ID Statutes, Rules and Regulations

Question 1

Insurance transaction includes?

Answer 1

Negotiations
Advising an individual concerning coverage or claims
Sale
Solicitation

(NASS)

Question 2

To offer advice to and communicate directly with a prospective purchaser of an insurance contract regarding contract benefits, terms and conditions defines what term?

Answer 2

Negotiate

Question 3

An agreement between a policyowner (insured) and an insurer, where the insurer agrees, for a consideration, to indemnify the insured for loss caused by specified events defines what term?

Answer 3

Insurance Contract

Question 4

What defines the company or organization that issues a policy of insurance?

Answer 4

Insurer (or principal)

Question 5

An insurance company that is incorporated in the state of Idaho is a ____________ insurer.

Answer 5

Domestic

Question 6

___________ insurer is an insurance company that is incorporated in another state or territorial possession.

Answer 6

Foreign

Question 7

An insurance company that is incorporated outside the United States is called?

Answer 7

Alien insurer

Question 8

Company that is owned by the stockholders who provide the capital necessary to establish and operate the insurance company and who share in any profits or losses is what type of company?

Answer 8

Stock company

Officers are elected by the stockholders and manage stock insurance companies.

Question 9

__________ policies are a type of policy that policyowners do not share in profits or losses.

Answer 9

Nonparticipating policies
A nonparticipating (stock) policy does not pay dividends to policyowners; however, taxable dividends are paid to stockholders.

Question 10

Owned by the policyowners and issue participating policies

Answer 10

Mutual companies

Question 11

_______________ policies, policyowners are entitles to dividends, which, in the case of mutual companies, are a return of excess premiums and are nontaxable.

Answer 11

Participating policies
Dividends are generated when the premiums and the earnings combined exceed the actual cost of providing coverage, creating a surplus. Dividends are not guaranteed.

Question 12

An organization formed to provide insurance benefits for members of an affiliated lodge, religious organization, or fraternal organization with a representative form of government

Answer 12

Fraternal benefit society

Fraternals sell only to their members and are considered charitable institutions, and not insurers.

Question 13

Insurance resulting from an interchange of reciprocal agreements of indemnity among persons known as subscribers, collectively known as a?

Answer 13

Reciprocal Insurance Company or Exchange

The company is put into effect and administered through an attorney-in-fact common to all persons.

Question 14

The Director can examine the accounts, records, documents, transactions and affairs of all authorized insurers as often as necessary, but at least once every_____ years.

Answer 14

5 years

Question 15

If the Director receives a request for a hearing, the hearing must be held within ____ days.

Answer 15

30 days

Question 16

The Director must give WRITTEN notice of a hearing at least ____days in advance.

Answer 16

14 days

Question 17

If a person is found guilty of violating the Insurance Code in Idaho, the violation can result in a fine of up to ________ for a natural person and _______ for any other entity, imprisonment for up to ___ months, or both

Answer 17

$1,000 for a natural person
$5,000 for any other entity
up to 6 months imprisonment

Question 18

The Director may impose an administrative penalty of up to ___________ upon anyone who transacts insurance in Idaho without a license.

Answer 18

$15,000

Question 19

Change of address must be filed within ____ days.

Answer 19

30 days

Question 20

A person, who on behalf, of the insurer, for compensation as an independent contractor or as the employee of such an independent contractor, or for a fee or commission, investigates and negotiates settlement of claims arising under insurance contracts.

Answer 20

Adjuster

Question 21

To appoint a producer as its agent, the appointing insurer must file a notice of appointment within _____ days

Answer 21

15 days
Upon notice of appointment, the Director has 30 days to verify that the insurance producer is eligible for appointment. If ineligible, the Director has 5 days to notify determination.

Question 22

Termination of appointment, employment, contract or other insurance business relationship with a producer must notify the Director within ___ days

Answer 22

30 days

Question 23

After passing state insurance exam(s), within how many days must you submit an application for licensure?

Answer 23

180 days

Question 24

The Director will not issue a license for ____ year after the date of license denial.

Answer 24

1 year

Question 25

If a producer’s license has been revoked or nonrenewed, a new license may be denied for a period of:

Answer 25

1 to 5 years

Question 26

License renewal term is:

Answer 26

2 years

Question 27

Licensed producers must complete ______ hours of continuing education credits during each 2 year licensing period.

Answer 27

24 hours
At least 3 hours must be in ethics.
Any hours in excess of the requirement cannot be carried over to the next licensing period.

Question 28

Records must be kept available for inspection by the Director for at least _____ years.

Answer 28

5 years

Question 29

The Director has the authority to suspend a license without a hearing for up to______?

Answer 29

12 months

Question 30

The relationship between the principal (insurer) and the agent/producer defines what term?

Answer 30

Law of agency

In this relationship:
An agent represents the insurer, not the insured
Any knowledge of the agent is presumed to be knowledge of the insurer
If the agent is working within the conditions of his/her contract, the insurer is fully responsible
When the insured submits payment to the agent, it is the same as submitting a payment to the insurer

Question 31

Funds payable to the insurer must be remitted to the insurer within how many days?

Answer 31

21 days

Funds payable to policyowners must be remitted within 14 days.

Question 32

Funds must be collected within ____ days if in the form of cash under $2,000. ____ days if in the form of cash over $2,000. ___ days if in the form of check or other negotiable instruments.

Answer 32

7 days in in the form of cash under $2,000
3 business days if in the form of cash over $2,000
7 days if in the form of check or other negotiable instruments

Question 33

A retail producer must provide to the consumer a written statement that describes the services the retail producer will perform and the fees the retail producer will receive:

A) Before charging a fee to a consumer
B) After charging a fee to a consumer

Answer 33

Before charging a fee to a consumer

Question 34

Producers are required to report to the Director any administrative action taken against them in another jurisdiction or by another governmental agency within _______days of the final disposition of the matter.

Answer 34

30 days
Report must include a copy of the order, consent order, or other relevant legal documents.
Criminal prosecutions of the producer must be reported within 30 days of initial hearing.

Question 35

Payment by check or draft from the insurer for the repair of damage to a covered vehicle must by made no later than____ days.

Answer 35

20 days

Question 36

True or false, committing the act of misrepresentation in the business of insurance is illegal?

Answer 36

True

Question 37

Any insurer that has evidence that a fraudulent claim has been made has ____ days to send a form to the Director.

Answer 37

60 days

Question 38

Any violators found guilty of a felony will be subject to a term of imprisonment not to exceed ____years or a fine up to _____ or both.

Answer 38

15 years

$15,000

Question 39

Violation of the Unfair Claims Settlement Practices may have a penalty of up to ______ imposed by the Director.

Answer 39

$10,000

In addition or alternatively to being fined, the Director may suspend or revoke an insurer’s certificate of authority.

Question 40

_____________________ established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant and properly used.

Answer 40

Fair Credit Reporting Act

This law protects consumers against circulation of inaccurate or obsolete personal or financial information.

Question 41

These type of reports includes written and/or oral information regarding a consumer’s credit, character, reputation, or habits.

Answer 41

Consumer reports

Question 42

These type of reports are similar to consumer reports, but differ because information is obtained through an investigation and interviews with associates, friends and neighbors of the consumer.

Answer 42

Investigative Consumer Reports
Consumer must be advised within 3 days of the date the report was requested.
Reporting agency as 5 days to provide consumer with additional information.

Question 43

A person who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses may also be fined and/or imprisoned for up to____ years.

Answer 43

2 years

Question 44

An individual who _________ violates the Fair Credit Reporting Act is liable in the amount equal to the loss to the consumer, as well as any reasonable attorney fees incurred in the process

Answer 44

Unkowingly

Question 45

An individual who ________ violates the Fair Credit Reporting Act enough to constitute a general pattern or business practice will be subject to a penalty of up to $___________.

Answer 45

Willfully

$2,500

Question 46

True or False: Bankruptcies more than 10 years old, civil suits, records of arrest or convictions of crimes, or any other negative information that is more than 7 years old is prohibited information.

Answer 46

True

Question 47

Anyone engaged in the business of insurance whose activities affect interstate commerce, and who knowingly makes false material statements may be fined, imprisoned for up to ______ or both.

Answer 47

10 years

If the activity jeopardized the security of the accompanied insurer, the punishment can be up to 15 years.

Question 48

Insurable interest must exist:

Answer 48

at the time of loss

3 requirements to prove insurable interest:

1. Have a legitimate financial interest in preserving the property to be insured
2. Have no potential for gain
3. There is a potential for loss

Question 49

Names of the parties to the contract
Subject of the insurance
The risks insured against
The effective and expiration dates
The premiums
Conditions

The above information must be contained in every________

Answer 49

Policy

Question 50

The insured must be given written notice _____ days in advance for the cancellation of an auto policy for nonpayment of premium or _____ days for any other reason for cancellation.

Answer 50

10 days
20 days

The required notice for nonrenewal is 30 days in advance.

Question 51

The New York Standard Fire policy listed the applicable conditions in what format?

Answer 51

165- line format

Question 52

True or false: Accounts, currency, deeds, bills and evidence of debt money or securities are included in coverage under the standard fire policy.

Answer 52

False

They are all EXCLUDED.

Question 53

The Standard Fire Policy (SFP) is a _________ perils contract.

Answer 53

Named perils

These named perils are:

1. Fire
2. Lightning
3. Removal of property from premises endangered by the perils insured against. Removal coverage applies automatically for 5 days.

Question 54

True or false: The following are specifically excluded losses in the Standard Fire Policy-
Any act of war
Ordinances of civil authority
Insured’s neglect to reasonably save or preserve the property
Theft
Loss occurring while the hazard is increased within the knowledge or control of the insured
Any loss occurring when building is vacant or unoccupied for 60 days or more.

Answer 54

True