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Property and Casualty Chapter 10 Insurance regulation exam questions and answers 2023
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Property and Casualty Chapter 10 Insurance regulation exam questions and answers 2023
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Property and Casualty Chapter 10 Insurance regulation exam questions and answers 2023Authorized insurer - Answer-insurer who has received a certificate of authority from the department of insurance to transact insurance in the state
cease and desist - Answer-to stop or discontinue
commission - Answer-payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium
commissioner - Answer-the head of the state department of insurance.
domicile - Answer-a state in which an insurer is organized and has its main place of business
home office - Answer-insurers' headquarters, principal place of business
inducement - Answer-an offer that attempts to influence the other party
moral turpitude - Answer-conduct that is contrary to community standards justice, honesty or good morals
reciprocity - Answer-a mutual interchange of rights and privileges
statute - Answer-a formal written enactment of a legislature; insurance statutes can be found in the state insurance code.
properly licensed for a specific line of authority - Answer-Prior to transacting insurance in the state, insurance professionals must be?
producers - Answer-individuals or business entities that are licensed to sell, solicit, or negotiate insurance. from a legal standpoint, ___________ represent respective insurance companies, not their customers.
Business entity - Answer-a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity
foreign and alien insurers - Answer-licensed in Louisiana do not have to be examined by the commissioner. Instead, the commissioner may accept an examination report on the company as prepared by the insurance department of the company's state of domicile or port-of-entry state, provided that proper protocol is followed. Commissioner of insurance - Answer-supervise insurance business; licensing; approve polices and forms; enforce insurance laws and penalties for violations; conduct examinations, investigations, hearings.
Statement of its financial condition (solvency) - Answer-in conformity with the U.S generally accepted accounting principals (GAAP) requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at
Fair Credit reporting Act - Answer-established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential accurate, relevant, and property used. the law also protects consumers against the circulations of inaccurate or obsolete personal or financial information
Federal Motor Carrier Administration (FMCSA) - Answer-the government, both state and federal, has implemented several regulations that pertain to trucking risks for truckers who travel across state lines and within the boundaries of a single state. the federal body that regulates interstate truckers. Federal regulation also applies to truckers, interstate or interstate, that haul hazardous materials.
Motor Carrier Act of 1980 - Answer-Act that sets out the minimum financial responsibility
requirements for for-hire interstate carriers and all carriers of hazardous property.
The requirement that agents must account for and promptly remit all insurance funds collected is known as what type of agent responsibility? - Answer-fiduciary
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another? - Answer-Twisting
What is controlled business legal? - Answer-When commissions from a controlled business do not exceed the aggregate commissions on all the other business (specific limits may vary from state to state)
In general, who can be excluded from producer licensing and examination requirements? - Answer-insurance companies officers, directors, or any other employee
who do not transact insurance and who do not receive commissions for their services (usually, their responsibilities include administrative, executive, or clerical).
If the commissioner/ Superintendent finds a licensee engaging in an unfair method of competition or an unfair practice, what order will be issued? - Answer-Cease and desist order
What would be misrepresentation on an insurance application be considered fraud? - Answer-When it is intentional and material
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