Insurance Regulation

Question 1

A customer is anyone…

Answer 1

With whom the company has an ongoing relationship

Question 2

The federal government

Answer 2

Has the right to regulate the business of insurance to the extent that such business is not regulated by state law

Question 3

Insurance laws are generally written by

Answer 3

The state legislature

Question 4

The head of the state department of insurance is responsible for what

Answer 4

1. Administering and enforcing state insurance laws
2. Imposing penalties for violations of the insurance code
3. Issuing insurance licenses and certificates of authority

Question 5

The non financial regulatory activities of an insurance department fall under the broad heading of

Answer 5

Market conduct

Question 6

Pretext interviews?

Answer 6

Are not permitted unless some evidence of criminal activity exists

Question 7

Producers may act as

Answer 7

Either agents representing the insurance company or brokers representing the individual seeking insurance

Question 8

Most insurance regulation takes place at

Answer 8

The state level

Question 9

Applicants for insurance must be given advanced notice including all of the following types of information

Answer 9

1. The kind of information to be collected
2. The sources of information
3. The persons with access to personal information

Question 10

Under the financial privacy safeguards of the Gramm Leach Bliley Act, an individual about whom a financial institution collects information is

Answer 10

A consumer

Question 11

The commissioner of insurance has all of the following powers

Answer 11

1. Conducting investigations and examinations
2. Making reasonable rules and regulations
3. Approving insurance policy forms sold within the state

Question 12

Nonfinancial regulatory activities of an insurance department fall under the broad heading of

Answer 12

Market regulation

Question 13

Associations organized to protect claimants, policyholders, annuitants, and creditors of financially impaired insurers are known as

Answer 13

Guaranty associations

Question 14

A person licensed as an insurance producer in another state who moves to this state has how many days after establishing legal residence to become a resident licensed without taking a prelude sing education or examination?

Answer 14

90

Question 15

Business written on the producers own life or interests is known as

Answer 15

Controlled business

Question 16

An organization that establishes model laws that are often adopted by states with only slight differences is

Answer 16

The national association of insurance commissioners