Exam Fx Flashcards: Insurance Regulation/Laws questions with correct answers

To whom may a certificate of authority be issued? CORRECT ANSWER To an insurer authorized to transact business in this state Who must be a member of insurance guaranty associations? CORRECT ANSWER Any authorized insurer within a state If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer? CORRECT ANSWER Authorized or admitted What type of licensee represents the insured? CORRECT ANSWER broker An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of? CORRECT ANSWER Rebating What is the purpose of insurance guaranty associations CORRECT ANSWER To protect policyowners, insureds and beneficiaries from financial losses caused by insolvent insurers Who must be notified of a producers change of address CORRECT ANSWER The Department of Insurance (Commissioner/Director/Superintendent) In general, who can be excluded from producer licensing and examination requirements? CORRECT ANSWER Insurance company officers, directors, or any other employees who do not transact insurance