Laws and rules EXAM
A producer must remit premiums to the insurer within how many days after receipt?
45 days
A life insurance applicant realized he failed to disclose material medical history and called the producer. Any changes made to the application must be initialed by 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:
Determining the marital status of the applicant
As a condition to be approved for a loan, a creditor may require the borrower to:
Obtain an insurance policy through an insurer of the borrower's preference
Which of the following is required for a life insurance Lapse Notice?
Reason stated why the policy will lapse
Which of the following is a duty of the Commissioner?
Reviewing and approving license applications
Licensing is required for all of the following EXCEPT:
Selling prepaid legal services
Ultimately, who is responsible for a producer-generated advertisement?
The insurer is responsible
When is it appropriate for the producer's spouse to be the primary beneficiary on an applicant's life insurance policy?
When insurable interest exists
According to the Colorado Fraud Statute, all of the following must contain a warning against insurance fraud EXCEPT
certificates of authority
Which of the following potential insurance sales would be subject to replacement regulations?
A new policy that causes an existing life insurance policy to be surrendered
A producer license may be suspended or revoked if the producer is found to be engaging in:
Misrepresentation
Unfair Trade Practices Act
Originally created by the National Association of Insurance Commissioners (NAIC) in the 1940s to deal with the inappropriate use of advertising. It has since been expanded to include all major deceptive or unfair trade practices. Most states have adopted all or portions of the model Act
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:
Separate insurance trust account
How many days is the free-look period for life insurance?
15 days
Which of the following is an example of defamation?
A brochure including an untrue statement regarding a competitor's ability to pay claims
Which of the following documents are NOT required to mention the Colorado Fraud Statute
Certificates of authority
Which of the following is not a problem when existing life insurance is replaced with new coverage?
Comprehensive coverage may increase under the new policy
When me the Commissioner issued an emergency season desist order?
If there is suspicion of an unauthorized person engaging in insurance business without being licensed
If a producer is found to be writing primarily controlled business, then:
the Commissioner will not renew the license
Renewing a producer's license requires __ hours of continued education every 2 years.
24 hours
An insurer that terminates a producer's appointment must inform the Commissioner within how many days?
30 days
When replacing an existing life insurance policy, the replacing insurer must notify the existing insurer within:
5 business days
How does the Commissioner attain this position?
Appointed by the governor
A producer that only sells insurance to family members is said to be engaging in:
Controlled business
If a producer completes an insurance application, collects the initial premium, and issues the appropriate receipt, then:
Coverage will be contingent upon the insurer's underwriting policies
Paying insurance premiums on a more frequent basis will cause the policy to have:
Higher premiums
If an annuity application was not taken in person, an insurer must provide the applicant a Buyer's Guide
within 5 business days of the insurer receiving the application
Which of the following words may be used in the advertisement of life insurance or annuities?
"Guaranteed" is an allowable word
What is the maximum amount the commissioner can fine an insurer for each violation of a cease and desist order?
$10,000
On June 1, 2004 G takes out a $20,000 whole life insurance policy with an accidental death and dismemberment rider. On July 15, 2005G intentionally overdoses and takes her own life. What will G's beneficiary receive as a death benefit?
$20,000
A producer who violates a cease and desist order may, after a hearing, be fined up to:
$500
From what point must the insurer pay interest on the proceeds of a death claim?
From the date of death
With a life insurance underwriter is determining insurability, it is illegal to base these decisions on:
Sexual orientation
Interest on life insurance proceeds is:
required if the claim was not paid within 30 days of the date insurer received the claim
Upon request, when must the Colorado Supplement to the Summary of Benefits and Coverage Form be provided
Within seven business days upon request
Employee or non-contributory group life policies must allow for all of the following EXECPT:
Insured can determine the benefit amount
If an applicant for an annuity refuses to provide suitability information, the producer should:
Obtain the consumer's signed statement documenting his or her refusal to provide suitability information
If a producer chooses to conduct business under an assumed name, when must notification be given to the commissioner?
Prior to using the assumed name
The USA patriot act was signed into law as a response to:
The 9/11 terrorist attacks
A license is deemed to be used for a controlled business if, during the immediately preceding 12 - month period
The licensee's total premiums on controlled business exceeded the total premiums on all other business
Which of the following statements is true regarding the replacement of a life insurance policy in Colorado?
The replacing insurer must maintain copies of all records regarding the replacement for at least 5 years
An insurer cannot deny a claim unless:
There is a reasonable explanation of the claim
Which information is not included in the Colorado Supplement to the Summary of Benefits and Coverage form?
Insurer's prior year financials