The Insurance Industry Quiz! Trivia

13 Questions | Total Attempts: 114

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The Insurance Industry Quiz! Trivia

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Questions and Answers
  • 1. 
    Producers are expected to adhere to all of the following standards to protect consumers and promote suitable sales EXCEPT
    • A. 

      Selling to customers' needs

    • B. 

      Determining the suitability of recommended products

    • C. 

      Assessing prospects' financial ability to pay commissions

    • D. 

      Full and accurate disclosure

  • 2. 
    An insurance company organized and headquartered in Florida can be described as what type of company in Florida?
    • A. 

      Alien

    • B. 

      Home-based

    • C. 

      Foreign

    • D. 

      Domestic

  • 3. 
    Which of the following statements regarding types of insurers is NOT correct?
    • A. 

      Reinsurers usually deal with group policyowners

    • B. 

      Mutual insurance companies are "owned" by thier policyowners

    • C. 

      Stock insurance companies seek a profit for their shareholders

    • D. 

      Fraternal benefit societies must be nonprofit organizations

  • 4. 
    Regarding landmark cases and laws involving the regulation of insurance, which of the following statements is NOT correct?
    • A. 

      Insurers are required to disclose when an applicant's consumer/credit history is being investigated.

    • B. 

      The Securities and Exchange Commission (SEC) may regulate insurers that sell variable annuities and variable life insurance

    • C. 

      The Federal Trade Comission (FTC) directly supervises all insurance marketing activities

    • D. 

      The New York Insuance Code has long been a model for state insurance regulation

  • 5. 
    Which of the following statements regarding the National Association of Insurance Commissioners (NAIC) is NOT correct?
    • A. 

      The NAIC is empowered to prosecute and punish criminal violators in the insurance industry

    • B. 

      The NAIC seeks to preserve state rather than federal regulation of the insurance industry.

    • C. 

      The NAIC promotes uniformity in state insurance laws and regulations.

    • D. 

      The NAIC seeks to promote efficient administration of insurance laws and regulations

  • 6. 
    In an insurance transaction, licensed agents legally represent which of the following?
    • A. 

      Insurer

    • B. 

      Applicant and insured

    • C. 

      State office of insurance regulation

    • D. 

      Themselves

  • 7. 
    A life insurance company organized in Illinois, with its home office in Philadelphia, is licensed to conduct business in Florida.  In Florida, this company is classified as a(n)
    • A. 

      Domestic company

    • B. 

      Alien company

    • C. 

      Foreign company

    • D. 

      Regional company

  • 8. 
    Which of the following is not a service provider?
    • A. 

      HMO

    • B. 

      Benefit plans offering medical services to subscribers

    • C. 

      Lloyd's of London

    • D. 

      PPO

  • 9. 
    The head of a state office of insurance regulation is generally responsible for all of the following EXCEPT
    • A. 

      Licensing and supervising agents and brokers

    • B. 

      Overseeing insurance companies' marketing practices

    • C. 

      Issuing rules and regulations

    • D. 

      Making insurance laws

  • 10. 
    In addition to the state, the organization that regulates variable life and variable annuities are the
    • A. 

      Federal Trade Commission (FTC)

    • B. 

      National Association of Insurance Commissioners (NAIC)

    • C. 

      Securities and Exchange Commission (SEC)

    • D. 

      Federal Communications Commission (FCC)

  • 11. 
    The Buyer's Guide is intended to accomplish all of the following EXCEPT
    • A. 

      Help buyers choose the most suitable plan

    • B. 

      Explain basic product features

    • C. 

      Provide information about the recommended policy

    • D. 

      Ensure that buyers obtain the lowest price for insurance

  • 12. 
    The State Guaranty Association guarantees
    • A. 

      That a policy will be issued

    • B. 

      That a claim will be paid if an insurer becomes insolvent

    • C. 

      That dividends will be paid

    • D. 

      The rate of return on a policy

  • 13. 
    All of the following methods support the sale of insurance through agents and brokers EXCEPT
    • A. 

      Independent agency system

    • B. 

      Personal producing general agency system

    • C. 

      Career agency system

    • D. 

      Direct selling system