Property & Casualty AZ state laws Flashcards
If an individual wants to transact business as an insurance producer, he/she must meet all of the following requirements, EXCEPT:
a. be at least 18 years old
b. apply for a license within 2 years of passing the licensing exam
c. pay all required fees
d. not commit any act that is grounds for denial
b. apply for a license within 2 years of passing the licensing exam
In order for a business entity to obtain a producer license, it must comply with which of the following requirements?
a. provide the name and address of the company’s clients
b. only disclose the names of the company’s CEO
c. ensure that all employees acting as producers are licensed as producers
d. designate a licensed compliance officer
c. ensure that all employees acting as producers are licensed as producers
Before granting a license, the Director may require which of the following?
a. fingerprints
b. proof of a college degree
c. verification of medical history
d. copy of tax returns
a. fingerprints
Within what time frame must a nonresident producer apply for a resident producer license upon moving to Arizona
a. 90 days
b. 60 days
c. 30 days
d. 10 days
a. 90 days
A resident licensee:
a. must hold a resident license in another state
b. is issued a license without examination
c. must have a residence or principal place of business in this state
d. cannot hold a nonresident license at the same time
c. must have a residence or principal place of business in this state
All of the following statements about obtaining a nonresident license are correct, except:
a. it is issued to a person whose home state is not Arizona
b. an examination is not required as long as the resident state is reciprocal
c. the applicant’s resident license must be valid and in good standing
d. the application fees are waived for nonresident licenses
d. the application fees are waived for nonresident licenses
A temporary license may be issued to a designated individual for all of the following reasons, except:
a. a resident license applicant is unable to pass the license exam
b. the disability of an individual licensed on behalf of a business entity
c. an insurance producer enters active service in the armed forces
d. the death of a licensed producer for the purpose of selling the business
a. a resident license applicant is unable to pass the license exam
Agents represent the ______ when transacting insurance.
insurer
Brokers represent the ______
insured
Any person who, for compensation, adjusts, investigates, or negotiates the settlement of claims on behalf of either insurer or the insured.
Adjuster
A producer that is licensed with a life line of authority
Life settlement broker
An insurance written by unauthorized insurers when coverage may not be written by authorized insurers.
Surplus lines brokers
Any person, firm, association or corporation that manages all or part of the insurance business of an insurer, including the management of a separate division, department or underwriting office
MGA
Managing General Agent
Which of the following statements regarding using an assumed business name is NOT correct
a. a producer may use an assumed name at any time
b. an assumed business name may not be misleading or deceptive
c. a trade name must be lawfully registered
d. the Director may deny the use of an assumed name
a.
in order to use an assumed name, the producer must notify the Director before it can be used because the Director may deny the use of the assumed name.
The Director may take any of the following disciplinary actions, EXCEPT:
a. suspend a license if the producer provided incorrect or incomplete information on a license application
b. order payment of fines of up to $2,500 if the licensee committed an intentional violation of insurance law
c. suspend a license for up to 2 years if the producer is convicted of a misdemeanor
d. suspend or revoke a license if the licensee forged a clients signature on an application
c.
The Director may only suspend a license for up to 12 months and may revoke a license for a felony conviction
When may an insurance company discriminate based on blindness
a. at the time of application or insurance
b. when cancelling insurance
c. when charging premium rates
d. never
d.
an insurer may not discriminate solely based on blindness or partial blindness
A producer may share commissions with another producer:
a. as long as there is a contract between the producers
b. only if they are both licensed in the same line of insurance
c. only if they represent the same insurer
d. after permission is granted by the insured
b.
a producer may only share commissions with another producer if they are licensed in the same line. A contract is not required, they do not have to represent the same insurer and the insured does not grant permission.
Which of the following is NOT a prohibited insurance practice?
a. giving a client a $5 gift card as a thank you for buying an insurance policy
b. denying insurance because a person is blind
c. charging a higher premium because of an applicant’s marital status
d. offering a client season’s tickets to the Dallas Cowboys in exchange for buying insurance
a.
providing merchandise or prizes valued in excess of $25 is prohibited
Which of the following acts constitutes an unfair claims settlement practice?
a regularly denying claims when the insured is not liable
b. frequently denying claims based on facts and law
c. often settling claims for amounts higher than the claimant expects
d. routinely settling claims without conducting an investigation
d.
failing to adopt and use reasonable standards for the prompt investigation of claims is an unfair claims settlement practice when it is a regular business practice
An insurer or producer may charge fees for services not customarily provided if they file the fee with the Director and meet the following conditions, except:
a. the services are in addition to those normally performed for insureds
b. the specific services and their related charges are disclosed in writing to the insured
c. the service charges are reasonable with respect to the cost of the service performed
d. the services required the producer to spend more time than usual explaining coverages
d.
this is service customarily provided
Which statement about insurance information and privacy protection is TRUE?
a. personal information may be given to a third party at any time
b. personal information may be disclosed over the telephone at any time
c. an insurer may not investigate criminal or fraudulent activity
d. an insurer must provide written privacy protection disclosures
d.
insurers must provide all disclosures about privacy protections in writing
Telephone solicitation calls under the Telemarketing Sales Rules can be made:
a. between the hours of 8am and 5pm in the time zone of the solicitor
b. before 8am and after 9pm in the time zone of the customer
c. between 8am and 9pm in the time zone of the customer
d. between 8am and 9pm in the time zone of the solicitor
c.
the Telemarketing Sales Rules limit the solicitation hours to between 8am and 9pm in the time zone of the customer
Which of the following acts is a violation of the CAN-SPAM Act?
a. sending a commercial email to 100 insurance prospects with a phony email address and sender name
b. sending a personal email to 100 people using a phony email address
c. using one’s own personal computer to send multiple emails that contain false information
d. using one’s work computer to send a nasty email to a commercial client
a.
using materially false header information in multiple commercial electronic mail messages and intentionally initiating the transmission of such messages is a violation of the CAN-SPAM Act
Which of the following violates the Gramm-Leach-Bliley Act?
a. allowing customers to opt-out of the sharing of their nonpublic personal information
b. refusing to disclose a customer’s nonpublic personal information to non-affiliated third parties
c. disclosing a customer’s nonpublic personal information without consent
d. providing an annual disclosure notice
c.
unless permitted to do so by law, financial institutions may not share nonpublic personal information without a customer’s consent
