Chapter 11 - xcel
How long must a replacing insurer maintain the records of a replacement transaction?
5 years
A producer who violates a cease and desist order may, after a hearing, be fined up to $___.
500
When is it appropriate for a producer's spouse to be the primary beneficiary on an applicant's life insurance policy?
When insurable interest exists
Which situation allows the producer to also be the beneficiary on a client's application for life insurance?
When insurable interest exists
When may the Commissioner conduct an examination of an insurance company?
as often as deemed necessary
Which of the following offers an insurance applicant the right to review the contract and receive a full refund?
free-look period
The USA Patriot act was signed into law as a response to
The 9/11 terrorist attacks
If an insurance company wishes to discriminate rates based on gender, it must...
be justified by actuarial statistics
Which of the following statements is true regarding the replacement of a life insurance policy in Colorado?
The replacing insurer must maintain copies of all records regarding replacement for at lease 5 years.
Employer noncontributory group life policies must allow for all of the following EXCEPT
insured can determine the benefit amount.
When a claim has been denied, the insurer must
issue a statement to the policyowner explaining the coverage, provision, or laws on which denial was based.
In addition to suspending/revoking license and issuing fines, the Commissioner has the authority to do all of the following except...
issue prison sentences
To be valid, a group life insurance policy...
may not be issued to a group formed solely for the purpose of obtaining insurance
Which of the following words may be used in the advertisement of life insurance or annuities?
Guaranteed
If a producer is going to deposit any premium into a bank account prior to remitting the funds to the insurer, he/she must use a ...
"Separate insurance trust account."
On June 1, 2004 G takes out a $20k Whole life insurance policy with an Accidental Death and dismemberment rider. On July 1, 2005 G intentionally overdoses on sleeping pills and takes her own life. What will G's beneficiary receive as a death benefit?
$20k b/c the policy has past 1 year
A group life insurance policy holder must be given a grace period per premium payment of how many days?
31 days
A producer must remit premiums to the insurer within ___ days after receipt.
45
T calls to file a claim on his health insurance policy. Within how many days must the insurer provide Ts proof of loss forms?
15 days
Under the suicide clause, a life insurance claim cannot be denied due to suicide after a period of ___ from the policy's effective date.
1 year
renewing a producer's license requires ___ hours of continued education every 2 years.
24
An insurer that terminates a producer's appointment must inform the Commissioner within how many days?
30 days
What is the maximum amount the commissioner can fine an insurer for each violation of a cease and desist order?
10,000
To be licensed to sell life, accident, and health insurance in Colorado, an applicant must complete...
100 hours of prelicensing education
In Colorado, a life insurance applicant has ___ days after policy delivery for a full refund of premium if not satisfied for any reason.
15
Which of the following potential insurance sales would be subject to replacement regulations?
A new policy that causes an existing life insurance policy to be surrendered
A company that has not been authorized to operate in Colorado is known as
A non-admitted insurer
How does the Commissioner attain this position?
Appointed by the Governor
Which of the following documents are not required to mention the Colorado Fraud Statute
Certificates
Which of the following is NOT a problem when existing life insurance is replaced with new coverage?
Comprehensive coverage may increase under the new policy.
A producer that only sells insurance to family members is said to be engaging in
Controlled business
Who is not eligible to receive commissions from the sale of an insurance product?
Corporate executive
If a producer completes an insurance application, collects the initial premium and issues the appropriate receipt,...
Coverage is contigent upon the insurer's underwriting policies
When recommending the purchase or exchange of an annuity, a producer must determine the suitability of the purchase by performing all of the following EXCEPT
Determining the marital status of the applicant.
From what point must the insurer pay interest on the proceeds of a death claim?
Date of death
Which of the following is an example of misrepresentation?
Describing a universal life policy as a security.
Licensing is required for all of the following except.
Selling prepaid legal services
According to the Colorado Fraud Statute, all of the following must contain a warning against insurance fraud EXCEPT
Certificates of authority
Ultimately who is responsible for a producer-generated advertisement?
Insurer
In Colorado, which of the following is true regarding the commingling of an insured'd funds with the funds of the producer?
It's never okay
As a condition to be approved for a loan, a creditor may require the borrower to
Obtain an insurance policy through an insurer of the borrower's preference.
Which of the following is required for a life insurance Lapse Notice?
Reason stated why the policy will lapse.
Which of the following is a duty of the commissioner?
Reviewing and approving license applications
A life insurance applicant realized he failed to disclose material history and calls the producer. Any changes made to the application must be initialed by the...
applicant.
Circulation of a maliciously critical statement about an insurer's financial condition meant to damage the insurer's reputation or business is called...
defamation
All of the following penalties apply to anyone giving intentional false testimony during an insurance examination EXEPT
guilty of a felony
A verbal or written statement which misleads a policy's features, benefits, or coverage is considered ___.
misrepresentation
If an applicant for an annuity refuses to provide suitability information, the producer should
obtain the consumer's signed statement documenting his or her refusal to provide suitability information
If a producer offers to refund part of a prospect's premium in exchange for the purchase of a life insurance policy, the producer is committing the illegal act of
rebating
Interest on life insurance proceeds is...
required if the claim was not paid within 30 days of the date insurer received the claim.
When replacing an exiting life insurance policy, the replacing insurer must notify the existing insurer within ___ business days.
5
When a minor is designated as the sole primary beneficiary,...
A guardian will be court-appointed in the event of a death claim
Which of the following statement is CORRECT regarding insurable interest in a life insurance contract?
A person generally is considered to have an unlimited insurable interest in himself or herself.
Which of the following is CORRECT regarding a producer's fiduciary responsibility with client's funds?
A producer may never commingle personal funds with funds paid by or to a client.
A fiduciary responsibility is defined as
A relationship of special trust and confidence when a person is entrusted with another's funds
All of the following are considered a form of advertisement EXCEPT
Communication or materials used within an insurer's own organization.
Paying insurance premiums on a more frequent basis will cause the policy to have
Higher premiums
A license is deemed to be used for controlled business if during any 12-month period...
The licensee's total premiums on controlled business exceeded the total premiums on all other business.
If a producer chooses to conduct business under an assumed name, when must notification be given to the Commissioner?
Prior to using the assumed name.
An insurer cannot deny a claim unless
There is a reasonable explanation of the claim
Colorado's replacement rules apply to all of the following types of insurance EXCEPT
Single premium whole life
In Colorado, all of the following are considered unfair trade practices except
replacement
G takes out a life insurance policy on October 8th, 2008. On August 3, 2009, G takes his own life. When G's beneficiary files a claim,...
The claim will be denied under the suicide provision.
If an insurer is authorized to conduct business in another state and wishes to conduct business in Colorado, it must..
receive a certificate of authority from Colorado
When a life insurance underwriter is determining insurability, it is illegal to base these decisions on ___.
sexual orientation
The commissioner may issue an emergency cease and desist order without a hearing for all of the following circumstances EXCEPT
Writing controlled business
If a producer is found to be writing primarily controlled business, ...
the Commissioner will not renew the license
Which of the following statements regarding the Notice Regarding Replacement of Life Insurance is CORRECT?
A copy of the notice must be signed by the applicant and submitted with the application
When may the commissioner issue an emergency cease and desist order?
If there is suspicion of an unauthorized person engaging in insurance business without being licensed.
If an annuity application was not taken in person, an insurer must provide the applicant a Buyer's Guide
Within 5 business days of the insurer receiving the application
A health insurer may exclude medical coverage for any claims that result from
skydiving
A producer license may be suspended or revoked if the producer is found to be engaging in ...
misrepresentation