test 2

Card Set Information

Author:
riosjuank
ID:
232275
Filename:
test 2
Updated:
2013-09-04 00:38:03
Tags:
health insurance
Folders:

Description:
test chapter 2
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user riosjuank on FreezingBlue Flashcards. What would you like to do?


  1. 1. Producers are expected to adhere to all of the following standards to protect consumers and promotesuitable sales EXCEPT

    A. selling to customers' needs
    B. assessing prospects financial ability to pay commissions
    C. full and accurate disclosure
    D. determining the suitability of recommended products
    B. assessing prospects financial ability to pay commissions
    (this multiple choice question has been scrambled)
  2. 2. 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 Commission (FTC) directly supervises all insurance marketing activities.
    D. The McCarran-Ferguson Act (1945) led directly to our current understanding that the insurance industry is predominantly regulated by the states
    C. The Federal Trade Commission (FTC) directly supervises all insurance marketing activities.
    (this multiple choice question has been scrambled)
  3. 3. The Buyer's Guide is intended to accomplish all of the following EXCEPT

    A. ensure that buyers obtain the lowest price for insurance
    B. provide information about the recommended policy
    C. help buyers choose the most suitable plan
    D. explain basic product features
    A. ensure that buyers obtain the lowest price for insurance
    (this multiple choice question has been scrambled)
  4. 4. 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
    D. direct selling system
    (this multiple choice question has been scrambled)
  5. 5. Which of the following is not a service provider?

    A. Lloyd's of London
    B.  HMO
    C. Benefit plans offering medical services to subscribers
    D. PPO
    A. Lloyd's of London
    (this multiple choice question has been scrambled)
  6. 6. In an insurance transaction, licensed agents legally represent which of the following?

    A. applicant and insured
    B. themselves
    C. insurer
    D. state office of insurance regulation
    C. insurer
    (this multiple choice question has been scrambled)
  7. 7. The State Guaranty Association guarantees

    A. that dividends will be paid
    B. that a policy will be issued
    C. that the claim will be paid if the insurer becomes insolvent
    D. the rate of return on a policy
    C. that the claim will be paid if the insurer becomes insolvent
    (this multiple choice question has been scrambled)
  8. 8. An insurance company organized and headquartered in Florida can be described as what type of company in Florida?

    A. Domestic
    B. Foreign
    C. Alien
    D. Home-based
    A. Domestic
    (this multiple choice question has been scrambled)
  9. 9. In addition to the state, the organization that regulates variable life and variable annuities is the

    a. Federal Trade Commission (FTC)
    b. National Association of Insurance Commissioners (NAIC)
    c. Securities and Exchange Commission (SEC) 
    d. Federal Communications Commission (FCC)
  10. 10. In Florida, properly licensed and appointed agents may act as brokers in insurance transactions, in which case they may legally represent

    A. the insurer
    B. the state office of insurance regulation
    C. the applicant and insured
    D. themselves
    C. the applicant and insured
    (this multiple choice question has been scrambled)
  11. 11. 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. regional company
    B. alien company
    C. domestic company
    D. foreign company
    D. foreign company
    (this multiple choice question has been scrambled)
  12. 12. Which of the following statements regarding the National Association of Insurance Commissioners(NAIC) is NOT correct?

    A. The NAIC seeks to preserve state rather than federal regulation of the insurance industry.
    B. The NAIC is empowered to prosecute and punish criminal violators in 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.
    B. The NAIC is empowered to prosecute and punish criminal violators in the insurance industry.
    (this multiple choice question has been scrambled)
  13. 13. The head of a state office of insurance regulation is generally responsible for all the following EXCEPT

    A. licensing and supervising agents and brokers
    B. issuing rules and regulations
    C. overseeing insurance companies' marketing practices
    D. making insurance laws
    D. making insurance laws
    (this multiple choice question has been scrambled)
  14. A reinsurer is a company that

    A. does not take any risk
    B. cedes the risk
    C. accepts all the risk from another insurer
    D. assumes a portion of the risk from another insurer
    D. assumes a portion of the risk from another insurer
    (this multiple choice question has been scrambled)
  15. 15. Which of the following statements regarding types of insurers is NOT correct?

    A. Fratemal benefit societies must be nonprofit organizations.
    B. Mutual insurance companies are "owned" by their policyowners.
    C. Stock insurance companies seek a profit for their shareholders.
    D. Reinsurers usually deal with group policyowners.
    D. Reinsurers usually deal with group policyowners.
    (this multiple choice question has been scrambled)

What would you like to do?

Home > Flashcards > Print Preview