Life Insurance (Law)

When a producer is examined for non-financial market conduct, how many days from the filing of a duplicate copy of a written examination report does the producer have in which to request, in writing, a hearing on the matter? A: 10 days B: 14 days C: 20 days D: 30 days

14 days

A Premium Fund Trust Account must be established if a producer holds premiums for A: 15 days or more. B: 10 days or more. C: 7 days or more D: 30 days or more.

15 days or more

The total number of continuing education hours a producer must complete within the two year license renewal period is which of the following? A: 12 hours B: 20 hours C: 24 hours D: 30 hours

24 hours

Producer Z engaged in an activity that injured a member of the public and the injured party has requested Z to supply the name of the company that issued Z's producer bond and to provide the number of the bond in order to make a claim. According to law, how long does Z have to provide this information upon request to the injured party? A: 3 working days B: 5 working days C: 7 days D: 30 days

3 working days

How many classroom hours are required for a property insurance prelicensing course? A: 5 B: 7.5 C: 12.5 D: 20

7.5

Which of the following advertising concepts would violate the misrepresentation statute if an insurer engaged in such a practice? A: An insurer is not known for health policies and advertises that their new line of hospital coverages are "second to none" in the industry. B: A carrier advertises that their life insurance policies are the highest rated by the State Department of Insurance. C: A property insurer uses talking pigs in their television ads even though actual pigs cannot speak. D: A casualty insurance company proclaims that they have more reserves to handle liability claims than more than 95% of other insurers in the United States.

A carrier advertises that their life insurance policies are the highest rated by the State Department of Insurance.

Which of the following statements about producer license termination is NOT accurate? A: Revocation can also lead to imposing a civil penalty of up to $10,000 per cause. B: A denial of license precludes the producer from reapplying for a producer license for a minimum of three years. C: A person who has their producer license terminated would still be able to work for an insurance company in a non-sales position.. D: Upon license termination, the producer is entitled to a hearing, upon written request, on the matter before the order of the Director is final.

A person who has their producer license terminated would still be able to work for an insurance company in a non-sales position..

Which of the following activities on the part of an insurance producer would likely be construed as rebating? A: A producer offers a free review of a client's life insurance portfolio. B: A producer sponsors a little league team having several children on its roster whose parents have purchased policies from the producer in the past. C: A producer offers two tickets to the Super Bowl game in exchange for the purchase of a large life insurance policy. D: A producer sends a couple of $25 gift cards to be used at a local restaurant after a married couple has purchased insurance and received their policies.

A producer offers two tickets to the Super Bowl game in exchange for the purchase of a large life insurance policy.

If a producer is convicted of a felony in what manner is the Director informed? A: Through the appropriate criminal computer database, automatically. B: By the federal or state court system in which the felony conviction is recorded. C: By the producer. D: The State Police.

By the producer

Producer H is spreading vicious rumors about an insurance agency across town intending to hurt this agency's reputation. Producer H is guilty of which of the following unfair practices? A: False Advertising B: Twisting C: Misrepresentation D: Defamation

Defamation

If a producer charges a service fee in addition to being paid a commission for a sale of insurance, what is required of the producer in such an instance? A: If the total compensation will exceed 10% of the annual premium amount there must be a written disclosure document signed by the producer and the applicant for insurance. B: If the total compensation will exceed 10% of the monthly premium amount there must be a written disclosure document signed by the producer and the applicant for insurance. C: The producer must provide written disclosure to the insurance applicant. D: To report the producer's illegal activity to the Director because such a fee is illegal to collect from a prospective insured.

If the total compensation will exceed 10% of the annual premium amount there must be a written disclosure document signed by the producer and the applicant for insurance.

If a producer is found to have failed to maintain the proper surety bond due to the brokering of business, would could be the result of this failure? A: It could result in the revocation or denial of the producer's license. B: It could result in the suspension only of the producer's license. C: There is only the possibility of a fine levied in the amount of from $1,000 to $2,500. D: There is no penalty possibility in this situation.

It could result in the revocation or denial of the producer's license.

$250 every two years is the license renewal fee for which of the following? A: Non-resident producer B: Resident producer C: Temporary producer D: Reinstatement

Non-resident producer

What type of application must be filed to obtain a business entity license? A: Producer application B: Business Agency Form C: Uniform Business Entity Application D: Assumed Name Act Form

Uniform Business Entity Application

If a producer is found guilty of defamation, their producer license may be suspended, revoked or denied and additionally they may be assessed a civil penalty of A: up to $5,000 for a business offense. B: up to $1,000 for violating a cease and desist order of the Director. C: from $200 to $10,000. D: a minimum of $1,000 to a maximum of $10,000.

from $200 to $10,000.

The trust officer of a bank, while performing the incidental duties of his employment, advises bank customers from time to time about maters related to insurance policies. This trust officer A: is guilty of a Class A misdemeanor. B: is exempted from any producer licensing requirements based on these activates. C: must be licensed in all major lines of insurance. D: must be paid by commission when performing such duties for a bank or other financial institution.

is exempted from any producer licensing requirements based on these activates.

All of the following disbursements from a Premium Fund Trust Account are legally allowed, EXCEPT: A: returned premiums due to an insured. B: the payment of rent for the insurance agency. C: commissions to producers. D: bank fees.

the payment of rent for the insurance agency.

The most important concept about fiduciary duty for an insurance producer is A: to tell the insured truthful statements at all times. B: to be honest and to forward premiums collected to the insurer in a prompt manner. C: to deliver all policies to insureds within 60 days of receipt by the producer. D: to act responsibly when dealing with the public the preponderance of the time.

to be honest and to forward premiums collected to the insurer in a prompt manner.

The best definition of "rebating" is A: a producer who is sharing commission with the insurance applicant. B: when a producer offers something of value to induce a person to purchase an insurance policy. C: when a producer says something derogatory about another insurance licensed entity. D: the practice of a producer who regularly treats good clients to a free lunch.

when a producer offers something of value to induce a person to purchase an insurance policy.