IDAHO RULES & REGULATIONS EXAM QUESTIONS
AND ANSWERS{GRADED A}
What document is required for an insurance company to transact
insurance? - ✔✔Certificate Authority
Who owns stock companies? - ✔✔stockholders
What are producers required to do in order to renew their license? -
✔✔Complete continuing education hours and pay a renewal fee
What is the purpose of a cease and desist order? - ✔✔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? - ✔✔Misrepresentation
What are the most common penalties for violations of insurance statutes? -
✔✔A cease and desist order, a fine, and license suspension or revocation
Who is responsible for the costs associated with the examination of
insurers? - ✔✔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? - ✔✔Cease
and desist order
A state-issued document empowering an insurance company to become an
admitted insurer is called what? - ✔✔Certificate Authority
When can the commissioner or Director examine insurers? -
✔✔Whenever deemed necessary, but at least once every 5 years
Who must be notified of a producers change of address? - ✔✔The
Department of Insurance (Commissioner/Director/Superintendent)
What is controlled business? - ✔✔Insurance on the producer's own life or
property, or the lives or property of the producer's family or business
associates
When is controlled business legal? - ✔✔When the commissions from
controlled business do not exceed the aggregate commissions on all the
other business (specific limits may vary from state to state)
To who may a certificate of authority be issued? - ✔✔To an insurer
authorized to transact business in this state
AND ANSWERS{GRADED A}
What document is required for an insurance company to transact
insurance? - ✔✔Certificate Authority
Who owns stock companies? - ✔✔stockholders
What are producers required to do in order to renew their license? -
✔✔Complete continuing education hours and pay a renewal fee
What is the purpose of a cease and desist order? - ✔✔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? - ✔✔Misrepresentation
What are the most common penalties for violations of insurance statutes? -
✔✔A cease and desist order, a fine, and license suspension or revocation
Who is responsible for the costs associated with the examination of
insurers? - ✔✔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? - ✔✔Cease
and desist order
A state-issued document empowering an insurance company to become an
admitted insurer is called what? - ✔✔Certificate Authority
When can the commissioner or Director examine insurers? -
✔✔Whenever deemed necessary, but at least once every 5 years
Who must be notified of a producers change of address? - ✔✔The
Department of Insurance (Commissioner/Director/Superintendent)
What is controlled business? - ✔✔Insurance on the producer's own life or
property, or the lives or property of the producer's family or business
associates
When is controlled business legal? - ✔✔When the commissions from
controlled business do not exceed the aggregate commissions on all the
other business (specific limits may vary from state to state)
To who may a certificate of authority be issued? - ✔✔To an insurer
authorized to transact business in this state
