11-Laws and Rules (Kansas General Laws)
require evidence of insurability
According to Kansas law, group life insurance conversion privileges must not
6 months
According to the Nonforfeiture Law, what's the maximum number of months a cash surrender value payment may be deferred by an insurance company?
Policy Summary and Buyer's Guide
After selling an individual life insurance policy, a Kansas producer MUST deliver to the policyowner a
refunding part of the premium as an inducement for purchase, offering special dividends, offering anything of value not specified in the policy
All of the following actions are considered rebating
Selling mutual funds
All of the following are defined as doing insurance business EXCEPT
Offering payment of approved claims within 30 days after affirming liability
All of the following would be unfair claims practices by insurance companies EXCEPT
turning down a claim without providing the basis of denial
An example of an unfair claims settlement practice is
Insurance Company
During the course of an insurance business transaction, who does the producer legally represent?
Viatical Settlement
S is a life insurance policyowner and enters into a written agreement to receive immediate cash in exchange for the sale and transfer of her life insurance policy. this agreement is referred to as
members companies
the funds used by the Life and Health Insurance Guaranty Association to carry out its purpose are obtained from the
Meet continuing education requirements
A Kansas resident insurance producer must perform which of the following actions to continue with their license?
is issued by the commissioner when it appears an unfair trade practice has occurred
A cease and desist order
Coercion
A creditor who requires a debtor to obtain insurance from a particular company or producer as a condition for a loan is guilty of
Viatical settlement provider
A life insurance policyowner may sell their policy to an ___ in order to receive a percentage of the policy's face value
8%
A life policy loan in Kansas cannot charge a fixed rate of interest higher than
Continuing Education
A producer license is renewed by paying a renewal fee and completing
1
A producer must complete __ hour of ethics per continuing education reporting period
12
A producer must complete___ hours of continuation education biennially.
Be 18 years of age or older
An applicant for an insurance producer's license in Kansas MUST meet which of the following requirements?
Offering different terms of coverage for different policyowners having the same risk classification
An example of unfair discrimination would be
Producer
An individual who in any manner sells, solicits, or negotiates insurance on behalf of insurance companies for compensation is an insurance
Send notice of the termination to the commissioner
An insurance company must do which of the following to terminate an producer's appointment?
After being appointed by the insurer
At what point may a producer sell products from an insurance company?
Defamation
Circulation of any oral or written statement or any pamphlet, circular, article, or literature that is false or maliciously critical of or derogatory to the financial condition of an insurer known as
Resident producers
Continuing education requirements in Kansas apply to which of the following persons?
an unfair claims practice
Failure of an insurance company to accept a valid Proof of Loss statement is considered
180 days
How many days is a temporary producer's license valid?
30 days
If a producer has been engaged in an administrative action by any governmental agency, within how many days must the producer report the action to the commissioner?
misrepresentation
If a producer tells an applicant that an insurance policy is like a share of stock, the producer may be guilty of
2 years
In Kansas, a producer's license must be renewed every
An insurance company
In Kansas, an individual producer is considered to represent
date of delivery
Kansas 10 day free-look period for life insurance policies begins at the
exchanging an existing policy for a new policy
Life insurance replacement can be defined as
the policyowner
Life insurance replacement regulation protects the interest of
misrepresentation
Making an unfair comparison of two policies is defined as
Race
No insurance shall refuse to insure an individual because of
Coercion
Terry the insurance producer works for mortgage company. He agrees to grant a loan ONLY if the applicant were to purchase insurance from him. Terry has committed the unfair practice of
Claim payments of admitted, insolvent insurance companies
The Kansas Life and Health Insurance Guaranty Association provides
Rebating
The act of offering an applicant something of value as an inducement to purchase a policy of insurance is
Examine insurer solvency
The commissioner has the power to
Administering insurance laws
The commissioner is responsible for
election to a 4 year term (elected by the people of Kansas)
The commissioner of Insurance attains office by
Order
The commissioner of Insurance may issue a ___ to assure compliance with the law.
delivery receipt
The signed document that starts the Free LOOK period is the
Group life coverage can be converted to an individual policy at regular rates on an attained-age basis
Under a Group Life policy, which of these is considered to be a standard provision of the conversion privileges?
malign another insurance company
Under the Unfair Trade Practice law, producers may be found guilty of defamation if they make a false statement that is intended to
The proceeds would be reduced based on whatever the premium would have been if purchased at age 59
W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim?
Notice of Regarding Replacement
What form must an applicant be provided with prior to policy delivery if it's replacing an existing policy?
30 days
What's the minimum grace period for an individual life insurance policy issued in Kansas?
Transacting insurance
When a producer is soliciting a client to effect a contract of insurance, the producer is engaged in
Unfair discrimination
When an insurer charges a higher rate for insurance based on an insured's race, religion, or national origin, it is considered
Denying an insured's claim without indicating the basis of denial under the policy.
Which of the following actions by an insurance company is considered an unfair claims settlement practice?
Offering a prospect something of value that is not specified in a contract to induce the purchase of that contract
Which of the following actions by an insurance company or a producer is considered rebating?
Offering a prospect something of value is not specified in a contract to induce the purchase of that contract
Which of the following actions by an insurance company or an producer is considered rebating?
Conducting a sales meeting
Which of the following activities does Not give a producer credit for continuation education?
Free Look, Incontestable, Grace Period
Which of the following are a required provision in a group life policy?
Grace Period, Free Look, misstatement of age
Which of the following are required provision in an individual life policy?
To allow the personal representative of a deceased producer to provide service to existing policyowners
Why would the commissioner of Insurance issue a temporary license?
Replacement
____ can be defined as any transaction in which new life insurance is purchased and existing life insurance is terminated or discontinued
Defamation
an example of defamation would be issuing a brochure that contains untrue statements regarding a competitor's ability to pay claims.
a producer
an individual who is appointed by an insurance company to transact insurance is referred to as
misrepresentation
anyone who makes a fraudulent statement on an insurance application in order to obtain money benefits from an insurance company has committed an act of
unfair trade practice
if an insurance company engages in boycott, coercion, or intimidation that leads to the unreasonable restraint of trade it would be breaking Kansas insurance laws covering
An insurance company to conduct insurance business
what does a certificate of authority allow
Sharing commissions with other licensed and appointed producers
what is not considered rebating?
2 years
what is the contestability period for life insurance policies in Kansas?
Notice Regarding Replacement
what must a producer sign when an existing life insurance policy is being reissued with a reduced cash value?
Stating that dividends are guaranteed
which of the following would be considered misrepresentation by an insurance producer?
Medical Condition that will significantly reduce a lifespan
A life insurance policy will frequently contain an Accelerated Benefits rider. Which of these would be an example of a "qualifying event" under this rider?
10 days
A life insurance policyowner has ___ days to return the policy and receive a full premium refund.
Permits an insurance company to transact business in Kansas
A certificate of authority does which of the following?
approves or acquiesces to such act
A company can be held responsible for any act of boycott, coercion, or intimidation by its producer if the company
be organized under Kansas insurance laws
A domestic insurance company in Kansas must
Termination of employment
A group life insurance policy may be converted to an individual policy under which circumstance?
is found guilty of misrepresentation or fraud in obtaining the license
The commissioner of Insurance may suspend, revoke, or refuse to renew the license of a producer who
30
A producer must notify the commissioner of a change in address within ___ days
nonresident producer
A producer who is licensed in Kansas but resident in another state is called a
Misrepresentation
A producer who tells a client that dividends are guaranteed may be guilty of
Coercion
A producer who tells claimants that their rights may be impaired if they fail to complete a release form within a given period of time could be guilty of
Coercion (demand or pressure)A
A producer who tells claimants that their rights may be impaired if they fail to complete a release form within a given period of time could be guilty of
Pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age
An insurance company has discovered, at the time of an insured's death, that the insured's age was misstated on the application. Which of the following actions would most likely be taken by the insurance company?
a person who has a contract with an insurance company to represent it
An insurance producer is BEST defined as
Misrepresentation
An insurance producer who convinces a prospective insured to purchase a policy by exaggerating the benefits of the policy may be found guilty of
misrepresentation
An insurance producer who convinces a prospective insured to purchase a policy by exaggerating the benefits of the policy may be found guilty of
Annuities
Which of the following does the Kansas Life and Health Insurance Guaranty Association apply to?
Semi-retired producer
Which of the following individuals is NOT exempt from producer licensing requirements?
Accidental Death and Dismemberment
Which of the following is NOT a required provision in a group life policy?
Extended Term
Which of the following is NOT a required provision in an individual life policy?
Producer is insolvent (unable to pay debt owed)
Which of the following is NOT a valid reason for the Insurance Commissioner to revoke a producer's license?
Producer represents more than one insurance company
Which of the following is NOT a valid reason for the commissioner of Insurance to suspend or revoke a producer's license?
Be licensed as a producer in the producer's state of domicile
Which of the following is a requirement to attain a nonresident producer license?
A brochure including an untrue statement regarding a competitor's ability to pay claims
Which of the following is an example of defamation?
returning a portion of a premium as inducement to purchase insurance
Which of the following is an example of rebating?
Failing to effectuate prompt, fair, and equitable settlements of claims
Which of the following is an unfair claims practice?
Institutional advertisement
Which of the following is best described as "an insurance advertisement that tends to make a prospect want to find out more about a specific policy"
The producer who sells the new insurance policy
Which of the following parties must provide an insured with proper disclosure concerning the replacement of an insurance policy?
It is funded by insurance companies through assessments
Which of the following statement is CORRECT about the Kansas life and Health insurance guarantee association
It is strictly regulated an requires full disclosure by both the producer and the replacing insurance company
Which of the following statement is CORRECT about the replacement of one insurance policy with another?
The producer's state of residence must have reciprocity with this state
Which of the following statements must be CORRECT for a nonresident to be eligible for a producer license in this state?
