Chapter 5 quiz

All of the following could be considered rebates if offered to an insured in the sale of insurance, except

Dividends from a mutual insurer.

All of the following actions can be described as twisting except

Explaining to client the advantages of permanent insurance over term and suggesting changing policies

The requirement that agents not commingle insurance monies with their own funds is known as

Fiduciary responsibility. Money collected with respect to an insurance transaction must be held in a position of trust by the agent or broker.

The inclusion of the life and health guaranty association in an advertisement by an insurer is

Forbidden. No insurance company can advertise the existence of the Guaranty Association; nor can an agent bring up the Guaranty Association in a sales presentation.

Under special circumstances, continuing education requirements may be extended beyond the 2-year period for a maximum period of

12 months. Excess classroom hours accumulated during any 2-year period may be carried forward to the next 2-year period. If good cause is shown, the department may grant an extension not to exceed 1 year.

Which of the following is true regarding the agent's appointments?

A person may hold several appointments at one time

In insurance transactions, fiduciary responsibility means

A. handling insurer funds in a trust capacity an agents fiduciary responsibility includes handling insurer funds in a trust capacity

Which of the following is another term for an authorized insurer?

Admitted Insurers who meet the state's financial requirements and are approved to transact business in the state are considered authorized or admitted into the state as a legal insurer.

What term best describes the act of withholding material information that would be crucial to an underwriting decision?

Concealment. Concealment occurs when a person withholds a material fact that is crucial to making a decision. In insurance, this involves withholding information that would be crucial to underwriting decisions. For instance, if someone omitted a 10-year smoking history from a health insurance application, this person would be guilty of concealment.

Which of the following will not be considered unfair discrimination by insurers?

Discriminating in benefits and coverage based on the insured's habits and lifestyle

When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?

Foreign - a foreign insurer is one that is formed under the laws of another state

The Office of Insurance Regulation is responsible for all of the following insurer activities EXCEPT

Issue of securities

Which of the following best describes the unfair trade practice of defamation?

Making derogatory oral statements about another insurer's financial condition

If an agent is in the military, which of the following is true?

The agent cannot sell a policy to another active military person who is of a lower rank.

Under what circumstances can an agent's appointment be transferred to another person?

Under no circumstances