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Regulatory Framework



Multiple Choice

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 1. 

The subsequent confirmation or approval of an agent's unauthorized actions is known as:
a.
ratification
b.
pyramiding
c.
disintermediation
d.
brokering
 

 2. 

Which of the following is NOT a role of the states in the regulation of the insurance industry?
a.
Supervising company sales practices
b.
Licensing insurers
c.
Licensing agents
d.
Promulgating pension regulations
 

 3. 

Which of the following is NOT a way in which the federal government influences the insurance industry?
a.
Through the licensing of insurers
b.
Through its regulation of insurance products considered securities
c.
Through health insurance legislation
d.
Through income taxation of cash values
 

 4. 

Which of the following is NOT an authority conferred under the law of agency?
a.
Implied authority
b.
Suggested authority
c.
Express authority
d.
Apparent authority
 

 5. 

The federal government retains the power to control the insurance industry under ______ to the extent that the issues involved are deemed national in character.
a.
Financial Services Modernization Act
b.
ERISA
c.
the McCarran-Ferguson Act
d.
HIPAA
 



 
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