Life Insurance (Chapter 8)

Errors and Omissions (E&O) policies are typically offered with a minimum limit of liability of how much?

$1,000,000

Persons who willfully commit unfair acts and practices may be issued a cease and desist order, carrying administrative penalties of up to how much per act?

$10,000

The maximum amount of life insurance death benefit on any one insured life, regardless of the number of policies, covered by the California Life and Health Guarantee Association is:

$300,000

Engaging in an unfair method of competition unwillingly subjects an agent to a civil penalty up to ______ per violation

$5,000

An agent whose license is suspended for more than ____ years will need to retake the prelicensing courses and pass the qualifying exam

2

Producer G took 28 hours of approved CE in the term preceding her last license renewal. How many hours will she need to complete at her next renewal term?

20

Any licensed agent who has committed any offense denounced by the code may have an insurance license suspended by the Commissioner for up to:

3 years

Upon receiving a request for records, insurers and/or agents must deliver the records to the Commissioner with ____ days.

30

Licenses must make all records available to the Commissioner including all files for how many years prior to the request ?

4

Under most circumstances, within how much time is an insurer expected to affirm or deny a claim?

40 days

After expiration or cancellation, agents and brokers must keep records of every insurance transaction for at least_____ years

5

If the insurance commissioner has reason to believe that a producer has engaged in unfair competition, he/she is require to:

Advise the producer that he/she is entitled to a public hearing

California Unfair Trade Practices Act

Applies to all licensed persons under the Insurance Code, as well as unlicensed persons who would otherwise be regulated under the code

Entering into an agreement that would result in an unreasonable restraint of, or monopoly in the business of insurance is considered:

Boycott, Coercion, or Intimidation

All internet advertisements directed to California insurance consumers must include the agents ___________ in addition to the agents principal place of business

California insurance license number

A person cannot transact Amy class of insurance business in this state without first being admitted of authorized by securing a(n)_________ from the Commissioner

Certificate of Authority

Under the California insurance code an insurer is entitled by law to rescind a policy in cases except:

Immaterial misrepresentation

Under the California Insurance Code a(n)________-only agent is a person authorized to transact insurance coverage on human lives including endowments and annuities

Life

A producer may be guilty of misrepresentation if he/she:

Misstated the terms of a policy for the purpose of inducing a policyholder to lapse a policy

Funds controlled by the Guarantee Association are used to:

Pay claims of insolvent insurers

The purpose of a Certificate of Authority is to:

Permit an insurance company to transact businessy

Producers licenses may be renewed after 2 years in which day?

The last day of issuance month

What is the maximum number of appointments a producer may accept ?

Unlimited