CHAP 11: NH general laws
in New Hampshire, the age discrimination in employment act rules apply to employer groups with at least
15 or more employees
the maximum prison sentence given under federal law for unfair and deceptive insurance practices is
15 years
a new hampshire resident producer must be at least ___ years of age
18
in NH, a temporary license may be issued for a period not to exceed ______ days
180 days
a new hampshire resident producer must meet specified continuing education course requirements within a _____-year period
2
every _____ years, a producers license in NH must be renewed
2
a life insurance policy can be contested by the insurer during the first ______ years of the contract
2 years
after a life insurance policy sold in NH has been in force for _____ years, it becomes incontestable
2 years
the financial records of each domestic company MUST be inspected every ____ years by the commissioner
3
upon meeting company requirements, a lapsed life insurance policy may be reinstated for up to ____ years
3
a licensee who is required to take continuing education must complete 24 hours of continuing education, which includes _____ hours of ethics coursework
3 hours
G had recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an individual policy?
31 days
the age discrimination in employment act provides protection for employment discrimination beginning at age
40
a life insurance policy may be legally backdated in NH for up to ______ months.
6 months
in NH, life insurance policy loans may charge a maximum fixed rate of
8%
Insurance crimes which affect interstate commerce are prosecuted by the
US Attorney General
which of the following individuals is eligible to receive a temporary producer license?
a designated employee who is replacing a deceased producer
which of the following is an example of defamination?
a producer who publicity and erroneously announces that an insurance company is insolvent
what is the best way to define life insurance replacement?
a transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered
an _______ insurer operates in the US but is headquartered outside the US
alien
if replacement was involved in the sale of a life insurance policy, a producer must provide a replacement notice no later than
application date
before soliciting insurance applications for an insurer, a producer must secure an
appointment
which of the following actions would be considered a felony in the state of new hampshire?
attempting to defraud an insurer
an ______ insurer may sell insurance contracts in NH
authorized
an ________ company is licensed by the commissioner to conduct insurance business in NH
authorized
in order to renew a producer's license, continuing education credits must be completed
bi-annually
any agreement that unreasonably restrains the business of insurance is a violation of which unfair trade practice?
boycott, coercion, and intimidation
an order issued by the commissioner that prohibits a specific practice listed in the order is called
cease and desist order
all of these are considered to be a violation of the Federal Fraud and False Statements Act EXCEPT
claims reimbursement
in NH, if an individual engages in transacting insurance business and acts without the proper state license, this is considered a
class a misdemeanor
a prospective client was intimidated by a producer to purchase an insurance contract. the producer could be found guilty of
coercion
which of these is NOT considered a federal punishment for unfair and deceptive insurance practices?
community service
a producer MUST notify the commissioner for
conducting business under an assumed name
which term refers to insurance written on interests of the licensee, the licensee's employer, of the licensee's immeadiate family?
controlled business
which of the following does NOT involve a life settlement transaction?
converting term life coverage to whole life insurance
life settlement proceeds may be subjected to the claims of
creditors
if a life insurance applicant is shown future premiums are to be paid out of non-guarenteed values, the illustratioon used in the sales presentation must
disclose that premium payments may need to be resumed depending on actual results
group life plans sold in NH typically contain a conversion option. if the insured elects this option, the new policy
does NOT require evidence of insurability
the application is part of the annuity contract according to the
entire contract clause
a consumer who has recently been denied insurance, credit, or employment based on an unfavorable consumer report MUST be advised as such. which of the following does this statue originate from?
fair credit reporting act
a producer is meeting with a client to determine whether an annuity will be suitable for purchase. which of the following topics needs to be discussed with the client?
financial status of the client
a ______ insurer writes business in a state other than the one in which it is domiciled
foreign
John has a criminal record in which he was convicted of a felony that involved dishonesty. Under Federal law, how would John be able to engage in insurance transactions?
given written consent by the state insurance regulatory agency
a producers license may ONLY be suspended or revoked if the producer
has been afforded a right to a hearing
an producers license may only be suspended or revoked if the producer
has been afforded a right to a hearing
who is required to notify the producer in the event of appointment termination?
insurer
a life settlement pays an amount
less than the death benefit
which of the following is NOT information needed to determine the suitability of an annuity recommendation?
level of education
who is required to notify the commissioner of a licensee's change of address?
licensee
a life insurance policyowner has been diagnosed with a terminal illness. an agreement to sell the policy at a discount in order to pay for the medical bills is called
life settlement
someone who is licensed to negotiate a life settlement contract is called a
life settlement broker
which of the following is an example of defamation?
making a statement that is false or maliciously critical of the financial condition of an insurer
according to the federal fraud and false statements act, which of these is considered to be an intentional violation?
making false entries in a company's book
an insurance applicant has made a false statement on the application that will affect the insurer's decision on whether or not to issue the policy. this false statement is considered to be a(n)
material misrepresentation
a producer's failure to provide title and true nature of a policy upon solicitation is an example of
misrepresentation
in NH, false advertising is an example of
misrepresentation
which of the following is considered to be an unfair claims settlement practice?
misrepresenting pertinent policy provisions relating to coverage after a loss
in NH, the HIV consent form
must disclose who will be receiving a copy of the test results
a producer sells a life insurance policy to a client without the use of an illustration. under this circumstance, the applicant
must sign a statement that no illustration was provided
failure to meet the continuing education requirements in NH may result in
non-renewal of the license
a ________ producer lives in another state and transacts insurance in New Hampshire
nonresident
under federal law, which of the following actions may result in a producer becoming imprisoned?
producer embezzling funds from an insurer
the authority for a producer to bind an insurer to an insurance contract is found in the
producer's appointment
a producer has indicated to a potential client that the proposed life insurance policy is covered by the NH life and health guaranty association. this action taken by the producer is
prohibited by law
replacement regulations exist in order to
protect policyowners from misrepresentations and loss of benefits
what is considered interstate travel under the federal fraud and false statements act?
puerto rico
which of the following actions may result in a producer's license being suspended?
rebating a portion of the commission to the insured
a life insurance policyowner sells her policy to a third party in a life settlement. under this transaction, the policyowner
receives an amount less than the policy's death benefit
an example of an unfair claims settlement practice is
refusing to pay a disputed claim without conducting a reasonable investigation
which of these is NOT an unfair settlement practice?
refusing to pay a persons bringing false or fraudulent claims
Security laws passed by Congress are enforced by which Federal agency?
security and exchange commission
which of these situations would NOT potentially involve a prison sentence under federal law?
selling insurance with a nonresident license
what is a life insurance producer authorized to do?
solicit, receive, and forward applications to the insurer
an example of rebating would be
splitting the commission with the buyer on a sale of insurance
illustrations used in the sale of a life insuracne policy MUST
state both guaranteed and non-guaranteed elements
which entity is responsible for regulating claims settlement practices of insurers?
state insurance departments
the life and health insurance guaranty association fund protects an insured in the event of
the insurer's insolvency
under which circumstance may an insurable interest exist between two individuals in absence of an economic interest?
they are marriage partners
what is the primary reason for the commissioner's examination of a producer's insurance records?
to determine compliance with state insurance laws and regulations
Charging a different premiums to policyholders in the same risk classification is referred to as
unfair discrimination
according to federal fraud and false statement regulations, what is required for a prohibited person to transact insurance business in this state?
written consent from the state insurance regulatory agency
the free look period provided in a life insurance policy is usually ____ days.
10
A licensee whose name or address changes must notify the Commissioner within
30 days
a life insurance policy that is paid annually must contain a grace period of at least _____ days
30 days
which of these is NOT an unfair settlement practice?
offering to settle a claim by arbitration
which of the following is a requirement for an individual to receive an insurance license in NH?
passing the appropriate examination
twisting means
persuading an insured, to the insured's detriment, to switch policies
a producer sold life insurance policy but did NOT provide the applicant with a basic illustration. in this situation, the insurer is REQUIRED to provide the applicant with a policy summary no later than the
policy delivery date
whose interests are being protected under replacement rules?
policyowner
at what point must a producer give notification to the commissioner about using an assumed name?
prior to using the assumed name
when a business entity is licensed in NH, a licensed ______ must be designated as responsible for compliance with state insurance laws and regulations
producer
