AD Banker - Ch 15
A nonresident producer may receive a Tennessee producer license if: A The person's home state awards licenses to Tennessee residents on the same basis B The person agrees not act as a surplus lines producer C The person passes the Tennessee licensing exam D The person is eligible to apply for a license in his or her home state
a
A license is valid for ______ months unless revoked or suspended. A 18 B 24 C 36 D 12
b
All personal lines insurers must file their rates with the Commissioner: A Who must wait at least 30 days to approve them B 30 days prior to their implementation C Within 30 days after their implementation D At the time of their implementation
b
An insurer must give an insured at least ____ days' notice of its intent not to renew a policy: A 10 B 30 C 15 D 31
b
Any change of address must be reported to the Commissioner within _____ days. A 31 B 21 C 10 D 30
d
A commercial insurer may cancel a policy which has been in effect for at least 60 days for which of the following reasons? A Continuing the policy could result in a violation of state insurance laws by the insurer B The named insured is indicted for a crime that resulted in the increase of a hazard C The insurer's violation of any policy term or condition D For a material decrease in risk
a
A temporary license issued to a representative of a licensed producer who dies or becomes disabled is valid for up to how many days? A 180 B 120 C 240 D 360
a
All the following statements regarding sinkhole insurance are correct, except: A Coverage may not be broader than the coverage required by statute B Insurer may make sinkhole loss coverage available in a homeowner policy itself, or by endorsement C Land stabilization and all other repairs to the structure and contents must be completed within 12 months D The insurer may limit its total claims payment to the actual cash value of the sinkhole loss
a
An insurer must give an insured at least 20 days' written notice of cancellation if the policy is an initial policy that has been in effect _____ days or more. A 60 B 45 C 30 D 14
a
Candidates for an insurance producer's license in Tennessee must complete how many hours of prelicensing education per line of authority? A 20 B 40 C 80 D 10
a
Charging different rates to insureds of the same class or hazard category is considered which of the following unfair trade practices? A Unfair discrimination B Boycotting C Rebating D Defamation
a
If a bank will not grant a loan unless the borrower buys insurance from a specific company, the bank and insurer are guilty of which of the following unfair trade practices? A Boycott, coercion and intimidation B Rebating C Defamation D Unfair discrimination
a
If after notice and a hearing, the Commissioner finds that a person has knowingly committed a single violation of the insurance code, the licensee may be subject to a fine of up to: A $25,000 B $100,000 C $2,500 D $1,000
a
It is an unfair trade practice to: A Illegally replace a life policy B Keep a complete record of all complaints received since an insurer's last examination date C File a material misstatement about a person's financial condition or business D Filing with the Commissioner the policy and certificate for the sale of LTC insurance
a
Producers must complete: A 24 hours of continuing education including 3 hours of ethics every 2 years B 24 hours of continuing education each year C 24 hours of continuing education plus 3 additional hours on ethics every 2 years D 24 hours of continuing education on any subject every 2 years
a
The Commissioner may grant a temporary license: A To the surviving spouse of a deceased producer B Only if the temporary licensee has a sponsor C To newly hired individuals so that they may sell insurance while studying for their exam D Which renews like an ordinary producer license
a
The Commissioner must provide a person subject to an investigation a copy of the complaint which initiated the investigation within ______ days of receiving the complaint. A 30 B 21 C 31 D 14 Excellent!
a
The Tennessee Insurance Guaranty Association will cover claims that: A Arise within 30 days after the determination of insolvency B Arise within 60 days after the determination of insolvency C Existed after the determination of insolvency D Arise before the insured replaces the policy or requests cancellation, if such actions are taken within 30 days after the determination of insolvency
a
Under Tennessee law, an insurance producer is defined as an individual or entity licensed to perform which of the following functions with regard to insurance? A Having a license to sell solicit or negotiate insurance B Having a license to underwrite insurance in the state of Tennessee C Having a license to act as a licensed fiduciary D Having a license to sell limited lines of insurance
a
Which of the following actions falls under the definition of a rebate? A Offering to pay the first month's policy premium when children are named as the primary beneficiaries B Reducing policyholder premiums out of accumulated surplus funds C Readjusting group policy premium rates based on a lower-than-expected loss experience D Reducing industrial debit plan costs for those paying premium directly to an insurer's office, which the collection expenses being saved
a
Which of the following business entities would by definition be considered an 'employee'? A A sole proprietor who files written notice with the Workers' Compensation division B A sole proprietor employing one individual working in a mine C A general contractor on a commercial construction project D A limited liability company using the services of five individuals for pay
a
Which of the following is true of Sinkhole Loss Coverage? A A policyholder will not be required to reimburse an insurer more than $2,500 with respect to any claim B The insurer cannot require an inspection of the property before issuance of sinkhole loss coverage C Sinkhole loss coverage is automatically included in any homeowner property insurance policy D Insurers may not offer coverage that is broader or more extensive than the offer of coverage required by statute
a
Which of the following statements regarding commercial insurance premium rates is correct? A In general, commercial insurance rates must be filed within 15 days after being implemented B The requirement to provide the Commissioner with premium information does not apply to inland Marine and Workers' Compensation coverage C In general, commercial insurance rates must be filed at least 30 days in advance of implementation D In general, commercial insurance rates must be filed at least 15 days in advance of implementation
a
Which of the following statements regarding the legal process as it relates to insurance in the state of Tennessee is accurate? A An arbitrator must be agreed to by all parties involved in the arbitration process B An arbitrator's fee is always split by the parties involved in the arbitration process C An insurer may enter into a settlement that decreases the rights, benefits, or coverage of the insured D A John Doe warrant is legal system's name for an uninsured motorist coverage case
a
Which of the following statements regarding the nonrenewal of a personal fire insurance policy is correct? A The insurance company must provide a 30-day notice of nonrenewal B The nonrenewal notice must state the reason for nonrenewal C The insurance company must provide notice within 15 days D The insurance company must provide a 20-day notice of cancellation
a
An individual that applies for an insurance license may be exempt from the licensing exam if: A A producer reinstates a lapsed license within 24 months of the lapse B A producer from another state who moves to Tennessee and applies within 90 days of dropping his previous license and moving C A person who is a Chartered Life Underwriter (CLU) D A person with a college degree in insurance
b
H. bought a $300,000 fire insurance policy, though his house was subsequently appraised as having a market value of $250,000. When H. suffered the total loss of his home in a fire, the insurance company: A Paid him $250,000 B Paid him $250,000 and refunded the excess premiums C Paid a partial amount based on the coinsurance provision D Paid him $300,0
b
In order to apply for a license to sell property and casualty insurance in the state of Tennessee, a Chartered Life Underwriter (CLU): A Must complete 40 hours of prelicensing education B Must complete 20 hours of prelicensing education C Must earn an insurance degree from a university D Is exempt from the state's prelicensing education requirements
b
Making or placing before the public a statement about the insurance business which is untrue, deceptive, or misleading is defined as the unfair trade practice known as: A Misrepresentation B False information and advertising C Fraud D False statements and entrie
b
The Commissioner must notify an insurer within _____ days of determining that a producer is ineligible for appointment. A 10 B 5 C 15 D 7
b
When investigating a producer for violations of the state's insurance regulations, the Commissioner would consider all of the following aggravating rather than mitigating circumstances, except: A The licensee's actions clearly violated the law B The licensee tried to rectify the situation C The licensee's agency has a lot of financial reserves D The licensee made a lot of money from the unfair practice
b
Which of the following statements regarding hearings and judicial review is correct? A A licensee's license may not be suspended without a hearing B If the Commissioner suspends a license on an emergency basis, the licensee must be notified and given the opportunity to request a hearing within 7 days C The Commissioner may not revoke the license of a business entity due to uncorrected violations known to only one of its managers D The Commissioner may not suspend a license without giving a licensee the opportunity to request a hearing
b
400 weeks is a maximum for temporary disability. The minimum percentage is based on the average weekly wage in the state. The maximum is based on 110% of the average weekly wage in Tennessee. A The maximum weekly benefit equals 66 2/3% of lost wages up to the average weekly wage in the state B The minimum weekly Workers' Compensation benefit is 15% of the employee's weekly wage C Except in cases of permanent, total disability, the maximum available Workers' Compensation benefits benefit is 400 weeks times the state's average weekly wage D The term 'mental injury', includes mental responses due to loss of employment or employment opportunities
c
A guaranteed renewable automobile insurance policy issued in the state of Tennessee may not be cancelled as long as: A At least one of the drivers of the insured auto maintains his or her driver's license B The vehicle is used for either travel or as a residence C The insured maintains the continued membership required by their insurer D The policy rate was initially approved, even if the approval was later withdrawn
c
A lapsed individual producer license may be reinstated: A Up to 30 days following the renewal fee's due date B Up to 24 months, or one license renewal period C Up to 12 months following the renewal fee's due date D Through March 1 of each calendar year
c
A policy in effect for at least 60 days may be cancelled: A For a decrease in risk B If the named insured's conviction of a crime C For fraud or material misrepresentation D For compliance with written loss control recommendations
c
All insurers must file all rates, rate information, policy forms and endorsements with the Commissioner at least _____ days before their intended date of use. A 15 B 21 C 30 D 10
c
An insurer must give the named insured at least ____ days' notice of its intent to increase rates by more than ____%. A 15; 10 B 30; 25 C 60; 25 D 45; 50
c
If a driver who caused an accident or injury fails to file the required forms within _____ days of the accident, it will be presumed that he/she was uninsured at the time of the accident. A 30 B 120 C 90 D 60
c
If a producer sells insurance policies issued by an unauthorized insurer: A The policies are void B The policy is covered by the Life and Health Guaranty Association C The producer is personally liable for any claims D The insurer is responsible for any claims
c
In order to be eligible for a producer's license, the Commissioner must determine that the applicant has all of the following characteristics, except: A He or she must paid all required fees B He or she must pass the appropriate licensing exam C He or she must be at least 21 years of age D He or she must complete any required prelicensing course
c
It is an unfair claim settlement practice to knowingly: A Promptly settle claims B Provide an accurate explanation for claim denials C Misrepresent material facts or provisions relating to coverage at issue D Pay claims without conducting a reasonable investigation
c
The Tennessee Guaranty Association will cover claims: A Related to Workers' Compensation of only $100,000 or less B That arise after an insured requests cancellation of a policy C That arise before the policy expiration date D That occur more than 30 days after a determination of insolvency
c
Under Tennessee law, an insurance producer is defined as an individual or entity licensed to perform which of the following functions with regard to insurance? A Having a license to underwrite insurance in the state of Tennessee B Having a license to sell limited lines of insurance C Having a license to sell solicit or negotiate insurance D Having a license to act as a licensed fiduciary
c
What are the minimum coverage amounts to prove financial responsibility for a split-limit policy? A 35/50/15 B 25/50/25 C 25/50/15 D 20/30/40
c
What unfair and prohibited practice involves the offer of a special premium or favor as an incentive to purchase insurance? A Coercion B Unfair discrimination C Rebating D Boycott, coercion and intimidation
c
Which of the following statements regarding Workers' Compensation benefits in the state of Tennessee is accurate? A The term 'mental injury', includes mental responses due to loss of employment or employment opportunities B The maximum weekly benefit equals 66 2/3% of lost wages up to the average weekly wage in the state C The minimum weekly Workers' Compensation benefit is 15% of the employee's weekly wage D Except in cases of permanent, total disability, the maximum available Workers' Compensation benefits benefit is 400 weeks times the state's average weekly wage
c
Which of the following statements regarding the nonrenewal or cancellation of a personal automobile insurance policy in the state of Tennessee is true? A The insured had no violations within the past 36 months B Insurers may cancel a policy is the insured has committed a misdemeanor during the preceding 36 months C Insurers must provide a 20-day notice of cancellation unless the cancellation is for nonpayment, in which case a 10-day notice is required D Insurers must provide a 60-day notice of cancellation
c
A corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity is a: A Insurance producer B Insurance broker C Limited lines producer D Business entity
d
A producer must notify the Commissioner of an address change: A Within 90 days B Within 180 days C Within 15 days D Within 30 days
d
A producer tells an applicant for insurance that a competitor insurer is in dire financial straits, and may not be able to honor its claims obligations. Which unfair trade practice has the producer committed? A Boycott, coercion and intimidation B Unfair discrimination C Rebating D Defamation
d
All of the following are defined as unfair claims practices, except: A Refusing pay claims clearly covered under one section of a policy until disputed claims under other policy provisions are settled B Maintaining a consistent policy of providing claims 15 to 30 days after they are requested C Attempting to settle claims for less than a reasonable amount based on written advertisements with or in the application D Paying claims without conducting a reasonable investigation
d
All of the following may constitute grounds for the suspension or revocation of a license, except: A Having a felony conviction B Failure to repay a student loan to the TSAC C Providing misinformation on a license application D Inadvertently accepting insurance business from an unlicensed person
d
All the following statements regarding uninsured motorist coverage are correct, except: A Uninsured motorist coverage forms may include restrictions as necessary to avoid duplication of insurance and benefits B An insured must be given an opportunity to include uninsured motorist property damage C Insurers making payments under the uninsured motorist coverage may seek recovery from any judgment against the responsible party D The uninsured motorist limit must equal or exceed the policy's own limit of liability for bodily injury
d
All the following would be considered a motor vehicle under the financial responsibility laws of Tennessee, except: A A semi trailer B An automobile C A trolley D A motorcycle
d
An authorized insurer can: A Consider an absence of credit information as a negative or positive factor in underwriting or rating B Deny, cancel, or nonrenew a personal insurance policy solely on the basis of credit information C Take adverse action based on a credit score more than 90 days old D Take adverse action based on a credit score more than 30 days old
d
An individual applying for an insurance license in Tennessee must be no younger than what age? A 21 B 16 C 25 D 18
d
An insurer licensed to write auto liability insurance in Tennessee may issue an auto liability policy only if it is noncancellable and if it is guaranteed renewable as long as: A Some of the drivers of the insured auto maintain their driver's licenses B The insured auto is used for a purpose for which a rate has been submitted for approval by the Commissioner C Premiums are paid up to 30 days after the due date D The insurer remains licensed to write auto liability insurance
d
An insurer nonrenewing a commercial insurance policy must: A Provide 10 days notice if a renewal policy has been offered B Provide 90 days notice if the policy is extended during negotiations C Extend the policy for 60 days at no cost D Provide 60 days notice prior to the end of coverage
d
As Harold, a 10-year veteran as an insurance agent, prepared to renew his license: A He realized that his college psychology courses would count for CE credit B He knew he could carry over up to 12 hours of CE from one year to the next C He was well aware that he needed 24 credit hours of approved continuing education plus 3 additional hours of ethics continuing education D He realized that he was exempt from Tennessee's CE requirements
d
How many hours of Continuing Education must a licensed producer in Tennessee complete every 2 years? A 60 B 36 C 45 D 24
d
If the Commissioner denies a license application for failure to pay child support, the Commissioner must notify the applicant of such denial within ______ days. A 15 B 10 C 31 D 30
d
In which of the following statements regarding the Commissioner's investigative authority is accurate? A The Commissioner may not take action based on a previous order entered by another state B The Commissioner may not provide the producer under investigation with a copy of the complaint C The Commissioner must publish any information gathered that during the investigation as part of the public hearing record D The Commissioner must complete any investigation within 2 years of receiving a complaint
d
Rate and premium reductions due to accident prevention courses apply to: A Fleet autos B An auto for which the rate has been increased because of a claim, or for which the driver has violated an auto law of Tennessee, or had his/her license suspended or revoked, within the past 3 years C An auto whose driver is required by a court to take a defensive driver training course D An auto for which the rate has been increased because of a claim, or for which the driver has violated an auto law of Tennessee, or had his/her license suspended or revoked, within the past 10 years
d
The Tennessee Workers' Compensation assigned risk plan: A Is a voluntary association of participating insurers B Is a state owned insurance company which underwrites coverage for those unable to obtain it through ordinary means C Covers individuals not covered by their employer D Apportions coverage among participating insurers for those unable to obtain coverage through ordinary means
d
When Mr. A applied for personal liability insurance, he was surprised to find that his credit information was used during the underwriting process. Under the laws of Tennessee, the use of credit information in underwriting: A Requires insurers to hold producers liable for errors and omissions resulting from using credit information B Requires insurers to use standard terms like 'poor credit history', 'poor credit rating', or 'poor insurance score', when denying an application due to poor credit C To take adverse action may not be based on a credit score more than 36 months old D Must be disclosed during the application process
d
Which of the following accurately describes the financial responsibility limits required in order to drive a motor vehicle in the state of Tennessee? A 60,000/15,000 B 50,000/25,000/15,000 C 50,000 D 25,000/50,000/15,000
d
Which of the following transactions would be considered an example of someone receiving illegal compensation in the state of Tennessee? A An insurer pays an unlicensed individual $25 for referral B The insurer pays compensation to creditors C An insurer pays an un-licensed individual deferred compensation earned by making insurance sales when the individual was previously licensed D An insurer pays commission to a producer licensed in Mississippi for a transaction in Tennessee
d