Property & Casualty Test (Indiana Section) Questions with Answers (All Answers Correct)

Insurance commissioner has the authority to..? - enforce state insurance laws Department of Insurance has the power to..? - Supervise the organization, regulation, examination, rehabilitation, liquidation and conservation of all insurance companies doing business in the state Insurance laws have been written to protect - the insuring public The commissioner has 3 main authorities - 1. Executive Authority 2. Legislative Authority 3. Judicial Authority Executive Authority - to enforce state laws Legislative Authority - to create Rules that explain or clarify laws Judicial Authority - to hold Administrative Hearings Who appoints the State Insurance Commissioner - state governor; can appoint and also fire How is commissioner selected? - Solely based off knowledge and skill in insurance; no regard to his/her political beliefs Commissioner must post bond, what amount? - $50,000; this is to insure that they will perform faithfully in his/her duties Commissioner authorized to join what group? - National Association of Insurance Commissioners (NAIC)Commissioner has 3 major responsibilities? - 1. Assuring that insurance Companies meet basic standards 2. Assuring applicants meet requirements to be licensed, and maintain there licenses 3. Assuring/Applicants, Producers and Companies adhere to both the producer Licensing Law/Unfair Competition Law Assuring that Companies Meet Basic Standards - When customers purchase insurance, they are purchasing a promise that their Insurance Company will pay for claims in future. Meaning they need to have strict financial standards in order to pay claims