State Farm State Test
Insurance producer Correct Answer: An individual or an entity authorized in
writing by a lawfully qualified insurance compnay to transact, negotiate or effect
contracts of insurance of behalf of that insurance company.
Resident Producer Correct Answer: Any person that lives in kansas and is licensed
to transact insurance business for at least one insurer.
A Non-resident producer Correct Answer: A producer that lives in some other
state;they are licensed in their owen home stae and has written permission from the
kansas insurance commisioner to sell in our state.
Commissioner Correct Answer: The insurance induster is regulated by the kansas
insurance commissioner, who is elected by the people to a 4 year term in kansas
Purpose of the commissioner Correct Answer: The insurance commissioner
administers or regulates the laws that have been passed by the legislature. The
commissioner does not make or change insurance laws, but instead has the power
to make reasonable rules and regulations to ensure that the laws are beng followed.
Redlining Correct Answer: the practice of not seeling insurance to those who live
in the low-income, high-crime areas of town and is considered to be a form of
unfair discrimination.
Unfair Trade Practices Act Correct Answer: a state law that details illegal actions
performed by producers. if a producer is found guilty of any of the following
actions, penalties could include licensure suspension or revocation, fines, cease and
desist orders and redress of injury.
Fair Credit Reporting Act Correct Answer: The kansas property and casualty
guarantee association provide payment for covered claims under certain insurance
plicies in the event of insolvency of the insurer. All insurance companies holding
certificates of authority to conduct business in kansas must be members and
participate in this program through assessments. Each member is assessed a pro-
rata share based on net written premiums from the previous year. the maximum
assessment is 2% of net written premiums.
Peril Correct Answer: a specific "cause of loss"
Insurance producer Correct Answer: An individual or an entity authorized in
writing by a lawfully qualified insurance compnay to transact, negotiate or effect
contracts of insurance of behalf of that insurance company.
Resident Producer Correct Answer: Any person that lives in kansas and is licensed
to transact insurance business for at least one insurer.
A Non-resident producer Correct Answer: A producer that lives in some other
state;they are licensed in their owen home stae and has written permission from the
kansas insurance commisioner to sell in our state.
Commissioner Correct Answer: The insurance induster is regulated by the kansas
insurance commissioner, who is elected by the people to a 4 year term in kansas
Purpose of the commissioner Correct Answer: The insurance commissioner
administers or regulates the laws that have been passed by the legislature. The
commissioner does not make or change insurance laws, but instead has the power
to make reasonable rules and regulations to ensure that the laws are beng followed.
Redlining Correct Answer: the practice of not seeling insurance to those who live
in the low-income, high-crime areas of town and is considered to be a form of
unfair discrimination.
Unfair Trade Practices Act Correct Answer: a state law that details illegal actions
performed by producers. if a producer is found guilty of any of the following
actions, penalties could include licensure suspension or revocation, fines, cease and
desist orders and redress of injury.
Fair Credit Reporting Act Correct Answer: The kansas property and casualty
guarantee association provide payment for covered claims under certain insurance
plicies in the event of insolvency of the insurer. All insurance companies holding
certificates of authority to conduct business in kansas must be members and
participate in this program through assessments. Each member is assessed a pro-
rata share based on net written premiums from the previous year. the maximum
assessment is 2% of net written premiums.
Peril Correct Answer: a specific "cause of loss"
