Certified Application Counselor Practice Test

If a consumer believes they have been wronged by an agent or broker, which department should they contact?

1. Federal Trade Commission

2. State Department of Insurance

3. Consumer Advocacy Group

4. Department of Justice

The correct answer is: State Department of Insurance

The State Department of Insurance is the appropriate entity for consumers to contact if they feel they have been wronged by an agent or broker. This department is responsible for regulating the insurance industry in each state, ensuring that agents and brokers comply with state laws and ethical standards. When a consumer files a complaint with the State Department of Insurance, it can prompt an investigation into the agent's or broker’s practices, as well as potentially lead to disciplinary action if wrongdoing is found. The other organizations mentioned do serve valuable roles but are not specifically tailored to address issues related to agents and brokers in the insurance field. The Federal Trade Commission primarily oversees broader consumer protection laws and practices across various sectors, not limited to insurance. Consumer Advocacy Groups may provide support and advice but do not have the authority to enforce state insurance regulations. The Department of Justice typically deals with legal matters at the federal level, including criminal activity and federal civil rights, rather than administrative oversight of insurance agents and brokers.