General rule of Idaho

Question 1

Every violation of the insurance code for a natural person results in what repercussion?

Answer 1

$1,000 fine

6 months in prison

Question 2

Every violation of the insurance code for any other person or entity results in what repercussion?

Answer 2

$5,000 fine

6 months in prison

Question 3

Administering insurance in Idaho without a license?

Answer 3

$15,000 fine

Question 4

Domestic company

Answer 4

Incorporated within the state

Question 5

Foreign company

Answer 5

Incorporated in another state or territory

Question 6

Fraternal Benefit Society

Answer 6

Org formed to provide insurance benefits for members of an affiliated lodge, religious org, or fraternal org with a representative form of government

Question 7

Who can fraternal benefit societies insure?

Answer 7

Only members of their group

Question 8

Nonparticipating stock policy

Answer 8

Don’t pay dividends to policyowners

Taxable dividends are paid to stockholders

Question 9

Mutual companies

Answer 9

Owned by policyowners

Issue participating policies

Question 10

Mutual companies and dividends

Answer 10

Entitled to non-taxable dividends

Generated when premiums and earnings combined exceed cost of providing coverage creating a surplus

Question 11

Reciprocal insurance

Answer 11

Resulting from reciprocal agreement of indemnity among people known as subscribers

Question 12

Who manages reciprocal insurance?

Answer 12

Attorney-in-fact, common to all

Question 13

What is a certificate of authority?

Answer 13

What’s needed to transact business and meet any financial requirements.

Question 14

What is Limited lines Producer Insurance?

Answer 14

Restricts authority of the license to less than total authority prescribed.

Question 15

Limited Lines Producer

Answer 15

Authorized by director to sell, solicit, or negotiate limited lines insurance

Question 16

If a producer is ineligible to work as an agent, within how many days must he be notified?

Answer 16

5 days

Question 17

After how many days of not submitting the continued education requirements is an agent required to file for a new license?

Answer 17

91

Question 18

After how long must an individual file as a new applicant?

Answer 18

1 year

Question 19

How long must the records of insureds must be kept?

Answer 19

5 years

Question 20

Motor vehicle claims must be paid how many days after the insured receives a bill related to the loss?

Answer 20

20 days

Question 21

what is twisting?

Answer 21

Misrepresentation/ incomplete/ fraudulent comparison of insurance policies that persuades the owner to cancel, lapse, or switch policies.