Chapter 14 - Section 1 questions
If the Commissioner believes a person has committed an unfair trade practice and a hearing is in the public interest, the Commissioner must hold a hearing within ___ days after notifying the person of the charges, time, and place of the hearing.
10
Any person violating a Cease and Desist Order may, after a notice and a hearing, be fined up to $_______ per violation, have his/her license suspended or revoked, or both.
10,000
The maximum fine the commissioner may impose is $________ per violation up to $10,000, if the person unknowingly made a violation.
1000
A lapsed license may be reinstated within __ months
12
For group life policies not paid totally by the owner at least ___ employees/members must be covered at policy issuance and the insurer may require at least 75% of group members to participate.
25
An insurance producer license in iowa is valid for ___ years
3
an insurer must keep the signed illustration or certificate for ___ years after the policy is no longer in force
3
A person receiving a Summary Cease and Desist Order must be given at least ___ days from the Order's date to request a hearing to contest the order.
30
Licensee must notify commissioner of any change in legal name, assumed name, or address within ___ days
30
The Commissioner may suspend a producer's license for ____ days after receiving a Certificate of Noncompliance from the Child Support Recovery Unit (CSRU) stating that the producer has not paid child support as required by law.
30
how long is a replacement transaction's free-look period
30
How long is the commissioner's term?
4 years
The Commissioner or an examiner must examine each admitted insurer at least once every __ years (at the examinee's expense) using the NAIC Examiner's Handbook.
5
The maximum fine the commissioner may impose is $_______ per violation up to $50,000, if the person knowingly made a violation.
5000
An insurer that suspects fraud must notify the Bureau in writing within ___ days after receiving the suspect claim or application
60
All of the following are required when a new contract is purchased and the producer or insurance company knows or should know that an existing contract will be terminated, reduced in value, or used to finance the purchase of the new contract, except: A The existing insurer must inform the Commissioner of Insurance and request an audit of the replacement transaction B The existing insurer must notify the owner of the policy of his/her right to receive information about the existing policy within 5 days C The producer must give the new (replacing) insurer a notice of replacement identifying the existing (replaced) policy with a copy to the client D The replacing insurer must notify the existing insurer notice of the intended replacement within 5 days of receiving the application
A
The Commissioner of Insurance does all of the following, except: A. Operate the Consumer Advocate Bureau to ensure fair treatment of consumers B. Maintain a fund to guaranty the payment of employee pensions when an employer becomes insolvent C. Supervise the organization, reorganization, liquidation, and dissolution of Iowa insurance corporations D. Conduct investigations both within and outside of Iowa to determine if anyone has violated Iowa insurance law
B
Which of the following constitutes grounds for suspending a producer's license? A Fully disclosing a policy's terms and conditions to a policyowner B Compliance with a Summary Cease and Desist Order C Paying the cost of investigating a violation of the insurance code D Receipt of a Certificate of Noncompliance from the Child Support Recovery Unit
D
protects life an health insured and annuitants from a member insurer's financial impairment or insolvency and assesses its member insurers for funds.
Iowa life and health insurance guaranty association
If the Commissioner determines that a person has violated or is violating insurance law, the Commissioner may issue a _______________________
Summary Cease and Desist Order
Who appoints the insurance commissioner?
The governor, subject to the senate's confirmation
Variable policies are refunded at __________ value
market
A ______________ is required to sell, solicit, or negotiate insurance in Iowa.
producer license
a transaction in which a new contract is bought, and the producer knows or should know that an existing contract has been or will be terminated, reduced in value, or used in a financed purchase
replacement
Which of the following describes a valid way for a licensed producer to extend his/her authority? A A producer licensed in personal lines may get life and health authority by passing the variable products exam B A producer licensed in life insurance may get an excess and surplus lines license by passing the commercial lines exam C A property and casualty producer may get variable products authority by passing the commercial lines exam D A producer licensed in personal lines may get property and casualty authority by passing the commercial lines exam
D
ensures that life policy illustrations are understandable and accurate. It applies to all life insurance coverage except credit life insurance, variable life insurance, and life insurance with an initial face amount of $10,000 or less.
life insurance illustrations model regulation
a provision in a policy or certificate that sets a maximum limit on total payments must apply only to that policy or certificate
maximum aggregate provisions