ch 2 quiz

The responsibility to regulate the insurance industry belongs to (choose all that apply):
1) State government
2) Federal government
3) State Insurance department

The responsibility of the federal government in regulating the insurance industry is limited to:
A) Monitoring ethical conduct of individual adjusters
B) Monitoring financial solvency of insurers
C) Fair labor standards and anti-trust matters
D) Reviewing and approving insurance rates, policies and forms

An insurance company that is formed and domiciled under the lasw of a particular state is the example of a(n):
A) Alien insurer
B) Foreign insurer
C) Domiciled insurer
D) Domestic insurer

Which of the following is a requirement for obtaining an agent's or adjuster's license?
A) Must have completed at least 2 years of college
B) Must satisfy the insurance department of trustworthiness
C) Must have an insurance producer's license in the state
D) Must be 21 years old

The unethical act of persuading a policyholder to drop a policy solely for the purpose of selling another policy is known as:
A) Twisting
B) Defamation
C) Misrepresentation
D) Rebating

An insurer that refuses to pay claims without conducting a reasonable investigation based upon all available information is guildty of:
A) Unfair Claim Settlement Practices
B) A felony
C) Twisting
D) Misrepresentation

An insurer that distrubutes a statement that misrepresents the benefits, advantages, conditions or terms of any insurancy policy would be guilty of:
A) Unfair Claim Settlement Practices
B) Defamation
C) Coercion
D) Misrepresentation and False Advertising

Should an agent or adjuster have a change of address, the obligation to notify the state insurance department lies with (choose all that apply):
1) The company that emplys the adjuster/agent
2) The licensee
3) The licensee's supervisor

An incorporated insurance company with its capital divided into shares is the definition of:
A) Foreign company
B) Stock company
C) Mutual company
D) Domestic company

The department of insurance has been advised that an agent is guilty of an insurance code violation. The commissioner/department will:
A) Revoke the license
B) Call for a hearing
C) Revoke the license pending a hearing
D) Fine the agent's insurance company

Which of the following would be considered an Unfair Trade Practice?
A) Twisting
B) Rebating
C) Coercion
D) All of the above

Which of the following is NOT considered to be an unfair claims practice?
A) Failing to honor an uncovered claim
B) Attempting to settle claims on the basis of an application that was altered without notice to or the knowledge of the insured
C) Misrepresenting pertinent facts or uninsured policy provisions relating to coerages at issue
D) Refusing to pay claims without conducting a reasonable investigation based upon all available information

Although their liability is clear, B.B.S Insurance Company routinely delays all claims payments for 90 days, and in doing so:
A) Avoids any acts of illegal discrimination between claimants
B) Avoids a lot of little nuisance claims
C) Is guilty of an unfair claim settlement practice
D) Substantially eliminates fraudulent claims

Which of the following would be considered unfair or deceptive acts by an adjuster:
A) requesting that a first party claimant sign a release that extends beyond the subject matter which gave rise to the claim payment
B) Advising the claimant that their rights may be impaired if a form or release is not completed within a specific period of time unless for the purpose of notification of statute of limitations
C) Issuing a check or draft, in partial settlement of a loss or claim under specific coverage that contains language that releass the insurer or its insured from its total liability
D) All of the above

An act of terrorism must be "certified" to be such an act by:
A) The President
B) the Senate
C) The Secretary of the Treasury
D) The House of representatives

All of the following events are considered acts of terrorism except:
A) Acts considered dangerous to human life, property or infrastructure
B) Acts resulting in damage within or outside the US
C) Acts committed by an individual(s) acting on behalf of and foreign person or interest
D) Acts of riot and civil commotion

In order to be certified as an act of terrorism under the Federal Terrorism Act, property and casualty loses must not exceed an aggregate of:
A) $1,000,000
B) $5,000,000
C) $3,000,000
D) $500,000

None of the following can be covered under the Federal Terrorism Act insurance program except:
A) Most commercial property and casualty risks
B) Personal insurance policies
C) Federal crop insurance
D) Health and life insurance policies

No act will be certified by the Secretary as an act of terorism under the Federal Terorism Act if:
A) The act is one of terrorism defined by the Act
B) The losses that occur relate to life insurance
C) The losses that occur relate to commercial property risks
D) The act is not committed as part of the course of war declared by Congress

All of the following are considered acts of rebatin except:
A) An agents sends holiday greeting cards to all the clients on his mailing list
B) An agent provides an all-expenses paid cruises to a client and his wife in exchange for writing the coverage on his national chain of restaurants
C) An adjuster receives a monthly check from an auto body repair shop for recommending the repair shop to clients who have a claim
D) All of these situations are considered acts of rebating