#1
What is the primary role of insurance regulation?
To ensure fair treatment of insurance customers
ExplanationInsurance regulation primarily aims to ensure fair treatment of insurance customers.
#2
Which regulatory body oversees insurance companies in the United States?
NAIC (National Association of Insurance Commissioners)
ExplanationNAIC, the National Association of Insurance Commissioners, is the regulatory body overseeing insurance companies in the United States.
#3
What is a common requirement for obtaining an insurance license?
Completion of a background check
ExplanationA common requirement for obtaining an insurance license is the completion of a background check.
#4
Which of the following is NOT a typical reason for an insurance license to be revoked?
Failure to pay premiums
ExplanationFailure to pay premiums is NOT a typical reason for an insurance license to be revoked.
#5
What is the purpose of solvency regulations in insurance?
To ensure insurance companies have enough funds to cover claims
ExplanationThe purpose of solvency regulations in insurance is to ensure that insurance companies have enough funds to cover claims.
#6
Which department or agency is responsible for insurance regulation in the UK?
Prudential Regulation Authority
ExplanationIn the UK, the Prudential Regulation Authority is responsible for insurance regulation.
#7
What is the main purpose of insurance licensing exams?
To assess understanding of insurance laws and regulations
ExplanationThe main purpose of insurance licensing exams is to assess individuals' understanding of insurance laws and regulations.
#8
What does the term 'admitted insurer' refer to in insurance regulation?
An insurance company authorized to do business in a particular state
ExplanationIn insurance regulation, an 'admitted insurer' refers to an insurance company authorized to do business in a particular state.
#9
What is a surplus lines broker?
A broker that sells insurance policies in states where they are not admitted
ExplanationA surplus lines broker is a professional who sells insurance policies in states where they are not admitted.
#10
What is the significance of the National Producer Number (NPN) in insurance licensing?
It is a unique identifier for insurance producers/agents
ExplanationThe National Producer Number (NPN) serves as a unique identifier for insurance producers/agents.
#11
What is the purpose of the McCarran-Ferguson Act?
To exempt the insurance industry from federal antitrust laws
ExplanationThe purpose of the McCarran-Ferguson Act is to exempt the insurance industry from federal antitrust laws.
#12
Which organization sets international standards for insurance regulation?
IAIS (International Association of Insurance Supervisors)
ExplanationThe IAIS (International Association of Insurance Supervisors) sets international standards for insurance regulation.
#13
What is the role of the Federal Insurance Office (FIO) in insurance regulation in the United States?
To represent the United States in international insurance matters
ExplanationThe role of the Federal Insurance Office (FIO) in the United States is to represent the country in international insurance matters.
#14
What is the purpose of the Insurance Information and Privacy Protection Act (IIPPA)?
To regulate the disclosure of personal information by insurance companies
ExplanationThe purpose of the Insurance Information and Privacy Protection Act (IIPPA) is to regulate the disclosure of personal information by insurance companies.