Chapter 10: Insurance Regulation
Any license person who activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to
10 years
Any licensed person whose activities affect interstate commerce and who knowingly make false material statements related to the business of insurance may be imprisoned for up to
10 years
How long does a temporary producer license last for the surviving spouse of deceased producer
180 days
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be contained
3 days
A producer license in PA must notify the insurance Department of any change of address in his or her resident or business address within how many days
30 days
Licensees must make a report of any action taken against them in another jurisdiction or by another governmental agency in PA within how many days of the final disposition
30 days
Within how many days must a producer respond to an inquiry from the commissioner?
30 days
If a consumer requests additional information concerning an investigative report, how long does the insurer or reporting agency have to comply
5 days
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?
8AM
What is fiduciary responsibility?
A fiduciary is someone is position of trust. More specifically, it is illegal for insurance producers to commingle premiums collected from the applicants with their own personal funds
Under which of the following circumstances can financial institutions share insurance coverage information with third parties for the purpose soliciting the purchase of insurance
If a consumer does not sign and return the notice of disclosure within 30 days
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
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as
Coercion
According to the Fair Credit Reporting, all of the following would be considered negative information about a consumer EXCEPT
Disputes regarding consumer report information
Which of the following is an example of an unfair claims settlement practice?
Failure to promptly settle a claim when liability has clearly been establish
What is embezzlement?
Failure to submit funds appropriately could constitute embezzlement
What is the purpose of the Fair Credit Reporting Act
ensure that records are confidential, relevant, and properly use. The law also protects consumers against the circulation of inaccurate or obsolete financial information
