Hawaii life

Which of the following is NOT an example of "conducting insurance business"? -Selling shares of stock -Taking or receiving insurance applications -Delivering an insurance contract to a Hawaii resident -Collecting premium from a client

Selling shares of stock

Life insurance death benefits up to ______ are guaranteed by the Hawaii Life and Health Guaranty Association.

$300,000

With whom may a producer share commissions with? -A licensed claims adjuster -A licensed producer with the same license type -An insurance company underwriter -Anyone the producer deems appropriate

-A licensed producer with the same license type

Who would qualify fo a temporary license in Hawaii? -An individual who has recently failed the State Exam -A nonresident producer in another state who wishes to conduct business in Hawaii -A producer with a recently expired license -A surviving spouse of a deceased producer

-A surviving spouse of a deceased producer

A group life insurance policy insured may sign up to _________________ of the insured's coverage.

100%

How many days is a temporary producer's license valid?

180 days

A producer must notify the commissioner within ___ days of a felony conviction.

30

A life policy loan in Hawaii cannot change a fixed rate of interest higher than

8%

An insurance company formed in a country other than the United States is called a(n) ____________________ company

Alien

A certificate of ____________ permits an insurance company to transact business in Hawaii

Authority

What would be an accurate definition of "controlled business"?

Business that os written on the agent's own life, property, or interests.

B is a producer who primarily writes insurance business on his family.Which of the following is B engaged in?

Controlled Business

If a producer commits an act of coercion or intimidation, how would the producer's insurance company be held responsible for this act?

If the insurer approves the act

An example of rebating would be -a mutual insurance company paying dividends to its policyowners -reducing the premiums across the board for a specific risk class -offering a client something of value not stated in the contract in exchange for their business -using intimidation in order to restrain or monopolize the business insurance

Offering a client something of value not stated in the contract in exchange for their business

A brochure that includes an untrue statement regarding a competitor's ability to pay claims is an example of which of the following Unfair Trade Practices?

Defamation

the act of an insurance company publishing misleading information about its policy's provisions is called: -coercion -false advertising -twisting -intimidation

False advertising

Which of the following is a standard provision of the conversion privileges in a Group Life policy? -Group Life can only be converted by providing evidence of insurability -Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis

Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis

During the course of an insurance business transaction, who does the producer legally represent? -Producer -Insured -Insurance Company -Beneficiary

Insurance Company

A foreign insurance company doing business in Hawaii...

Is a company that was formed under the laws of another state.

Define DEFAMATION

It is an illegal practice to make any public statement or advertisement that contains false information or unsubstantiated criticisms about an insurance company intended to harm or malign.

Convincing a prospective insured to buy an insurance policy based on exaggerations is called -Rebating -Twisting -Misrepresentation -Intimidation

Misrepresentation

_____________ can be defined as "making an unfair comparison of two insurance policies".

Misrepresentation

What must be sign by both the producer and applicant when an existing life insurance policy is being reissued with a reduction in cash value?

Notice Regarding Replacement

Which of the following is NOT considered rebating? -Sharing commissions with an agent licensed in the same line of business -Returning premium to a client as an inducement for purchasing a policy -Giving something of value to an insured in exchange for their business -Offering special dividends

Sharing commissions with an agent licensed in the same line of business

Why would the Commissioner examine the records of an insurance company?

To determine the solvency of the company

An example of Unfair Claims Settlement practice is -Turning down a claim without providing a basis of denial -Requiring a time limit for submitting a claim

Turning down a claim without providing a basis of denial

An individual received a quote from an insurance company that is a different rate from individuals in the same risk class. The insurance company may be accused of

Unfair Discrimination

T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert...

to an individual policy upon employment termination

Which of the following individuals would an insurer NOT be allow to compensate? -An underwriter -A retired producer -An administrator -A non-appointed licensed producer

A non-appointed licensed producer

Which of the following is considered to be a misrepresentation? -Replacing an existing policy -A producer guaranteeing a policy's dividends

A producer guaranteeing a policy's dividends

What is Hawaii's definition of Life insurance replacement?

A transaction in which a new policy is bought and a new policy is terminated

How often must an insurance producer's license be renewed? -Every 6 months -Every year -Every 2 years -Every 3 years

Every 2 years

How often must the commissioner examine each domestic company?

Every 5 years

What is rebating?

It means to offer a prospective client something of value that is not specified in a contract to induce the purchase of an insurance policy

Which of the following actions by a producer would NOT result in a license suspension or revocation? -Producer misappropriates an insured's premium -Producer sells a replacement policy that causes an insured to lapse an existing policy -Producer misrepresents the terms of an existing insurance contract -Producer demonstrates incompetency to transact business as an insurance producer

Producer sells a replacement policy that causes an insured to lapse an existing policy

Which of these individuals would require continuing education? -Nonresident producers -Claims Administrators -Resident Producers

Resident Producers

Which of these in NOT a required group life policy provision? -Free-Look -Grace period -Conversion -Right to Loan Proceeds

Right to Loan Proceeds

A mutual insurance company and a stock insurance company have one main difference between them. What is the major contrast?

Stock company is pwned by its shareholders. Mutual company is owned by its policy holders.

Obtaining information from the applicant to determine whether an insurance or annuity product is appropriate is called -Suitability -Propriety -Disclosure

Suitability

Which situation does NOT require a producer to provide a suitability statement to the annuity company? -When an annuity contract is recommended and sold as a solution to a client's financial objective -When a producer discusses annuities in general with a client, but no specific recommendation is made

When a producer discusses annuities in general with a client, but no specific recommendation is made