test 2

  1. 1. Producers are expected to adhere to all of the following standards to protect consumers and promotesuitable sales EXCEPT

    A.  assessing prospects financial ability to pay commissions
  2. 2. Regarding landmark cases and laws involving the regulation of insurance, which of the following statements is NOT correct?

    B.  The Federal Trade Commission (FTC) directly supervises all insurance marketing activities.
  3. 3. The Buyer's Guide is intended to accomplish all of the following EXCEPT

    C.  ensure that buyers obtain the lowest price for insurance
  4. 4. All of the following methods support the sale of insurance through agents and brokers EXCEPT

    C.  direct selling system
  5. 5. Which of the following is not a service provider?

    D.  Lloyd's of London
  6. 6. In an insurance transaction, licensed agents legally represent which of the following?

    D.  insurer
  7. 7. The State Guaranty Association guarantees

    C.  that the claim will be paid if the insurer becomes insolvent
  8. 8. An insurance company organized and headquartered in Florida can be described as what type of company in Florida?

    D.  Domestic
  9. 9. In addition to the state, the organization that regulates variable life and variable annuities is the

    a. Federal Trade Commission (FTC)
    b. National Association of Insurance Commissioners (NAIC)
    c. Securities and Exchange Commission (SEC) 
    d. Federal Communications Commission (FCC)
  10. 10. In Florida, properly licensed and appointed agents may act as brokers in insurance transactions, in which case they may legally represent

    a. the insurer
    b. the applicant and insured
    c. the state office of insurance regulation
    d. themselves
    b. the applicant and insured
  11. 11. A life insurance company, organized in Illinois, with its home office in Philadelphia, is licensed to conduct business in Florida. In Florida, this company is classified as a(n)

    B.  foreign company
  12. 12. Which of the following statements regarding the National Association of Insurance Commissioners(NAIC) is NOT correct?

    A.  The NAIC is empowered to prosecute and punish criminal violators in the insurance industry.
  13. 13. The head of a state office of insurance regulation is generally responsible for all the following EXCEPT

    B.  making insurance laws
  14. A reinsurer is a company that

    A.  assumes a portion of the risk from another insurer
  15. 15. Which of the following statements regarding types of insurers is NOT correct?

    A.  Reinsurers usually deal with group policyowners.
Card Set
test 2
test chapter 2