Statutes common to all lines Flashcards
A producer in Ohio wants to become a producer in Idaho. The Director will waive certain examination requirements, provided that Ohio would waive these same requirements if an Idaho producer sought licensure in Ohio. What term is used to describe this arrangement?
Reciprocity
Which of the following is the closest term to an authorized insurer?
Admitted
An agent is acting ethically in all of the following situations EXCEPT
Always representing the insured
In order to receive a commission, a person is required to
Be licensed as an insurance producer
When handling premium funds, insurance providers are acting in a
Fiduciary capacity
Each violation of the Insurance Code can result in fines up to $1,000 or imprisonment for
6 months
An agreement that is enforceable by law is known as a
Legal contract
An individual guilty of fraud is guilty of committing a
Felony
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
Fair Credit Reporting Act
Who appoints a new Director of Insurance
Governor
A participating insurance policy may require which of the following?
Pay dividends to the policyowner
The Gramm-Leach-Bliley Act was passed to
Protect private customer information filed with a financial institution
Which of the following is an example of a producer’s fiduciary responsibilities?
A producer promptly forwarding premiums to the insurance company.
After an insurer receives an itemized bill related to a valid motor vehicle policy claim, it must be paid within
20 days.
All of the following would be consider rebating EXCEPT
An agent misrepresents policy benefits to convince a policyowner to replace policies
In which of the following situations is it legal to limit coverage based on marital status?
It is never legal to limit coverage based on marital status
Which of the following would be considered an unfair claims settlement practice?
A claims adjuster advises the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work the the business of insurance affecting interstate commerce
Without written consent from an insurance regulatory authority (Title 18)
What is the minimum age when a person may purchase an insurance contract in this state?
15
Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned up to
10 years
Which best describes an insurance company that has been formed under the laws of this state?
Domestic
Which of the following is an agreement between an insured and insurer, where the insurer agrees to indemnify the insured for specific losses in exchange for premium?
Insurance Contract
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
Consideration
An individual currently licensed in S.C. just moved to Idaho. In order to avoid a relicensing exam, how soon after establishing legal residence should she apply for a resident license?
90 days.
