Primerica Life Exam (State)| 86 questions| with complete solutions

The McCarran Act stated that the federal government would not regulate insurance as long as an adequate job of regulating the industry was done by the: a. Counties b. Federal Government c. Insurers in a state d. States correct answer: d. States The McCarran-Ferguson Act, passed by Congress in 1945, grants states the authority to regulate the business of insurance within their borders. The act provides that federal regulation of the insurance industry is appropriate only when the states do not adequately regulate the industry. So, the federal government would not regulate insurance as long as an adequate job of regulating the industry was done by the states. Circulating deceptive sales material to the public is what type of Unfair Trade Practice? a. False advertising b. Defamation c. Coercion d. Misrepresentation correct answer: a. False advertising Circulating deceptive sales material to the public falls under false advertising, which is a type of unfair trade practice. False advertising occurs when a company makes false or misleading claims about its products or services, with the intention of deceiving consumers into buying them. This can include making claims that are not supported by scientific evidence or using images or language that are designed to mislead or confuse consumers. False advertising is illegal and can result in fines or legal action against the company that engages in it. A "certification of license status" report can be run on any currently licensed New Jersey producer, but can only contain information on formal disciplinary actions taken within the past a. 7 years. b. 10 years. c. 6 months. d. 4 years. The answer is a. 7 years. According to the New Jersey Department of Banking and Insurance, a "certification of license status" report can be run on any currently licensed New Jersey producer, but can only contain information on formal disciplinary actions taken within the past 7 years. This means that any disciplinary actions taken against a producer that occurred more than 7 years ago would not be included in the report. Which of the following must an insurer obtain in order to transact insurance within a given state? a. Business entity license b. Insurer's license c. Certificate of authority d. Producer's certificate The answer is c. Certificate of authority. In order to transact insurance within a given state, an insurer must obtain a certificate of authority from the state's insurance department. This certificate of authority gives the insurer permission to conduct business within the state and ensures that the insurer is in compliance with all applicable state insurance laws and regulations. A business entity license, on the other hand, is typically required for any business operating within a given state, but it may not be specific to the insurance industry. An insurer's license may be required in some states, but it is not the same as a certificate of authority and may not be required in all states. A producer's certificate is a license for an individual insurance agent or broker to sell insurance, but it is not the same as a certificate of authority for an insurer to conduct business within a