Insurance Ce Test Answers

Question:

Answer: knowing that his family is depending on him, Frank wants to insure his own life

only pure risk is insurable. Pure risk may only result in a loss, unlike speculative risk which may result in a gain.

Question:

Answer: a fine up to $100 per day per violation

A producer has 30 days to respond to a written inquiry from the Department

Question:

Answer: estoppel

Question: BBC insurers filed premium rates for its new line of variable products on January 15. Within how many days must the commissioner approve or disapprove the rates?

Answer: 30 days

all rate filings are subject to a 30-day waiting period before they become effective.

Question: The commissioner of insurance can examine the business accounts, transactions, and records of insurers and producers as often as necessary, but must do so at least once in how many years?

Answer: 5 years

Question:

Answer: they are engaging in unfair and prohibited business practices

they are agreeing to unreasonable restraint of trade in insurance business, and they are engaging in unfair discrimination

Question: which of the following is NOT a remedy available to the PA commissioner of insurance for committing an unfair method of competition?

-imprisonment

-cease and desist order

-suspension of license

-revocation of license

Answer: imprisonment is not a punishment for committing an unfair method of competition

you cannot be arrested for committing an unfair method of competition

Question:

Answer: ailing to promptly settle a claim for which liability is uncertain is NOT an unfair claims settlement practice

Question: Jeff is a licensed insurance producer in both PA and NY. he is charged with embezzlement in NY, and his first pretrial hearing is set for March 1. He must notify the PA commissioner of insurance within how many days of this hearing?

Answer: Jeff has 30 days to notify the PA commissioner of insurance of the disciplinary action being taken against him

Question:

Answer: failing to promptly settle a claim for which liability is uncertain is not an unfair claims settlement practice