Alabama P&C Insurance Exam (A+ GRADED)

Dishonesty correct answers Deceit, misrepresentation, untruthfulness, falsification Insurers correct answers insurance companies or carriers who manufacture and sell insurance coverage by way of policies or contracts. Insurance Agencies correct answers independent organizations that recruit, contract with, and support sales agents and producers insurance agents correct answers also known as producers.. licensed individuals representing an insurance company when transacting insurance Insured correct answers the person or entity that buys insurance for protection from loss of life, health, property, or liability. National Association of Insurance Commissioners (NAIC) correct answers consists of all State and territorial insurance commissioners or regulators. It provides resources, research, legislative and regulatory recommendations and interpretations for state insurance regulators. It also promotes uniformity among states. Members may accept or reject recommendations. The NAIC has no legal authority to enact or enforce insurance laws. Federal Insurance Office correct answers Established by the Dodd-Frank Wall Street Reform & Consumer Protection Act. They monitor the insurance industry & identifies issues & gaps in the state regulation of insurers. Also monitors affordable insurance by traditionally undeserved communities and consumers like minorities & low and moderate income persons. They are not regulators or supervisors. Insurance Regulation at the State Level correct answers The insurance industry is primarily regulated at the state level. The legislative branch writes and passes state insurance laws. The Judicial Branch interprets and determines the constitutionality of statues. The executive branch enforces the existing statutes in place. The Commissioner, Director, or Superintendent of Insurance is typically appointed by the Governor. The Commissioner has the power to issue rules & regulations to help enforce statutes. Insurance Regulation at the Federal Level correct answers In the aftermath of the Supreme Court decision in U.S. v. South-Eastern Underwriters (1944), the McCarran-Ferguson Act of 1945 established that the federal government will not regulate the business of insurance in areas which the states have historically had the authority to do so (such as producer and company licensing) unless the states fail to cooperate. Congress created federal agencies to provide regulatory oversight impacting insurance practices. Stock Insurance Company correct answers A type of insurance company owned by stockholders or share holders. Directors and officers direct the company operations and are elected by stock holders. Stock Holders receive taxable corporate dividends as a return of profit when declared by Directors. Dividends not guaranteed. Insure Non-participating policies traditionally.