AZ State Requirements Practice Flashcards
Where must an insurance producer keep usual and customary records that pertain to transactions under their license?
At there Principle Place of Business
An individual may be fined $10,000 if they fail to comply to the ______ __________ ______.
Cyber Security Rules
What does The Genetic Information Nondiscrimination Act of 2008 prohibit?
The act bars the use of genetic information in health insurance unless the applicant signs a waiver.
This means it prohibits group health plans and health insurers from denying coverage/charging higher premiums to a healthy individual based on a predisposition to developing a disease in the future.
If a loss occurs as a result of domestic violence by one insured against another, what does The Arizona Changes Endorsement to a BOP package allow?
The endorsement allows the insurer to pay the victimized party IF they cooperate and had no part in creating the loss.
How is an earned premium resulting from the cancellation of a policy calculated?
It is calculated on a Pro-Rata Basis, based on the previous year’s rate.
Misleading or failing to adequately disclose the title and true nature of a policy offered to a client is an act of _________________ or ________.
Misrepresentation or fraud
What happens if the insured and insurer DON”T agree on the amount of a loss?
An appraiser chosen by each party will choose an umpire.
The three-person panel will decide the value of the loss.
Making a statement that is false or maliciously critical of the financial condition of an insurer is known as _____________.
Defamation
A personal lines policy that has been in affect for 60 days cannot be canceled if…
… there is a determination by the director of insurance, that the continuation of the policy will add to the reserve requirement of the insurer is a positive outcome, not a negative one.
How many years must an insurer store advertising materials and records?
At least 3 years.
What does The Amendment Policy Provisions Endorsement (PP 01 67) for Arizona state about the loss of vehicle use?
The cost to rent a car is an inherent aspect of the costs caused by loss of the use of ones vehicle.
What is the purpose of a Cybersecurity Policy?
To protect informational systems, producers, brokers, and insurance companies!!
It is approved by a senior officer, addressing policies and procedures for te protection of its information systems and non-public information.
What does a licensee/applicant, who is ordered into active duty military service, HAVE TO SEND to the department if they are requesting their license/application be placed on inactive status?
They have to send a “written statement”.
When is a producer required to give a disclosure notice about information practices to an applicant or proposed insured?
Prior to the time of signing the application!!
Premiums for each month of coverage may be due and payable not more than ____ days before the month of coverage.
Thirty!
Which endorsement assures that a homeowners policy provisions conform to the specifics of Arizona’s insurance code?
Special Provisions (HO 01 02)
If a consumer has recently been denied insurance based on an unfavorable consumer report, they must be advised based on what statute/act?
The Fair Credit Reporting Act
No employee/dependent shall be entitled to receive compensation for disability from an occupational disease if…
… the disability was caused by the willful misconduct, self-exposure, or disobedience to such reasonable rules and regulations, adopted by the employer.
When is it acceptable to charge or receive a fee/service charge in addition to the premium in connection with the transaction of insurance?
If the amount of the fee/service charge is reasonably related to the cost of the service.
What year was the Mental Health Parity and Addiction Equity Act established?
the MHPAEA was established in 2008.
Based on The Telemarketing Sales rule, what times can a telemarketer not call you??
Telemarketers cannot call you before 8am or after 9pm!
How many times in a 12-month period can an applicant attempt the insurance licensing exam?
They can take the exam 4 times, but if they fail all four times they have to wait another year before they are eligible again.
What is a certificate of authority?
The written document given by a state’s department of insurance, authorizes an insurance company to sell insurance in that state.
If a producer surrenders their license, how long must they wait to re-apply for that license?
They cannot reapply for One Year after the date of surrender.
