Idaho Statutes, Rules, and Regulations
UPDATED ACTUAL Questions and
CORRECT Answers
What document is required for an insurance company to transact insurance? - CORRECT
ANSWER✔✔- Certificate Authority
Who owns stock companies? - CORRECT ANSWER✔✔- stockholders
What are producers required to do in order to renew their license? - CORRECT
ANSWER✔✔- Complete continuing education hours and pay a renewal fee
What is the purpose of a cease and desist order? - CORRECT ANSWER✔✔- To prevent a
producer or insurer from further violating laws for transacting insurance
On its advertisement, a company claims that it has funds in its position that are, in fact, not
available for the payment of losses or claims. What is the company guilty of? - CORRECT
ANSWER✔✔- Misrepresentation
What are the most common penalties for violations of insurance statutes? - CORRECT
ANSWER✔✔- A cease and desist order, a fine, and license suspension or revocation
Who is responsible for the costs associated with the examination of insurers? - CORRECT
ANSWER✔✔- The insurer who is being examined
If the commissioner finds a licensee engaging in an unfair method of competition, or an
unfair practice, what order will be used? - CORRECT ANSWER✔✔- Cease and desist order
A state-issued document empowering an insurance company to become an admitted insurer is
called what? - CORRECT ANSWER✔✔- Certificate Authority
When can the commissioner or Director examine insurers? - CORRECT ANSWER✔✔-
Whenever deemed necessary, but at least once every 5 years
UPDATED ACTUAL Questions and
CORRECT Answers
What document is required for an insurance company to transact insurance? - CORRECT
ANSWER✔✔- Certificate Authority
Who owns stock companies? - CORRECT ANSWER✔✔- stockholders
What are producers required to do in order to renew their license? - CORRECT
ANSWER✔✔- Complete continuing education hours and pay a renewal fee
What is the purpose of a cease and desist order? - CORRECT ANSWER✔✔- To prevent a
producer or insurer from further violating laws for transacting insurance
On its advertisement, a company claims that it has funds in its position that are, in fact, not
available for the payment of losses or claims. What is the company guilty of? - CORRECT
ANSWER✔✔- Misrepresentation
What are the most common penalties for violations of insurance statutes? - CORRECT
ANSWER✔✔- A cease and desist order, a fine, and license suspension or revocation
Who is responsible for the costs associated with the examination of insurers? - CORRECT
ANSWER✔✔- The insurer who is being examined
If the commissioner finds a licensee engaging in an unfair method of competition, or an
unfair practice, what order will be used? - CORRECT ANSWER✔✔- Cease and desist order
A state-issued document empowering an insurance company to become an admitted insurer is
called what? - CORRECT ANSWER✔✔- Certificate Authority
When can the commissioner or Director examine insurers? - CORRECT ANSWER✔✔-
Whenever deemed necessary, but at least once every 5 years
