Chapter 11: Insurance Marketplace
The term "administrator" under California Insurance Codes refers to any person who
Collects any charge or premium from, or who adjusts or settles claims on, life and health insurance policies or annuities.
Intentionally misrepresenting or concealing a material fact to induce an insurance company to make a contract is known as
Fraud
A licensed insurance agent overhears a conversation that leads him to believe a person is committing fraud. If the agent makes a written report to a law enforcement agency and the person is investigated, but it turns out that it was an erroneous accusation, what charge will the agent face?
No charges; the Insurance Code gives the agent legal immunity.
An insurance company that is NOT authorized to do business in the State of California is known as a
Non-admitted company.
A participating insurance policy may do which of the following?
Pay dividends to the policyowner..
If an insurance premium is paid by the policyowner to the agent, and the agent fails to remit that premium to the insurer, which of the following statements is true?
The policy will not lapse since payment to the agent is the same as a payment to the insurer.
Which of the following is NOT permitted to charge a fee for any services provided unless the person has a signed, written agreement with the party being charged, including a statement of the charge or basis on which charges will be made?
Life and disability analyst.
When the California Insurance Code needs to be changed, the legislature must design and pass a bill. Once the bill is passed, it is presented to the Governor and becomes law if not returned to the legislature within what time frame?
A specified period of 12-30 days.
How often must every insurer doing business in California reports its financial condition to the Commissioner?
Each year, on or before March 1
An agent with an active license CANNOT act as a broker unless
He does not have an appointment with the company that he is brokering.
Which of the following actions will NOT cause a discontinuance of an agent's appointment with an insurer?
The agent does not meet his commission goals.
Which of the following statements regarding policy dividends is true?
They are a refund of unearned premiums.