3rd

who is legally required to keep records pertaining to insurance transactions?

All licences, including agents and brokers are required to keep records of all their insurance transactions. These must be maintained for 3 years following a completed transaction.

When and by whom must an agents appointment be renewed with the commission? A)Bienally by the insurer B)Bienally by the agent C)Once an appointment is issued, it does not have to be renewed D) annually by the insurer

Annually by the insurer by august 10th.

Margaret applies for an insurance license, but the Commission decides not to issue the license because her tarnished reputation. She notifies the Commission that she wants to dispute this judgement in a hearing. The Commission must give her at least how many days' notice of the date of the hearing? A) 0 B) 10 C) 30 D) 60

B) 10 The Commission will notify the applicant at least 10 calendar days' notice in writing, of the time and place of the hearing

Misrepresentation

Terms, benefits, conditions, or advantages of any insurance policy; Any dividends to be received from the policy, or previously paid out;Financial condition of any person or the insurance company;or The true purpose of an assignment or loan a policy

How often will the commissioner examine an insurer's books and records?

The commission may examine books or records of each insurer as seen fit, but At least once every 5 years

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

an unfair trade practice p to make any statement that an insurer's policy are garunteed by the existence of the insurance guaranty association. though it is illegal to advertise, the statement is still true and would not be considered a misrepresentation.

Unfair Discrimination

in rates, premiums, are policy benefits for persons within the same class or with the same life expectancy is illegal. No discrimination may be made on the basis of an individual's martial status, race, national origin, gender identity, sexual orientation, creed, or ancestry unless the distinction is made for a business purpose or required by law.

twisting

is a misrepresentation, or incomplete or fradulent comparison of insurance policies that persuades an insured/owner, to his or her detriment, to cancel, lapse, switch policies, or take out a policy with another insurer. This is prohibited

rebating

is defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy. Both the offer and acceptance of a rebate are illegal. Rebates may include, but are not limited to, the following: - Rebates of premiums payable on the policy - Special favors or services; - advantages in the dividends or other benefits; and - stocks, bonds, securities, and their dividends or profits

coercion

it to require, as a condition to a loan, that the applicant purchase insurance from a specific insurer.

During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes

making a false or misleading statements with the intent to defraud another is misrepresentation

defamation

occurs when an oral written statement is made that is intended to injure a person engaged in the insurance business. This also applies to statements that are malicious critical of financial condition of any person or company.

false advertising

the rule that Advertisements cannot include any untrue, deceptive, or misleading statements that apply to the business of insurance or anyone who conducts it