIB that the applicant was rejected.
The Fair Credit Reporting Act prevents the Insurer from: Select one: a.Using a consumer investigative report as the basis for denying the application. b.Using the consumer credit report as the basis for denying the application. c.Obtaining a consumer investigative report without notifying the applicant. d.Using the consumer investigative report as the basis for rating the policy.
Obtaining a consumer investigative report without notifying the applicant.
The Do Not Call Registry lists: Select one: a.Consumer names and phone numbers b.Consumer names, addresses and phone numbers c.Consumer names, addresses, zip codes, and phone numbers d.Phone numbers only
Phone numbers only
The purpose of the life insurance Replacement Regulations is to: Select one: a.Prevent the insured from buying excessive insurance. b.Require Insureds to update their policies at least every 5 years. c.Require Insureds to replace out-of-date beneficiaries with more appropriate beneficiaries. d.Protect the Insured against loss of benefits.
Protect the Insured against loss of benefits.
The purpose of the Fair Credit Reporting Act is to: Select one: a.Provide fair and accurate consumer credit reporting. b.Ensure that all people are treated equally, regardless of credit background.
Provide fair and accurate consumer credit reporting.
An applicant was denied insurance based on information contained in his or her credit report. The applicant may: Select one: a.Receive the name and address of the consumer reporting agency from the Insurer. b.Require that the Insurer disregard the credit report in the underwriting process. c.Sue the Insurer for violation of the Federal Fair Credit Reporting Act. d.Obtain a copy of the report by making a request to the Insurer.
Receive the name and address of the consumer reporting agency from the Insurer.
Under the Fair Credit Reporting Act, the Insured is entitled to: Select one: a.Receive a copy of the consumer report from the Insurer. b.Receive a copy of the consumer report from the agent. c.Talk to the underwriter regarding the specifics of the report. d.Receive the name and address of the reporting agency from the Insurer.
Receive the name and address of the reporting agency from the Insurer.
Under the Fair Credit Reporting Act, the Insured has NO right to: Select one: a.Insert a corrective statement in the report. b.Require that the Insurer provide a copy of the report to the Insured.
Require that the Insurer provide a copy of the report to the Insured.
A licensee will violate the Federal Violent Crime Control Act and be subject to a fine and prison for doing which of the following? Select one: a.Sending threatening letters to a state insurance regulator b.Selling insurance with a nonresident license c.Murdering an applicant d.Fraudulently telling an Insured that a claim isn't covered by the policy
Sending threatening letters to a state insurance regulator
The Federal Do Not Call List rules apply to: Select one: a.Only insurance companies b.Consumers calling other consumers c.All businesses except insurance companies d.Telemarketers
Telemarketers
Each of the following statements regarding the Fair Credit Reporting Act is correct EXCEPT? Select one: a.The applicant has the right to request a copy of the Credit Report if an adverse underwriting decision is made. b.The applicant must give consent before an Insurer can access any consumer reports. c.The applicant must be notified that the Insurer will be using a Consumer Investigative Report. d.The applicant has the right to demand that any mistakes in the credit report be investigated and corrected.
The applicant must give consent before an Insurer can access any consumer reports.
The Fair Credit Reporting Act entitles the applicant to review information obtained by: Select one: a.The consumer reporting agency. b.The Insurer.
The consumer reporting agency.
The primary source of moral character information is: Select one: a.The application. b.The credit report. c.The inspection report. d.MIB.
The inspection report.
Which law deals with money laundering and insurance companies? Select one: a.Gramm-Leach-Bliley Act b.Federal Fair Credit Reporting Act c.Violent Crime Control Act d.USA Patriot Act
USA Patriot Act
Under the Fair Credit Reporting Act, the Producer must inform the client of the rights regarding consumer investigative reports at the time: Select one: a.of application. b.the policy is delivered.
of application.
If a physical exam reveals a serious medical condition (such as HIV), the information may be reported to the applicant's: Select one: a.spouse. b.employer. c.roommate. d.physician.
physician.
