Chapter 17 State Specific Portion: Common To Life And A&h Insurance Regulation

14 Questions

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Regulation Quizzes & Trivia

Questions and Answers
  • 1. 
    A license that willfully violates the Insurance code is subject to:  
    • A. 

      Criminal and administrative penalties

    • B. 

      Criminal sanctions

    • C. 

      Administrative penalties

    • D. 

      A felony

  • 2. 
    Dan, a licensed life producer, wrote a policy that covers the life of his brother. Since the policyowner was related, Dan refunded the commission earned on this policy to him. This is considered to be:  
    • A. 

      An acceptable business practice

    • B. 

      An Unfair claims Settlement practice

    • C. 

      An Unfair Trade practice

    • D. 

      An unfair Discrimination

  • 3. 
    One of the requirements for receiving an insurance advisor’s license is filing for a _____ bond.
    • A. 

      $1,000

    • B. 

      $2,000

    • C. 

      $5,000

    • D. 

      $10,000

  • 4. 
    A producer who omits a statement which may mislead or deceive the persons addressed has committed?
    • A. 

      Defamation

    • B. 

      Twisting

    • C. 

      Coercion

    • D. 

      D. Misrepresentation

  • 5. 
    Within the State of Maryland, health Organizations are regulated only by the:  
    • A. 

      Maryland insurance Administration and the Department of Health and Mental Hygiene

    • B. 

      Department of Health and Mental Hygiene

    • C. 

      Department Office of Aging

    • D. 

      Maryland Insurance Administration

  • 6. 
    All of the following events will terminate a producer’s Certificate of Appointment EXCEPT:  
    • A. 

      A new Commissioner is put into office

    • B. 

      A producer’s license expires and is not renewed

    • C. 

      A termination is issued by the appointing insurer

    • D. 

      A producer’s license is suspended or revoked by the Department of Insurance

  • 7. 
    Fair discrimination is allowed. Unfair discrimination is not. Select the choice that is considered, “Unfair”.  
    • A. 

      Requiring a 23 year old male to pay more for being a substandard risk

    • B. 

      Requiring certain persons in the same classification to pay more for coverage

    • C. 

      Requiring a higher Life Insurance premium for a person involved in a hazardous occupation

    • D. 

      Permitting a 50 year old male to pay a lower premium for Health Insurance than a 50 year old female

  • 8. 
    The Commissioner must examine the affairs, transactions,accounts, records, and assets of each domestic insurer at least every:
    • A. 

      3 years

    • B. 

      5 years

    • C. 

      2 years

    • D. 

      1 years

  • 9. 
    Which of the following people would receive a commission from the sale of a policy?  
    • A. 

      The consultant who found the agent for the client

    • B. 

      The agent who took the client’s application

    • C. 

      A retired agent who recommended the client to the agent

    • D. 

      One of the agent’s clients who referred the customer

  • 10. 
    When an authorized insurance company receives a claim from a covered insured they must complete the investigation of the claim:
    • A. 

      Within 15 days

    • B. 

      Promptly

    • C. 

      Within 90 days

    • D. 

      Within 30 days

  • 11. 
    The head of the Maryland insurance Administration is:  
    • A. 

      The Lt. Governor

    • B. 

      The Government

    • C. 

      The commissioner

    • D. 

      The Deputy Commissioner

  • 12. 
     Which of the following is a true statement?  
    • A. 

      The Commissioner is elected by the majority of the Senate

    • B. 

      The Commissioner should advise the Governor on all matter regarding insurance

    • C. 

      The Commissioner shall serve a term of 6 years

    • D. 

      The Commissioner is entitled to a payment from the State Insurance Fund

  • 13. 
    Insurance trade practices are regulated by whom?  
    • A. 

      The SEC

    • B. 

      The Federal Trade Commission

    • C. 

      The State

    • D. 

      The NASD

  • 14. 
    A licensed insurance producer represents which of the following?  
    • A. 

      The Insurer

    • B. 

      The Department of insurance

    • C. 

      The national Association of Insurance Commissioner

    • D. 

      The consuming public