Insurance License Laws and regulations

Transacting without a license would result in which of the following penalties?

A fine not exceeding $50,000

Which of the following is the best statement about selling without an appointment?

A licensed agent may offer a proposal for insurance to a client on behalf of an insurer for which the agent is not specifically appointed.

Which of the following agents can sell individual and small group health insurance through the exchange?

A&H age with a valid license and certified by the exchange

Which of the following is NOT an exception to the free insurance prohibition?

Insurance provided in connection with medical companies.

A producer may ask about all of the following to determine if an applicant qualifies for insurance

Involvement in hazardous activities Use of medication Employment duties

A company has how many days to send an appointment for a new licensed agent to department of insurance?

14 days

Every life and accident and health agent is required to keep all records for a minimum of ________ years.

5

the following is correct concerning illustrations?

All preprinted illustrations shall contain a specialized notice in 12 point bold print, with space on all four sides that is made part of the document itself or as an attached cover sheet.

Which of the following is not a difference in authority between an agent and a solicitor?

An agent can give insurance quotes, while a solicitor can only process claims.

Which of the following is considered a loss under errors and omissions

An agent explains health or disability insurance to a client and does not revealing the fact that the policy has a deductible, coinsurance, and co-payments, as well as an exclusion for a preexisting medical condition. An agent accidentally records an incorrect answer on an application. The agents accepts a check from a client and fails to send it to the insurer in a timely manner.

A life agent may transact all of the following

Annuities Disability income Death and dismemberment by accident

What is the definition of a life agent?

Any person authorized by and on behalf of a life, disability, or life and disability insurer to transact life, disability, or life and disability insurance.

Agents represent insurers in which of the following:

As field underwriters As licensed producers Soliciting applications for insurance

Insurers that deal directly with insureds without the use of agents through various forms of print, visual and aural media are considered to be:

Direct response

An A&H agent may transact all of the following

Disability income. 24 hour care coverage. Accidental death

Upon termination of all appointments or cancellation of the bond required if acting as a broker your permanent license

Does not permit the holder transact any insurance Shall not be cancelled but become inactive May be renewed or reactivated

Which of the following would be correct regarding illustrations

Illustrations used when making presentations to seniors must bold the guaranteed values and the nonguaranteed values must be in standard print. If an illustration is used the applicant and agent must sign the illustration and a copy left with the applicant and another copy submitted along with the application to the underwriter. Illustrations must be not only numbered but numbered in relationship to the total number of pages.

The following acts are unlawful and are misdemeanors in California except when performed by a surplus line broker

In any other manner aiding a nonadmitted insurer to transact insurance business in this state. Acting as agent for a nonadmitted insurer in the transaction of insurance business in this state. In any manner advertising a nonadmitted insurer in this state.

Which of the following describes someone who offers to advise any person insured under a life or disability insurance contract?

Life and disability analyst

All of the following are true concerning a life analyst

Must reside in California. Must pass an exam to become an analyst. Must be at least 18 years old.

During the transaction of insurance, the following must be included

Name of the insured. Date insurance is effective and any date it ceases to be effective. Policy number.

Which of the following is an action of transacting insurance?

Negotiations preliminary to the execution of a contract. Any transactions that later result from the operation of the contract. The actual execution of a contract.

the following is a source of information an underwriter may use to find information about an applicant?

Physician/medical facility records Department of Motor Vehicles MIB - The Medical Information Bureau

What type of policy will protect an agent against liability for failure to use due care and skill?

Professional liability

Which of the following is covered under errors and omissions?

Sale of employee benefit plans Sale of insurance Advice and administrative activities

An agent's appointment with an insurer will be discontinued if all of the following circumstances exist

The agent's insurance license expires The agent quits working for the insurer The insurer files a notice to terminate the appointment.

All of the following are correct

The authority of a broker is defined in a contract of agency. Agents are exempt from liability for actions taken unauthorized by the insurer. Brokers must post a broker bond with every insurer they place business with.

Which of the following is true regarding an agent and broker?

The broker represents the insured, NOT the insurer. An insurance agent is a representative of an insurance company in soliciting and servicing policyholders. A broker is any person who transacts insurance, other than life, disability, and health insurance, on behalf of clients with insurance companies.

The following are valid reasons for the Commissioner to deny the use of a name

The name would interfere or is too similar to the name of another entity licensed by the Commission. The name would lead the public in the wrong direction. The name would interfere or is too similar to the name of another entity licensed by the Commission. The name would lead the public in the wrong direction.

Life Settlement Brokers represent

The seller in the life settlement by finding a buyer for the existing policy.

What is the penalty for transacting insurance without a valid insurance license?

What is the penalty for transacting insurance without a valid insurance license?

It is against the law for an insurance licensee to offer ________ to anyone as an incentive to acquire some other type of business.

free insurance

Any time there is a change in a licensees residence address, principal business address, mailing address, and/or email address the licensee must notify the Commissioner electronically:

immediately.

When a person gets their life license, without a company appointment their license is considered

inactive

If an insurer issues a policy, within how many days must it file a notice of appointment with the Commissioner?

not more than 14 days after the agent submitted the insurance application.

All the following are true regarding denial of a license without a hearing

the applicant has had license revoked in past 5 years the applicant has been denied a license in past 5 years the applicant has been convicted of a felony

All the following are entitled to a hearing concerning a license denial

the applicant lacks integrity. the applicant submitted a fraudulent educational certificate. applicant lied on application.

Which of the following is the best statement about brokers selling insurance?

It could be unethical for a broker to accept both a fee from the client and a commission from the insurer.

Agency law does not encompass

Knowledge of the principal is knowledge of the agent.

An employee assisting a life agent in acquiring and servicing life insurance applications and policies would need to be licensed as a:

Life agent license