Insurance Exam Prep Question

Which of the following is NOT true of the Iowa Life and Health Guaranty Association Act

It covers all policyholders insured by unlicensed insurers

A Temporary License may be issued to approved individuals for a period of

90 days with extensions up to 180 days

Which of the following individuals would be required to be licensed

An insurance consultant that receives commissions from a producer

Producers are only permitted to share or split commissions if

Both are licensed for the same line of authority

Which of the following is NOT considered an unfair claims settlement practice

Failure to pay a claim not covered

Which of the following is NOT true of the Iowa Insurance Fraud Act

Persons are always civilly liable as the result of filing reports with law enforcement agencies

Which of the following activities require an individual to be licensed as a producer

Signing an insurance application

Which of the following Acts was established to protect individuals from possible abuses of information contained in their credit files

The Fair Credit Reporting Act

All of the following are functions and objectives of the insurance division EXCEPT

To ensure competitive rates

The activity of exchanging a gift or other consideration as an inducement for the purchase of insurance is

a rebate

The maximum fine for failing to adhere to a cease and desist order is

$10,000

A producer must notify the insurance division of a name change within

30 days

All of the following are true of an agency appointment EXCEPT

Individuals employed by appointed agencies may initiate sales activities upon successful completion of their state exam

All of the following characterize the processing of complaints filed with the insurance division against producers and insurers EXCEPT

It is under the jurisdiction of the state's Attorney General

A producer licensed for life, accident, and health insurance

May complete 36 approved credits in life, health, property, or casualty

The Unfair Trade Practices Act

Regulates trade practices by defining practices that constitute unfair methods or competition and/or deceptive practivces

All of the following are examples of unfair trade practices EXCEPT

Replacement when in the best interest of the insured and when all applicable replacement forms are completed

An Agency License is

Voluntary and available upon request from the insurance division

A producer represents

the insurer

An applicant for a producer's license must be at least

18 years old

The practice of giving back to an insured a portion of the commissions earned on the sale of a policy is

A rebate

All of the following applicants may be denied a producer's license EXCEPT

A stockbroker

Which of the following activities would require an agency employee to be licensed?

Counseling an applicant on a product

All of the following would be considered an unfair claims practice EXCEPT

Dealing with the insured or claimant in good faith

An agreement of intimidation that results in the unreasonable restraint of trade or monopoly in the business of insurance would be considered

Boycott and coercion

All of the following are prohibited insurance practices EXCEPT

Direct Mail Marketing

All of the following are true of the Continuing Education Regulation EXCEPT

Continuing education is waived for producers that have a law degree

All of the following activities would be sufficient to warrant the suspension of a producer's license EXCEPT

Failure to complete a credentialed education program

Which of the following policies is covered under the Iowa Life and Health Insurance Guaranty Association Act

A life insurance policy issued by an admitted insurer

Which of the following is NOT a requirement necessary to qualify as a producer in Iowa

Complete a 36 hour licensing course

Which of the following would be considered an illegal inducement

Confirming future dividends in a proposal

An insurance producer that misrepresents the benefits, advantages and conditions of an insurance policy

Has engaged in an unfair insurance practice Has violated Iowas Unfair Insurance Practices Act May be fined and/or have his license suspended by the insurance division

A Temporary License allows an executor or administrator of a deceased producer's estate to do all of the following EXCEPT

Circumvent the normal licensing process