Property & Casualty Test (Indiana Section) questions with correct answers
Insurance commissioner has the authority to..? CORRECT ANSWER enforce state
insurance laws
Department of Insurance has the power to..? CORRECT ANSWER 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 CORRECT ANSWER the insuring public
The commissioner has 3 main authorities CORRECT ANSWER 1. Executive Authority
2. Legislative Authority 3. Judicial Authority
Executive Authority CORRECT ANSWER to enforce state laws
Legislative Authority CORRECT ANSWER to create Rules that explain or clarify laws
Judicial Authority CORRECT ANSWER to hold Administrative Hearings
Who appoints the State Insurance Commissioner CORRECT ANSWER state governor; can appoint and also fire How is commissioner selected? CORRECT ANSWER Solely based off knowledge
and skill in insurance; no regard to his/her political beliefs
Commissioner must post bond, what amount? CORRECT ANSWER $50,000; this is to insure that they will perform faithfully in his/her duties
Commissioner authorized to join what group? CORRECT ANSWER National Association of Insurance Commissioners (NAIC)
Commissioner has 3 major responsibilities? CORRECT ANSWER 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 CORRECT ANSWER 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
Companies classified in 3 different ways based off of origin CORRECT ANSWER
1. Domestic (formed in Indiana ex. Indiana Farmers)
2. Foreign (Formed in another state/territory ex. New York Life)
3. Alien (formed in another country ex. Lloyds of London)
Company must be Admitted/Authorized to conduct business in a state CORRECT ANSWER Domestic- Granted once they meet state minimum requirements. Foreign/Alien must demonstrate that they already meet the requirements
Insurance commissioner has the authority to..? CORRECT ANSWER enforce state
insurance laws
Department of Insurance has the power to..? CORRECT ANSWER 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 CORRECT ANSWER the insuring public
The commissioner has 3 main authorities CORRECT ANSWER 1. Executive Authority
2. Legislative Authority 3. Judicial Authority
Executive Authority CORRECT ANSWER to enforce state laws
Legislative Authority CORRECT ANSWER to create Rules that explain or clarify laws
Judicial Authority CORRECT ANSWER to hold Administrative Hearings
Who appoints the State Insurance Commissioner CORRECT ANSWER state governor; can appoint and also fire How is commissioner selected? CORRECT ANSWER Solely based off knowledge
and skill in insurance; no regard to his/her political beliefs
Commissioner must post bond, what amount? CORRECT ANSWER $50,000; this is to insure that they will perform faithfully in his/her duties
Commissioner authorized to join what group? CORRECT ANSWER National Association of Insurance Commissioners (NAIC)
Commissioner has 3 major responsibilities? CORRECT ANSWER 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 CORRECT ANSWER 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
Companies classified in 3 different ways based off of origin CORRECT ANSWER
1. Domestic (formed in Indiana ex. Indiana Farmers)
2. Foreign (Formed in another state/territory ex. New York Life)
3. Alien (formed in another country ex. Lloyds of London)
Company must be Admitted/Authorized to conduct business in a state CORRECT ANSWER Domestic- Granted once they meet state minimum requirements. Foreign/Alien must demonstrate that they already meet the requirements
