Life Insurance

If a consumer requests additional information concerning in Investigative Consumer Report, how long does the insurer or reporting agent have to comply? A) 10 Days B) 3 Days C) 5 Days D) 7 Days

5 days

The Director conducts an examination of domestic insurers every

5 years

All of the following are regulated areas of the insurance industry EXCEPT

Commissions

all else being equal, which of the following will NOT be considered unfair discrimination?

Discriminating in benefits and coverages based on the insured habits and lifestyle i.e. Smoking

Under the Fair Credit Reporting Act, if the consumer challenges the correctness of the information contained in his/her report, the reporting agency must

Respond to the consumer's complaint

whenever it appears that any person is violating an insurance law of Nebraska or any rule or regulation made by the Director, what may the Director issue? a. stop-action order b. cease and desist order c. suspension of power decree d. revocation of authority

cease and desist order

It is considered to be an unfair trade settlement practice if an insurer fails to acknowledge communications with respect to an insurance claim within a. 15 days of receipt b. 30 days of receipt c. 60 days of receipt d. 90days of reciept

15 days of receipt

A banker is ready to close on a customers loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of a. defamation b.twisting c. coercion d. loading

coercion

Which of the following criminal activities would be sufficient violation to warrant rejection, revocation or suspension? a. forgery b. speeding in an automobile c. trespassing through a neighbors yard d. public drunkenness

forgery

An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice? a. defamation b. illegal c. a legal advertising strategy d. unfair discrimination

illegal

Any licensed person who knowingly makes false material statements related to the business of insurance may be fined and imprisoned for up to a. 3 years b. 5 years c. 10 years d. 12 years

10 years

A producer who omits a statement which may mislead or deceive the persons addressed has committed a. coercion b. misrepresentation c. defamation d. twisting

misrepresentation

Which of the following types of discrimination would be considered legal? a. premiums for persons within the same life expectancy b. policy benefits on the basis of the life expediencies c. in policy benefits on the basis of martial status d. in rates for persons within the same class

policy benefits on the basis of the life expediencies

An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insured by 10% over the next two years. What term best describes this act?

Fraud

Which of the following is an example of a producer being involved in an unfair trade practice of rebating? a. inducing the insured to drop a policy in favor of another one when it's not in the insured's best interest b. charging a client a higher premium for the same policy as another client in the same insuring class d. telling a client that his first premium will be waived if he purchased the insurance policy today

telling a client that his first premium will be waived if he purchased the insurance policy today