Chapter 4 Quiz

If the Commissioner issues a cease and desist order, that means the insurer must

Stop committing a particular violation

All of the following are unfair claims settlement practices EXCEPT

Suggesting negotiations in settling the claim

A temporary license is normally valid for

180 days

How many continuing education hours must a producer complete on the subject of ethics every licensing period?

3 hours

Which of the following persons is required to hold a producer license?

A nonresident agent who negotiates insurance contracts

Who is considered a nonresident agent?

An agent who resides in another state, but is licensed to write insurance in this state

In an insurance transaction, which of the following does a licensed agent represent?

Broker

An insurer who deliberately makes a malicious statement about another insurance company is guilty of an illegal trade practice called

Defamation

An insurance company that is formed under the laws of another state is known as which type of insurer?

Foreign

What is the purpose of requiring licenses for persons who transact insurance?

Protect the general public

An agent who offers a cash reward to a prospect for buying a policy is guilty of

Rebating

If a producer's appointment is terminated, the insurer must notify the Commissioner within how many days following the effective date of termination?

30

If a producer moves to a new residence or has a new agency address, the change must be reported to the Commissioner within

30 days

The Commissioner of Insurance is responsible for all of the following actions EXCEPT

Setting premium rates

A producer's license may be suspended or revoked for all of the following reasons EXCEPT

Sharing commissions with another agent