ch 2 quiz

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jadeneonsiren
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90019
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ch 2 quiz
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2011-06-10 03:20:08
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Chapter 2 quiz
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  1. The responsibility to regulate the insurance industry belongs to (choose all that apply):
    1) State government
    2) Federal government
    3) State Insurance department
    1 and 2 only
  2. The responsibility of the federal government in regulating the insurance industry is limited to:
    A) Monitoring ethical conduct of individual adjusters
    B) Monitoring financial solvency of insurers
    C) Reviewing and approving insurance rates, policies and forms
    D) Fair labor standards and anti-trust matters
    D) Fair labor standares and anti-trust matters
    (this multiple choice question has been scrambled)
  3. An insurance company that is formed and domiciled under the lasw of a particular state is the example of a(n):
    A) Domestic insurer
    B) Foreign insurer
    C) Domiciled insurer
    D) Alien insurer
    A) Domestic Insurer
    (this multiple choice question has been scrambled)
  4. Which of the following is a requirement for obtaining an agent's or adjuster's license?
    A) Must satisfy the insurance department of trustworthiness
    B) Must have an insurance producer's license in the state
    C) Must be 21 years old
    D) Must have completed at least 2 years of college
    A) Must satisfy the insurance department of trustworthiness
    (this multiple choice question has been scrambled)
  5. The unethical act of persuading a policyholder to drop a policy solely for the purpose of selling another policy is known as:
    A) Twisting
    B) Rebating
    C) Defamation
    D) Misrepresentation
    A) Twisting
    (this multiple choice question has been scrambled)
  6. An insurer that refuses to pay claims without conducting a reasonable investigation based upon all available information is guildty of:
    A) A felony
    B) Twisting
    C) Unfair Claim Settlement Practices
    D) Misrepresentation
    C) Unfair Claim Settlement Practices
    (this multiple choice question has been scrambled)
  7. An insurer that distrubutes a statement that misrepresents the benefits, advantages, conditions or terms of any insurancy policy would be guilty of:
    A) Misrepresentation and False Advertising
    B) Coercion
    C) Unfair Claim Settlement Practices
    D) Defamation
    A) MIsrepresentation and False Advertising
    (this multiple choice question has been scrambled)
  8. Should an agent or adjuster have a change of address, the obligation to notify the state insurance department lies with (choose all that apply):
    1) The company that emplys the adjuster/agent
    2) The licensee
    3) The licensee's supervisor
    2 only
  9. An incorporated insurance company with its capital divided into shares is the definition of:
    A) Stock company
    B) Mutual company
    C) Domestic company
    D) Foreign company
    A) Stock company
    (this multiple choice question has been scrambled)
  10. The department of insurance has been advised that an agent is guilty of an insurance code violation. The commissioner/department will:
    A) Fine the agent's insurance company
    B) Revoke the license
    C) Call for a hearing
    D) Revoke the license pending a hearing
    C) Call for a hearing
    (this multiple choice question has been scrambled)
  11. Which of the following would be considered an Unfair Trade Practice?
    a) Twisting
    b) Rebating
    c) Coercion
    d) All of the above
    d) All of the above
  12. Which of the following is NOT considered to be an unfair claims practice?
    A) Attempting to settle claims on the basis of an application that was altered without notice to or the knowledge of the insured
    B) Misrepresenting pertinent facts or uninsured policy provisions relating to coerages at issue
    C) Refusing to pay claims without conducting a reasonable investigation based upon all available information
    D) Failing to honor an uncovered claim
    D) Failing to honor an uncovered claim
    (this multiple choice question has been scrambled)
  13. Although their liability is clear, B.B.S Insurance Company routinely delays all claims payments for 90 days, and in doing so:
    A) Avoids a lot of little nuisance claims
    B) Substantially eliminates fraudulent claims
    C) Avoids any acts of illegal discrimination between claimants
    D) Is guilty of an unfair claim settlement practice
    D) Is guilty of an unfair claim settlement practice
    (this multiple choice question has been scrambled)
  14. Which of the following would be considered unfair or deceptive acts by an adjuster:
    a) requesting that a first party claimant sign a release that extends beyond the subject matter which gave rise to the claim payment
    b) Advising the claimant that their rights may be impaired if a form or release is not completed within a specific period of time unless for the purpose of notification of statute of limitations
    c) Issuing a check or draft, in partial settlement of a loss or claim under specific coverage that contains language that releass the insurer or its insured from its total liability
    d) All of the above
    d) All of the above
  15. An act of terrorism must be "certified" to be such an act by:
    A) The House of representatives
    B) The Secretary of the Treasury
    C) The President
    D) the Senate
    B) The Secretary of the Treasury
    (this multiple choice question has been scrambled)
  16. All of the following events are considered acts of terrorism except:
    A) Acts committed by an individual(s) acting on behalf of and foreign person or interest
    B) Acts of riot and civil commotion
    C) Acts considered dangerous to human life, property or infrastructure
    D) Acts resulting in damage within or outside the US
    B) Acts of riot or civil commotion
    (this multiple choice question has been scrambled)
  17. In order to be certified as an act of terrorism under the Federal Terrorism Act, property and casualty loses must not exceed an aggregate of:
    A) $3,000,000
    B) $5,000,000
    C) $500,000
    D) $1,000,000
    B) $5,000,000
    (this multiple choice question has been scrambled)
  18. None of the following can be covered under the Federal Terrorism Act insurance program except:
    A) Most commercial property and casualty risks
    B) Health and life insurance policies
    C) Personal insurance policies
    D) Federal crop insurance
    A) Most commercial property and casualty risks
    (this multiple choice question has been scrambled)
  19. No act will be certified by the Secretary as an act of terorism under the Federal Terorism Act if:
    A) The act is one of terrorism defined by the Act
    B) The act is not committed as part of the course of war declared by Congress
    C) The losses that occur relate to commercial property risks
    D) The losses that occur relate to life insurance
    D) The losses that occur relate to life insurance
    (this multiple choice question has been scrambled)
  20. All of the following are considered acts of rebatin except:
    A) An agents sends holiday greeting cards to all the clients on his mailing list
    B) An agent provides an all-expenses paid cruises to a client and his wife in exchange for writing the coverage on his national chain of restaurants
    C) All of these situations are considered acts of rebating
    D) An adjuster receives a monthly check from an auto body repair shop for recommending the repair shop to clients who have a claim
    A) An agent sends holiday greeting cards to all the clients on his mailing list
    (this multiple choice question has been scrambled)

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