EXAMFX Regulation and Ethics 2

Question 1

An insurance producer who knowingly submits a false claim on behalf of a client is guilty of:

Accepted Answer

Insurance fraud

Answer

Misrepresentation

Answer

Churning

Answer

Rebating

Question 2

Which of the following best describes the concept of 'twisting' in insurance?

Accepted Answer

Selling a policy to replace a competitor's policy using misrepresentation

Answer

Recommending the same carrier to multiple clients

Answer

Charging a higher premium than the filed rate

Answer

Replacing an outdated policy with a newer, better policy

Question 3

A producer's license can be suspended without a prior hearing in cases involving:

Accepted Answer

Immediate public harm or a court order

Answer

A single consumer complaint

Answer

Failure to meet continuing education requirements

Answer

A minor administrative violation

Question 4

Which regulatory body sets minimum standards for insurance policy provisions at the national level by drafting model laws?

Accepted Answer

National Association of Insurance Commissioners (NAIC)

Answer

Federal Insurance Office (FIO)

Answer

Securities and Exchange Commission (SEC)

Answer

Department of Labor (DOL)

Question 5

An applicant gives a producer a cash premium payment. The producer is required to:

Accepted Answer

Issue a written receipt and remit funds to the insurer promptly

Answer

Deposit the funds into a personal account temporarily

Answer

Hold the funds until the policy is approved

Answer

Return the cash and require a check or card payment

Question 6

Which of the following situations constitutes a conflict of interest for an insurance producer?

Accepted Answer

Recommending a policy that pays a higher commission over one that better fits the client's needs

Answer

Representing multiple insurers in different product lines

Answer

Disclosing compensation arrangements to a client

Answer

Completing annual continuing education requirements

Question 7

Under most state insurance laws, how long does an insurer typically have to investigate and respond to a claim after receiving proof of loss?

Accepted Answer

30 days

Answer

10 business days

Answer

60 days

Answer

90 days