Chapter 1 Review Questions

Which of the following is NOT a role of the states in the regulation of the insurance industry?

Licensing agents
Supervising company sales practices
Licensing insurers
Promulgating pension regulations

Which of the following is NOT a way in which the federal government influences the insurance industry?

Through income taxation of cash values
Through the licensing of insurers
Through health insurance legislation
Through its regulation of insurance products considered securities

The federal government retains the power to control the insurance industry under ______ to the extent that the issues involved are deemed national in character.

the McCarran-Ferguson Act
Financial Services Modernization Act

Which of the following is NOT an authority conferred under the law of agency?

Express authority
Suggested authority
Implied authority
Apparent authority

The subsequent confirmation or approval of an agent's unauthorized actions is known as: