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19.1.4 The State Court System

...identifies and makes legal determinations involving cases of conflict between insurance companies and policyowners and enforces criminal penalties for violation of any directive of the Insurance Code.

The insurance business is subject to governmental supervision and control for three very important reasons.

  1. The public interest makes it a public trust.
  1. The financial importance and extent of the operations of the insurance companies affect the state and national economy.
  1. The technical character of the insurance contract requires expert control.

1
Section 19.1 Review

It is unlawful for agents to share commissions with anyone other than with agents who are also duly licensed in the same line.

a) True
b) False
CORRECTTRY AGAIN (Lesson 19.1)
Check your answer

2

Failure to answer a subpoena or an order of the Chief Financial Officer can results in a ________ fine.

a) $1,000
b) $10,000
c) $25,000
d) $50,000
CORRECTTRY AGAIN (Lesson 19.1.2)
Check your answer

3

A violation of a Cease and Desist order can carry a fine of up to:

a) $1,000.
b) $10,000.
c) $25,000.
d) $50,000.
CORRECTTRY AGAIN (Lesson 19.1.2)
Check your answer

4

Insurance agents must keep records for at least _________ if the transaction involves premium payments.

a) 1 year
b) 2 years
c) 3 years
d) 5 years
CORRECTTRY AGAIN (Lesson 19.1.3)
Check your answer