AU 60 - Chpt 2 Key Items Questions and
Answers Verified by Experts
All of the following are true regarding termination of insurance coverage, EXCEPT: It
can be done at any time without notice to the insured.
The Department of Insurance may order corrective actions, suspend, revoke, or impose fines if
they conduct a market examination of an insurer & find that they are violating
regulations/rules/state statutes/policy requirements
Justin is part of a team performing a market conduct examination of XYZ Insurance Company's
underwriting practices. He is reviewing the company's underwriting files. He verifies that each
policy application has been completed and signed by the applicant. In addition, which one of the
following should he also verify? Each file contains information supporting the risk
classification and premium rating.
During the course of an underwriting market conduct examination, examiners review A
statistically selected, random sample of policies.
, Which one of the following statements is correct with respect to market conduct examinations?
The Department of Insurance (DOI) may suspend or revoke the insurer's certificate of
authority if it finds that an insurer has violated a law.
During a general market conduct examination of underwriting, examiners would look for
evidence of all of the following, EXCEPT: Inconsistent claim practices
Which one of the following statements is correct with respect to market conduct examinations?
They protect both insurers and consumers from unfair insurer practices.
accurate distribution of costs is key to achieving equity among insureds, a goal of both
rate & UWing regulation
rate regulation seek to ensure that rate for each class are adequate, fair, and not excessive
if an insurer becomes insolvent(unable to meet its financial obligations as they become due)
consumers must absorb the resulting costs & can decrease consumer access to insurance
& an affect the rates consumers pay for insurance
Answers Verified by Experts
All of the following are true regarding termination of insurance coverage, EXCEPT: It
can be done at any time without notice to the insured.
The Department of Insurance may order corrective actions, suspend, revoke, or impose fines if
they conduct a market examination of an insurer & find that they are violating
regulations/rules/state statutes/policy requirements
Justin is part of a team performing a market conduct examination of XYZ Insurance Company's
underwriting practices. He is reviewing the company's underwriting files. He verifies that each
policy application has been completed and signed by the applicant. In addition, which one of the
following should he also verify? Each file contains information supporting the risk
classification and premium rating.
During the course of an underwriting market conduct examination, examiners review A
statistically selected, random sample of policies.
, Which one of the following statements is correct with respect to market conduct examinations?
The Department of Insurance (DOI) may suspend or revoke the insurer's certificate of
authority if it finds that an insurer has violated a law.
During a general market conduct examination of underwriting, examiners would look for
evidence of all of the following, EXCEPT: Inconsistent claim practices
Which one of the following statements is correct with respect to market conduct examinations?
They protect both insurers and consumers from unfair insurer practices.
accurate distribution of costs is key to achieving equity among insureds, a goal of both
rate & UWing regulation
rate regulation seek to ensure that rate for each class are adequate, fair, and not excessive
if an insurer becomes insolvent(unable to meet its financial obligations as they become due)
consumers must absorb the resulting costs & can decrease consumer access to insurance
& an affect the rates consumers pay for insurance
