Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report
must be informed of the source of the report
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3
who requires that a prospective producer take and pass a written exam on the kinds of insurance business specified in the application
director
When a company criticizes the financial situation of another company with the intention of injuring that company it has committed an illegal trade practice called
defamation
a licensee adding surplus lines broker authority to his or her license will be charged half the fee if
the licensee has less than two years left on the existing license at the time the Director receives the application
if a producer waits more than 1 year to renew a license after it has expired what is the producer required to do to be licensed again
retake a licensing exam
within a year after expiration qualified producers may still renew the license if
they pay a renewal fee and a late fee of $100
according to CAN-SPAM a consumer's request to opt out of an e-mailing list must be honored within
10 business days
In Arizona the Director of Insurance is
appointed by the Governor
The time period for submission of the license renewal fee for completion of the applicable renewal requirements and CE for a licensee who is deemed inactive may be extended by
the number of days the licensee is in active military service
propert and casualty producers can usually do something for their clients that life and health producers cannot provide. What is that service?
Bind coverage
The Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) created the
National DO Not Call Registry, allowing consumers to include their telephone number on the list to which solicitation calls cannot be made by telemarketers
The Gramm-Leach-Bliley Act was passed to
protect private customer information filed wth a financial institution
Which of the following lines of authority describes property and casualty insurance sold for noncommercial purposes?
personal lines
In life insurance, producers are permitted to share or split commissions, providing that
both are properly licensed for the line of insurance
If a premium payment is mailed, how can an insurer establish the date of payment
the postmark on the envelope
calls based from outside the united states
are not considered exceptions to the National Do Not Call list
If a producer wishes to use an assumed business name they must
file papers with the director that state assumed name as well as legal name and address
every office that transact surplus lines insurance must have on staff a person who
is licensed as a surplus lines broker
Which of the following protected consumers against the circulation or inaccurate or obsolete personal or financial information
The Fair Credit Reporting Act
an adjusted is anyone who adjusts investigates or negotiates the settlement of claims these cannot be
attorneys, salaried employees or the employees of political subdivisions
If a telemarketer wants to make an unsolicited sales call to a potential customer what is the easiest time the telemarketer can call?
8 am
If the director decides an insurer charged too much for fees,
the insurer will refund the fee to the customer
how many credit hours of ethics training are licensed resident producers required to complete every licensing period
6
every producer licensed in AZ must notify the director in writing within ______ of any change of residence address, and any agency licensed in AZ must notify the director within _____ days of any change in business address
30
a certificate of authority shows
the lines of authority (types of insurance) an insurer is authorized to transact
A temporary license typically last for how many days in AZ
180
The federal Fair Credit Reporting Act
regulates consumer reports
In AZ the director of Insurance serves
at the pleasure of the Governor
making a false or misleading statements with the intent to defraud another is
misrepresentation
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports
the customer's associates, friends, and neighbors provide the report's data
Any licensed person whose activities affect interstate commerce and who knowingly make false material statements related to the business of insurance may be imprisoned for up to ___ years
10
which report provides the underwriter with the information about an insurance applicant's credit?
consumer report
an insurance policy or countersignature endorsement must be signed by
licensed insurance producer
bail bond agent
managing general agent
all producers must keep records of all transactions for ____ years
3
every producer must maintain a place of business in Arizona
that is accessible to the public
defining those who are eligible for dependent benefits
is a legal use of determining benefit eligibility based on marital status
as defined by the Fair Credit Reporting Act all of the following would be considered negative information about a consumer
-late payments
-insolvency or any other form of default
-delinqencies
If a consumer requests that a company stop sending solicitation e-mails, and if that company does not stop within 10 days then
the company will be fined at least $250 an email (but no more than $2mill)
How many days after initial pretrial hearing date does an insurance producer have to report any criminal prosecution to the director
30
federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce
without receiving written consent from an insurance regulatory authority
an insurer may charge a service fee beyond the premium for motor vehicle insurance policies that insure
7 cars
In addition to a cease and desist order the Director may issue
a civil penalty of between $500 and $10,000 for each violation
when must an applicant be notified that an insurer is gathering information about him or her
when consulting a source other than the applicant or public records
The director may require a producer to submit fingerprints in the following situations
-issuance
-renewal
-suspension
-revocation
-merger
-acquisition
reciprocity
occurs when the state in which the person resides accords the same privilege to residents of Ariozna
Consumer Reports include
credit, character, reputation and habits
The evidence of authority must specify
the names and address of the insurers and producers
-as well as being sold and the machine's ID number
When may an insurer charge an extra fee for services
if the services are not customarily provided in the transaction of insurance
paid claim investigators
considered an adjuster
if a payment is due on a weekend or a legal holiday the payment will be considered on time
if it is mailed the next business day
the lack of proper countersignature will
not invalidate a policy
circulating deceptive sales material to the public is what type of Unfair Trade Practice
False advertising
to charge a service fee
the fee must be filed with the Director
-it must be related to the service cost
-the service must be above and beyond what is normally done
-the service and its applicable charges must be agreed to in writing by the insured
A producer may apply for a non-residential license by
showing that they are in good standing as a producer in their home state and by paying a fee, if the two states reciprocate.
rebating
is defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy. Both the offer and acceptance of a rebate are illegal.
Consumers must be advised that they have a right to request additional information concerning investigative consumer reports, and the insurer or reporting agency has ____ days
5
An applicant must be allowed to examine the information in his/her file. If inaccurate, the agency
may be required to reinvestigate.
Unlike a producer, a broker represents his/her clients (policyholders) and is not a direct representative of any insurance company. Instead, a broker
works for his/her clients and will place risks with companies. Brokers must have a written agreement with an insured when they receive any fees or compensation for services. Brokers cannot bind coverage.
coercion
is when the bank won't give you an auto loan unless you agree to buy auto insurance from them.
An individual who willfully violates this Act enough to constitute a general pattern or business practice will be subject to a penalty of up to
2500