Federal Laws
what year was the fair credit reporting act passed?
1970
what registry limits most commercial telemarketing calls?
National do not call registry
what does NAIC stand for?
National Association of insurance commissioners
what does selling to needs mean?
Understanding the clients needs before recommending insurance
what do insurance rating services evaluate?
an insurers financial strength and stability
what laws protect consumers when insurance use credit reports
fair credit reporting act
what law regulation commercial email advertising
CAN-SPAM Act
Who primarily regulation insurance in the United States
The states
what should an agent explain about our recommended product?
it’s benefits and limitations
name one insurance rating service
A.M. Best,Fitch, Standard & Poor’s or Moody’s
what law allows banks, insurers, and securities firms to affiliate
Gramm-Leach-Billey Act
how many business days does the company have to honor an unsubscribe request
10 business days
does the NAIC directly make or enforce insurance laws
no. It creates small laws and regulations for states to consider adopting.
what should an agent keep records of
meetings, recommendations, transactions, and client decisions
What are reserves?
Money set aside for future obligations to policyholder
what law requires written permission from state regulators for certain convicted felons to work in insurance
Fraud and false statements act
If insurance is denied based on a consumer report, what must the insurer disclose?
The name of the reporting agency
what organization is made up mainly of state legislators who work on insurance issues?
NCOIL
what should an agent do after selling a policy?
continue providing client service
what does liquidity mean?
The ability to pay claims and other obligations when due
what 2001 law is associated with preventing terrorism financing, and money laundering?
USA PATRIO Act
under GLBA, what can customers do about certain information sharing with outside companies?
Opt out
what can state regulators issue to stop unfair insurance practices?
Cease and Desist orders
What is a suitable insurance product?
One that fits the clients needs and financial situation
why do states review insurers financial records?
to ensure they meet required reserve and liquidity levels