Chapter 4. State Insurance Statutes, Rules, and Regulations (Primerica)

Which of the following includes information regarding a person's credit, character, reputation, and habits? 1) Consumer History 2) Consumer Report 3) Agent's Report 4) Insurability Report

Consumer Report

An insurance producer just sold an insurance policy to his sister. What kind of business is this? 1) Internal 2) Personal 3) Illegal 4) Controlled

Controlled

Which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization? 1) Fraternal Benefit Society 2) Reciprocal association 3) stock company 4) mutual company

Fraternal benefit society

Which of the following terms is used to describe a person, other than a viator, that enters into or effectuates a viatical settlement contract? 1) Viatical settlement provider 2) Viatical settlement purchaser 3) Viatical settlement broker 4) Viatical settlement effectuator

Viatical Settlement provider

What is the minimum civil penalty the commissioner may impose on a producer who violates a ease and desist order? 1) $100 2) $500 3) $1000 4) $50

$100

When an individual life insurance policy is being replaced by an insurer using an agent, the policyowner must be given an unconditional right to a full refund of premiums if the policy is returned within: 1) 10 days 2) 45 days 3) 30 days 4) 20 days

20 days

If a producer allows his or her license to lapse, what is the maximum time period during which the producer can reinstate the license without having to retake the examination? 1) 90 days 2) 6 months 3) 16 months 4) 12 months

12 months

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? 1) 14 days 2) 10 days 3) 5 days 4) 3 days

3 days

If the policyowner defaults on any premium payment for a life insurance policy, the insurer must notify the policyholder in writing as to the policyholders options. This notification form must be provided to the policyholder within: 1) 6 months 2) 2 months 3) 3 months 4) 1 month

3 months

Each insurer must maintain at its principal office a complete file containing every printed, published or prepared advertisement of its policies for a period of at least: 1) 5 years 2) 2 years 3) 4 years 4) 3 years

3 years

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? 1) 10 days 2) 5 days 3) 3 days 4) 7 days

5 days

What term describes an individual domiciled and licensed as a resident agent in a state other than Oklahoma? 1) A captive agent 2) A foreign agent 3) An alien agent 4) A nonresident agent

A nonresident agent

All of the following violations may result in an agent's imprisonment EXCEPT: 1) Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction. 2) Knowingly obtaining information about a consumer under false pretenses. 3) Embezzling funds from the insurer. 4) Engaging in the business of insurance after being convicted of breach of trust.

Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.

How many days does a producer have to respond to the Commissioner's inquiry regarding a claim? 1) 3 business days? 2) 20 calendar days? 3) 10 calendar days? 4) 30 business days?

20 calendar days

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance? 1) Disclosure Rule 2) Reinstatement Rule 3) Conversion Rule 4) Replacement Rule

Replacement Rule

Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must: 1) Defend the report if the agency feels it is accurate 2) Send an actual certified copy of the entire report to the consumer 3) Change the report 4) Respond to the consumer's complaint.

Respond to the consumer's complaint

If the insured chose the reduced paid-up insurance nonforfeiture option, 1) The face amount of the paid up insurance will be the same as that of the original policy. 2) The insured must pay a monthly premium until the paid up insurance is an even dollar amount. 3) The amount purchased will be as much as the cash value will purchase at the insured's current age. 4) The paid-up insurance may be of any types the insured chooses.

The amount purchased will be as much as the cash value will purchase at the insured's current age.

An application for life insurance usually requires the agent to ask if the proposed insurance will replace an existing life insurance policy. All of the following are purposes for obtaining this information EXCEPT: 1) To ensure that at least three companies are involved so the policyowner gets competitive prices. 2) To make available full and clear information to the applicant. 3) To reduce the opportunity for misrepresentation and incomplete comparisons. 4) To establish minimum standards of conduct involving replacement.

To ensure that at least three companies are involved so the policyowner gets competitive prices.

Which type of misrepresentation persuades an insured, to their detriment, to cancel, lapse, or switch policies from one to another? 1) Switching 2) Rebating 3) Twisting 4) False Advertising

Twisting