Session 2 Practice Exam

It was established in 1871 to coordinate regulatory activities.

It is the at the top of the structure of the State Regulation.

In which structure of the State Regulation does "Financial Requirements" fall?

In which structure of the State Regulation does "Reporting & Monitoring" fall?

In which structure of the State Regulation does "Intervention Guarantees" fall?

In which structure of the State Regulation does "Prices" fall?

In which structure of the State Regulation does "Products" fall?

In which structure of the State Regulation does "Practices" fall?

This regulation protects policyholders and society in general against excessive insurer insolvency risk.

These people are given authority over insurers’ ability to incorporate and/or conduct business in the various states.

These _____ require insurers to meet certain minimum capital standards and financial reporting requirements and authorize _____ to examine insurers and take other actions to protect policyholders’ interests.

This regulation provides crucial safeguards for America’s insurance consumers.

In financial regulation, these examinations occur on a scheduled basis; these exams verify and validate what is presented in the company’s annual statement to ascertain whether the company is in good financial standing.

These people investigate a company’s accounting methods, procedures and financial statement presentation.

In this regulation, when an examination of financial records shows the company to be financially impaired, the state insurance department takes control of the company.

Solvency regulation policies impact a number of aspects of insurers’ operations, which includes:

The primary responsibility for this regulation of an insurance company is delegated to the state in which it is domiciled

This type of intervention typically involves regulators seizing control of a company and can constitute conservation, rehabilitation and liquidation depending on the condition of the insurer and its prospects.

The scope of this regulation is broad (potentially encompassing all aspects of an insurer’s interactions with consumers) and the states’ policies can vary significantly.

This regulation is principally delegated to each state in which it operates.

Other aspects of insurers’ market activities, e.g., marketing, underwriting, and claims adjustment, generally fall within the area of this regulation.

In this regulation, a state may impose some specific rules regarding certain practices, such as constraining an insurer’s use of certain factors in underwriting or mandating that they offer coverage to all applicants.

These activities are typically implemented through investigating consumer complaints and market conduct examinations.

These people are also regulated by the states in market regulation. They must also comply with continuing education requirements and are subject to regulatory sanctions if they violate regulations governing their conduct.

This regulation attempts to ensure fair and reasonable insurance prices, products and trade practices in order to protect consumers.

In this regulation, the regulators hope to ensure continued consumer protections at the state level with improved cooperation among states and uniform market conduct examinations.

These examinations occur on a routine basis, but also can be triggered by complaints against an insurer.

These exams review agent- licensing issues, complaints, types of products sold by the company and agents, agent sales practices, proper rating, claims handling and other market-related aspects of an insurer’s operation.

In this regulation, when violations are found, the insurance department makes recommendations to improve the company’s operations and to bring the company into compliance with state law.

Currently, there are approximately _____ insurers in the United States.

In _____, nearly 300 companies had their licenses suspended or revoked.

This company licensing system helps states expedite the review process of a new company license.

This NAIC database has been developed to facilitate information sharing on acquisition and merger filings.

These NAIC databases assist insurance regulators by creating a streamlined and more cost-efficient regulatory process.

Insurance agents and brokers are also known as

These people must be licensed to sell insurance and must comply with various state laws and regulations governing their activities.

These departments oversee producer activities in order to protect insurance consumer interests in insurance transactions.

In ______, nearly 16,000 insurance producers had their licenses suspended or revoked.

This is a non-profit affiliate of the NAIC that was established to develop and operate a national repository for producer licensing information.

In this regulation, state regulators protect consumers by ensuring that insurance policy provisions comply with state law, are reasonable and fair, and do not contain major gaps in coverage that might be misunderstood by consumers and leave them unprotected.

For _____, about half of the states require insurers to file rates and to receive prior approval before they go into effect.

With the exception of workers’ compensation and medical malpractice, _____ in many states are subject to a competitive rating approach.

The states also have launched an interactive tool to allow consumers to research company complaint and financial data using this website.

During _____, state insurance departments handled 4.5 million consumer inquiries and complaints.