Series 1: Insurance Regulation

A person aggrieved by any order of the commissioner on a hearing may appeal and demand a court review. He appeals to the Select one: a. Insurance Commissioner b. Rating Commission c. District Court for East Baton Rouge Parish d. His sponsoring agency Feedback

c

Promising to return a portion of a premium to a prospective insurance buyer is an illegal practice known as Select one: a. Rebating b. Defamation c. Illegal Inducement d. Unfair discrimination

a

In addition to the MINIMUM examination requirements, the commissioner may examine insurers as often as Select one: a. Once every six months. b. Once every year. c. Once every two years. d. As deemed necessary.

d

The Insurance Code specifically identifies all of the following acts and practices as unfair or deceptive EXCEPT:? Select one: a. Misrepresentations b. False Financial Statements c. Tying d. Advertising

d

The two year renewal fee for a Life & Health license is: Select one: a. $25 b. $35 c. $45 d. $50

d

A resident producer who moves from Louisiana to another state MUST file a change of address and provide certification from the new resident state within: Select one: a. 30 days of the change of legal residence. b. 60 days of the change of legal residence. c. 90 days of the change of legal residence. d. 120 days of the change of legal residence.

a

If the Commissioner denies an application for a producer's license, the applicant MAY make written demand for a hearing within: Select one: a. 30 days after receiving notification of denial. b. 60 days after receiving notification of denial. c. 90 days after receiving notification of denial. d. 100 days after receiving notification of denial.

a

Jill is a licensed property and casualty producer. Her birthday is April 12th. When would she need to renew her insurance license? Select one: a. By April 30th on odd numbered years. b. By December 31st on odd numbered years. c. By April 12th on odd numbered years. d. By May 1st on odd numbered years.

a

The Commissioner of Insurance may refuse to issue, renew or reinstate or may suspend or revoke an insurance producer license or may levy a fine of up to _______ for each violation occurring in Louisiana, up to _________ aggregate per calendar year. Select one: a. $500; $10,000 b. $2,500; $10,000 c. $500; $100,000 d. $1,000; $20,000

a

To protect the consumer in regard to their credit history best describes: Select one: a. Fair Credit Reporting Act b. Opt Out Notice c. The Insurance Code d. Fair Trade Practices Act

a

A licensed producer MUST file an application for renewal of the license every Select one: a. Year b. Two years c. Three years d. Five years

b

A producer has a license that has lapsed four years. To activate their license they MUST: Select one: a. Fulfill education requirements, pay appropriate fees and retake the state exam. b. Only fulfill continuing education requirements and pay fees to renew. c. Make application for new license. d. Only retake the state exam.

b

A resident producer: Select one: a. MUST reside in Louisiana. b. MUST reside or maintain a principal place of business in Louisiana. c. MUST have one client in Louisiana. d. Does NOT have to reside or maintain a business in Louisiana.

b

All insurers MUST submit to the Commissioner an alphabetical list of the licensed producers it wishes to appoint as its agents along with a _______ fee for each appointment. Select one: a. $15 b. $20 c. $25 d. $50

b

An applicant for a resident insurance producer license in Louisiana MUST be at least: Select one: a. 16 years old b. 18 years old c. 21 years old d. 25 years old

b

An insurance producer must be __________ by an insurer in order to act as an authorized producer of that insurer. Select one: a. selected b. appointed c. elected d. subscribed Feedback

b

Failure to file a change of address within _______ days of change to the Commissioner will result in a _______ penalty per violation. Select one: a. 7; $35 b. 10; $50 c. 14; $50 d. 5; $25

b

Joe is a licensed producer who landed a large insurance account thanks to his friend Fred. Which of the following statements is correct? Select one: a. Joe can thank Fred by paying him any amount he wishes. b. Joe can pay Fred as long as Fred is a licensed producer. c. Joe cannot pay Fred under any circumstances. d. Joe can pay Fred as long as it is not cash.

b

The insurance code requires companies to protect the rights of the consumer in regard to a certain amount of sharing of personal information through the use of: Select one: a. the Fair Credit Reporting Act b. Opt Out Notices c. Do Not Call Legislation d. the Fair Trade Practices Act

b

A person aggrieved by any order of the commissioner on a hearing may appeal and demand a court review. He appeals to the Select one: a. Insurance Commissioner b. Rating Commission c. District Court for East Baton Rouge Parish d. His sponsoring agency

c

A temporary insurance license may be issued to all of the following EXCEPT: Select one: a. Surviving spouse of licensee. b. A designee of a licensed producer entering into active military service. c. An appointee while the licensed producer is out of the country on vacation. d. executor of the estate of a disabled licensed producer.

c

All of the following apply to the Commissioner's general duties and powers EXCEPT: Select one: a. May revoke or suspend a license. b. May levy fines. c. Serves on the Insurance Rating Board. d. Administers and enforces the Louisiana Insurance Code.

c

Concerning Unfair Trade Practices, charging different rates to persons in the same risk class best describes Select one: a. Twisting b. Misrepresentations c. Unfair Discrimination d. None of the above.

c

Concerning Unfair Trade Practices, rebating is best described as which of the following? Select one: a. Persuading a policy owner to drop a perfectly satisfactory policy and replace it with another. b. Charging different rates to persons in the same risk class. c. Offering a return of a premium as an inducement to buy insurance. d. The act of deception or cheating in order to financially benefit at the expense of another.

c

When a person or organization demands a hearing before the commissioner for a legitimate reason, the hearing must be held within: Select one: a. 20 days b. 30 days c. 60 days d. A reasonable time.

b

Concerning Unfair Trade Practices, rebating is best described as which of the following? Select one: a. Persuading a policyowner to drop a perfectly satisfactory policy and replace it with another. b. Charging different rates to persons in the same risk class. c. Offering a return of a premium as an inducement to buy insurance. d. The act of deception or cheating in order to financially benefit at the expense of another.

c

In Louisiana, the Insurance Commissioner is: Select one: a. Appointed for life. b. Elected for a term of two years. c. Elected for a term of four years. d. Elected for a term of eight years.

c

Producers renewing a L&H license need ______ hours of continuing education. Select one: a. 16 b. 20 c. 24 d. 32

c

The Commissioner MAY issue a temporary insurance producer license without requiring an examination for up to Select one: a. 60 days b. 90 days c. 180 days d. 360 days

c

The MAXIMUM term a temporary license may be issued for is Select one: a. 3 months b. 1 year c. 180 days d. 2 years

c

The average amount of life insurance per family has grown at what rate since 1940? Select one: a. 10% b. 20% c. 30% d. 40%

c

When the commissioner orders a hearing - except in cases involving insolvency - the notice of the hearing must be given to all parties affected at least _____ days in advance. Select one: a. 10 b. 20 c. 30 d. 60

c

With an Exclusive or Captive Agency System: Select one: a. The producer is a branch manager. b. The producer may be appointed by unlimited insurance companies. c. Producer represents only one insurer. d. The producer is self insured.

c

A license will be considered used for writing controlled business if the total commissions earned from the controlled business exceed _____ of the commissions earned on all business written by the licensee during any 12-month period. Select one: a. 5% b. 10% c. 15% d. 25%

d

All of the following are required of a person applying for a resident insurance producer license EXCEPT: Select one: a. Must be at least 18 years old. b. Must reside in or maintain their principal place of business in Louisiana. c. Must have passed the state exam. d. Must have a sponsoring broker.

d

Every insurer doing business in Louisiana MUST be examined at least once every: Select one: a. Year b. Two Years c. Three Years d. Five Years

d

For a producer who is licensed to write life insurance, the continuing education requirement is Select one: a. 10 hrs. of credit during each renewal period. b. 14 hrs. of credit during each renewal period. c. 16 hrs. of credit during each renewal period. d. 24 hrs. of credit during each renewal period.

d