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Insurance
Chapter 4
| Question | Answer |
|---|---|
| When the Commissioner takes over a company that is insolvent, his/her first responsibility is to: | attempt to restore the company if possible. |
| Every company in California is required to report its financial condition to the Commissioner every year: | on or before March 1. |
| Which of the following is a penalty for violating the Insurance Information and Privacy Protection Act? | $50,000 fine for violations committed with regularity showing they are a general business practice |
| Which of the following describes prior approval as a type of rating law? | The insurer files policy rate information with the Department of Insurance. After filing, the insurer delivers evidence that the rates proposed are reasonable and fair. Then the insurer waits (30-60 days) for approval. |
| Unless expressly otherwise provided, any personal notice required by any provision of the insurance code may be given by any of the following EXCEPT: | a third party |
| CIGA pertains to: | insurer's insolvency |
| A subsequent violation of a cease and desist would result in: | license suspension |
| Which one of the following is not one of the three principal parts to the privacy requirement of the Gramm-Leach-Bliley Act? | Credit Reporting |
| Insurer has up to how many days to accept or deny a claim? | 40 days |
| Penalty for violation of a summary seizure would be: | misdemeanor 1 yr imprisonment $1,000 |
| Which of the following is NOT a purpose of the Unfair Practices Article? | To determine the punishment for an agent found guilty of unfair practices in insurance. |
| What is the role of the Commissioner and the Department of Insurance in relation to consumers? | The Commissioner and the DOI are responsible for regulating the conduct of agents and insurers. |
| Rates shall remain in effect if they are: | reasonable not discriminatory adequate |
| Which of the following statements about insolvency is TRUE? | An insurer cannot escape the condition of insolvency by being able to provide for its liabilities and reinsurance of all outstanding risks. |
| An example of a self-regulatory authority of the insurance industry is: | the NAIC |
| According to the Code, the word "person" means: | any person, association, organization, partnership, business trust, limited liability company, or corporation |
| To change the California Insurance Code a bill is brought before the Assembly and the Senate. After both parties vote on the bill and it is approved, it moves on to the: | Governor |
| According to the Code a "Notice of Claim" is a(n): | oral notification written notification |
| Once insured an insurer are in agreement payment must be made within | 30 calendar days |
| Which court case reversed the Paul vs. Virginia case of 1868? | SEUA case of 1944 |
| Who administers the California Administrative Code of Regulations? | Commissioner |
| Which of the following describes use and file as a type of rating law? | An insurance company uses the rate they determine appropriate first and then file that rate with the commission. |
| If convicted of insurance fraud: | the fine can be up to $150,000 and up to 5 years in state prison. |
| How is the Insurance Commissioner put into office? | Elected by the citizens |
| All of the following are penalties for unfair discrimination EXCEPT: | prison |
| All of the following are incorrect penalties for violating the Unfair Practices article EXCEPT: | $5,000 fine for each act in violation; $10,000 fine for willful violation |
| Solvency requires the insurer to have enough assets to cover: | paid-in-capital liabilities insurance |
| Which of the following is NOT a type of rating law? | Legal Competition |
| Upon receiving any written or oral inquiry from the Department of Insurance concerning a claim, every licensee shall immediately, but in no event more than _______ calendar days of receipt of that inquiry, furnish the Department of Insurance with a complete written response based on the facts as then known by the licensee. | 21 days |
| The State of California requires that all admitted insurers be a member of the | California Insurance Guaranty Association |
| Which is not a violation of Unfair Practice? | To enforce the law of insurance |
| What is the significance of the SEUA case of 1944? | The court decided the federal government should regulate insurance. |
| Which of the following is NOT considered an unfair practice? | Failing to display the license in a clearly visible place for the public to see |
| All of the following are efforts the Department of Insurance takes to combat insurance fraud EXCEPT: | Each company is required to submit a complete record of fraudulent claims made to the business each year. |
Created by:
jmlawry
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