11.) Laws and Rules Review
unfair claims practice
ABC Insurance Company failed to accept a valid Proof of Loss statement. This is considered to be a(n)
Cease and desist order
When an unfair trade practice has been discovered, the Commissioner may issue a
election to a 4-year term
The Commissioner of Insurance attains office by
funded by insurance companies through assessments
The Kansas Life and Health Insurance Guaranty Association is
Meet continuing education requirements
A Kansas resident insurance producer must perform which of the following actions to continue with their license?
Policy Summary and Buyer's Guide
After selling an individual life insurance policy, a Kansas producer MUST deliver to the policyowner a(n)
producer
A(n) _________ sells, solicits, or negotiates insurance on behalf of insurance companies for compensation.
10
A life insurance policyowner has ___ days to return the policy and receive a full premium refund.
require evidence of insurability
According to Kansas law, group life insurance conversion privileges must NOT
misrepresentation
Convincing a prospective insured to buy an insurance policy based on exaggerations is called
the policyowner
Life insurance replacement regulation protects the interests of
closely regulated and requires full disclosure
One definition of replacement is "the act of replacing an existing insurance policy with another". Replacement is
Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis
Under a Group Life policy, which of these is considered to be a standard provision of the conversion privileges?
Producer sells a replacement policy that causes an insured to lapse an existing policy
Which of the following actions by a producer would NOT result in a license suspension or revocation?
Conducting a sales meeting
Which of the following activities does NOT give a producer credit for continuation education?
Annuities
Which of the following does the Kansas Life and Health Insurance Guaranty Association apply to?
give written notice to the producer
A hearing must be held before a producer's license can be suspended or revoked. Prior to the hearing, the Commissioner is required to
2 years
What is the contestability period for life insurance policies in Kansas?
$1,000
What is the maximum fine for willfully violating the Unfair Trade Practice laws of Kansas?
Replacement
________ can be defined as any transaction in which new life insurance is purchased and existing life insurance is terminated or discontinued.
Viatical Settlement Provider
A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value.
30
A producer must notify the Commissioner within ___ days of a felony conviction.
defamation
A producer who makes a false statement intended to malign another insurance company is committing the illegal act of
is owned exclusively by its shareholders
A stock insurance company
failing to effectuate prompt, fair, and equitable settlements of a claim
An example of an unfair claims practice would be
turning down a claim without providing the basis of denial
An example of an unfair claims settlement practice is
offering a client something of value not stated in the contract in exchange for their business
An example of rebating would be
returning a portion of a premium as inducement to purchase insurance
An example of rebating would be
producer
An individual who has a contract with an insurance company to represent it is called a(n)
Pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age
An insurance company has discovered, at the time of an insured's death, that the insured's age was misstated on the application. Which of the following actions would most likely be taken by the insurance company?
domestic
An insurance company that conducts business in Kansas and was incorporated in Kansas is called a(n) ______ insurer.
$500
An unintentional violation of Kansas insurance law could lead a producer to a fine of up to ____ per violation.
Coercion
As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?
After being properly appointed by the insurer
At what point may a producer sell insurance for an insurer?
Insurance Company
During the course of an insurance business transaction, who does the producer legally represent?
180
How many days is a temporary producer's license valid?
Every two years
How often must an insurance producer's license in Kansas be renewed?
Every 5 years
How often must the Commissioner examine each domestic insurance company?
Unfair trade practices
If an insurance company engages in boycott, coercion, or intimidation that leads to the unreasonable restraint of trade it would be breaking Kansas insurance laws covering
Foreign company
In Kansas, an insurer licensed to conduct business in Kansas, but domiciled in New Jersey, is called a(n)
send notice of the termination to the Commissioner
In order to terminate a producer's appointment, the insurer MUST
Coercion
J is a producer who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this producer be found guilty of?
1 hour
Kansas requires that an insurance producer must complete __ hour(s) of continuing education on the subject of law and ethics every reporting period.
Viatical Settlement
S is a life insurance policyowner and enters into a written agreement to receive immediate cash in exchange for the sale and transfer of her life insurance policy. This agreement is referred to as a(n)
Notice Regarding Replacement
T the producer is replacing a client's existing insurance policy with a new one. Prior to policy delivery, which form must the client be provided with?
The proceeds would be reduced based on whatever the premium would have been if purchased at age 59
W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim?
An insurance company to conduct insurance business
What does a certificate of authority allow?
Claim payments of admitted, insolvent insurance companies
What does the Kansas Life and Health Insurance Guaranty Association provide?
Examine insurer solvency
What is one of the roles of the Commissioner?
Notice of regarding replacement
What must a producer sign when an existing life insurance policy is being reissued with a reduced cash value?
30 days
What's the minimum grace period for an individual life insurance policy issued in Kansas?
Misrepresentation
Which Unfair Trade Practice involves a producer suggesting that an insurance policy is like a share of stock?
Semi-retired producer
Which of the following individuals is NOT exempt from producer licensing requirements?
Accidental Death and Dismemberment
Which of the following is NOT a required provision in a group life policy?
Extended Term
Which of the following is NOT a required provision in an individual life policy? A.) Grace Period, B.)Free Look, C.)Extended Term, D.)Misstatement Age
Producer represents more than one insurance company
Which of the following is NOT a valid reason for the Commissioner of Insurance to suspend or revoke a producer's license?
producer is insolvent
Which of the following is NOT a valid reason for the Insurance Commissioner to revoke a producer's license?
Selling shares of stock
Which of the following is NOT an example of "conducting insurance business"?
Sharing commissions with a producer licensed in the same line of business
Which of the following is NOT considered rebating?
Completing the required continuing education
Which of the following is a requirement for a producer's license renewal?
Resident Producer
Which of these individuals would require continuing education?
Offering payment of approved claims within 30 days after affirming liability
Which of these would NOT be an unfair claims practice?
Mutual
Which type of insurance company allows their policyowners to elect a governing body?
Commissioner
Who is responsible for administering insurance laws?
Rebating
______ is the act of offering an applicant something of value as an inducement to purchase an insurance policy.
Misrepresentation
_________ can be defined as "making an unfair comparison of two insurance policies".
Medical condition that will significantly reduce a lifespan
A life insurance policy will frequently contain an Accelerated Benefits rider. Which of these would be an example of a "qualifying event" under this rider?
4 year
The Commissioner of Insurance is the chief officer of the Kansas Department of Insurance and is elected to a __ year term.
12
A producer must complete ___ hours of continuation education biennially.
An insurance company that charges different premiums for insureds in the same risk classification
An example of unfair discrimination would be
date of delivery
Kansas' 10-day free-look period for life insurance policies begins at the
race
No one may be denied coverage by an insurance company due to
at least 18 years old
Which of the following is a requirement to attain a Kansas resident producer license?
Termination of employment
A group life insurance policy may be converted to an individual policy under which circumstance?
is found guilty of misrepresentation in obtaining the license
A license may be denied, suspended, or revoked if the licensee
1
A producer must complete ___ hour(s) of ethics per continuing education reporting period.
30
A producer must notify the Commissioner of a change in address within ___ days.
6 months
According to the Nonforfeiture Law, what's the MAXIMIM number of months a cash surrender value payment may be deferred by an insurance company?
After being appointed by the insurer
At what point may a producer sell products from an insurance company?
Insurer
During an insurance transaction, who does the producer represent?
Delivery receipt
A ______ ______ is the signed document that starts the free-look period.
be organized under Kansas insurance laws
A domestic insurance company in Kansas MUST
8%
A life policy loan in Kansas cannot charge a fixed rate of interest higher than
exchanging an existing policy for a new policy
Life insurance replacement can be defined as
Certificate of authority
Which of the following permits an insurance company to transact business in Kansas?
To determine the solvency of the company
Why would the Commissioner examine the records of an insurance company?
To allow the personal representative of a deceased producer to provide service to existing policyowners
Why would the Commissioner of Insurance issue a temporary license?
nonresident
P is a producer who is licensed in Kansas but a resident of Nebraska. P is a(n) ______ producer.
Coercion
Terry the insurance producer works for a mortgage company. He agrees to grant a loan ONLY if the applicant were to purchase insurance from him. Terry has committed the unfair practice of
Order
The Commissioner of Insurance may issue a(n) ______ to assure compliance with the law.
producer
The _______ must provide an insured with proper disclosure concerning the replacement of an existing policy.
Be licensed as a producer in the producer's state of domicile
Which of the following is a requirement to attain a nonresident producer license?
Institutional advertisement
Which of the following is best described as "an insurance advertisement that tends to make a prospect want to find out more about a specific policy".
A producer guaranteeing a policy's dividends
Which of the following is considered to be misrepresentation?
Misrepresentation
Convincing a prospective insured to buy an insurance policy based on exaggerations is called