Life and Health Quiz : Insurance Regulations/Laws/Rules/
Fiduciary
The requirement that the agents must account for and promptly remit all insurance funds collected is known as what type of agent responsibility ?
Unfair Discrimination
Two individuals who are the same risk and age class are charged different rates for their insurance policies due to an insignificant factor. What is it called?
Complete continuing education hours and pay a renewal fee
What are agents/producers required to do in order to renew their license?
Insurance on the producer's own life or property, or the lives or property of the producers' family or business associates.
What is controlled business ?
To protect policyowners , insureds, and beneficiaries from financial losses caused by insolvent insurers
What is the purpose of insurance guaranty associations?
For continuation of business in case the licensed producer dies or becomes disabled
What is the reason can a temporary license be issued?
Rebating
An agent offers a client tickets to a sporting event in exchange for the purpose of an insurance policy. What is the agent guilty of?
No, advertising of the existence of the guaranty association for the purpose of solicitation and sale of insurance policies by insurers is an illegal business practice.
Can insurers advertise the existence of the guaranty association during solicitation and sale of insurance policies?
Defamation
If a producer makes maliciously critical statements about another insurer, what is this illegal practice called?
Authorized and admitted
If an insurer holds a Certificate of Authority, it is known as what type of insurer?
Authorized and admitted
If an insurer meets the states's financial requirements and is approved to transact business in the state, it is considered what type of insurer?
Cease and desist order
If the Commissioner/ Superintendent finds a license engaging in an unfair method of competition or unfair practice, what order will be issued?
Misrepresentation
On the advertisement, a company claims that it has funds in it's possession that are , in fact, not available for the payment of losses or claims. What is the company guilty of?
To an insurer authorized to transact business in this state
To whom may a certificate of authority be issued?
Misrepresentation
What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is?
Only the producers properly licensed for the type of insurance transaction
Who may share in the commission from the sale of a life insurance policy?
An authorized insurer within a state
Who must be a member of insurance guaranty associations?
The Department of Insurance (Commissioner/Director/Superintendent)
Who must be notified of a producer's change of address?
1. Insurance company officers, 2. Directors, or 3. Any other employees who do not transact insurance and who do not receive commissions for their services (usually, their responsibilities include administrative, executive, and clerical).
In general, who can be executed from producer licensing and examination requirements?
1. A cease and desist order, 2. A fine, 3.License suspension or revocation
What are the most common penalties for violations of insurance statues?
To prevent a producer or insurer from further violating laws for transacting insurance
What is the purpose of a cease and desist order?
Twisting
What type of document persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
Broker
What type of insurer represents the insured?
The agent
What type of licensee represents the insurance company?
Whenever deemed necessary , but at least once very few years (please check our state regulations for specific time requirement )
When can the Commissioner or Director examine insurers?
When the commissions from controlled business do not exceed the aggregate commissions on all the other business (specific limits may vary from state to state)
When is controlled business legal?
Producer's spouse or designee in the case the licensed producer dies or becomes disabled
Who can usually be granted a temporary license?
A person authorized to sell, solicit and negotiate insurance contracts
Who is an insurance agent
An agent who resides and is licensed in another state, but who is authorized to transact insurance in this state.
Who is considered a nonresident?
The insurer who is being examined
Who is responsible for the cost associated with the examination of insurers?
