Regulation

When a company criticizes the financial situation of another company with the intention of injuring that company it has committed an illegal trade practice called

defamation

If a producer wishes to use an assumed business name they must

file papers with the director that state assumed name as well as legal name and address

if a payment is due on a weekend or a legal holiday the payment will be considered on time

if it is mailed the next business day

When may an insurer charge an extra fee for services

if the services are not customarily provided in the transaction of insurance

rebating

is defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy. Both the offer and acceptance of a rebate are illegal.

an insurance policy or countersignature endorsement must be signed by

licensed insurance producer bail bond agent managing general agent

An applicant must be allowed to examine the information in his/her file. If inaccurate, the agency

may be required to reinvestigate.

making a false or misleading statements with the intent to defraud another is

misrepresentation

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

must be informed of the source of the report

the lack of proper countersignature will

not invalidate a policy

reciprocity

occurs when the state in which the person resides accords the same privilege to residents of Ariozna

Which of the following lines of authority describes property and casualty insurance sold for noncommercial purposes?

personal lines

The Gramm-Leach-Bliley Act was passed to

protect private customer information filed wth a financial institution

The federal Fair Credit Reporting Act

regulates consumer reports

if a producer waits more than 1 year to renew a license after it has expired what is the producer required to do to be licensed again

retake a licensing exam

The evidence of authority must specify

the names and address of the insurers and producers -as well as being sold and the machine's ID number

The time period for submission of the license renewal fee for completion of the applicable renewal requirements and CE for a licensee who is deemed inactive may be extended by

the number of days the licensee is in active military service

within a year after expiration qualified producers may still renew the license if

they pay a renewal fee and a late fee of $100

Unlike a producer, a broker represents his/her clients (policyholders) and is not a direct representative of any insurance company. Instead, a broker

works for his/her clients and will place risks with companies. Brokers must have a written agreement with an insured when they receive any fees or compensation for services. Brokers cannot bind coverage.

every office that transact surplus lines insurance must have on staff a person who

is licensed as a surplus lines broker

A producer may apply for a non-residential license by

showing that they are in good standing as a producer in their home state and by paying a fee, if the two states reciprocate.

every producer must maintain a place of business in Arizona

that is accessible to the public

If a consumer requests that a company stop sending solicitation e-mails, and if that company does not stop within 10 days then

the company will be fined at least $250 an email (but no more than $2mill)

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports

the customer's associates, friends, and neighbors provide the report's data

to charge a service fee

the fee must be filed with the Director -it must be related to the service cost -the service must be above and beyond what is normally done -the service and its applicable charges must be agreed to in writing by the insured

If the director decides an insurer charged too much for fees,

the insurer will refund the fee to the customer

a licensee adding surplus lines broker authority to his or her license will be charged half the fee if

the licensee has less than two years left on the existing license at the time the Director receives the application

a certificate of authority shows

the lines of authority (types of insurance) an insurer is authorized to transact

If a premium payment is mailed, how can an insurer establish the date of payment

the postmark on the envelope

The director may require a producer to submit fingerprints in the following situations

-issuance -renewal -suspension -revocation -merger -acquisition

as defined by the Fair Credit Reporting Act all of the following would be considered negative information about a consumer

-late payments -insolvency or any other form of default -delinqencies

Any licensed person whose activities affect interstate commerce and who knowingly make false material statements related to the business of insurance may be imprisoned for up to ___ years

10

according to CAN-SPAM a consumer's request to opt out of an e-mailing list must be honored within

10 business days

A temporary license typically last for how many days in AZ

180

An individual who willfully violates this Act enough to constitute a general pattern or business practice will be subject to a penalty of up to

2500

all producers must keep records of all transactions for ____ years

3

every producer licensed in AZ must notify the director in writing within ______ of any change of residence address, and any agency licensed in AZ must notify the director within _____ days of any change in business address

30

Consumers must be advised that they have a right to request additional information concerning investigative consumer reports, and the insurer or reporting agency has ____ days

5

how many credit hours of ethics training are licensed resident producers required to complete every licensing period

6

an insurer may charge a service fee beyond the premium for motor vehicle insurance policies that insure

7 cars

If a telemarketer wants to make an unsolicited sales call to a potential customer what is the easiest time the telemarketer can call?

8 am

propert and casualty producers can usually do something for their clients that life and health producers cannot provide. What is that service?

Bind coverage

circulating deceptive sales material to the public is what type of Unfair Trade Practice

False advertising

The Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) created the

National DO Not Call Registry, allowing consumers to include their telephone number on the list to which solicitation calls cannot be made by telemarketers

Which of the following protected consumers against the circulation or inaccurate or obsolete personal or financial information

The Fair Credit Reporting Act

In addition to a cease and desist order the Director may issue

a civil penalty of between $500 and $10,000 for each violation

In Arizona the Director of Insurance is

appointed by the Governor

calls based from outside the united states

are not considered exceptions to the National Do Not Call list

In AZ the director of Insurance serves

at the pleasure of the Governor

an adjusted is anyone who adjusts investigates or negotiates the settlement of claims these cannot be

attorneys, salaried employees or the employees of political subdivisions

In life insurance, producers are permitted to share or split commissions, providing that

both are properly licensed for the line of insurance

paid claim investigators

considered an adjuster

which report provides the underwriter with the information about an insurance applicant's credit?

consumer report

Consumer Reports include

credit, character, reputation and habits

who requires that a prospective producer take and pass a written exam on the kinds of insurance business specified in the application

director

defining those who are eligible for dependent benefits

is a legal use of determining benefit eligibility based on marital status

coercion

is when the bank won't give you an auto loan unless you agree to buy auto insurance from them.

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

federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

without receiving written consent from an insurance regulatory authority

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3

How many days after initial pretrial hearing date does an insurance producer have to report any criminal prosecution to the director

30