Insurance Regulation: Questions & Answers

What is the minimum age for obtaining an insurance producer's license in this state?

18

How long does a temporary producer's license last for the surviving spouse of a deceased producer?

180 days

A producer licensed in Pennsylvania must notify the Insurance Department of any change of address in their address within how many days?

30

If an insurer terminates a producer's appointment, the Commissioner must be notified within how many days?

30

For the purpose of examination by the department, insurers must keep a record of all financial files for at least

5 years

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?

8 am

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

A person who negotiates insurance contracts

A producer who fails to separate premium monies from his own personal funds is guilty of

Commingling

The state Insurance Code identifies all of the following as prohibited acts that can cause suspension, revocation or denial of an insurance producer license EXCEPT

Committing any misdemeanor

Which of the following is an example of an unfair claims settlement practice?

Failure to promptly settle a claim when liability has been clearly established

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?

Fair Credit Reporting Act

An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?

Fraud

The Gramm-Leach-Bliley Act was passed to

Protect private customer information filed with a financial institution

With regards to premium rates, which of the following statements is NOT true?

The Commissioner sets all insurance premium rates used in Pennsylvania

Who is responsible for paying producer appointment fees?

The appointing insurer

If a licensee wants to transact insurance under a different name than that listed on his or her producer's license, which of the following must occur?

The change must be reported to the Commissioner

A licensee serving in the military is unable to fulfill her continuing education requirement. What would the licensee have to do to renew the license?

The licensee may submit a request to the department to have requirements and fees waived. The department will then determine if the request is permissible

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?

False advertising

All of the following are requirements for producer license renewal EXCEPT

Renewal examination

All of the following are unfair claims settlement practices EXCEPT

Suggesting negotiations in settling the claim

The National Do Not Call Registry was created to regulate

Telemarketers

In insurance transactions, fiduciary responsibility means

Handling insurer funds in a trust capacity

Which of the following does a producer NOT have the authority to do?

Issue policies