ch 2 quiz

  1. The responsibility to regulate the insurance industry belongs to (choose all that apply):
    1) State government
    2) Federal government
    3) State Insurance department
    1 and 2 only
  2. The responsibility of the federal government in regulating the insurance industry is limited to:

    C) Fair labor standares and anti-trust matters
  3. An insurance company that is formed and domiciled under the lasw of a particular state is the example of a(n):

    C) Domestic Insurer
  4. Which of the following is a requirement for obtaining an agent's or adjuster's license?

    C) Must satisfy the insurance department of trustworthiness
  5. The unethical act of persuading a policyholder to drop a policy solely for the purpose of selling another policy is known as:

    A) Twisting
  6. An insurer that refuses to pay claims without conducting a reasonable investigation based upon all available information is guildty of:

    B) Unfair Claim Settlement Practices
  7. An insurer that distrubutes a statement that misrepresents the benefits, advantages, conditions or terms of any insurancy policy would be guilty of:

    B) MIsrepresentation and False Advertising
  8. 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
    2 only
  9. An incorporated insurance company with its capital divided into shares is the definition of:

    A) Stock company
  10. The department of insurance has been advised that an agent is guilty of an insurance code violation. The commissioner/department will:

    A) Call for a hearing
  11. Which of the following would be considered an Unfair Trade Practice?

    D) All of the above
  12. Which of the following is NOT considered to be an unfair claims practice?

    A) Failing to honor an uncovered claim
  13. Although their liability is clear, B.B.S Insurance Company routinely delays all claims payments for 90 days, and in doing so:

    B) Is guilty of an unfair claim settlement practice
  14. Which of the following would be considered unfair or deceptive acts by an adjuster:

    D) All of the above
  15. An act of terrorism must be "certified" to be such an act by:

    B) The Secretary of the Treasury
  16. All of the following events are considered acts of terrorism except:

    D) Acts of riot or civil commotion
  17. 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:

    D) $5,000,000
  18. None of the following can be covered under the Federal Terrorism Act insurance program except:

    B) Most commercial property and casualty risks
  19. No act will be certified by the Secretary as an act of terorism under the Federal Terorism Act if:

    C) The losses that occur relate to life insurance
  20. All of the following are considered acts of rebatin except:

    A) An agent sends holiday greeting cards to all the clients on his mailing list
Card Set
ch 2 quiz
Chapter 2 quiz