Quiz: Insurance Regulations
Within how many days from a pretrial hearing must insurance producers report to the commissioner any criminal prosecutions brought against them?
30 days
Within how many days of receipt of proof of death must the insurer pay the death benefit to the beneficiary to avoid paying an interest penalty
90 Days Benefits payable that have not been paid to the beneficiary within 90 days of the receipt of proof of death will accrue interest. Starting on the 91st day, at the stated rate (8% minimum) plus 3%.
An application for life insurance requires the agent to ask if the proposed insurance will replace an existing life insurance policy. What are the purposes for obtaining this information?
A. To reduce the opportunity for misrepresentation and incomplete comparisons. B. To establish minimum standards of conduct involving replacement. D. To make available full and clear information to the applicant. On types of insurance, other than group, credit, or Industrial; the agent must determine whether the proposed insurance will replace existing insurance. If the insurance is to replace existing insurance regulations, the regulations regarding replacement must be strictly followed.
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice. It is an unfair trade practice to make any statement that an insurer's policies are guaranteed by the existence of the Insurance Guaranty Association. Though it is illegal to advertise, the statement is still true and would not be considered a misrepresentation.
When an agent is soliciting a policy through an insurer, whose responsibility is it to determine that the insurer is authorized to transact business in this state? A. Company B. Agent C. Applicant D. Policyowner
B. The agents Any solicitor, agent, or broker who solicits, negotiates, or procures an application for insurance in this state must make a good faith effort to determine whether the entity that is issuing the coverage is authorized to transact insurance in this state.
An application 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 The Fair Credit Reporting Act governs what information can be collected and how the information can be used.
Describes the unfair trade practice of defamation?
Making derogatory oral statements about another insurer's financial condition
The term "producer" refers to any person appointed by an insurer to
Solicit applications for insurance on its behalf.
According to the Fair Credit Act. What are considered to be negative information about a consumer?
Failure to pay off a loan Tax delinquencies Late payments As defined by the Act, negative information includes information regarding a customers delinquencies, late payments, insolvency or any other form of default. Customer disputes are not considered negative and in fact must be included in consumer reports.