23 QUESTIONS 1 OF 8

What is an admitted insurer in surplus lines?

• Licensed insurer who writes insurance in fifty states and internationally

• Licensed insurer who writes insurance in the insured's home state

• Licensed insurer not licensed to write insurance in the insured's home state

• Licensed insurer that writes insurance policies that are not in compliance with standard insurance company's requirements in the insured's home state.

Insured's vehicle is rear ended in an auto collision accident. Who is responsible for handling and settling the claim with the insured and insurance company?

• a. Independent agent

• b. Consultant

• c. Brokers

• d. Adjusters

An insurance agent can split a commission from a property/casualty insurance policy sale with:

• A non-licensed person who refers business to the agent

• A non-licensed customer service rep in the agent's office

• A licensed property/casualty agent

• All of the above.

Agents must fairly handle the funds of their insureds and their insurance companies and cannot use or commingle the funds for the agent's own personal use. This statement describes:

• A prohibition of "Twisting"

• A prohibition of "Rebating"

• A prohibition against "Suitability"

• Fiduciary Responsibility

What are surplus lines?

• Insurance that covers international risks.

• Insurance that provides coverage for international, marine, and standard companies needing insurance.

• Insurance that insures risks that have been declined by standard underwriting and pricing processes of admitted insurance companies.

• Insurance that offers pricing alternatives for risks with the least expensive insurance coverages in the marketplace.

How many declinations from admitted insurance companies are typically required to comply with the diligence search requirements with surplus lines, assuming no exemption from the diligence requirement?

• Two declinations

• Three declinations

• Four declinations

• Five declinations

What is the National Association of Insurance Commissioners (NAIC) list of alien insurers in surplus lines?

• a. Admitted insurance companies that are allowed to sell insurance in states in which they are not licensed.

• b. Non-admitted alien insurers who appear to have fulfilled the criteria set forth by the International Insurers Department Plan of operations.

• c. Admitted alien insurers who appear to have fulfilled the criteria set forth by the International Insurers Department of Plan of operations.

• d. Non-admitted insurers who appear to have fulfilled the state insurance commissioners' statutes to write insurance in the individual states.

How does 18 US Code § 1033 regulation apply to licensed insurance agents?

• It allows insurance agents to sell insurance internationally (outside of the United States only).

• It allows insurance agents to sell insurance in the United States and internationally.

• It prohibits individuals who have been convicted of felonies involving breach of trust or dishonesty from working in the insurance industry.

• It prohibits individuals who have been convicted of misdemeanors or felonies involving breach of trust or dishonesty from working in the insurance industry.

An agent provides compensation to an insured in exchange for writing the insured's insurance policies. This is called:

• Rebating

• Twisting

• Bad faith

• Overcharging

What authority issues a Certificate of Authority for an insurance company to sell insurance in a state?

• State Insurance Commissioner

• State Bureau of Corporations

• Federal Insurance Commissioner

• Federal Insurance Office