Capter 11 Mass Laws and Rules
A producer found to have engaged in an unfair method of competition may be
Subject to license suspension or revocation
A person who commits a deceptive act or practice may be fined no more than
1,000
A producer must be given how many days notice for a scheduled hearing?
21 day notice
Select the appropriate response A policy form may not be used in Massachusetts unless it has been approved by the Superintendent or on file for at least
30 Days
The Superintendent must inspect the financial records of each domestic company every
5 years
In Massachusetts, who would be eligible for a temporary producer's license?
A designated employee who is replacing a deceased producer
In order to act as an insurance agent, a producer must hold a valid insurance license and
Be appointment by an authorized insurance company
A licensee who attempts to intimidate a prospective insured is guilty of
Coercion
Under state law, punishment for unfair and deceptive insurance practices may include all of the following EXCEPT
Community Service (Can include A fine Imprisonment License revocation)
The business of life settlements may include all of the following EXCEPT
Conversion of Term Life insurance contracts
Under Federal Law, an insurance producer may be sentenced to prison for
Embezzling money from an insurance company
A life insurance producer is required to give a disclosure notice about information practices to an applicant or proposed insured
Prior to or at the signing of the application-A life insurance producer is required to give a disclosure notice about information practices to an applicant or proposed insured prior to or at the time of signing the application.
A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered is called
Replacement
Under the Fair Credit Reporting Act, which statement is true?
The consumer who was investigated must be advised that credit, insurance, or employment was denied because of an unfavorable report.
A producer's cancellation of appointment must be reported to the Bureau of Insurance by
The insurance company
After a producer is appointed, who is considered the principal?
The insurance company
Who is responsible for reporting the licensee's change of name or address to the Superintendent of the Bureau of Insurance?
The licensee
No existing insurance license will be revoked until
The licensee has been afforded a right to a hearing on the charges
A life insurance illustration showing future premiums being paid out of nonguaranteed values must disclose that
The policyowner may need to resume premium payments depending on actual results
In accordance with federal fraud and false statements regulation, a prohibited person cannot transact insurance business without
The written consent of the Commissioner
Which of these situations would NOT potentially involve a prison sentence under Federal law?
Transacting insurance with a nonresident license ( Misappropriating insurance premiums Embezzlement of an insurer's funds Sending threatening letters to an insurer are all options)
Under what circumstances must a producer's insurance records be provided to the Massachusetts Superintendent of Insurance?
Upon request of Superintendent
Agreements made by terminally ill persons to sell their life insurance policies at a discount in order to pay medical expenses are called
Viatical settlements-Viatical settlements allow policy holders to sell their policies for a percentage of the face amount for a cash payment.
When an insured under a group life insurance plan in Massachusetts elects the conversion option, the new policy is issued
Without requiring evidence of insurability
Does the Superintendent have the ability to examine the records of authorized insurers?
Yes, because of the powers granted through state statutes
An insurer may be responsible for all of the following EXCEPT
being financially liable for unauthorized acts by the producer
When the Superintendent believes a producer has broken an insurance law, the Superintendent has the authority to:
issue a cease and desist order against the producer at a hearing
Which of the following is true regarding a foreign insurer wishing to conduct business in Massachusetts?
it must obtain a certificate of authority from the Superintendent of Insurance
In order for a prohibited person to sell insurance in Massachusetts, he or she must have a(n)
letter signed by the Superintendent
In Massachusetts, an individual can be disqualified from obtaining a resident producer license by
residing in a bordering state