Exam One - Insurance Regulation

Question 1

An applicant for a public adjuster license must secure a bond for a minimum of:

Answer 1

$20,000

Question 2

A public adjuster must notify the insurance department within how many days of the change of address:

Answer 2

30 days

Question 3

Which one of the following is not a requirement to qualify for a public adjuster license?
A) be able to read and write in the English language.
B) complete a pre-licensing education course.
C) maintain a bona fide business or legal address in Pennsylvania.
D) past the appropriate examination.

Answer 3

B) Completed a pre-licensing education course

Question 4

Which of the following activities would not be a sufficient violation to warrant a fine, suspension, or revocation of a public adjuster’s license?

A) misrepresenting the terms of an insurance contract.
B) closing a licensee’s office for a period in excess of 30 days.
C) conversion of money held on behalf of another person.
D) failure to stop at a red light.

Answer 4

D) failure to stop at a red light.

Question 5

Public adjusters license renews?
A) annually
B) biennuially
C) biannually
D) every four years

Answer 5

B) biennuially
Every two years

Question 6

An applicant for a public adjuster license must be at least?

Answer 6

18 years old

Question 7

The maximum fine per violation of the public adjuster act is?
A) $300
B) $500
C) $1000
D) $5000

Answer 7

C) $1000

Question 8

An applicant for a public adjuster’s license must secure a bond for a minimum of?
A) $8,000
B) $10,000
C) $20,000
D) $40,000

Answer 8

C) $20,000

Question 9

A public adjuster must submit a copy of the contract to be used in Pennsylvania with the:

A) National association of public insurance adjuster (NAPIA).
B) American bar association (ABA).
C) National Association of insurance, commissioners (NAIC).
D) Pennsylvania insurance department.

Answer 9

D) Pennsylvania insurance department

Question 10

A public adjuster represents?
A) the insurer.
B)
the insured.
C) third party claimants.
D) an attorney.

Answer 10

B) the insured

Question 11

A company staff adjuster or an independent adjuster represents?
A) the insurer.
B) the insured.
C) third party claimants.
D) an attorney.

Answer 11

A) the insurer.

Question 12

All of the following are true of public adjuster contracts, except?
A) the contract must be approved by the insurance commissioner.
B) the contract must be kept on file by the public adjuster.
C) the contract may be in writing or oral format.
D) the contract must be available for inspection by the insurance department.

Answer 12

C) the contract may be in writing or oral format.

Question 13

A public adjuster may not solicit a client (insured) for employment within how many hours of a fire or other catastrophe?
A) 12 hours
B) 24 hours
C) 48 hours
D) 72 hours

Answer 13

B) 24 hours

Question 14

A public adjuster contract may be canceled by the insured at any time prior to the?
A) first business day after the execution, date of the contract.
B) Second business day after the execution, date of the contract.
C) third calendar day after the execution, date of the contract.
D) fourth business day after the execution, date of the contract.

Answer 14

C) third calendar day after the execution, date of the contract.

Question 15

Under the public adjuster act, any day other than Saturday, Sunday or holiday is considered a?
A) workday
B) Business day
C) calendar day
D) adjusting day

Answer 15

B) Business day

Question 16

All of the following characterizes the process of cliamants filed with the insurance department against a public adjuster, except:
A) It may involve a formal hearing in Harrisburg.
B) It is usually investigated by the insurance department’s local office.
C) It may be appealed to the Commonwealth Court.
D) It is using investigated by a local district attorney.

Answer 16

D) It is using investigated by a local district attorney.

Question 17

Under the public adjuster act, the client (insured) may not be solicited until after the:
A) fire is reported to the fire department.
B) fire department arrives at the scene of the fire.
C) fire department in charge determines that the fire is extinguished.
D) fire department determines the cause and origin.

Answer 17

C) Fire department in charge determines that the fire is extinguished.

Question 18

If a public adjuster’s contract is canceled, anything of value given by the client insured must be returned by the public adjuster within?
A) 5 business days after receipt of cancellation.
B) 10 business days after receipt cancellation.
C) 15 business days after receipt cancellation.
D) 30 business days after receipt cancellation.

Answer 18

C) 15 business days after receipt cancellation.

Question 19

A public adjuster may not?
A) charge a percentage of the settlement.
B) charge a maximum dollar amount for the settlement.
C) charge late fees on the insured.
D) very the percentage charge based upon the size of the loss.

Answer 19

C) charge late fees on the insured.

Question 20

A public adjuster must notify the insurer of the execution of a contract within:
A) 2 Business days
B) 10 Business days
C) 15 Business days
D) 30 Business days

Answer 20

A) 2 Business days

Question 21

An insurance company adjuster must acknowledge receipt of a claim:
A) immediately
B) within 5 working days in all instances.
C) within 10 working days in all instances.
D) within 10 working unless, payment is made within the time period.

Answer 21

C) within 10 working days in all instances.

Question 22

The unfair insurance practice act:
A) advises, ensures and public adjusters of fair and acceptable trade practices.
B) regulates the activities of producers in the excess and surplus line field.
C) regulate trade practices by defining practices that constitute unfair methods of competition and or deceptive practices.
D) advises the public on fair insurance practices.

Answer 22

C) regulate trade practices by defining practices that constitute unfair methods of competition and or deceptive practices.

Question 23

All of the following would be considered an unfair claims practices, except:
A) failure to acknowledge, written, or oral communications.
B) failure to deny or affirm coverage.
C) dealing with the insured or claimant in good faith.
D) refusing to pay covered claims.

Answer 23

C) dealing with the insured or claimant in good faith.

Question 24

The primary purpose of licensing is:
A) to provide a source of income to producers.
B) to ensure high standards to the insured public of Pennsylvania.
C) to permit ensures to pay commissions.
D) to provide a source of revenue for insurance departments.

Answer 24

B) to ensure high standards to the insured public of Pennsylvania.

Question 25

The business of insurance is regulated in Pennsylvania by:
A)
the governor
B)
the insurance superintendent
C)
the insurance commissioner
D) the Attorney General

Answer 25

C) the insurance commissioner

Question 26

Which of the following may legally receive a fee from a public adjuster?
A)
and independent adjuster
B)
a contractor
C)
another public adjuster
D) a fireman

Answer 26

C) another public adjuster