Code And Ethics

Question 0

SEUA 1944

Answer 0

South eastern underwriters association

Question 1

Paul vs. Virginia

Answer 1

United States Supreme Court decision, which said an insurance policy is not an instrument of commerce.

Question 2

Mc carran ferguson act, AKA public law 15, 1945

Answer 2

Declared that each individual state may continue to regulate insurance

Question 3

California insurance code (CIC)

Answer 3

A collection of laws.

Question 4

California code of regulations

Answer 4

Provides regulations that detail how the code is to be administered.

Question 5

Important code terminology, SHALL

Answer 5

Mandatory, required, must, no obligation

Question 6

Important code terminology, MAY

Answer 6

Permissive, an option

Question 7

Important code terminology, PERSON

Answer 7

Any person, natural or legal

Question 8

Unfair practices, COMMINGLING

Answer 8

Mixing your money with clients, charging too much an keeping the excess, selling insurance outside you license, obtaining a license by fraud, selling without a license

Question 9

Unfair practices, REBATING

Answer 9

Returning a portion of the agents commission, or anything else of value, to an insured as an inducement to buy insurance

Question 10

Unfair practices, ILLEGAL INDUCEMENT

Answer 10

Giving a gift over $25 to induce a prospective insured to buy a policy. Offering meals, special contracts, or positions on exclusive advisory boards are illegal inducements

Question 11

Unfair practices, MISREPRESENTATION

Answer 11

Lying

Question 12

Unfair practices, CONCEALMENT

Answer 12

Withholding of facts

Question 13

Unfair practices, TWISTING

Answer 13

Lying about a clients current policy to induce the client to drop his or her current in-force policy. Also giving an inaccurate disclosure settlement or not giving a disclosure statement to the client

Question 14

Unfair practices, DEFAMATION

Answer 14

Malicious discrediting or slandering of an insurance company or it’s agents

Question 15

Penalties for unfair violations

Answer 15

Fine may be up to $5,000 for each act or, if the act was willful, up to $10,000 for each act

Question 16

Penalties for violating orders

Answer 16

A fine up to $5,00 if the violation is not willful plus the amount of any outstanding penalty for violating the code. A fine up to $55,000 if the violation is found to be willful plus the amount if penalty