Unit 23 - State Laws

Question 1

What is rebating?

Answer 1

is offering something of value in connection with the sale of an insurance policy.

Question 2

What are some reasons a license could be revoked?

Answer 2

The head of the insurance division for the state may place on probation, suspend, revoke or refused to issue or renew the license of an insurance producer who:

• provides incorrect, misleading, incomplete, or materially untrue information
• attemps to obtain a license through misrepresentation or fraud
• intentionally misrepresenting the terms of an insurance contract or application
• demonstrating incompetence, untrustworthiness, or financial irresponsibility
• it is legal to solicit family members (controlled business), however it is illegal to obtain a producer’s license for the sole purpose of soliciting controlled business

Question 3

By examining the insurer’s records, the head of the department of insurance assesses the insurer’s

Answer 3

compliance with state laws.

The head of the state’s insurance division periodically examines an insurer’s records in order to assess the insurer’s financial condition, ability to fulfill financial obligation, and compliance with state laws.

Question 4

Unfair discrimination occurs when…

Answer 4

an insurer charges two people of equal risk different rates or provides disparate services or benefits based solely on differences in race, religion, physical ability, national origin, or location of residence.