The Iowa insurance division uses an outside vendor to review continuing education courses. A CE provider believes the number of credits awarded for one of its courses is too low. Under the division's appeals rule, how must the provider proceed?

Complete the vendor's appeal process before filing a written appeal with the division.

Several Iowa agencies agree among themselves to stop placing any business with an insurer until it withdraws a lower-priced product that competes with theirs. Under Iowa Code Sec. 507B.4(3)(d), what makes such an arrangement an unfair method of competition?

A concerted boycott tending to cause unreasonable restraint of insurance business

Responding to a written request from the commissioner, an insurer provides information about why it ended its relationship with a producer. The producer later sues the insurer over that statement. Under Iowa's immunity provision in its producer licensing law, what must the producer establish for the suit to proceed?

That the insurer acted with actual malice in making the statement

During an investigation preliminary to a delinquency proceeding, an officer of an Iowa insurer receives a written inquiry from the commissioner that asks for a reply. What does Iowa law require of the officer?

Send the commissioner a prompt written reply to the inquiry it made

When an Iowa insurer reviews credit information to rate a personal insurance policy, which item on a consumer's credit report is it barred from counting against the consumer?

A collection account identified with a medical industry code

After the Iowa commissioner of insurance receives notice that an insurer has been determined to be insolvent, what deadline does Iowa law set for the commissioner to notify the Iowa insurance guaranty association?

Not later than three days after receiving the notice

An insurer that intends to nonrenew an Iowa commercial property policy mails the nonrenewal notice to the named insured only 20 days before the policy expires. Under Iowa Code section 515.128, what is the result?

The insured may continue coverage for the rest of the notice period plus 30 days at the existing rate

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1.The Iowa insurance division uses an outside vendor to review continuing education courses. A CE provider believes the number of credits awarded for one of its courses is too low. Under the division's appeals rule, how must the provider proceed?
Answer: B. Complete the vendor's appeal process before filing a written appeal with the division.
Iowa Admin. Code r. 191-11.8 lets a CE provider appeal the amount of credit awarded for a course. The appeal goes to the division in writing, within 30 days after the provider receives the notice of credit awarded. Where the division has retained an outside vendor for course reviews, the provider must first complete the vendor's appeal process before appealing to the division. An oral appeal fails the writing requirement, and 10 or 60 days are not the period the rule sets. Skipping the vendor is wrong when a vendor has been retained, and the rule itself provides an appeal to the division, so credit awards are not final when the vendor issues them.
Source
Iowa Admin. Code r. 191-11.8
Choose an answer to see the explanation.
2.Under Iowa law, the insurance commissioner may act against a domestic fraternal benefit society that, after existing for at least one year, fails to keep a required minimum number of members. What is that minimum membership figure?
Answer: C. 400 members
Iowa Code Sec. 512B.28(1) lists, among the grounds on which the commissioner acts against a domestic society, a failure to keep at least four hundred members once the society has existed for one year or more. The commissioner must notify the society in writing of the deficiency and the reasons, and the society then has thirty days to correct it. The figures 100, 250 and 1,000 do not appear in the provision; the statutory floor is 400.
Source
Iowa Code Sec. 512B.28(1)
Choose an answer to see the explanation.
3.Several Iowa agencies agree among themselves to stop placing any business with an insurer until it withdraws a lower-priced product that competes with theirs. Under Iowa Code Sec. 507B.4(3)(d), what makes such an arrangement an unfair method of competition?
Answer: D. A concerted boycott tending to cause unreasonable restraint of insurance business
It is an unfair method of competition to agree to commit, or to commit through concerted action, a boycott, coercion, or intimidation that results in, or merely tends to result in, unreasonable restraint of the business of insurance. The agencies' joint refusal to place business is a boycott by agreement. Because conduct that only tends toward the restraint is enough, the section does not require proof that the insurer actually lost premium. Its text contains no requirement of a prior criminal conviction, and it does not depend on publicizing the agreement.
Source
Iowa Code Sec. 507B.4(3)(d) (Boycott, coercion and intimidation)
Choose an answer to see the explanation.
4.Responding to a written request from the commissioner, an insurer provides information about why it ended its relationship with a producer. The producer later sues the insurer over that statement. Under Iowa's immunity provision in its producer licensing law, what must the producer establish for the suit to proceed?
Answer: B. That the insurer acted with actual malice in making the statement
Under Iowa Code Sec. 522B.14(6)(a), an insurer, its authorized representative, a producer and the commissioner are shielded from civil liability for statements and information provided under the section or requested in writing by the commissioner, in the absence of actual malice. The section's exception is actual malice; it does not lift the immunity for inaccuracy or negligence as such, and nothing in it makes advance notice to the producer a condition of the immunity.
Source
Iowa Code Sec. 522B.14(6)(a) (Notification to commissioner of termination)
Choose an answer to see the explanation.
5.During an investigation preliminary to a delinquency proceeding, an officer of an Iowa insurer receives a written inquiry from the commissioner that asks for a reply. What does Iowa law require of the officer?
Answer: C. Send the commissioner a prompt written reply to the inquiry it made
Iowa Code Sec. 507C.6(1) requires officers, managers, directors, employees, agents and others with authority over the insurer's affairs to cooperate with the commissioner in a delinquency proceeding or in an investigation preliminary to one, and cooperation includes replying promptly in writing to any inquiry that requests a reply. The duty is placed on the officer by the statute, which attaches no condition of board authorization; it calls for a written reply rather than an oral one at a hearing; and it already applies during the preliminary investigation, before any proceeding is filed. Under subsection 4, failing to cooperate is unlawful.
Source
Iowa Code Sec. 507C.6(1)(a)
Choose an answer to see the explanation.
6.When an Iowa insurer reviews credit information to rate a personal insurance policy, which item on a consumer's credit report is it barred from counting against the consumer?
Answer: C. A collection account identified with a medical industry code
Iowa Code Sec. 515.103(2)(h) lists items an insurer may not use as a negative factor in insurance scoring or in reviewing credit information for personal insurance. The list includes collection accounts carrying a medical industry code, inquiries about insurance coverage, inquiries the consumer did not initiate or made about the consumer's own credit, and multiple mortgage or auto lender inquiries within 30 days of one another unless only one is counted. Late payments, a bankruptcy filing and high balances are not on that list.
Source
Iowa Code Sec. 515.103(2)(h)(3)
Choose an answer to see the explanation.
7.After the Iowa commissioner of insurance receives notice that an insurer has been determined to be insolvent, what deadline does Iowa law set for the commissioner to notify the Iowa insurance guaranty association?
Answer: B. Not later than three days after receiving the notice
Iowa Code Sec. 515B.7(1)(a) requires the commissioner to notify the association of the existence of an insolvent insurer no later than three days after the commissioner receives notice of the insolvency determination. Ten, thirty and sixty days are all longer than the statute allows.
Source
Iowa Code Sec. 515B.7(1)(a)
Choose an answer to see the explanation.
8.An Iowa insured injured by an uninsured motorist is covered by two motor vehicle policies, one with a $50,000 uninsured motorist limit and one with a $100,000 limit. Both policies contain antistacking language. Under Iowa Code chapter 516A, up to what amount is the insured entitled to recover?
Answer: A. $100,000
Iowa Code Sec. 516A.2(3) states the general assembly's intent that when more than one motor vehicle policy insures an injured person, that person may recover up to the highest single uninsured, underinsured, or hit-and-run limit under any one of those policies, paid by the insurers according to their priority of coverage provisions. Here that is $100,000. Adding the two limits to reach $150,000 is interpolicy stacking, and Sec. 516A.2(1)(b) declares Hernandez v. Farmers Insurance Company abrogated to the extent it allowed stacking against specific policy language and confirms that antistacking provisions may be enforced. Neither $50,000 nor $75,000 matches the highest-single-limit measure.
Source
Iowa Code Sec. 516A.2(3); Iowa Code Sec. 516A.2(1)(b)
Choose an answer to see the explanation.
9.An insurer that intends to nonrenew an Iowa commercial property policy mails the nonrenewal notice to the named insured only 20 days before the policy expires. Under Iowa Code section 515.128, what is the result?
Answer: C. The insured may continue coverage for the rest of the notice period plus 30 days at the existing rate
Iowa Code Sec. 515.128(2) makes a commercial lines nonrenewal notice effective only if it is mailed or delivered to the named insured and any loss payee at least 45 days before expiration. A 20-day notice misses that period, so the nonrenewal does not take effect on schedule. Instead, the statute lets the insured choose to keep the coverage in force for whatever remains of the notice period and then 30 more days, at the existing premium rate. Automatic renewal for a full new term is not the remedy this section provides, and the section contains no premium refund remedy.
Source
Iowa Code Sec. 515.128(2)
Choose an answer to see the explanation.
10.When the Iowa commissioner issues a temporary insurance producer license, such as to the surviving spouse of a producer who has died, what is the longest period that license may run?
Answer: A. 180 days
The commissioner may issue a temporary producer license without requiring an examination, for a period of no more than 180 days, where it is needed to service an insurance business, for example for the surviving spouse or court-appointed personal representative of a producer who has died or become disabled. The other periods offered are not the maximum Iowa sets.
Source
Iowa Code Sec. 522B.10(1) (Temporary licensing)
Choose an answer to see the explanation.

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1.The Iowa insurance division uses an outside vendor to review continuing education courses. A CE provider believes the number of credits awarded for one of its courses is too low. Under the division's appeals rule, how must the provider proceed?

2.Under Iowa law, the insurance commissioner may act against a domestic fraternal benefit society that, after existing for at least one year, fails to keep a required minimum number of members. What is that minimum membership figure?

3.Several Iowa agencies agree among themselves to stop placing any business with an insurer until it withdraws a lower-priced product that competes with theirs. Under Iowa Code Sec. 507B.4(3)(d), what makes such an arrangement an unfair method of competition?

5.During an investigation preliminary to a delinquency proceeding, an officer of an Iowa insurer receives a written inquiry from the commissioner that asks for a reply. What does Iowa law require of the officer?

6.When an Iowa insurer reviews credit information to rate a personal insurance policy, which item on a consumer's credit report is it barred from counting against the consumer?

7.After the Iowa commissioner of insurance receives notice that an insurer has been determined to be insolvent, what deadline does Iowa law set for the commissioner to notify the Iowa insurance guaranty association?

8.An Iowa insured injured by an uninsured motorist is covered by two motor vehicle policies, one with a $50,000 uninsured motorist limit and one with a $100,000 limit. Both policies contain antistacking language. Under Iowa Code chapter 516A, up to what amount is the insured entitled to recover?

9.An insurer that intends to nonrenew an Iowa commercial property policy mails the nonrenewal notice to the named insured only 20 days before the policy expires. Under Iowa Code section 515.128, what is the result?

10.When the Iowa commissioner issues a temporary insurance producer license, such as to the surviving spouse of a producer who has died, what is the longest period that license may run?

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