Chapter 8 Exam - State Laws
The Commissioner has found a producer guilty of rebating. What is the maximum fine the Commissioner can place on the producer?
$200
The Guaranty Association for life and health insurance will pay up to all of the following claims except:
$500,000 for net cash surrender values and withdrawals
After receiving a person's written request for cancellation of a policy, an insurer in Minnesota must return all payments made for the policy within how many days?
10
A producer who changes their address must notify the Commissioner within _______ of the change.
10 days
An employer in Minnesota must notify a covered employee of insurance continuation rights within ____ days after termination of or layoff from employment.
14
A temporary producer license is issued in Minnesota for up to _______ days.
180 days
What is the total amount of continuing education a producer must complete in Minnesota each renewal period?
24
The producer must deliver an insurance policy within how many days after receiving the premium?
30 days
Every agent in Minnesota must maintain financial records for how many years?
6
In Minnesota, an agency must maintain a complaint file on each agent for how many years?
6
Where payments on a life policy are concerned, an insurer in Minnesota may defer payment of a cash surrender value for ___ months.
6
An insurance policy form is effective if not disapproved within how many days of submission to the Commissioner?
60
If an insurer in Minnesota determines a policy's premium by an audit, how many days before the policy's expiration must the insurer request the necessary facts from the insured?
60
In Minnesota, an insurer must provide an insured with the approval or denial of a claim within how many days of receiving proof of loss?
60
Minnesota requires all life insurance policy forms to be submitted for the Commissioner's approval. How long does the Commissioner have to notify the insurer of approval or disapproval?
60 days
Which of the following individuals does not have insurable interest in the insured's life policy?
A person with an insurable interest at the time the insured dies
A licensed producer moves from Illinois to Minnesota. What must the producer do in order to become a resident producer in Minnesota?
Apply for a Minnesota license within 90 days after moving
In Minnesota, a person may cancel their new insurance policy by returning it _________ following the date of purchase.
By the 10th day
Which of the following is not within in the power of the Commissioner of Commerce?
Create the state insurance statutes
Refusing to insure a person solely because the person is divorced is considered:
Discrimination
Misrepresentation is which of the following?
Forcing a person to lapse an existing policy by not stating the correct policy terms
According to Minnesota's Agent Conduct regulations, a producer must hold client funds in what specific way?
In a fiduciary capacity
Which of the following correctly describes the practice of twisting?
Misleading an insured to induce them to terminate or exchange an existing policy for a different one
Which of the following is not a requirement for a person to get a resident producer license in life and health insurance?
Must be at least 21 years old
The Minnesota Life and Health Insurance Guaranty Association requires life and health insurers to deliver what form to the applicant at the time of application?
Notice Concerning Policyholder Rights
How often must the Commissioner examine the condition of an insurer in Minnesota?
Once every 5 years
An insurer in Minnesota cancels a line of business that a producer sells. What action must the insurer take?
Pay the producer all compensation earned before or after cancelling the line of business
Which of the following is not considered an unfair claims settlement practice?
Requesting a group applicant's claims history for the past 3 years
A producer's license has been suspended for violating Minnesota's insurance laws. What is the first action the producer should take?
Surrender the license to the Commissioner
The Guaranty Association's Notice of Policyholder Rights does not include which of the following information?
The Guaranty Association's limits of liability
An accident and health policy form may be disapproved by the Commissioner for which of the following reasons?
The actuarial reasons and data submitted do not justify the rate
Minnesota requires that advertisements identify which of the following?
The agent or insurer
Choose the correct statement about the appointment of a producer:
The appointment remains in force until the appointment or license is terminated
An individual dies 15 days after being terminated from their employment. If their employer provided a group life insurance policy to all employees, what happens to the individual's death benefits?
The death benefits would be paid under the group policy
Choose the true statement about the replacement process of life insurance.
The insured must exercise the right to an unconditional refund within 30 days of the policy delivery
Which of the following would not be considered in determining a customer's suitability for life insurance?
The opinion of family and friends
Choose the false statement about the expiration of an insurance license.
The producer has a 31 day grace period after the renewal date to pay the renewal fee
If an insurer has not received a certificate of authority from the Commissioner, what are they called?
Unauthorized insurer
In Minnesota, STOLI transactions are:
Violations of the Minnesota Insurable Interest Act
