Washington Life And Disability Insurance Quiz
- 1.
What is the Fair Credit Reporting Act Purpose?
- A.
A. Establishes Procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant and properly used.
- B.
B. Protects consumers against the circulation of inaccurate/obsolete personal/financial information.
- C.
C. Protects against discrimination
- D.
D. Both A and B are correct.
Correct Answer
D. D. Both A and B are correct.Explanation
The Fair Credit Reporting Act (FCRA) serves the purpose of establishing procedures that consumer-reporting agencies must follow to ensure the confidentiality, accuracy, relevance, and proper use of records. It also aims to protect consumers from the circulation of inaccurate or obsolete personal and financial information. Therefore, both options A and B are correct as they accurately describe the purpose of the FCRA.Rate this question:
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- 2.
Reports fall into what categories?
- A.
A. Consumer Reports
- B.
B. MIB Reports
- C.
C. Investigative Consumer Reports
- D.
D. Both A and C
Correct Answer
D. D. Both A and CExplanation
Consumer reports and investigative consumer reports are two categories of reports. Consumer reports provide information about products and services to help consumers make informed decisions. Investigative consumer reports, on the other hand, are more in-depth and typically involve background checks or investigations into an individual's character, reputation, or personal habits. Therefore, the correct answer is D, as both consumer reports and investigative consumer reports fall into the categories mentioned.Rate this question:
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- 3.
Consumer Reports include:
- A.
A. Written or oral information regarding consumer's health, hobbies and job.
- B.
B. Written or oral information regarding consumer's past medical history.
- C.
C. Written or oral information regarding consumer's credit, character, reputation and habits.
- D.
D. Written or oral information regarding consumer's employment history.
Correct Answer
C. C. Written or oral information regarding consumer's credit, character, reputation and habits.Explanation
Consumer Reports include written or oral information regarding the consumer's credit, character, reputation, and habits. This information is gathered and compiled by various organizations and companies to assess the consumer's suitability for credit, employment, or other purposes. It helps businesses make informed decisions about whether to extend credit, offer employment, or enter into a business relationship with the consumer. This information is important for evaluating the consumer's financial responsibility, trustworthiness, and overall reliability.Rate this question:
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- 4.
Investigative Consumer Reports:
- A.
A. Information obtained through the MIB
- B.
B. Information obtained through an investigation and interviews with associates, friends, neighbors and neighbors.
- C.
C. Reports cannot be made unless the consumer is advised in writing about the the report within 3 days of the date the report was requested.
- D.
D. Both options B and C.
Correct Answer
D. D. Both options B and C.Explanation
Option B states that investigative consumer reports involve obtaining information through investigations and interviews with various individuals. Option C states that the consumer must be informed in writing about the report within 3 days of the request. The correct answer, D, states that both options B and C are true. This means that investigative consumer reports do involve investigations and interviews, and the consumer must be notified in writing about the report within 3 days.Rate this question:
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- 5.
Someone unknowingly violating the Fair Credit Reporting Act (FCRA) is liable for?
- A.
A. Any lawsuits brought upon the insurance company
- B.
B. For equal loss and attorney fees
- C.
C. Lawsuit fees against the insured
- D.
D.
Correct Answer
B. B. For equal loss and attorney feesExplanation
If someone unknowingly violates the Fair Credit Reporting Act (FCRA), they are liable for equal loss and attorney fees. This means that they would be responsible for compensating the injured party for any financial losses they suffered as a result of the violation, as well as covering the attorney fees incurred in pursuing legal action. This is a fair and just consequence for violating the FCRA, as it ensures that those who are harmed by the violation are properly compensated and have access to legal representation.Rate this question:
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- 6.
Knowingly obtaining information information on a consumer from a Consumer Reporting Agency under false pretenses you may...
- A.
A. Be fined up to $2,500
- B.
B. Be fined, $1,000 and imprisoned for 2 years.
- C.
C. Be imprisoned up to 2 years.
- D.
D. Be fined $2,500 and imprisoned for up to 2 years.
Correct Answer
C. C. Be imprisoned up to 2 years.Explanation
Knowingly obtaining information on a consumer from a Consumer Reporting Agency under false pretenses is a violation of the Fair Credit Reporting Act (FCRA). The FCRA provides for criminal penalties for such actions, including imprisonment. Therefore, the correct answer is C, which states that you may be imprisoned up to 2 years for this offense.Rate this question:
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- 7.
Under FCRA if a policy is declined or modified because of the information obtained in a consumer or investigative consumer report, the consumer must:
- A.
A. Be notified within 30 days
- B.
B. Be notified immediately
- C.
C. Both A and D
- D.
D. Be notified and provided with the name and address of the reporting agency.
Correct Answer
D. D. Be notified and provided with the name and address of the reporting agency.Explanation
Under FCRA, if a policy is declined or modified due to information obtained in a consumer or investigative consumer report, the consumer must be notified and provided with the name and address of the reporting agency. This ensures that the consumer is aware of the reasons for the decision and has the opportunity to address any inaccuracies or disputes with the reporting agency. Immediate notification is not required, but the consumer must be notified within a reasonable timeframe, which is typically within 30 days. Therefore, the correct answer is D.Rate this question:
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- 8.
Consumer reports cannot contain:
- A.
A. Medical history and criminal records
- B.
B. Bankruptcies more than 10 years old, civil suits, records of arrests, convictions of crimes.
- C.
Negative information (delinquencies, late payments, insolvency, or any other form of default).
- D.
D. Both options B and C
Correct Answer
D. D. Both options B and CExplanation
Consumer reports cannot contain bankruptcies more than 10 years old, civil suits, records of arrests, convictions of crimes, negative information such as delinquencies, late payments, insolvency, or any other form of default. Therefore, the correct answer is D. Both options B and C.Rate this question:
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- 9.
Anyone engaged in the business of insurance whose activities affect interstate commerce and who knowingly makes false material statements may be:
- A.
A. Fined or imprisoned
- B.
B. Fined or imprisoned for up to 5 years
- C.
C. Fined or imprisoned for up to 10 years, or both.
- D.
D. Imprisoned for up to 15 years.
Correct Answer
C. C. Fined or imprisoned for up to 10 years, or both.Explanation
The question states that anyone engaged in the business of insurance who knowingly makes false material statements may be subject to certain consequences. Option C states that the person may be fined or imprisoned for up to 10 years, or both. This means that if someone in the insurance business is found guilty of making false material statements, they can face a maximum punishment of a fine, imprisonment for up to 10 years, or both.Rate this question:
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- 10.
If activity jeopardizes insurer, the punishment can be up to?
- A.
A. 7 years
- B.
B. 10 years
- C.
C. 5 years
- D.
D. 15 years
Correct Answer
D. D. 15 yearsExplanation
If an activity jeopardizes an insurer, the punishment can be up to 15 years.Rate this question:
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- 11.
If embezzlement is less than $5,000 prison time may be reduced to...
- A.
A. 5 years
- B.
B. 1 year
- C.
C. 2 years
- D.
D. 3 years
Correct Answer
B. B. 1 yearExplanation
If the amount of embezzlement is less than $5,000, the prison time may be reduced to 1 year.Rate this question:
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- 12.
Federal law makes it illegal for any individual convicted of a crime involving dishonesty, breach of trust or a violation of the violent crime control and law enforcement act of 1994 to work in the business of insurance affecting interstate commerce without receiving a letter of consent from an insurance regulatory official, this is...
- A.
A. Title 18
- B.
B. Title 48
- C.
C.1033 Waiver
- D.
D. Section 1034
Correct Answer
C. C.1033 WaiverExplanation
The correct answer is C.1033 Waiver. This is because the given statement mentions that individuals convicted of certain crimes cannot work in the insurance business without a letter of consent from an insurance regulatory official. This requirement is known as a 1033 Waiver. It is a provision in the Violent Crime Control and Law Enforcement Act of 1994, which prohibits individuals with certain criminal convictions from working in the insurance industry without obtaining this waiver.Rate this question:
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- 13.
A 1033 Waiver...
- A.
A. the consent of the official must specify that it is granted for the purpose of 18 U.S.C. 1033
- B.
B. Civil penalties and injunctions for violations of section 1034.
- C.
C. Civil action in the appropriate U.S. district court against any person who engages in conduct that is in violation
- D.
D.
Correct Answer
A. A. the consent of the official must specify that it is granted for the purpose of 18 U.S.C. 1033Explanation
The correct answer is A because it states that the consent of the official must specify that it is granted for the purpose of 18 U.S.C. 1033. This means that in order for a waiver to be valid, the official granting the waiver must explicitly state that it is being granted for the specific purpose outlined in 18 U.S.C. 1033. This ensures that the waiver is not being granted for any other reason or purpose.Rate this question:
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- 14.
Section 1034...
- A.
A. States that the Attorney General may bring a civil action in the appropriate U.S. district court against any person who engages in conduct that is in violation of Section 1033 of not more than $50,000 for each violation, or the amount of compensation the person received as a result of the prohibited conduct, whichever is greater.
- B.
B. Civil Penalties and injunctions for violations of section 1033
- C.
C. Options both A and B
- D.
D. There is no Section 1034
Correct Answer
C. C. Options both A and BExplanation
The correct answer is C because it states that the Attorney General may bring a civil action in the appropriate U.S. district court against any person who engages in conduct that is in violation of Section 1033, and it also mentions civil penalties and injunctions for violations of Section 1033. Therefore, both options A and B are correct.Rate this question:
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- 15.
What is the Code of Washington?
- A.
A. Title 48
- B.
B. Title 248
- C.
C. Title 50
- D.
D. Title 68
Correct Answer
A. A. Title 48Explanation
The Code of Washington refers to the compilation of all the laws and regulations in the state of Washington. It is organized into various titles, with each title covering a specific area of law. The correct answer, A. Title 48, suggests that Title 48 of the Code of Washington contains the relevant laws and regulations for the state.Rate this question:
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- 16.
What is the Washington Administrative Code (WAC)?
- A.
A. Title 68
- B.
B. Title 48
- C.
C. Title 50
- D.
D. Title 284
Correct Answer
D. D. Title 284Explanation
The Washington Administrative Code (WAC) is a set of regulations and rules that govern the operations and procedures of various agencies and departments in the state of Washington. It covers a wide range of topics including licensing, permits, safety standards, and administrative procedures. Title 284 specifically pertains to the Office of the Insurance Commissioner, which regulates insurance companies and insurance-related activities in Washington state.Rate this question:
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- 17.
How long is the Commissioner's term in Washington?
- A.
A. 2 years
- B.
B. 4 years
- C.
C. 5 years
- D.
D. 6 years
Correct Answer
B. B. 4 yearsExplanation
The correct answer is B. 4 years. This means that the Commissioner's term in Washington lasts for a period of four years.Rate this question:
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- 18.
Commissioner's main duties are?
- A.
A. To regulate insurance companies
- B.
B. To solicit insurance
- C.
C. Issue cease and desist orders
- D.
D. Administration and enforcement of the rules of the Insurance Code.
Correct Answer
D. D. Administration and enforcement of the rules of the Insurance Code.Explanation
The main duties of a Commissioner are to administer and enforce the rules of the Insurance Code. This involves ensuring that insurance companies comply with regulations, investigating complaints, and taking appropriate enforcement actions when necessary. The Commissioner is responsible for overseeing the insurance industry and protecting the interests of policyholders.Rate this question:
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- 19.
Title 48 is the Washington Insurance Code and it...
- A.
A. Protects insurance companies
- B.
B. Protects the Department of Health
- C.
C. Protects the public
- D.
D. Both A and C
- E.
E. All of the above
Correct Answer
C. C. Protects the publicExplanation
Title 48, which is the Washington Insurance Code, is designed to protect the public. This means that it contains laws and regulations that aim to ensure fair and ethical practices in the insurance industry, protect consumers from fraud or unfair treatment by insurance companies, and promote transparency and accountability. The code likely includes provisions related to licensing and regulation of insurance companies, consumer rights and protections, dispute resolution mechanisms, and other measures that prioritize the interests and well-being of the public.Rate this question:
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- 20.
General powers, duties and responsibilities include:
- A.
A. Follow rules and regulations to enforce provisions of the Insurance Code.
- B.
B. Conduct Examinations, investigations and hearings to determine if anyone has violated any provisions of the Insurance Code.
- C.
C. Maintain confidentiality of documents, materials, or other information used in regulatory or legal action.
- D.
D. Issue cease and desist order if any one is believed to have violated rules.
- E.
E. Issue insurance licenses or certificates of authority, and take action against, fine, or suspend the license of any company and or producers.
- F.
F. Spread information concerning insurance laws of Washington and provide assistance to the public in obtaining information about insurance products.
- G.
G. Appoint a Chief Deputy Commissioner (assists the Commissioner) and other deputies
- H.
H. Answers A, C, and D
- I.
I. All of the above
Correct Answer
I. I. All of the aboveExplanation
The correct answer is I. All of the above. This is because all of the options listed (A-H) are general powers, duties, and responsibilities that are typically associated with the role of a commissioner in enforcing the provisions of the Insurance Code. These include following rules and regulations, conducting examinations and investigations, maintaining confidentiality, issuing cease and desist orders, issuing licenses or certificates of authority, spreading information about insurance laws, and appointing deputies.Rate this question:
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- 21.
The purpose of examination ensures...
- A.
A. companies remain solvent and conduct business of insurance in compliance with state laws or regulations in regards to licensing, policy forms, rates, claims and market conduct.
- B.
B. accounts or transactions records are kept accordingly
- C.
C. Both A and B
- D.
D. None of the above
Correct Answer
A. A. companies remain solvent and conduct business of insurance in compliance with state laws or regulations in regards to licensing, policy forms, rates, claims and market conduct.Explanation
The purpose of examination ensures that companies remain solvent and conduct business of insurance in compliance with state laws or regulations. This includes licensing, policy forms, rates, claims, and market conduct. The examination process helps to ensure that insurance companies are operating within the legal framework and are financially stable to meet their obligations to policyholders. It also helps to protect consumers by ensuring fair and ethical practices in the insurance industry.Rate this question:
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- 22.
At least every 5 years the Commissioner may...
- A.
A. Examine Aliens insurers
- B.
B. Examine Public records
- C.
C. Examine accounts or transaction records and documents of all authorized insurers, rating organizations, joint underwriting association, and any insurance producer.
- D.
D. All of the above
Correct Answer
C. C. Examine accounts or transaction records and documents of all authorized insurers, rating organizations, joint underwriting association, and any insurance producer.Explanation
The correct answer is C. This is because the question asks what the Commissioner may examine, and option C states that the Commissioner may examine accounts or transaction records and documents of all authorized insurers, rating organizations, joint underwriting association, and any insurance producer. Options A and B are incorrect because they do not cover all the entities mentioned in option C. Therefore, option C is the most comprehensive and accurate answer.Rate this question:
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- 23.
Examination of an Alien insurer may be...
- A.
A. limited to its amount of insurance
- B.
B. limited to the amount of insureds
- C.
C. Both A and D
- D.
D. limited to its transactions in the U.S.
Correct Answer
D. D. limited to its transactions in the U.S.Explanation
The correct answer is D. limited to its transactions in the U.S. When examining an Alien insurer, the scope of the examination is restricted to its transactions within the United States. This means that the examination focuses only on the insurer's activities, operations, and financial transactions that occur within the U.S. It does not extend to the amount of insurance provided, the number of insureds, or any other factors unrelated to the insurer's U.S. transactions.Rate this question:
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- 24.
The Commissioner may rely on an audit report from an...
- A.
A. Investigative Consumer Agency
- B.
B. Independent certified public accountant
- C.
C. The IRS
- D.
D. Both B and C
Correct Answer
B. B. Independent certified public accountantExplanation
The correct answer is B. Independent certified public accountant. The Commissioner may rely on an audit report from an independent certified public accountant because they are qualified professionals who have the expertise to conduct a thorough and unbiased audit. Their independence ensures that their findings and conclusions are objective and reliable. The audit report from an independent certified public accountant can provide valuable insights and recommendations to the Commissioner, helping them make informed decisions based on accurate financial information.Rate this question:
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- 25.
State Administrative Code makes the procedures that the...
- A.
A. office of the Insurance Commissioner must follow to provide the public with information regarding insurance
- B.
B. office of the Insurance Commissioner must follow to provide the public with access to information of general accounts
- C.
C. office of the Insurance Commissioner must follow to provide the public with full access to public records.
- D.
D. All of the above
Correct Answer
C. C. office of the Insurance Commissioner must follow to provide the public with full access to public records.Explanation
The State Administrative Code outlines the procedures that the office of the Insurance Commissioner must follow. This includes providing the public with full access to public records. This means that any information that is considered a public record should be made available to the public. Therefore, option C is the correct answer as it accurately reflects the requirement for the office of the Insurance Commissioner to provide full access to public records.Rate this question:
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- 26.
Anyone wanting to inspect records must...
- A.
A.Write a request to the Commissioner
- B.
B. Contact the Insurance Commissioner
- C.
C. Both A and D
- D.
D. Make a written request and an approved form
Correct Answer
D. D. Make a written request and an approved formExplanation
To inspect records, an individual must make a written request and use an approved form. This implies that simply writing a request to the Commissioner (option A) or contacting the Insurance Commissioner (option B) is not sufficient. Both a written request and an approved form are required to gain access to the records. Therefore, option D is the correct answer.Rate this question:
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- 27.
If the Commissioner suspects an insurer and or its agent has committed a violation or is engaged in an unfair trade practice, the Commissioner may...
- A.
A. Issue penalties for each violation
- B.
Fine both the insurance company and the agent each $1,000 for each individual violation
- C.
C. Issue a statement of charges and hold a hearing for any purpose deemed necessary (within the Insurance Code)
- D.
D. All of the above
Correct Answer
C. C. Issue a statement of charges and hold a hearing for any purpose deemed necessary (within the Insurance Code)Explanation
If the Commissioner suspects an insurer and/or its agent has committed a violation or is engaged in an unfair trade practice, the Commissioner may issue a statement of charges and hold a hearing for any purpose deemed necessary within the Insurance Code. This means that the Commissioner has the authority to formally charge the insurer and/or agent with the alleged violations and conduct a hearing to gather evidence and determine the appropriate course of action. This allows for a fair and transparent process to address potential violations and ensure compliance with the Insurance Code.Rate this question:
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- 28.
A Licensee may request to have a ____ present at a hearing
- A.
A. a Lawyer
- B.
B. A jury
- C.
C. The Commissioner
- D.
D. Administrative law judge
Correct Answer
D. D. Administrative law judgeExplanation
A licensee may request to have an Administrative law judge present at a hearing. This is because an Administrative law judge is a neutral and independent decision-maker who presides over administrative hearings and has the authority to make rulings and decisions on the case. They ensure that the hearing is conducted fairly and in accordance with the law, and they have the expertise and knowledge in the specific area of law relevant to the case. Therefore, having an Administrative law judge present at a hearing helps to ensure a fair and impartial process.Rate this question:
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- 29.
Any licensee has ____ to respond to Commissioner's written request and to request a hearing/
- A.
A. 75 days
- B.
B. 15 days
- C.
C. 90 days
- D.
D. 10 days
Correct Answer
C. C. 90 daysExplanation
Any licensee has 90 days to respond to the Commissioner's written request and to request a hearing. This means that the licensee has a generous amount of time to provide a response or request a hearing in regards to the Commissioner's request.Rate this question:
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- 30.
A person with a temporary or suspended license may request to have a hearing and the Commissioner must have a hearing within ___ days, or within ____ days of the effective date of temporary license suspension issued after such demand, unless postponed by mutual consent
- A.
A. 15 days and 10 days
- B.
B. 30 days and 30 days
- C.
C. 30 days and 15 days
- D.
D. 10 days and 15 days
Correct Answer
B. B. 30 days and 30 daysExplanation
A person with a temporary or suspended license may request to have a hearing and the Commissioner must have a hearing within 30 days, or within 30 days of the effective date of temporary license suspension issued after such demand, unless postponed by mutual consent.Rate this question:
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- 31.
Any insurance policy form or written application issued, delivered or used in Washington must be first...
- A.
A. filed with and approved by the Commissioner
- B.
B. Filed by the Commissioner
- C.
C. Approved by the Commissioner
- D.
D. None of the Above
Correct Answer
A. A. filed with and approved by the CommissionerExplanation
In Washington, any insurance policy form or written application must go through a process of being filed with and approved by the Commissioner. This means that before an insurance policy can be issued, delivered, or used in Washington, it must first be submitted to the Commissioner for review and approval. This ensures that the policy meets all the necessary legal requirements and provides adequate coverage for policyholders. The Commissioner's approval is necessary to protect the interests of consumers and maintain the integrity of the insurance industry in the state.Rate this question:
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- 32.
Every filing containing a certificate by the Chief Executive Officer (CEO) of the Insurer, attesting that the filing complies with the Washington Administrative Code (WAC), may be used ____ after the filing.
- A.
A. 15 days
- B.
B. 30 days
- C.
C. 10 days
- D.
D. immediately
Correct Answer
D. D. immediatelyExplanation
The correct answer is D. immediately. This means that once a filing contains a certificate by the CEO of the Insurer, attesting that the filing complies with the Washington Administrative Code (WAC), it can be used right away without any delay.Rate this question:
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- 33.
Any other filing must be made ___ days in advance of issuance, delivery or use.
- A.
A. 5
- B.
B. 30
- C.
C. 15
- D.
D. 10
Correct Answer
B. B. 30Explanation
Any other filing must be made 30 days in advance of issuance, delivery or use. This means that if someone wants to make a filing, they must do so at least 30 days before the intended date of issuance, delivery, or use. This allows for sufficient time for any necessary preparations or reviews to be conducted before the filing is finalized.Rate this question:
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- 34.
At the end of 30 days the form is approved unless...
- A.
A. the Commissioner denies the form
- B.
B. Both A and C
- C.
C. disapproved by prior order of the Commissioner
- D.
C. Is not filed within the time limit
Correct Answer
A. A. the Commissioner denies the formExplanation
The correct answer is A. the Commissioner denies the form. This means that if the Commissioner does not deny the form within 30 days, it is automatically approved. The other options (B, C, and D) are not relevant because they do not involve the Commissioner's decision to deny the form.Rate this question:
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- 35.
Commissioner may extend the approval period for forms by a maximum of ____ days, if notice of extension is given before expiration of 30 days.
- A.
A. 30 days
- B.
B. 10 days
- C.
C. 15 days
- D.
D. 31 days
Correct Answer
C. C. 15 daysExplanation
The commissioner has the authority to extend the approval period for forms by a maximum of 15 days if the notice of extension is given before the expiration of 30 days. This means that if the commissioner decides to extend the approval period, it can be extended for up to 15 additional days, but the notice of extension must be provided before the initial 30-day period expires.Rate this question:
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- 36.
If extension period is over and notice of disapproval is not given, the form is deemed to be
- A.
A. Approved
- B.
B. Disapproved
Correct Answer
A. A. ApprovedExplanation
If the extension period is over and there is no notice of disapproval given, it means that the form has not been rejected. Therefore, it is deemed to be approved.Rate this question:
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- 37.
Commissioner can withdraw approval at...
- A.
A. 10 days
- B.
B. anytime
- C.
C. 15 days
- D.
D. None of the above
Correct Answer
B. B. anytimeExplanation
The correct answer is B. anytime. This means that the Commissioner has the authority to withdraw approval at any given time, without any specific time frame or restrictions. This implies that the Commissioner has full discretion and can revoke the approval whenever they deem it necessary or appropriate, without being bound by any specific timeline or conditions.Rate this question:
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- 38.
Every Insurer or Rating organization must file with the Commissioner every...
- A.
A. Policy, Provision and RidersÂ
- B.
B. Classification manual, manual of rules and rates, rating plan, and rating schedule
- C.
C. Both A and D
- D.
D. Minimum rate, class rate, rating rule, and any rate modification, and must indicate the type of coverage, and have sufficient information.
Correct Answer
C. C. Both A and DExplanation
The correct answer is C. Both A and D. This is because every insurer or rating organization must file with the Commissioner every policy, provision, and rider, as well as the minimum rate, class rate, rating rule, and any rate modification. They must also indicate the type of coverage and provide sufficient information. Therefore, both options A and D are correct in this context.Rate this question:
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- 39.
An insurer or rating organization must offer support of any filing:
- A.
A. An exhibit detailing the major elements of operating expense for the types of insurance affecting by the filing.
- B.
B. Experience of insurer or rating organization making the filing
- C.
C. Explanation on how investment income has been taken into account in the proposed rates
- D.
D. Any other information that the insurer or rating organization deems relevant.
- E.
E. Both A and C
- F.
F. All of the above
Correct Answer
F. F. All of the aboveExplanation
The correct answer is F. All of the above. This means that an insurer or rating organization must offer support for any filing by providing an exhibit detailing the major elements of operating expense for the types of insurance affected by the filing, presenting the experience of the insurer or rating organization making the filing, explaining how investment income has been taken into account in the proposed rates, and providing any other information that the insurer or rating organization deems relevant.Rate this question:
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- 40.
The Commissioner may suspend, revoke, or refuse to issue or renew a producer license; as well as fine for violations in any of the following areas:
- A.
A. Laws, rules or regulations of the Insurance Code
- B.
B. Licensing laws, producer's fiduciary responsibility, and unfair trade practices
- C.
C. Embezzelment
- D.
D. Both A and B
Correct Answer
A. A. Laws, rules or regulations of the Insurance CodeExplanation
The correct answer is A. Laws, rules or regulations of the Insurance Code. This is because the Commissioner has the authority to take disciplinary actions such as suspending, revoking, or refusing to issue or renew a producer license if the producer violates the laws, rules, or regulations outlined in the Insurance Code. This includes any violations related to insurance practices, licensing requirements, fiduciary responsibilities, and unfair trade practices.Rate this question:
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- 41.
An insurance contract is...
- A.
A. An agreement between the insurance company and insured
- B.
B. An agreement between the policyowner and the insured
- C.
C. An agreement between the policyowner and an insurer
- D.
D. None of the above
Correct Answer
C. C. An agreement between the policyowner and an insurerExplanation
An insurance contract is an agreement between the policyowner and an insurer. The policyowner is the person who owns the insurance policy, while the insurer is the company that provides the insurance coverage. This agreement outlines the terms and conditions of the insurance policy, including the coverage provided, the premium to be paid, and any exclusions or limitations. The insurer agrees to provide the specified coverage in exchange for the policyowner paying the premium.Rate this question:
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- 42.
The insurer agrees for a ___, to compensate for ___of the insured by specific events.
- A.
A. license, peril
- B.
B. payment, loss
- C.
C. Both A and B
- D.
D. None of the above
Correct Answer
B. B. payment, lossExplanation
The correct answer is B. payment, loss. In insurance, the insurer agrees to make a payment to the insured in the event of a loss. This payment is meant to compensate for the financial impact of the loss experienced by the insured. Therefore, the agreement between the insurer and insured involves a payment being made by the insurer to cover the loss suffered by the insured.Rate this question:
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- 43.
In Washington state any of the following is considered transacting insurance:
- A.
A.Fiduciary Responsibility, and insuring of a contract
- B.
B.Solicitation, Negotiations preliminary to execution, and put into effect of an insurance contract
- C.
C. Transaction of a contract under consideration, to the execution of the contract, and insuring
- D.
D. Both B and C
Correct Answer
D. D. Both B and CExplanation
The correct answer is D. Both B and C. This means that in Washington state, transacting insurance includes both the solicitation, negotiations preliminary to execution, and putting into effect of an insurance contract (option B), as well as the transaction of a contract under consideration, to the execution of the contract, and insuring (option C). In other words, any activities related to the sale and execution of an insurance contract fall under the definition of transacting insurance in Washington state.Rate this question:
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- 44.
Any person or company engaged as the main party in the business of entering into the insurance contracts is?
- A.
A. The policyowner
- B.
B. The Insured
- C.
C. The beneficiary
- D.
D. The Insurer
Correct Answer
D. D. The InsurerExplanation
The correct answer is D. The Insurer. The insurer is the main party engaged in the business of entering into insurance contracts. They are responsible for providing insurance coverage and assuming the financial risk associated with the policy. The insurer collects premiums from policyholders and pays out claims when necessary.Rate this question:
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- 45.
Domestic mutual insurers must be owned by and operated in the interest of?
- A.
A. Their insurance producers
- B.
B. Their members
- C.
C. Their employees
- D.
D. None of the above
Correct Answer
B. B. Their membersExplanation
Domestic mutual insurers are required to be owned by and operated in the interest of their members. This means that the policyholders of the mutual insurer are also the owners of the company. The company's profits are distributed among the policyholders in the form of dividends or reduced premiums. This ownership structure ensures that the company's operations and decision-making are aligned with the best interests of its members, rather than external stakeholders such as insurance producers or employees.Rate this question:
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- 46.
Types of licenses include?
- A.
A. Life and Health
- B.
B. Property and Casualty
- C.
C. Individual and Group
- D.
D. Individual and Temporary
Correct Answer
D. D. Individual and TemporaryExplanation
The question asks for types of licenses, and the correct answer is "D. Individual and Temporary." This suggests that there are different types of licenses, and two of them are individual and temporary licenses.Rate this question:
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- 47.
Individual licenses are:
- A.
A. Foreign and Domestic
- B.
B. Valid for 180 days
- C.
C. Resident and nonresident
- D.
D. Commercial and noncommercial
Correct Answer
C. C. Resident and nonresidentExplanation
Individual licenses are categorized as either resident or nonresident. A resident license is issued to individuals who are permanent residents of a particular state or country. On the other hand, a nonresident license is issued to individuals who reside outside of the state or country but still require a license to operate in that specific jurisdiction.Rate this question:
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- 48.
A temporary license is?
- A.
A. Valid for 15 days; issued to maintain the existing business
- B.
B. Valid for 180 days; issued to maintain the existing business
- C.
C. Valid for 90 days; issued to maintain the existing business
- D.
D. Valid for 75 days; issued to maintain the existing business
Correct Answer
B. B. Valid for 180 days; issued to maintain the existing businessExplanation
A temporary license is valid for 180 days and is issued to maintain the existing business.Rate this question:
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- 49.
License must be renewed every?
- A.
A. 1 year
- B.
B. 2 years
- C.
C. 3 years
- D.
D. 5 years
Correct Answer
B. B. 2 yearsExplanation
A license must be renewed every 2 years. This means that after 2 years, the license holder needs to go through the renewal process to ensure that they are still eligible and meet the requirements for holding the license. This renewal process helps to ensure that license holders are up to date with any changes or updates in regulations, laws, or qualifications that may affect their ability to hold the license. Renewing the license every 2 years also helps to maintain the integrity and validity of the license.Rate this question:
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- 50.
Continuing education (CE) must be complete every?
- A.
A. Reporting period
- B.
B. 2 years
- C.
C. 5 years
- D.
D. Licensing period
Correct Answer
A. A. Reporting periodExplanation
Continuing education (CE) must be completed every reporting period. This means that individuals who are required to complete CE must do so within the designated time frame set by their respective licensing or regulatory bodies. The reporting period could vary depending on the specific profession or industry, but it typically refers to a specific time period during which CE credits must be earned and reported. It is important for professionals to stay updated and maintain their knowledge and skills through regular CE activities to ensure they are providing the best possible service to their clients or patients.Rate this question:
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Jan 30, 2023Quiz Edited by
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Mar 01, 2020Quiz Created by
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