Chapter Exam - West Virginia Laws and Rules
When an employee is terminated, how long does this employee have to convert group life coverage to an individual plan?
31 days
<Blank> is the authority given to a producer to transact business on behalf of the insurer.
Appointment
Which of these is NOT a valid reason for the Insurance Commissioner to deny a producer's license renewal?
Bankruptcy
All of the following could result in the revocation of a producer's license EXCEPT
Being charged with a misdemeanor for a driving incident
P the producer reports to the Insurance Commissioner a final disposition of an administrative action taken against him. This report must
Include a copy of the order
A group life insurance policy insured may assigned up to ## of the insured's coverage.
100%
The Insurance Commissioner must give at least ## days notice prior to holding a hearing regarding a producer's license.
15
If a life insurance policy's cash value is subject to loans exceeding ##, replacement is said to have occurred.
25%
A producer must notify the Insurance Commissioner within ## days following final deposition of an administrative action by any government agency.
30
How long may an insurer defer granting a policy loan after receiving the loan application?
6 months
A life policy loan in West Virginia charge a fixed rate of interest higher than
8%
In West Virginia, how many the Insurance Commissioner penalize a producer for an insurance law violation?
A fine, only after a hearing
J is a producer who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this producer be found guilty of?
Coercion
Which of the following is a requirement to attain a West Virginia resident producer license?
Trustworthiness and competence
A domestic insurance company in West Virginia MUST
be incorporated and formed in West Virginia
A producer's license may be suspended or revoked if the licensee
writes primarily controlled business
In West Virginia, an insurer licensed to conduct business in West Virginia, but domiciled in New Jersey, is called a(n)
foreign company
Defamation occurs when a producer makes a false statement intended to
malign another insurer
Which of these statements may a producer make to a client about a Whole Life policy?
"Nonforfeiture benefits will be available after a period of time"
Life insurance death benefits up to ## are guaranteed by the West Virginia Life and Health Guaranty Association.
$300,000
A producer who intentionally violates an Unfair Trade Practice law could receive a fine of up to ## per violation
$5,000
Which of these is a requirement for obtaining a resident insurance producer license in this state?
Complete a prelicensing examination
Which of these actions does NOT constitute life insurance policy replacement?
Convert term coverage to a whole life policy
A <Blank> <Blank> is the signed document that starts the free-look period.
delivery receipt
T is an insurance license applicant who intends to primarily engage in insurance transactions on himself and his family. If the insurance department is made aware of this, T will most likely
not be issued a license
In order to terminate a producer's appointment, the insurer MUST
send notice of the termination to the Commissioner
Life insurance replacement regulation protects the interest of
the policyowner
Which of the following is NOT considered rebating?
Sharing commission with an agent licensed in the same line of business
Individuals in West Virginia are personally invited to apply for life insurance on the basis of the offer. This type solicitation made by the insurer is called
Direct response
What is the purpose of the West Virginia Life and Health Insurance Guaranty Association?
Ensures that claims filed against insolvent insurance companies will be paid
Which of the following provides funding for the West Virginia Life and Health Guaranty?
Member company assessments
Which Unfair Trade Practice involves a producer suggesting that an insurance policy is like a share of stock?
Misrepresentation
Which of these actions is NOT required when a producer replaces an existing individual life insurance policy?
Obtain the beneficiary's signature
Which of these contracts fall under replacement regulations?
Ordinary Life
Assignment of group life insurance benefits is allowed in the State of West Virginia. However, assignment is NOT allowed to the insured's
employer
The West Virginia Life and Health Insurance Guaranty Association is
funded by insurance companies through assessments
The Insurance Commissioner
has authority to review policy forms if they will be issued for delivery in West Virginia
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
The <Blank> must provide an insured with proper disclosure concerning the replacement of an existing policy.
producer
According to West Virginia law, a Group Life insurance policy requires at LEAST ## insureds
two
