Chapter 11: Laws and Rules - Connecticut

Reinsurance is?

Used by insurance companies to share risks

The fee look period provided in a life insurance policy is usually

10 days

If an employer decides to cancle a group life insurance plan, it must give at least _ days notice to the employees prior to the date of cancellation or discontinuation

15 days

In Connecticut, continuing education courses must be approved by the?

Commissioner

All of the following must be included in a life insurance illustration except?

Company's mortality table

B is a producer who only writes insurance businesses on his business partners. Which of the following is B engaged in?

Controlled business

Defamation occurs when a producer makes a false statement intended to?

Malign another insurer

If one producer provides a referral to another producer which results in the sale of an insurance contract, who will liely be paid a commission?

The commission will likely be shared between the two producers

Life insurance replacment regulation protects the interests of?

The policy owner

Which of these products does standard nonforfeiture law apply to?

Whole life policies

How many days is a temporary producer's license valid?

180

Any administrative action taken against a producer must be reported to the commissioner within _ days after the final disposition

30 days

Before holding a hearing regarding a producer's unfair or deceptive practice, the Commissioner must give how many days's notice?

30 days

When an employee is terminated, how long does this employee have to convert group life coverage to an indicidual plan?

31 days

A domestic insurer licensed to conduct business in Connecticut must have their books and records examined by the Commissioner at least once every _ years

5 years

A life policy loan in Connectisut cannot charge a rate of interest hogher than?

8%

According to Connecticut's rules on disclosure, a life insurance applicant is expected to be provided with?

A Buyer's Guide and Policy Summary

What is Connecticut's definition of a Life Insurance replacment?

A transaction in which a new policy is bought and an old policy is terminated

K's producer license was cancelled August 31 2020. K may apply fr a reinstatement without an examination by which date?

August 31, 2021

Which of these is not a nonforfeiture provision contained in a life insurance policy?

Automatic Premium Loan

If an admitted insurer wished to conduct business in Connecticut, it must?

Be issued a certificate of authority

An admitted company in Connecticut must?

Be licensed in Connecticut

Who is NOT required to sign a life insurance application?

Beneficiary

Life Insurance illustration must include all of these except?

Beneficiary's name

Which of these must be given to a life insurance applicant upon policy delivery?

Buyer's Guide

ABC Insurance company submits a financial condition statement toe the Commissioner requesting to conduct business in Connecticut. The Commissioner approves the statement and then issues a?

Certificate of authority

A person who charges a fee for giving insurung advise is called?

Certified Insurance Consultant

One definition of replacement is "the act of replacing an existing insurance policy with another". Replacement is?

Closley regulated and requires full disclosure

Which of these is considered an unfair trade practice?

Coercion

Which of these actions does not constiute life insurance policy replacement?

Convert term coverage to a whole life policy

Connecticut's 10 day free look period for life insurance policies begains at the?

Date of delivery

A brochure that includes an untrue statement regarding a competitor's ability to pay claims is an example of which of the following Unfair Trade Practices?

Defamation

A _ insurance company is domiciled in Connecticut

Domestic

The act of an insurance company publishing misleading information about its poliy's provisions is called?

False advertising

Which of these terms best describes the obligations involved with handling and managing other people's money?

Fiduciary responsibility

A mutual insurance company

Has no shareholders

All of these are a prerequisite for becoming a licensed producer in Connecticut except?

High school diploma

If the Insurance Commissioner determines a producer has been engaging in an unfair or deceptive activity, which of the following actions will likely be taken?

Insurance Commissioner orders the activity to cease

Controlled nusiness can best be described as?

Insurance n=business written by a producer on his/her family members

Which of the following is protected under the Brokered Transactions Gauranty Fund?

Insured

Who is a mutual insurance company owned by?

It's policyholders

S is a life insurance policyowner and enters into a written agreement to receive immediate cash in exchange foe the sale and transfer of her life insurance policy. This agreement is referred to as?

Life Settlement

Which Unfair Trade Practice involves making a false statement on an insurance application in order to receive money from an insurer?

Misrepresentaion

If a producer fails to remit collected premiums to the insurance company, the producer may be in violation of?

Missappropriation

Which type of insurance company allows their policyowners to elect a governing body?

Mutual

During the sale of an insurance policy, a producer may provide an incomplete illustration?

Never

What must be signed by both the producer and the applicant when an existing life insurance policy is being reissued with a reduction in cash value?

Notice Regarding Replacment

P the producer recently moved from Norwalk Ct to New Haven Ct.P is required to?

Notify the Insurance Department within 30 days of the move

The Insurance Commissioner may issue an _ to assure compliance with an insurance law

Order

Which of these contracts are affected by replacement regulations?

Ordinary Life Insurance

Which of these is a lefitimate form of life insurance advertisement?

Paid celebrity endorsement

What is the purpose of the Insurance Guaranty Association?

Pays authorized claims for liquidated life and health insurers

An accelerated (living) benifit is payable based upon the occurrence of a qualifying event. This qualifying event is certified by a?

Physcian

A _ is an individual who is appointed by an insurance company to transact insurance

Producer

An insurance company appoints a _ to transact insurance?

Producer

What is the purpose of the Life and Health Insurance Gauranty Association?

Protects policyowners against insolvent insurance companies

Which of the following triggers an accelerated (living) benefit?

Qualifying event

Which of the following actions may result in a producer's license being suspended by the Commissioner?

Rebating part of a commission to the applicant

A life insurance policyowner sells her policy to a third party in a life settlement. Under this transaction, the policyowner?

Receives an amount less that the policy's death benifit

Which of these individuals is eligible for a temporary producer's license?

The spouse of a disabled producer

Which of these would be a valid reason for the Incurance Commissioner to hold a hearing?

To determine if a producer has engaged in impropriety

At what point must insurable interest exist on a life insurance policy?

Upon application being taken

A life insurance applicant must receive a Buyer's Guide and Policy Summary

Upon policy delivery

A producer completes an application with a client for a $50,000 Life Insurance policy. At what point is the latest a Policy Sumary and Buyer's Guide must be given to the applicant?

Upon policy delivery

Where does funding for the Insurance Guaranty Fund originate from?

Assessments by member companies

Which of these actions in the commissioner of Insurance empowered to do?

Administer Insurance licensing exams

Rebating is?

An illegal practice in Connecticut

A producer's license may be issues without taking an examination for which of the individuals?

An individual who holds an approved prefessional designation

Which of these is considered to be an Unfair Claims Settlement practice?

An insurer denying claims without fuilly incestigating

An _ agent is a producer who wrotes ans places coverage for a specific insurance company

Appointed