stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
ADBanker Chapter 10 AZ State Laws Flashcards | StudBud
Explore
/
ADBanker Chapter 10 AZ State Laws
ADBanker Chapter 10 AZ State Laws
20 terms
·
StudBud Administration
·
115 plays
Imported from external platform
Flashcards
20 cards
F
Practice quiz
P
Host live
L
Questions
20
Answers
1
For an intentional act, the Director may impose a civil penalty up to ___
$10,000
$2,500
$5,000
$1,000
2
Which of the following is false regarding surplus lines brokers in Arizona?
They must also be licensed as a property and casualty producer
Their licensed to procure insurance through an unauthorized insurer
The surplus lines license must be renewed every 2 years
The Director must find the individual competent before issuing a license
3
According to Arizona's UM/UIM coverage, what happens if more than one policy applies to the accident?
UM/UIM coverage is primary if another policy applies to the accident
The insured can select which policy will apply first
UM/UIM coverage is excess if another policy applies to the accident
The insured can select one policy that will apply
4
Controlled business: Not using the insurance agent's license primarily to cover insurance for the licensee and family
False
True
5
Which of the following is a true statement about the Arizona uninsured/underinsured motorist coverage?
If more than one policy applies to the same accident, the is paid by both
A volunteer worker’s injuries from an uninsured driver are excluded
Underinsured applies if the insurer for the negligent party is insolvent
Uninsured motorist coverage can be rejected by the insured
6
Which of the following is not a prohibited insurance practice?
Giving a client a $5 gift card as a thank you for buying a policy
Offering season tickets to a sports game in exchange for buying insurance
Charging a higher premium because of an applicant’s marital status
Denying insurance because a person is blind
7
Reasonable expenses and charges for the cost of the Director's examination will be paid by:
Moses Johnson
The examiner
The examinee
The examiner's revolving fund
8
When must a licensee notify the Director that they are acting as a life settlement broker?
Within the first 60 days of acting as a broker
30 days before acting as a broker
60 days before acting as a broker
Within the first 30 days of acting as a broker
9
An individual is called into active military duty, what is the maximum extension they have to apply for their license?
12 months
18 months
They must retake the exam before receiving a license
6 months
10
In the state of Arizona, an insurer may use marital status to determine which of the following?
Premium rates
Dependent status
Policy terms
Insurance limitations
11
If an insured selected the Limited Mexico Coverage endorsement, which of the following would be false?
Coverage may be provided for auto repairs made in Mexico
Extended to losses within 25 miles of the U.S. border for a trip of 10 days
All Liability, Medical Payments, UM/UIM, Damage to Your Auto, are extended
The insured is covered in any auto
12
Someone engages in an unfair practice can be ordered by the Director to immediately stop. This is an example of?
Cease and desist
Contempt of court
Suspension
Civil penalty
13
An administrative penalty of ______ is fined by the Director instead of suspending the producer license.
$100.00
$1000.00
$5000.00
$250.00
14
Which of the following statements is false regarding Mexican surplus lines brokers?
A Mexican surplus lines broker must be a resident producer of Arizona
Mexican surplus is not protected by the Arizona Guaranty Association
They must be licensed and maintain an office in Arizona
Mexican surpluc lines insurance is not regulated by the state of Arizona
15
A notice of information practices is not required in which of the following situations?
Insurance benefits change
Receiving a renewal policy
Paying a premium installment to the producer
Policy is reinstated
16
The Director of insurance may suspend, revoke, or refuse renewal of a producer license for up to _____ months.
18
12
24
36
17
A temporary license may be issued to a designated individual for all of the following reasons, except:
The death of a licensed producer for the purpose of selling the business
An insurance producer enters active service in the Armed Forces
The disability of an individual licensed on behalf of a business entity
A resident license applicant is unable to pass the license exam
18
A policy cannot be issued in Arizona without identifying the name of the producer. Which policy is exempt from this rule
Liability insurance
Policies issued by a vending machine
Life insurance
Policies issued through producers who receive commission
19
Producer tells clients, falsely, that a rival insurer does not pay claims in a timely fashion. This is an example of?
Misrepresentation
Unfair Discrimination
Defamation
Rebating
20
Which of the following applies when the Director revokes a producer's license for violating the Insurance Code?
Producer can write surplus lines coverage with nonadmitted companies
Producer's revoked license will not be valid for 3 years
Producer must deliver the license to the Director
Producer can write business for another producer
