APCI Arizona Property and Casualty Insurance Exam - Set 1 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: An Arizona insurer declines an applicant for a homeowners policy in Bullhead City based in part on information contained in a consumer report. Which of the following describes what the federal statute requires the insurer to do next?

Send the applicant the report

Obtain a written waiver

Give adverse action notice naming the agency

File the decision with the Department

Question 42: A homeowner in a Yuma neighborhood that floods during monsoon storms buys a National Flood Insurance Program policy on a Tuesday. She asks her producer when the coverage will actually respond to a loss. Which of the following describes the standard waiting period?

Coverage begins immediately

Coverage begins in five days

Coverage begins in fifteen days

Coverage begins in thirty days

Question 43: An Arizona producer tells a client that although the flood policy she is buying is federally backed, the paperwork, billing and claim service will all come from a private insurance company under a federal arrangement. Which of the following names that arrangement?

The federal excess program

The direct servicing program

The Write Your Own program

The assigned risk program

Question 44: An Arizona insurer establishes a relationship with a new personal lines customer and must tell her how it collects and shares her nonpublic personal financial information and how she may limit that sharing. Which federal statute imposes that duty?

The Fair Credit Reporting Act

The Gramm-Leach-Bliley Act

The Terrorism Risk Insurance Act

The CAN-SPAM Act

Question 45: A person previously convicted of a felony involving dishonesty wants to work for an Arizona insurance agency. Federal law bars such participation in the business of insurance unless a specific step is taken. Which of the following describes that step?

Written consent from the state regulator

Waiting five years from conviction

Posting a fidelity bond

Working only in a clerical role

Question 46: An Arizona agency plans an email campaign promoting business insurance to a purchased list of several thousand commercial prospects across Maricopa County. Which of the following requirements does the federal commercial electronic mail statute place on a campaign of that kind?

Prior written consent from each recipient

A copy filed with the regulator

One message per recipient each year

Accurate headers and a working opt-out

Question 47: A producer in Sierra Vista wants to call homeowners from a purchased list to offer quotes. Her manager warns her about a federal registry she must check against and about the hours during which calls may be placed. Which of the following governs that activity?

The Fair Credit Reporting Act

The Gramm-Leach-Bliley Act

Telemarketing rules and the do-not-call registry

The Terrorism Risk Insurance Act

Question 48: An Arizona commercial property insurer must present a specific option to every one of its commercial policyholders when coverage is first offered and again at each renewal, relating to losses from certified acts of terrorism. Which of the following describes that obligation?

A mandatory exclusion with buyback

A mandatory offer with premium disclosure

A mandatory endorsement that cannot be declined

A mandatory referral to a federal pool

Question 49: A large explosion damages several Phoenix commercial buildings, and the appropriate federal officials formally certify the event as an act of terrorism under the federal insurance program. Which of the following best describes the effect of that certification on participating insurers?

Federal loss sharing may attach

Policy limits automatically double

The government pays claims directly

Insureds who declined are still paid

Question 50: A small community in Coconino County has just begun participating in the National Flood Insurance Program and has not yet adopted the full set of floodplain management measures. Which of the following describes the coverage available to property owners there?

No coverage until full compliance

Coverage identical to full participation

Coverage for nonresidential structures only

Limited amounts under the emergency program

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