Life insurance Code and ethics

Any person who engages in any unfair method of competition or deceptive acts as a viable to a state for a civil penalty in a fine of $5000 for each act in addition if determined the actors will forward the fine will not exceed

$10,000

Obtaining information under false pretense is a violation that would be a maximum fine for any agent found guilty of

$10,000

And insured files a fraudulent claim for $100,000 is the maximum find that the insured could be ordered to pay if convicted of insurance fraud

$200,000

What is the minimum fine for acting as an Agent for a non-admit it and sure in the transaction of insurance business

$500

The commissioner has the authority to issue a cease and desist order against any person acting as an insurance agent or broker without a license. The commissioner may also impose a penalty for each day to order is violated in the amount

$5000

What is the purpose of California laws regulating production agencies

- Avoid unnecessary federal regulation, - provide protection for the clients by requiring producers to maintain professional standards of conduct, - they are mainly concerned with standardizing

And insurance cancels an insurance policy what period of time must a premium refund be issued

25 days

An elder according to the California insurance code is at least

65 years old

Which of the following statements is not true regarding insurance solicitor in California

A solicitor me act as an insurance agent at the same time

An agent offers life insurance for no cost to people buying property in a local development with the commissioner investigates the agents actions which of the following is a NOT likely consequence

Agent will be charged with a felony and or up to 10 years in jail

And ensure who transacts insurance in the state but he's articles of incorporation or register in Canada are considered what type of insurance

Alien

In which Medicare supplement policy is our core benefits found

All plans

The agents authority to transact insurance business or an insurance is effective

As of the date that the notice of appointment is sign

We must agents keep records associated with insurance transactions

At their principal place of business

Wind me a representation be withdrawn by the the

Before the insurance is in effect

And insurance producer who buy contract is bound to write insurance for only one company is classified

Captive agent

A lender who conditions approval of a loan on the condition that the borrower purchases insurance from a lender may be guilty of

Coercion

friendly fire

Deliberately ignited flame or glow that stays within its intended confines

For senior agents the requirements for continuing education for California partnership for long-term care policies is

Eight hours each reporting period

All of the following may be covered under the employers liability policy except

Employers eligible for 24 hour coverage

If an agent Unintentionally gives a client incorrect information what professional insurance would pay for losses or defend the agent against any results lawsuit

Errors and omissions

Hostile Fire

Escapes its intended confines

Regulating the operation of purchasing groups is one of the purposes of the

Federal liability risk retention act

The insurance solicitor is only found in which field of insurance

Fire and casualty

And insured has purchased a variable annuity he has not waived his rights during the free look. Where will the premiums be initially invested during the free look.

Fixed income or money market account

According to the California law, If an insurance company includes a fraudulent claim clause in the contract regarding a legal ramification of false claims the clause must be preceded by which statement

For your protection California law requires the following to appear on this form

An agent with an active license cannot act as a broker unless

He does not have an appointment with the company that he is brokering

And insured negligently misrepresents information on his auto insurance policy which circumstance will he be able to avoid policy cancellation

If he provides corrected information to the insurance within 20 days after receiving notice of cancellation

In which of the following scenarios with a producer be allowed to obtain insurance through and an authorized user

If there are no authorized insurance for a specific type of coverage in this state

Fraudulent activities in healthcare or estimated in billions of dollars annually this results in

Increase in health care cost for everyone

In California and employer has three choices to provide required workers compensation insurance. Which of the following is not one of those choices

Individual plans provided by employees

Home service insurance is a variation of which type of life policy

Industrial life insurance

What type of life insurance is usually written for small amounts and requires frequent premiums that are collected by the agent

Industrial life insurance

All of the following must be communicated in an insurance contract except

Information the other party already knows

In California a person applying for insurance license is considered to have been convicted of a misdemeanor or felony if the person entered all the following please except

Innocent

Which of the following best describes a misrepresentation

Issuing sales materials with exaggerated statements about policy benefits

When an agent does not hold an active appointment with insurance what happens to the agents license

It becomes inactive

All of the following are true regarding 24 hour coverage except

It can be distributed through a life insurance policy

What happens to the insurance license of a corporation when the corporation cease to exost

It terminates

Which of the following is not a license in the state of California

Life broker

According to California insurance code the term shell describes what kind of action

Mandatory

And example of an alien ensure doing business in the state is formed under the laws of

Mexico

And insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest with the agent guarantees hard evidence that he knows will be possible. What term describes with the agent has done

Misrepresentation

The written instrument in which the contract of insurance is set forth is known as the

Policy

In California which system is used to approve or disapprove rate filings

Prior

What is the purpose of errors and omissions insurance

Protect agents against charges that don't properly serve the kite

An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of

Rebating

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Rebating

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce without

Receiving written consent from an insurance regulatory authority

What method do insurers use to protect themselves against catastrophic losses

Reinsurance

The entity pursues liquidation of insolvent insurer

State government

Which of the following best defines indemnification

The act of one person who agrees to restore an injured person to the condition they enjoyed prior to the loss

And employer on the verge of bankruptcy to save money decides to cancel the workers compensation plan what would happen

The business may be closed under a cease and desist order a seat by the Department of industrial relations

Which of the following is not a factor in determining the rates charge for California state compensation insurance fund for insurance issue by it

The extent to which the employees in a particular establishment have or have not someone dependent on them for support

The commissioner may disapprove the use of any name for licensee for any of the following reasons except

The licensee already has an approved name

A life settlement contract phone does the life settlement broker represent

The owner

A warranty may relate to which of the following

The past the present and the future

Which of the following selections correctly describes the California State compensation insurance fund

The state entity that exist so we to transact Worker's Compensation insurance on a nonprofit basis

Which of the following best describes the term 24 hour coverage in relation to Worker's Compensation insurance

This represents a two pronged coverage workers compensation during work hours and regular medical coverage outside of work

According to the California insurance code all of the following or general powers and duties of the commissioner and insurance except

To delegate the power to approve the settlement

What is the purpose of the California state compensation insurance fund

To make workers compensation insurance available especially to smaller companies with more limited payrolls

How does insurance distribute the financial consequences of individual losses

Transfer the risk to all persons insured

Representations and insurance contracts qualify as

implied warranties

Life insurance policy can be delivered by all the following means except

priority mail

And insurance company devices and intimidation strategy in order to order a large portion of the insurance market which of the following describes this

Illegal

Life insurance agent may not transact

Life insurance

All of the following may recommend life insurance contracts for their perspective clients in perspective insurance except

Life solicitors

A person who knowingly and willingly obtained information about an individual from an insurance company agent or organization supporting insurance under false pretense is shall be fined

No more than $10,000 imprisonment not to exceed one year or both

According to the CIC when an insured has functionally identical coverage that overlap or duplicate benefits To the extent that the coverage is no cost effective this represents

Overloading

A statement made by an applicant for insurance that must be true in every respect is considered to be a

Representation

The commissioner of insurance supervisors and regulates the insurance affairs in the state of California and is chosen by

The people

removal

Coverage provided for five days at another location for insured quantity that is removed to protect the property from an insured peril

When would the insured be Allowed to use the information obtained through the pretext interview

In the investigation of a claim suspected as fraudulent

Any person or a government entity that provides information about an individual to an agent, insurance company, or insurance support organization is known as a

Institutional source

A person who transaction assurance business other than life insurance for compensation from and on behalf of another person but not on behalf of or a Representative of an insurance company for which he has an appointment is called

Insurance broker

A natural person that is employed to aid and insurance agent or insurance broker and the transacting of insurance business other than life insurance transaction is called

Insurance solicitor

A person applying for an insurance license in California was previously found guilty in a trial in which they entered a plea of nolo contedere. What is this mean

No contest

Supplemental coverage paid for all of the following in core policy plan a Medicare coverage except

Part a deductible

Agency persuade insurance to buy a policy in favor of another one that might not be in the insured's best interest are guilty of

Twisting

When can a life on the agent transact disability insurance on behalf of an authorized insurer

Upon obtaining a sign by the insured notice of appointment

If a policy specifies the value of the insured Object in the policy itself what type of policy is it

Valued

A type of policy that used To provide a specific amount of replacement cost for a given risk after and insured property has been destroyed is called

Valued policy

For the purpose of a contract which of the following could be considered a personal

And association, a business trips, limited liability corporation

When long-term care insurance covers care in a person's home or in a skilled or residential facility the policy may be labeled as

Comprehensive

In order to be financially solvent and ensure must accomplish all of the following except

Contribute a specific amount of capital reserve to the state