Chapter: Insurance Regulation
a temporary license in this state is valid for A. 30 days B. 60 days C. 90 days D. 180 days
D
concerning insurance, the definition of a fiduciary is A. a retail clerk B. a producer who handles insurer funds in a trust capacity C. a person who handles assets or money belonging to others D. all of the above
B
how many hours of Ethics must a producer complete as part of continuing education every 2 years A. 2 B. 3 C. 4 D. 5
B
how often must a producer renew his or her insurance license? A. annually B. every 2 years C. every 3 years D. every 10 years
B
if a nonresident producer for this state changes his or her home address, what must the producer to do comply with the Oregon rules? A. notify the NAIC within 30 days B. nothing C. notify the Oregon Department of Insurance within 10 days D. notify the Oregon Department of Insurance within 30 days
B
Paul is a producer in Washington and wants to become a producer in Oregon. The Director will waive certain examination requirements, provided that Washington would waive these same requirements if an Oregon producer sought licensure in Washington. What term is used to describe this phenomenon? A. Fair exchange B. Equanimity C. Reciprocity D. Equality
C
any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to A. 3 years B. 5 years C. 10 years D. 12 years
C
under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report A. must be advised that a copy of the report is available to anyone who requests it B. may sue the reporting agency in order to get inaccurate date corrected C. must be informed of the source of the report D. are entitled to obtain a copy of the report from the party who ordered it
C
which of the following includes information regarding a person's credit, character, reputation, and habits? A. insurability report B. agent's report C. consumer report D. consumer history
C
If a Cease and Desist order is issued what must the violator do? A. quit the actions stipulated in the order B. suspend all insurance transactions until the insurer can be investigated for possible violations C. quit selling insurance D. quit all insurance transactions
A
all of the following events will terminate a producer's certificate of appointment EXCEPT A. a new Director is put into office B. a producer's license expires and is not renewed C. a termination is issued by the appointing insurer D. a producer's license is suspended or revoked by the Department of Insurance
A
inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as A. rebating B. twisting C. false advertising D. coercion
A
notice of hearing for a cease and desist order must be given at least how many days in advance? A. 7 B. 10 C. 15 D. 30
A
Bob the insurance producer just sold an insurance policy to his sister. What kind of business is this? A. controlled B. internal C. fraternal D. familial
A selling policies to family, friends, coworkers are called controlled business
which of the following is NOT true about an insurance consultant in the State of Oregon? A. a consultant must hold a valid license B. any attorney-at-law may be considered a consultant C. consultants offer advice for a fee D. individual may act as consultants in both life and health, and property and casualty insurance
B
which of the following is licensed solely to advise insureds about their policies? A. consultant B. agent C. broker D. actuary
A
what is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? A. revocation of license B. $2,500 C. $1,000 D. $100 per violation
B
an agent offers his client free tickets to sporting event in exchange for the purchase of an insurance policy. The agent is guilty of A. coercion B. twisting C. controlled business D. rebating
D
who establishes the fees that must be paid in conjunction with an application for an insurance license? A. the director B. the insurer C. a group of producers D. a group of reinsurers
A
which of the following is TRUE regarding payment of claims by an insurer? A. if a claim investigations is extended beyond the initial period, the insurer must keep the claimant informed of the progress every 30 days B. claims must be either paid or acknowledged within 30 days of notification C. insurers must investigate all claims within 30 days of the receipt of notification D. upon an inquiry, the insurer must furnish a response to the Director within 30 days
B
if the Director requests information regarding a claim, within how many days must the insurer provide a response? A. 3 days B. 10 days C. 21 days D. 31 days
C
on its advertisement, a company claims that it has funds in its possession that are, in face, not available for the payment of losses or claims. The company is guilty of A. unfair claim practice B. rebating C. misrepresentation D. concealment
C
which of the following entities is in charge of making sure that producers follow the Insurance Code properly? A. state law enforcement B. governor C. NAIC D. director
D
how long must insurers keep the records of the transactions under the license? A. 5 years after policy issue B. 7 years C. permanently D. 3 years after the policy expiration
D
A producer became subject to an administrative action by a governmental agency (not the state Department of Insurance). Which of the following woul be considered an appropriate action? A. The producer must notify the Director within 30 days of the final disposition of the matter. B. The producer doesn't have to do anything since the administrative action is initiated by an entity other than the Department of Insurance. C. The producer must surrender his or her license within 90 days. D. The director must suspend the producer's license.
A
Paul is a producer in Washington and wants to become a producer in Oregon. The Director will waive certain examination requirements, provided that Washington would waive these same requirements if an Oregon producer sought licensure in Washington. What term is used to describe this phenomenon? A. Reciprocity B. Equality C. Fair exchange D. Equanimity
A
which of the following would be required to be licensed as an insurance producer? A. a salaried employee who advertises and solicits insurance B. a person whose activities are limited to producing insurance advertisements C. a salaried full-time employee who furnishes information for a group insurance D. an insurance company director who performs executive, administrative and managerial duties
A
in comparison to consumer reports, which of the following describes a unique characteristic of investigate consumer reports A. they provide additional information from an outside source about a particular risk B. they provide additional information about a customer's character and reputation C. the customer has no knowledge of this action D. the customer's associates, friends, and neighbors provide the report's data
D
this state provides for a temporary license for all of the following EXCEPT A. the death of a producer B. a producer's disability C. a producer's time in the military service D. a producer's retirement
D
what is the maximum civil penalty for individual producers for violating the Insurance Code? A. $5,000 B. $10,000 C. $500 D. $1,000
D
Bob was issued a temporary insurance producer's license 90 days ago. the license will expire in how many days? A. 0 B. 10 C. 60 D. 90
D temporary producer licenses should last for 180 days
what authority issues a Cease and Desist Order? A. the Director of the Department of Consumer and Business Services B. Law Enforcement Officials C. National Association of Insurance Commissioners (NAIC) D. Federal Board of Insurance Fraud
A
state law specifically prohibits using illegal inducement in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT A. inviting prospective clients to the grand opening of the company's new office B. issuing or delivering insurance company stock in return for purchasing insurance C. promising returns and profits from the purchase of insurance D. offering benefit certificates or securities in return for purchasing insurance
A
two men are twins. When they applied for the life insurance from Company, the insurance company found that while neither of them smoked and both had a very similar lifestyle, the first twin was in a much stronger financial position than his brother. Because of this, the company charged the first twin a higher rate for his insurance. This practice would be considered A. discrimination B. twisting C. legal and acceptable D. post underwriting
A
which of the following is an example of a producer being involved in an unfair trade practice of rebating? A. telling a client that his first premium will be waived if he purchases the insurance policy today B. inducing the insured to drop a policy in favor of another one when it is not in the insured's best interest C. charging a client a higher premium for the same policy as another client in the same insuring class D. making deceptive statements about a competitor
A
if the director finds a license in violation of the Insurance Code on unfair practices or methods of competition, he/she will issue a A. rebate B. criminal penalty C. cease and desist order D. complaint record
C cease and desist order means the licensee must stop the violation
Which of the following would be considered an unfair claims settlement practice? A. Requesting the insured to submit a signed proof of loss statement, after the insured has already verbally advised the insurer of the claim B. Requesting the insured swear under oath concerning the facts of the claim C. Delaying the settlement of a claim for 30 days in order for the insured to conduct an investigation D. Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered
D
an insurance producer moves into a new house. How many days does he have to notify the Director of his address change? A. he does not need to notify the Director because the change of address involves his residence, not his business B. 10 days C. 15 days D. 30 days
D
which of the following is true about license reinstatement? A. a license can only be reinstated within 6 months from the renewal date B. lapsed licenses cannot be reinstated C. to reinstate a license, a producer must pass a written examination D. reinstatement fees may be double the unpaid renewal fee
D
in order to get a nonresident license in this state, producers must A. represent an agency located in this state B. surrender their license in their state of residence C. apply and pay a fee to a nonresident state that reciprocates D. pass the nonresident state exam and satisfy their continuing education requirements
C
if a producer changes locations, what must be done A. notify the DOI within 30 days B. notify the DOI within 15 days C. notify the appointing agency D. nothing
A
the Insurance Director shall examine every authorized insurer. How long must insurers keep records pertaining to the insurance transactions under the license? A. 3 years B. 5 years C. 7 years D. 1 year
A
to comply with Oregon rules and regulations, producers are required to communicated all of the following changes to the Department of Insurance EXCEPT A. if a nonresident producer changes her residence address B. if a resident producer changes her business address C. if a producer decides to close his business D. if a resident producer changes his business telephone number
A
an insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act? A. legal, provided that the other insurers are paid royalties for the usage of their names B. illegal under any circumstances C. legal, provided that the information can be verified D. illegal until endorsed by the Guaranty Association
B
which of the following is an example of a producer's fiduciary responsibilities A. a producer offering additional coverage to his client B. a producer promptly forwarding premiums to the insurance company C. a producer helping clients to file claims D. a producer doing a review of his client's coverage
B
which of the following would be an example of an insurer participating in an unfair competition practice of discrimination A. charging the insured higher premiums based on their life expectancy B. charging the insured higher premiums based on their race C. making malicious statements about the insured based on their race D. charging different premium rates to the insured in different insuring classes
B
A producer's Life and Health license expired on December 31, 1997; however, his renewal application was not received until March 13, 1998. Which of the following is true regarding the producer's license renewal? A. The Director will not renew the license. B. The Director will renew the license provided that the producer pays the regular renewal fees and passes the licensing exam. C. The Director may accept the application provided that the producer pays twice the amount of regular renewal fees and satisfies his continuing education requirements. D. The Director will accept the renewal application because the producer submitted it within 1 year of expiration.
C
which of the following would not be a violation of State insurance regulations? A. producer C uses her license to write uncontrolled business only B. producer D collects premiums due on policies and deposits the funds in this own personal account C. producer A uses her license to write only insurance for herself and her immediate family D. producer B charges his clients, in addition to the premium, a consulting fee
A
within what time period can a producer reinstate a lapsed license without having to pass a written examination? A. 12 months B. 90 days C. 6 months D. 3 years
A
Chris, who is unlicensed, works part-time in her father's insurance agency. She may perform all of the following activities EXCEPT A. make appointments with clients and prospective clients and prospective clients to meet with her father B. assist her father in completing applications for insurance C. call prospects and collect expiration data of their existing policies for her father D. collect premium for in-force policies and explain coverages to clients that have existing policies written by her father
D to collect premiums and explain coverages, he needs to get a license
when a producer was reviewing a potential customer's coverage was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of the other insurer. The producer could be found guilty of A. nothing, unless the remarks were in writing B. defamation C. misrepresentation D. discrimination
B
how long must records associated with an insurance policy be kept? A. until the insurance company is no longer in business B. 10 years C. 3 years after the policy terminates D. 5 years after the policy terminates
C
which of the following best describes a misrepresentation? A. making a deceptive or untrue statement about a person engaged in the insurance business B. making a maliciously critical statement that is intended to injure another person C. discriminating among individuals of the same insuring class D. issuing sales material with exaggerated statements about policy benefits
D
the requirement that producers must account for all insurance funds collected, and are not permitted to commingle those funds with their own funds (without the expressed consent of the insurance company) is known as A. fiscal responsibility B. accepted accounting principal C. fiduciary responsibility D. premium accountability
C
producer A is prosecuted for a crime. He must notify the Director within what time frame after the initial pretrial hearing date? A. 3 months B. immediately C. 10 days D. no later than 30 days
D
which of the following would NOT be considered an unfair and deceptive practice? A. rebating B. defamation C. misrepresentation D. controlled business
D
which of the following persons is required to hold a producer license? A. a person who creates insurance advertisements B. a person who takes messages related to claims C. a person who administers employee benefits D. a person who negotiates insurance contracts
D
all of the following are unfair claims settlement practices EXCEPT A. failing to acknowledge pertinent communication pertaining to a claim B. suggesting negotiations in settling the claim C. refusing to pay claims without conducting a reasonable investigation D. failing to adopt and implement reasonable standards for settling claims
B
which of the following best describes the unfair trade practice of defamation A. refusing to deal with other insurers B. making derogatory oral statements about another insurer's financial condition C. assuming the name and identify of another person D. issuing false advertising material
B
which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance? A. defamation B. undercutting C. twisting D. slandering
A
