Xcel CA Life insurance CH 13
According to the CA insurance code, what is the maximum penalty per violation for anyone who unwillfully commits an unfair method of competition?
$5000
The free-look period for life insurance policyowners age 60 or older is
30 days
Any changes in background information that occur after a producer application has been submitted or a license has been issued MUST be reported to the insurance commissioner within
30 days ( section 1729.2 )
According to the California insurance code, what is insurance?
A contract
What is an insurance broker according to California insurance code
A person compensated for transacting insurance on behalf of another person with an insurer
What is an "insurance broker" according to California Insurance Code?
A person compensated for transacting insurance on behalf of another person within an insurer.
An insurance company entitled to transact buisness in California is called a(n)
Admitted carrier
Which of the following isn NOT considered to be an unfair claims settlement practice?
Advising a claimant to fire an attorney.
Which of the following is NOT considered to be an unfair claims settlements practice?
Advising claimant to hire an attorney
According to the California insurance code, which of the following is NOT an example of an insurable event?
An insured suffers a financial loss in the state lottery
Life insurance surplus must be distributed to policy owner at what frequency?
Annually
Insurance agents and brokers must make their insurance records available to the commissioner
At all times
The California insurance code allows an individual how many days to cancel a life policy for a full refund?
Between 10 and 30 days.
An agents attempt to stop the replacement of an existing line insurance policy is known as
Conservation
According to the California code governing claim settlement practices, which of the following is NOT considered to an act of unfair discrimination?
Denial of a claim based on reckless behavior
When handling premiums for an insured an agent is acting in which capacity
Fiduciary
In California, an insurer organized under the state laws of Oregon is called a(n)
Foreign insurer
What is an insurance solicitor authorized to do?
Help an agent of broker sell insurance.
Which of the following is not protected under the California life and health guarantee association?
INSURERs
What prevents a life insurance policy from being rescinded by the insurer after being in force for two years?
Incontestability clause.
Who does a life settlement broker represent?
Individual wanting to sell their life policy to a third party
According to the California insurance code, who is responsible for submitting a life agents appointment?
Insurer
Which of the following is NOT a primary objective of insurance regulation?
Interpret policy provision
An individual who transacts life, disability or life and accident and health insurance on behalf of an insurance is called
Life agent
What types of license is required for an individual who charges a fee to review an insured existing life insurance policy
Life and disability analyst.
According to the California insurance code what term is used to describe a fact so important it could affect the policy premium?
Materiality.
Which word implies permissiveness according to the California Insurance Code?
May
Which of the following does the California department of insurance (CDI) have NO jurisdiction over?
Medicare
What is required after a life agent sells an insurance policy to an applicant without. being appointed by the insurer?
Notice of appointment must be submitted to the commissioner. (14 days)
A reputation may be altered or withdrawn
Only before the insurance is in effect
According to California insurance code, how is the word "may" interpreted?
Permissive
What does the term "illustration" mean when used in the phrase "life insurance policy illustration" according to the California insurance code?
Presentation of policy features that includes non-guaranteed elements.
Which types of jurisdiction requires an insurer to have its rates accepted by the insurance department prior to using them?
Prior approval
Which of the following is NOT considered to be an act of insurance solicitation>
Publishing a magazine where one of the advertiser is an insurer
When intentional concealment is involved , what courses of action is the injured party entitled to?
Rescission of the contract
Anyone employed in California to assist an insurance agent in transacting insurance is called an insurance
Solicitor
which of the following does NOT have to be included on life insurance policy illustration.
Statement that all values and benefits are guaranteed
Which of the following does NOT have to included on life insurance policy illustrations?
Statements that all values and benefits are guaranteed
Why is a life insurance policy delivery date important?
The free look period begins on the policy delivery date.
Under the California insurance code, a licensee license number must be printed at the size on all price quotes, business cards and printed material?
The same size print as the licensee's phone number, fax number or address.
Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty of?
Theft
What does the term "indemnity" mean as it pertains to insurance?
To make whole
An agent has advertised that the insurer to which the agent is appointed with is a member of the Insurance Guarantee Association. This agent has committed a(n)
Unfair Method of competition
Paul has an existing annuity and is sold a new one, in which the new policy holds no greater financial benefit to him than the existing contract. This is considered a(n)
Unnecessary replacement
When an isurer has met the qualification necessary to transact buisness in california is said to be
admitted.
A person who asserts a right of recovery under an insurance policy is called
claimant
Before an insurer is allowed to test an individual for HIV what must be completed?
consent form
The California life and health insurance guarantee association covers all of the types of policies, except
self funded plans
The California insurance code defines "policy" as a(n)
written contract.