chapter 16

If a replacement is involved, the replacing producer or agent is required to give to the applicant all of the following, except:

A copy of the state regulations regarding replacements.

Who of the following could hold a temporary insurance license?

A personal representative of a deceased agent

Agent Z was found to be rebating. Which of the following could have been the general practice of Agent Z?

All of the choices listed

Commissions may not be paid to which of the following persons?

An unlicensed person acting as a producer or agent.

Before an insurer can operate in this state, it must have which of the following?

Certificate of Authority issued by the State Department or Division of Insurance

Making the purchase of insurance from a particular source the condition to another business transaction, is the definition of:

Coercion

Which is not a requirement to obtain an insurance producer's license?

College degree

Any attempt by the existing insurer to keep a policy in force, where replacement is contemplated, is known as:

Conservation

One of Water's Mutual agents was competing with a Rusty Standard Insurance agent. The Waters agent stated, 'The rumor mill says Rusty Standard will soon be insolvent.' Of which of the following might this agent be guilty?

Defamation

For an agent to be able to renew his/her license, they must meet all of the following requirements, except:

Earn the CPCU or CLU professional designation.

Which insurance designations are authorized and considered the insurance profession's professionals?

IIA, CLU, LUTCF, CPCU and NALU members

When an insurer is unable to meet the financial obligations to its clients, the company is said to be which of the following:

Insolvent

Under replacement rules, the replacing insurer's duties include:

Making certain that all replacement actions comply with state regulations.

Which requirement is needed to act as an insurance producer or agent?

Pass a state insurance examination.

Which of the following is not an Unfair Claims Practice?

Refusing to pay the claim without receiving a proof of loss.

Any transaction in which new life insurance or an annuity is to be purchased, and it is known, or should be known to the agent, that existing life insurance or an annuity will be amended to reduce benefits or coverage is covered under which regulation?

Replacement

The replacement requirements for life insurance policies and annuities are set forth by the:

State Insurance Regulations and the General Regulation of Life Insurers

What is used to compare the cost of similar policies?

Surrender Cost Index

Which of the following would constitute replacement of life insurance?

The policy is converted to extended term before a new policy is purchased.

All are true of insurance licensees, except:

They must be at least 17 years of age.