Part 14

Which statement is NOT true regarding a policy summary? a) It must include the generic name of the basic policy and each rider b) It must include the date the policy summary is prepared c) It must be combined with a sales illustration d) It is generally given to applicants before acceptance of the initial premium

c) It must be combined with a sales illustration

An insurance agent X has been found guilty of a felony and was sentenced to 3 years in prison. What would be the appropriate plan of action? a) Send a written notification to the department of insurance b) Immediately turn in his license c) Appeal to a higher court d) Do nothing

a) Send a written notification to the department of insurance

Which of the following groups would most likely be covered under a blanket accident policy? a) Students at a public school b) Office workers for a retail business c) Factory workers at the automobile assembly plant d) Independent contractors who work for a general contractor

a) Students at a public school

#133. Who does the secondary addressee provision protect? a)The insured over the age of 64 b)Contingent (secondary) beneficiaries c)The insured whose policy is being replaced d)The insurance company

a)The insured over the age of 64

Most HMO's operate through what type of system? a) A group formed principally for the purpose of obtaining HMO coverage b) A group enrollment system either at their place of employment or as a member of an association c) Individual fee-for-service system d) Individual subscribers

b) A group enrollment system either at their place of employment or as a member of an association

#138. If an agent is in the military, which of the following is true? a) The agent cannot sell policies while on active duty. b) The agent cannot sell a policy to another active military person who is of a lower rank. c) The agent cannot sell a policy to someone outside of the military base. d) The agent cannot sell any policies during times of war or conflict.

b) The agent cannot sell a policy to another active military person who is of a lower rank.

#134. Who might receive dividends from a mutual insurer? a) Stockholders b) Agents c) Policyholders d) Subscribers

c) Policyholders

Insurance contracts are agreements between which two parties? a) Producers and consumers b) Insurer and Insured c) Producer and Insurer d) Attorneys for any parties involved in any contract

b) Insurer and Insured

All advertisements are the responsibility of the : a) Insured b) Advertising Agency c) Department of Insurance d) Insurer

d) Insurer