Chapter 15 Quiz

Which of the following is NOT an unfair marketing practice?

• Using a name that's misleading, can be mistaken for another person's name, or falsely implies a connection with another organization

• Giving out $5 gift cards

• Failure to disclose the nature of the business in the agency's name and on its promotional material

• Falsely imply that an agency is licensed as a consultant

All licensees must register with the Commissioner and provide the address of their:

• Principal place of business

• Personal home

• Lawyer's office

Which 2 of the following constitutes false advertising?

• Promotional material that would imply a relationship with a state or federal agency

• Trying to settle a claim on the basis of an altered application

• Any business name, slogan, or emblem that is similar enough to that of another business as to be misleading

• Denying a claim for medical treatment after pre-authorization has been given

What is a key component of fraud?

• Fraud could be committed unintentionally

• Any wasteful act constitutes fraud

• The person committing fraud must knowingly benefit

• Fraud takes place specifically while marketing insurance

Who is responsible for issuing licenses in the state of Arizona?

• The Arizona governor

• The insurer

• The insurance producer

• The director of insurance

What can be issued to the insurer as evidence of their authority to transace insurance?

• An insurer license

• A certificate of authority

• An admission statement--showing they are an admitted insurer

• A certificate of admission

How is the Arizona Director of Insurance chosen?

• Voted for every 4 years

• Appointed by the senate

• Appointed by the governor with the consent of the senate

• Voted for every 6 years

True or false: all authorized insurers must file with the director their rating systems, annual financial statements, and complete book of business.

• True

• False

Is a license required to lawfully transact reinsurance?

• Yes and must be renewed every 4 years

• No

A policyowner is being charged a larger premium than their peers due to blindness. Does this constitute unfair discrimination?

• No--blindness constitutes a pre-existing condition and insurers can charge the blind higher premiums because of it

• Yes--an individual cannot be charged a different rate for the same coverage solely because of blindness