Insurance Quiz

What is insurance primarily a way of doing?

• Predicting future losses

• Transferring risk from the insured to the insurer

• Providing government coverage

• Enforcing federal laws

What type of market is most insurance coverage purchased from?

• Government insurers

• The voluntary market

• The residual market

• The stock market

What is a stock insurer owned by?

• Its employees

• Its policyholders

• Its stockholders

• The government

What type of insurer is organized under the laws of a state other than the one where it is doing business?

• A domestic insurer

• A foreign insurer

• An alien insurer

• A reciprocal insurance company

What are insurers that write policies on risks that admitted insurers cannot called?

• Standard insurers

• Surplus lines insurers

• Government insurers

• Fraternal benefit societies

What is the primary source of information for the insurance underwriting process?

• The insurance application

• The actuarial department

• The state department of insurance

• The Gramm-Leach-Bliley Act

Who regulates the business of insurance?

• The federal government

• The state level

• The policyholders

• The stockholders

What federal act protects the privacy of consumer credit information by regulating the ways insurers collect, use, and store credit reports?

• The Fair Credit Reporting Act

• The McCarran-Ferguson Act of 1945

• The Gramm-Leach-Bliley Act (GLBA)

• The Do Not Call List

What does the Terrorism Risk Insurance Act (TRIA) provide?

• A program to provide reinsurance for losses arising from the peril of terrorism

• A method to opt out of telemarketer calls entirely

• A temporary catastrophic coverage in the stock market

• Protection against all acts of terrorism

What is considered insurance fraud?

• Any act of terrorism

• Legal material misstatements or concealments

• Intentional material misstatements or concealments with the intent to deceive

• Obtaining a 1033 Waiver of Consent