11- Laws and Rules Pertinent to Insurance

5 years

How long must a replacing insurer maintain the records of a replacement transaction?

Prior to using the assumed name

If a producer chooses to conduct business under an assumed name, when must notification be given to the Commissioner?

obtain the consumer's signed statement documenting his or her refusal to provide suitability information

If an applicant for an annuity refuses to provide suitability information, the producer should

issue prison sentences

In addition to suspending/revoking licenses and issuing fines, the Commissioner has the authority to do all of the following EXCEPT

$10,000

What is the maximum amount the Commissioner can fine an insurer for each violation of a cease and desist order?

the licensee's total premiums on controlled business exceeded the total premiums on all other business

A license is deemed to be used for controlled business if during any 12-month period

applicant

A life insurance applicant realized he failed to disclose material medical history and calls the producer. Any changes made to the application must be initialed by the

misrepresentation

A producer license may be suspended or revoked if the producer is found to be engaging in

When insurable interest exists

When is it appropriate for producers spouse to be the primary beneficiary on an applicants life insurance policy?

A new policy that causes an existing life insurance policy to be surrendered

Which of the following potential insurance sales would be subject to replacement regulations?

Guaranteed

Which of the following words may be used in the advertisement of life insurance or annuities.

obtain an insurance policy through an insurer of the borrower's preference

As a condition to be approved for a loan, a creditor may require the borrower to

Single premium whole life

Colorado's replacement rules apply to all of the following types of insurance EXCEPT

insured can determine the benefit amount

Employer noncontributory group life policies must allow for all of the following EXCEPT

required if the claim was not paid within 30 days of the date insurer received the claim

Interest on life insurance proceeds is

higher premiums

Paying insurance premiums on a more frequent basis will cause the policy to have

may not be issued to a group formed solely for the purpose of obtaining insurance

To be valid, a group life insurance policy

Insurer

Ultimately, who is responsible for a producer-generated advertisement?

1 year

Under the suicide clause, a life insurance claim cannot be denied due to suicide after a period of ?? from the policy's effective date.

Reason stated why the policy will lapse

Which of the following is required for a life insurance Lapse Notice?

Free-look period

Which of the following offers an insurance applicant the right to review the contract and receive a full refund?

Certificates of Authority

Which of the following documents are NOT required to mention the Colorado Fraud Statute?

45 days

A producer must remit premiums to the insurer within ? days after receipt.

45 days

A producer must remit premiums to the insurer within ?? days after receipt.

controlled business

A producer that only sells insurance to family members is said to be engaging in

misrepresentation

A verbal or written statement which misleads a policy's features, benefits, or coverage is considered

Certificates of authority

According to the Colorado Fraud Statute, all of the following must contain a warning against insurance fraud EXCEPT

communication or materials used within an insurer's own organization

All of the following are considered a form of advertisement EXCEPT

Guilty of a felony

All of the following penalties apply to anyone giving intentional false testimony during an insurance examination EXCEPT

guilty of a felony

All of the following penalties apply to anyone giving intentional false testimony during an insurance examination EXCEPT

Appointed by the governor

How does the Commissioner attain this position?

coverage will be contingent upon the insurer's underwriting policies

If a producer completes an insurance application, collects the initial premium, and issues the appropriate receipt,

separate insurance trust account

If a producer is going to deposit any premium into a bank account prior to remitting the funds to the insurer, he/she must use a

Rebating

If a producer offers to refund part of a prospects premium in exchange for the purchase of a life insurance policy, the producer is committing the illegal act of

replacement

In Colorado, all of the following are considered unfair trade practices EXCEPT: misrepresentation rebating replacement coercion

24 hours

Renewing a producer's license requires ?? hours of continued education every 2 years

describing a universal life policy as a security

Which of the following is an example of a misrepresentation?

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?

A person generally is considered to have an unlimited insurable interest in himself or herself

Which of the following statements is CORRECT regarding insurable interest in a life insurance contract ?

A new policy that causes an existing life insurance policy to be surrendered

which of the following potential insurance sales would be subject to replacement regulations?

$500

An producer who violates a cease and desist order may, after a hearing, be fined up to

Date of Death

From what point must the insurer pay interest on the proceeds of a death claim?

Date of death

From what point must the insurer pay interest on the proceeds of a death claim?

selling prepaid legal services

Licensing is required for all of the following EXCEPT

Writing controlled business

The commissioner may issue an emergency cease and desist order without a hearing for all of the following circumstances EXCEPT

Within 7 business days

Upon request, when must the Colorado Supplement to the Summary of Benefits and Coverage Form be provided?

A copy of the notice must be signed by the applicant and submitted with the application

Which of the following statements regarding the Notice Regarding Replacement of Life Insurance is CORRECT?

When insurable interest exist

Which situation allows the producer to also be the beneficiary on a clients application for life insurance?

Corporate Executive

Who is not eligible to receive commissions from the sale of an insurance product?

a relationship of special trust and confidence when a person is entrusted with another's funds

a fiduciary responsibility is defined as

5 business days

When replacing an existing life insurance policy, the replacing insurer must notify the existing insurer within

Insurer's prior year financials

Which information is NOT included in the Colorado Supplement to the Summary of Benefits and Coverage form?

A producer may never commingle personal funds with funds paid by or to a client

Which of the following is CORRECT regarding a producer's fiduciary responsibility with client's funds?

Reviewing and approving license applications

Which of the following is a duty of the Commissioner?

The replacing insurer must maintain copies of all records regarding replacement for at least 5 years

Which of the following statements is true regarding the replacement of a life insurance policy in Colorado?

Comprehensive coverage may increase under the new policy

which of the following is NOT a problem when existing life insurance is replaced with new coverage?

a non admitted insurer

A company that has not been authorized to operate in Colorado is known as

Domestic Insurance Company

A company that resides and is incorporated under the laws of the state in which its home office is located.

The free-look period is 15 days

In Colorado, a life insurance applicant has ?? days after policy delivery for a full refund of premium if not satisfied for any reason.

$20,000

On June 1, 2004 G takes out a $20,000 Whole Life insurance policy with an Accidental Death and Dismemberment rider. On July 15, 2005 G intentionally overdoses on sleeping pills and takes her own life. What will G's beneficiary receive as a death benefit?

the 9/11 terrorist attacks

The USA Patriot act was signed in to law as a response to

If there is suspicion of an unauthorized person engaging in insurance business without being licensed

When may the Commissioner issue an emergency cease and desist order?

Determining the marital status of the applicant

When recommending the purchase or exchange of an annuity, a producer must determine the suitability of the purchase by performing all of the following EXCEPT:

issue a statement to the policy owner explaining the coverage, provision, or laws on which denial was based

When a claim has been denied, the insurer must

Sexual Orientation

When a life insurance underwriter is determining insurability, it is illegal to base these decisions on

A guardian will be court-appointed in the event of a death claim

When a minor is designated as the sole primary beneficiary,

the claim will be denied under the suicide provision

G takes out a life insurance policy on October 8, 2008. On August 3, 2009, G takes his own life. When G's beneficiary files a claim

Within 5 business days of the insurer receiving the application

If an annuity application was not taken in person, an insurer must provide the applicant a Buyers Guide

as often as deemed necessary

When may the Commissioner conduct an examination of an insurance company?