Compliance Quiz #3 (5/1/14)

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| By Alison Anderson
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Alison Anderson
Community Contributor
Quizzes Created: 22 | Total Attempts: 3,055
Questions: 10 | Attempts: 112

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Compliance Quiz #3 (5/1/14) - Quiz

Questions and Answers
  • 1. 

    The RMBC classifies a  Young Driver as:

    • A.

      A licensed person who is between the ages of 16-20

    • B.

      A licensed person who obtained their license within the past 12 months

    • C.

      A licensed person who is less than 25 years of age

    • D.

      A licensed person between 16-24 years old

    Correct Answer
    D. A licensed person between 16-24 years old
    Explanation
    The correct answer is a licensed person between 16-24 years old. This classification includes individuals who are between the ages of 16 and 24 and hold a valid driver's license. It does not specify the exact age range within this bracket, but it encompasses all licensed individuals who fall within this age range.

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  • 2. 

    When declaring on the auto policy that the customer owns a residence, what would be acceptable documentation to prove it?

    • A.

      Utility bills with customers name appearing on the statement.

    • B.

      Property Tax appraisal or bill

    • C.

      Flood policy

    • D.

      Trusts with first and last name of the named insured.

    • E.

      All of the above

    • F.

      B and/or D

    Correct Answer
    F. B and/or D
    Explanation
    Acceptable documentation to prove that the customer owns a residence would be a Property Tax appraisal or bill, and/or Trusts with the first and last name of the named insured. Utility bills with the customer's name and Flood policy may also be acceptable, but they are not the only options. Therefore, the correct answer is B and/or D.

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  • 3. 

    What does CCDB stand for?

    • A.

      Current Carrier Data Base

    • B.

      Correct Class Data Base

    • C.

      Current Claim Data Base

    • D.

      Claim Class Data Base

    Correct Answer
    A. Current Carrier Data Base
    Explanation
    CCDB stands for Current Carrier Data Base. This database contains the current information about carriers, such as their contact details, rates, and availability. It is used by companies in the transportation industry to efficiently manage and track carriers for their operations.

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  • 4. 

    True or False, the agency will be compliant with POSIS if sufficient documentation for prior auto insurance is submitted before the policy is cancelled in the underwriting review period?

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    If sufficient documentation for prior auto insurance is submitted before the policy is cancelled in the underwriting review period, the agency will not be compliant with POSIS. This means that in order to be compliant with POSIS, the agency must submit the documentation for prior auto insurance before cancelling the policy during the underwriting review period. Therefore, the correct answer is False.

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  • 5. 

    What is the countrywide goal for SRM Tier Verification and where does West Central rank CW with March 2014 data?

    • A.

      85%, ranked 11th

    • B.

      80%, ranked 14th

    • C.

      75%, ranked 9th

    • D.

      70%, ranked 12th

    Correct Answer
    D. 70%, ranked 12th
    Explanation
    West Central ranks 12th in the countrywide goal for SRM Tier Verification with March 2014 data. The countrywide goal for SRM Tier Verification is 70%.

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  • 6. 

    Allstate can write exhibition autos.

    • A.

      Yes

    • B.

      No

    • C.

      Only if it is written under Line 16 Specialty Auto

    Correct Answer
    B. No
    Explanation
    Allstate cannot write exhibition autos.

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  • 7. 

    Where would an agency check for their outstanding TDocs?

    • A.

      RMBC website

    • B.

      SMART report

    • C.

      Agency Gateway

    Correct Answer
    B. SMART report
    Explanation
    An agency would check for their outstanding TDocs in the SMART report. The SMART report is a tool or system that provides information on various documents and their status. It is likely that the SMART report includes a section or feature specifically for tracking and managing outstanding TDocs, making it the appropriate place for an agency to look for this information.

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  • 8. 

    True or False: UM/UIM TDoc is required when limits are not equal?

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    UM/UIM TDoc stands for Uninsured/Underinsured Motorist Tortfeasor Document. This document is required when the limits of the uninsured/underinsured motorist coverage are not equal to the bodily injury liability limits. In other words, if the limits of the coverage for injuries caused by an uninsured or underinsured motorist are different from the limits of the coverage for injuries caused by the insured, then the UM/UIM TDoc is required. Therefore, the statement "UM/UIM TDoc is required when limits are not equal" is true.

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  • 9. 

    How many days does an agency have to fax in Legal TDocs before they are considered outstanding?

    • A.

      14

    • B.

      7

    • C.

      21

    • D.

      28

    Correct Answer
    B. 7
    Explanation
    An agency has to fax in Legal TDocs within 7 days before they are considered outstanding.

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  • 10. 

    If an agency writes an auto policy for the customer and declares prior auto insurance without documentation in hand, the policy may:

    • A.

      Be re-tiered and the premium increased

    • B.

      Cancelled in the underwriting review period due to lack of sufficient documentation.

    • C.

      Be cancelled by the insured because they choose not to pay the higher rates.

    • D.

      All of the above.

    Correct Answer
    D. All of the above.
    Explanation
    If an agency writes an auto policy for a customer without having documentation of their prior auto insurance, the policy may be re-tiered and the premium increased. This means that the agency may reassess the customer's risk level and adjust the premium accordingly, resulting in higher rates. Additionally, the policy may be cancelled during the underwriting review period if the agency determines that there is not sufficient documentation to support the customer's prior insurance. Lastly, the insured may choose to cancel the policy themselves if they are not willing to pay the higher rates. Therefore, all of the given options are possible outcomes in this scenario.

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