Exam Fx Flashcards: Insurance Regulation/Laws, Rules and
Regulations Common to All Lines | 100% Correct Answers
To whom may a certificate of authority be issued? Correct Answer: To an insurer authorized to
transact business in this state
Who must be a member of insurance guaranty associations? Correct Answer: Any authorized
insurer within a state
If an insurer meets the state's financial requirements and is approved to transact business in the
state, it is considered what type of insurer? Correct Answer: Authorized or admitted
What type of licensee represents the insured? Correct Answer: broker
An agent offers a client free tickets to a sporting event in exchange for the purchase of an
insurance policy. What is the agent guilty of? Correct Answer: Rebating
What is the purpose of insurance guaranty associations Correct Answer: To protect
policyowners, insureds and beneficiaries from financial losses caused by insolvent insurers
Who must be notified of a producers change of address Correct Answer: The Department of
Insurance (Commissioner/Director/Superintendent)
In general, who can be excluded from producer licensing and examination requirements? Correct
Answer: Insurance company officers, directors, or any other employees who do not transact
insurance and who do not receive commissions for their services (usually, their responsibilities
include administrative, executive or clerical)
Who can usually be granted a temporary license? Correct Answer: Producer's spouse or
designee in case the licensed producer dies or becomes disabled
Who is an insurance agent? Correct Answer: A person authorized to sell, solicit and negotiate
insurance contracts
For what reason can a temporary license be issued Correct Answer: For continuation of business
in case the licensed producer dies or becomes disabled
Who is responsible for the costs associated with the examination of insurers? Correct Answer:
The insurer being examined
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
What are agents/producers required to do in order to renew their license Correct Answer:
Complete continuing education hours and pay a renewal fee
Regulations Common to All Lines | 100% Correct Answers
To whom may a certificate of authority be issued? Correct Answer: To an insurer authorized to
transact business in this state
Who must be a member of insurance guaranty associations? Correct Answer: Any authorized
insurer within a state
If an insurer meets the state's financial requirements and is approved to transact business in the
state, it is considered what type of insurer? Correct Answer: Authorized or admitted
What type of licensee represents the insured? Correct Answer: broker
An agent offers a client free tickets to a sporting event in exchange for the purchase of an
insurance policy. What is the agent guilty of? Correct Answer: Rebating
What is the purpose of insurance guaranty associations Correct Answer: To protect
policyowners, insureds and beneficiaries from financial losses caused by insolvent insurers
Who must be notified of a producers change of address Correct Answer: The Department of
Insurance (Commissioner/Director/Superintendent)
In general, who can be excluded from producer licensing and examination requirements? Correct
Answer: Insurance company officers, directors, or any other employees who do not transact
insurance and who do not receive commissions for their services (usually, their responsibilities
include administrative, executive or clerical)
Who can usually be granted a temporary license? Correct Answer: Producer's spouse or
designee in case the licensed producer dies or becomes disabled
Who is an insurance agent? Correct Answer: A person authorized to sell, solicit and negotiate
insurance contracts
For what reason can a temporary license be issued Correct Answer: For continuation of business
in case the licensed producer dies or becomes disabled
Who is responsible for the costs associated with the examination of insurers? Correct Answer:
The insurer being examined
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
What are agents/producers required to do in order to renew their license Correct Answer:
Complete continuing education hours and pay a renewal fee
