Insurance Regulation
Which of the following could be considered an adjuster?
Paid claim investigators
CAN-SPAM legislation requires that any commercial e-mail must contain an opt-out mechanism. How many days does a commercial e-mailer have to cease their distribution?
10 business days
How long are title insurance licenses in effect?
4 years
According to the NAIC Insurance Data Security Model Law, licensees are required to report cybersecurity events to the state insurance department within what time period of discovery?
72 hours
The 30 day payment of claims requirement applies to which of the following persons?
A state worker filing a personal injury claim
Every producer must maintain a place of business in Arizona
Accessible to the public.
Which of the following policies must comply with the signature regulation for insurance policies?
An insured's initial policy with an insurer
In order to get a nonresident license in this state a producer must
Apply and pay a fee to a nonresident state that reciprocates.
In Arizona, the Director of Insurance is
Appointed by the Governor.
When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of
Defamation.
Which of the following is designed to protect security and confidentiality of nonpublic information and the security of the information system?
Information security program
On its advertisement a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
Misrepresentation
Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance?
Oral statements cannot be considered fraude.
Which of the following lines of authority describes property and casualty insurance sold for noncommercial purposes?
Personal Lines
All of the following are requirements for producer license renewal EXCEPT
Renewal examination.
All of the following are considered business entities EXCEPT
Sole proprietorships.
In order to solicit or issue insurance through a vending machine, producers must display evidence of their authority nearby. Which of the following does NOT need to be included in this notice?
The insurer's phone number
If an insurance policy does NOT have the proper countersignature,
The policy will still be considered valid.
The director may require a producer to submit fingerprints in all of the following situations EXCEPT
Upon insurer insolvency.
What is the minimum age for obtaining an insurance producer's license in this state?
18
In Arizona, the Director of Insurance serves
At the pleasure of the Governor.
Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
False advertising
Which of the following is an example of a "gene product"?
Gene fragments
Which of the following best describes unfair trade practice of defamation?
Making derogatory oral statements about another insurer's financial condition.
A producer who omits a statement which may mislead or deceive the persons addressed has committed
Misrepresentation.
Which of the following qualifications for selling insurance in the state of Arizona is NOT correct?
The applicant must have two letters of recommendation attesting to trustworthiness, reliability, and good reputation.
When must an applicant be notified that an insurer is gathering information about him or her?
When consulting a source other than the applicant or public records
Although most domestic insurers must be examined at least once every 5 years, how often may the Director examine an insurer?
Whenever necessary
How many days after an initial hearing date, does an insurance producer have to report any criminal prosecution to the Director?
30
Which of the following would NOT be accepted as a document showing that an applicant for a license is in the United States legally?
A Social Security card
Which of the following statements does NOT accurately describe an insurance broker?
A broker does not represent individual clients.
Producers in Arizona may do all of the following EXCEPT
Bind coverage for their clients.
In life insurance, producers are permitted to share or split commissions, providing that
Both are properly licensed for the line of insurance.
Which of the following would NOT be considered an exception to the National Do Not Call List?
Calls based from outside of the United States
Which of the following would NOT be accepted as a document that an applicant for a license is in the United States legally?
A valid credit card with a major United States credit company
When an insurance agency published an advertising brochure, it emphasized the company's financial stability and sound business practices. In reality, its financial health is terrible, and the company will soon have to file for bankruptcy. Which of the following terms best describes the advertisement?
False financial statement
A life insurance agent visits a potential client and explains various of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done?
Misrepresentation
Which of the following is a qualification for an adjuster's license?
Must be at least 18 years old
When a new insurance company wishes to transact business in the state, it must do all of the following EXCEPT
Obtain approval of each of its corporate officers and executives.
Which of the following pays for the examination of an insurer's service fees to determine compliance with the State Insurance Code?
The insurer
A premium payment is due on the Saturday before Memorial Day. What is the latest the insured can mail the payment for it to be considered on time?
Tuesday after the due date
An insurance policy or countersignature endorsement must be signed by any of the following EXCEPT
Director of Insurance.
When is an insurer NOT required to state the coverage under which a claim payment is made?
Insurers are always required to disclose the coverage under which a claim is paid.
Every office that transacts surplus lines insurance must have on staff a person who
Is licensed as a surplus lines broker.
Which of the following would be considered an insurance transaction?
Receiving an application for insurance
According to CAN-SPAM, once a person requests to be excluded from a commercial e-mail list, this request must be honored within
10 days
Producers are required to keep records of insurance transactions for what time period?
3 years
If a property or casualty producer has less than 2 years left on his or her existing license, what percentage of the surplus lines broker license fee will the producer be charged for the addition of that license?
50%
If the Director believes that a producer may be in violation of an insurance law or regulation, what may be issued that would legally force the producer to stop committing the violation?
Cease and desist order
Who decides if a licensed property or casualty insurance producer can be licensed as a resident surplus lines broker?
The Director
The producer or broker must keep at the place of business the usual and customary records pertaining to insurance transactions for at least
Three years
In Arizona, any item can be considered an illegal inducement if it is worth more than
$25
Every producer licensed in Arizona must notify the Director of a change of address within
30 days
The necessary proof of loss is submitted to an insurer. Assuming the claim is complete, how long does the insurer have to pay the claim without additional interest?
30 days
Who requires that a prospective producer take and pass a written examination on the kinds of insurance business specified in the application?
Director
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured's habits and lifestyle
A newly licensed producer decided to hold a cookout for friends and family. At the event, the producer gave a short presentation about his company and specific insurance products that they offer. Some interest was generated. In this scenario, the producer was
Soliciting.
Which of the following is a legal use of determining benefit eligibility based on marital status?
Defining those who are eligible for dependent benefits
Transacting insurance could include all of the following EXCEPT
Designing insurance advertisements.
Which of the following is NOT a line of authority for an insurance producer may obtain a license?
Commercial Property
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?
Making comparisons between different policies.