Idaho Statutes, Rules & Regulations common to All Lines

Question 1

What is a foreign insurer?

Answer 1

An insurer with a home office in another state.

Question 2

A policyowner provides a check to the producer for her initial premium. How soon from receiving the check must the producer remit it to the insurer?

Answer 2

Within 21 days

Question 3

If there is a complaint regarding an insurer and the matter can be cleared by looking at a record of a particular transaction, which authority would most likely conduct the investigation?

Answer 3

Director

Question 4

An insurer decides to change its premium rates. Which entity must approve this change before it can go into effect?

Answer 4

Director of Insurance

Question 5

Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured’s best interest are guilty of what?

Answer 5

Twisting

Question 6

Which type of insurance is base on mutual agreements among subscribers?

Answer 6

Reciprocal Insurance

Question 7

True or False: On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are taxable.

Answer 7

False - they are not taxable.

Question 8

Within how many days are insurers required to notify the Director that a producer’s employment has been terminated?

Answer 8

30 Days

Question 9

In any case where there is controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the what?

Answer 9

Company

Question 10

Records of insurance transacted must be kept available for a minimum of how many years?

Answer 10

5 Years

Question 11

What is the minimum age requirement for an adjuster license in Idaho?

Answer 11

21

Question 12

True or False: An agent will always be deemed to represent the insurer, not the insured.

Answer 12

True

Question 13

The Director issues an order to an insurer and immediately receives a request for the charges to be reviewed in court. Within what number of days must the hearing be held?

Answer 13

30 Days

Question 14

True or False: Commissions are regulated areas of the insurance industry.

Answer 14

False

Question 15

An applicant is denied insurance because of information found on a consumer report. What is required of the insurance company to supply the applicant with the name and address of the consumer reporting company?

Answer 15

Fair credit reporting act

Question 16

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

Answer 16

$2,500

Question 17

An agreement that is enforceable by law is known as what?

Answer 17

Legal Contract

Question 18

Fire insurance companies must report to the state fire marshal any settlements related to fire losses in excess of what amount?

Answer 18

$1,000

Question 19

What type of insurers are owned by stock holders?

Answer 19

Stock

Question 20

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

Answer 20

5 Days

Question 21

When is it legal to limit coverage based on marital status?

Answer 21

It is never legal to limit based on marital status.

Question 22

How many continuing education credits are required every 2 years?

Answer 22

3 Credits

Question 23

When the Director requests a hearing, written notice must be submitted how many days in advance?

Answer 23

14

Question 24

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

Answer 24

3 Days

Question 25

True or False: Rebating is defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy.

Answer 25

True

Question 26

True or False: Dividends from a mutual insurer could be considered rebates if offered to an insured in the sale of insurance.

Answer 26

False

Question 27

What effect does the Terrorism Risk Insurance Act of 2002 have on the war and military action exclusion with regard to property and casualty insurance?

Answer 27

Nullifies the exclusion of certified acts of terrorism as covered by the act.

Question 28

Who might receive dividends from a mutual insurer?

Answer 28

Policyholders

Question 29

What is the major difference between a stock company and a mutual company?

Answer 29

Ownership

Question 30

What does the Federal Fair Credit Reporting Act do?

Answer 30

Regulates consumer reports

Question 31

Producers are required to complete approved continuing education courses. Who approves courses available to producers in this state?

Answer 31

The Director

Question 32

An insured purchased an insurance policy 5 years ago. Last year she received a dividend check that was not taxable, but this year she did not receive a check. From what type of insurer did the insured purchase the policy?

Answer 32

Mutual Insurer

Question 33

The Gramm-Leach-Bliley Act was passed to do what?

Answer 33

Protect private customer information filed with a financial institution.

Question 34

If a producer’s license has been revoked, what is the maximum amount of time the producer may be prohibited from reapplying for a new license?

Answer 34

5 Years