Insurance Exam: life (Iowa laws, rules, and regulations commonly to ALL lines)
which of the following would be considered an unfair claims settlement practice? A) requesting the insured swear under oath concerning the facts of the claim B) the settlement of the claim is delayed for 30 days in order for the insured to conduct an investigation C) a claim adjuster advises the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered D) requesting the insured to submit a signed proof of loss statement, after the insured has already verbally advised the insurer of the claim
a claim adjuster advises the insured that if the claim goes to arbitration the insured would probably receive less than what is currently being offered
which of the following individuals engaged in the business of insurance would NOT be required to be licensed? A) a salaried of an insurer who does not receive commissions, but solicits applications and quotes rates for insurance B) a director of an employee trust plan who is compensated indirectly by the insurer C) a person who secures information for enrolling individual into a group insurance D) a salaried officer of an insurance agency who does not solicit insurance personally, but who shares in the commissions
a person who secures information for enrolling individuals into a group insurance
in which of the following circumstances is an active producer license NOT required? A) a retiree receives renewal commission for policies written when he was an active producer B) a salesperson sells auto policies though a car dealership C) an individual presents and sells a life insurance policy D) an individual operates an agency for a non licensed producer
a retiree receives renewal commission for policies written when he was an active producer
which individual would be required to be licensed as an insurance producer? A) a salaried full time employee who counsels the employer on the employers insurance interests B) a person employed by the insurer to inspect and rate risks C) a salaried employee who advertises and solicits insurance D) an assistant who secures and furnishes information for group insurance
a salaried employee who advertises and solicits insurance
a temporary producers license may be used for which of the following? A) completing the affairs of an insurance producer B) continuing a producers business C) transacting new business D) all of the above
completing the affairs of an insurance producer
when a producer was reviewing a potential customers coverage written by another company, the producer mad several remarks that were maliciously critical of that other insurer. the producer could be found guilty of A) discrimination B) nothing unless the remarks were in writing C) defamation D) misrepresentation
defamation
which of the following terms describes making false statements about the financial conditions of any insurer that are intended to injure any person engaged in the business of insurance A) slandering B) defamation C) undercutting D) twisiting
defamation
which of the following is not a duty of the commissioner A) develop insurance rates B) license insurance companies, agents and brokers C) encore violations of the insurance code D) regulate insurance rates
develop insurance rates
which of the following will NOT be considered unfair discrimination by insurers A) assigning different risk classifications to applicants base on gender identity B) discriminating in benefits and coverages based on the insures habits and lifestyles C) changing applicants with similar health histories different premiums based on their ethnicity D) cancelling individual coverage based on the insured marital status
discriminating in benefits and coverage based on the insured habits and lifestyles
When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered A) controlled business B) adverse selection C) discrimination D) twisting
discrimination
two individuals are in the same risk and age class; yet they are charge different rates for their insurance policies due to an insignificant factor. what is this called A) adverse selection B) discrimination C) law of large numbers D) misrepresentation
discrimination
all of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT A) an offer to share in commissions generated by the sale B) dividends from a mutual insurer C) an offer of employment D) stocks, securities, or bonds
dividends from a mutual insurer
which of the following best describes an insurance company that has been formed under the laws of this state? A) sovereign B) alien C) foreign D) domestic
domestic
an insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. what is this an example of? A) twisting B) defamation C) false advertising D) unfair claims
false advertising
circulating deceptive sales material to the public is what type of Unfair Trade Practice? A) coercion B) misrepresentation C) false advertising D) defamation
false advertising
When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer? A) alien B) nonadmitted C) foreign D) domestic
foreign
an insurance company is domiciled in montana and transacts insurance in Wyoming. which term best describes the insurers classification in wyoming A) alien B) domestic C) unauthorized D) foreign
foreign
which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producers license A) public drunkenness B) forgery C) speeding in an automobile D) trespassing through a neighbors yard
forgery
what is the maximum amount of time that a person can have a temporary producers permit A) 180 days B) 1 year C) 90 days D) 3 months
180 days
how many hours of continuing eduction must be completed on the subject of ethics each license renewal period? A) 1 hour B) 2 hours C) 3 hours D) 5 hours
3 hours
a producer must complete a new set of continuing education hours every A) 2 years B) 3 years C) 4 years D) 5 years
3 years
if the commissioner receives a certificate of noncompliance from the child support recovery unit (CSRU) the producer will have his or her license suspended for how many days A) 30 B) 45 C) 7 D) 15
30
After moving, licensees must inform the Commissioner of a change of address within A) 10 days B) 30 days C) 60 days D) 90 days
30 days
when producers change the address of their residence or office, the insurance department must be notified within A) 30 days B) 60 days C) 10 days D) 15 days
30 days
a producer earns 40 continuing education credit hours during the 3 year license renewal period. how many continuing education credit hours will the producer need to complete during the new 3 year period? A) 30 B) 33 C) 36 D) 40
36
how many continuing education credits hours must be completed during each licensing period? A) 15 B) 24 C) 25 D) 36
36
how long is a commissioners term A) 2 years B) 4 years C) 5 years D) 10 years
4 years
the commissioner may examine an insurer as often as deemed necessary, but domestic insurers must be examined at least once every A) 2 years B) 3 years C) 4 years D) 5 years
5 years
If an insurer believes that it has received a fraudulent claim, it must notify the bureau and request an investigation within A) 15 days B) 30 days C) 60 days D) 90 days
60 days
which of the following is FALSE regarding insurance sales presentations to prospective purchasers? A) if there is no producer involved, there are no special disclosures that must be made B) the producer must inform the client of the producers full name C) a prospective purchaser must be told that the producer is acting as an insurance producer D) the producer must inform the prospective purchaser of the insurance company fully name
if there is no producer involved, there are no special disclosures that must be made
an insurer devises an intimidation strategy in order to corner a large portion of the insurance market. which of the following best describes this practice A) a legal advertising strategy B) unfair discrimination C) defamation D) illegal
illegal
an insurer published intimidating brochures that portray the insurers competition as financially and professionally unstable. which of the following best describes this act? A) legal, provided that the information can be verified B) illegal until endorsed by the guaranty association C) legal, provided that the other insurers are paid royalties for the usage of their names D) illegal under any circumstances
illegal under any circumstances
which of the following was designed to investigate and collect evidence relating to insurance fraud A) iowa insurers guide B) federal office of insurance fraud investigation C) iowa guaranty association D) insurance fraud bureau
insurance fraud bureau
which of the following is NOT true regarding a certificate of authority A) it is issued to group insurance participants B) it may be necessary for transacting business in a specific state C) it is equivalent to an insurance license D) it is issued by the state department of insurance
it is issued to group insurance participants
in which of the following situations is it legal to limit coverage based on marital status? A) divorce within the last six months of applying for insurance B) it is never legal to limit coverage based on marital status C) excessive. number of divorces, as defined by the insurance code D) legal separation during the application process
it is never legal to limit coverage based on marital status
which the following is NOT considered a misrepresentation as it pertains to unfair trade practices A) stating that the insurance policy is a share of stock B) exaggerating the benefits provided in the policy C) stating that the competitors will arbitrarily increase their premiums each year D) making comparisons between different policies
making comparisons between different policies
which of the following best describes the unfair trade of defamation A) refusing to deal with other insurers B) making derogatory oral statements about another insurers financial condition C) assuming the name and identity of another person D) issuing false advertising material
making derogatory oral statements about another insurers financial condition
on its advertisement a company claims that is has funds in its possession that are, in fact, not available for the payment of losses or claims. the company is guilty of A) concealment B) unfair claim practice C) rebating D) misrepresentation
misrepresentation
if an insurer becomes insolvent, the Iowa life and health guaranty association will do all of the following EXCEPT A) provide money to claimants B) assume payment of the insurers contractual obligations C) purchase all existing contracts issued under the insurer D) reinsure the policies of the insolvent insurer
purchase all existing contracts issued under the insurer
all of the following are true regarding rebates EXCEPT A) rebates are allowed if its in the best interest of the client B) rebates are only allowed if specifically stated in the policy C) rebating can be anything of economic value given as an inducement to buy D) dividends are not considered to be rebates
rebates are allowed if its in the best interest of the client
an agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. the agent is guilty of A) coercion B) twisting C) controlled business D) rebating
rebating
any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice know as A) false advertising B) coercion C) rebating D) twisting
rebating
Paul is a producer in Kansas and wants to become a producer in Iowa. the department will waive certain examination requirements, provided that Kansas would waive these same requirements if an Iowa producer sought licensure in Kansas. what term is used to describe this phenomenon? A) equanimity B) reciprocity C) equality D) fair exchange
reciprocity
what is the maximum aggregate civil penalty that may be imposed by the commissioner for violations of laws of fair trade practices? A) $2,000 B) $5,000 C) $10,000 D) $12,000
$10,000
after a hearing, a civil penalties imposed by the commissioner for each unfair method of competition may NOT exceed A) $5,000 B) $500 C) $1000 D) $1500
$1000
if the commissioner believes an individual is involved in unfair trade practices and delivers to that individual a notice of hearing, the hearing may be no sooner than A) 15 days after receipt of notice B) 30 days after receipt of notice C) 5 days after receipt of notice D) 10 days after receipt of notice
10 days after receipt of notice
which of the following is the closet term to an authorized insurer? A) legal B) admitted C) certified D) Licensed
admitted
which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization? A) fraternal benefit society B) mutual company C) stock company D) reciprocal association
fraternal benefit society
the commissioner is appointed by which of the following authorities? A) federal association of insurers B) iowa guaranty association C) governor D) state insurance board
governor
which of the following best describes a misrepresentation? A) making a maliciously critical statement that is intended to injure another person B) discriminating amount individuals of the same insuring class C) issuing sales material with exaggerated statements about policy benefits D) making a deceptive or untrue statement about a person engaged in the insurance business
issuing sales material with exaggerated statements about policy benefits
a producer in another state wants to become a producer in Iowa. the other state gives the sample privileges to Iowa producers wanting to be licensed in that state as it does its own producers. Iowa therefore extends the privileges of its producers to the prospective producer of the other state. what is this called? A) fair exchange B) equanimity C) equal privilege D) reciprocity
reciprocity
which of the following would be required to obtain a producers license in this state? A) a person who underwrites applications for insurance for the insurer B) a trustee of an employee trust plan that is compensated indirectly by the company issuing the contract C) a clerical employee that is only indirectly involved in the sale and solicitation of insurance and who is paid a fixed salary D) a person as a special agent who assist insurance producers by providing technical advice and assistance
a trustee of an employee trust plan that is compensated indirectly by the company issuing the contract
when transacting business in this state an insurer formed under the laws of another country is know as a/an A) domestic insurer B) foreign insurer C) admitted insurer D) alien insurer
alien insurer
all of the following would be considered rebating EXCEPT A) an agent misrepresents policy benefits to convince a Policyowner to replace policies B) an agent offers the use of his lake to a client as an inducement to buy an insurance policy from him C) an agent offers to share his commission with a policyholder D) an agent offers tickets to a baseball game as an inducement to buy insurance
an agent misrepresents policy benefits to convince a Policyowner to replace policies
what is a foreign insurer? A) an insurer with licensed agents who are citizens in more than one country B) an insurer with a home in another state C) an insurer with a home office in another country D) an insurer with licensed agents doing business in other countries
an insurer with a home office in another state
the life and health guaranty association maintains all of the following EXCEPT A) an unallocated life insurance account B) a health insurance account C) an annuity account D) an unallocated annuity contract account
an unallocated life insurance account
the commissioner regulates insurance rates through detailed rate reviews. the commissioner will prohibit insurance rates that are A) excessive B) inadequate C) unfairly discriminatory D) any of the above
any of the above
if an insurer meets the states financial requirements and is approved to transact business in the state, it is considered to be A) certified B) qualified C) approved D) authorized
authorized
an insure that holds a certificate of authority in the state in which it transacts business is considered a/an A) self-insurer B) authorized insurer C) local insurer D) certified insurer
authorized insurer
if a person is suspected of violating insurance laws, what can the commissioner issue that would order the person to stop violating the violations? A) stop action order B) suspension of authority C) limitation of power statement D) cease and desist order
cease and desist order
to legally transact insurance in this state, an insurer must obtain which of the following? A) certificate of insurance B) certificate of authority C) power of attorney D) business entity license
certificate of authority
which of the following must an insurer obtain in order to transact insurance within a given state? A) producers certificate B) business entity license C) insurers license D) certificate of authority
certificate of authority
a banker is ready to close on a customer's loan. the bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. this is an example of A) defamation B) twisting C) coercion D) loading
coercion
forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as A) coercion B) rebating C) misleading advertising D) defamation
coercion
it is suspected that a producer is consistently violating insurance laws. which of the following entities is responsible for making sure that the producer stops committing these violations? A) the state insurance board B) commissioner C) NAIC D) federal insurance regulation bureau
commissioner
which of the following statements is NOT accurate regarding commissions and referrals A) referral fees are acceptable as long as payment does not depend on the sale of a policy B) to receive commission on the sale of a policy, a person must be licensed the appropriate line of insurance C) all individuals engaged in the sale, solicitation and negotiation of an insurance policy must be licensed D) service fees are acceptable as long as the policy holder is licensed
service fees are acceptable as long as the policyholder is licensed
it would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability A) gender B) address C) sexual orientation D) age
sexual orientation
all of the following are considered unfair practices in the business of insurance EXCEPT A) sharing commissions B) boycott C) rebating D) defamation
sharing commissions
which of the following is an example of a producer being involved in an unfair trade practice of rebating? A) inducing the insured to drop a policy in favor of another one when it it not in the insureds best interest B) charging a client a higher premium for the same policy as another client in the same insuring class C) making deceptive statements about a competitor D) telling a client that his premium will be waived if he purchases the insurance policy today
telling a client that his premium will be waived if he purchased the insurance policy today
what entity was created to protect insureds against insurer insolvency? A) the insurer insolvency protection agency B) the Iowa insurance division C) the Iowa life and health guaranty association D) the NAIC
the Iowa and health guaranty association
the commissioner is conducting an examination of a domestic insurance company. who is responsible for the cost of the examination A) the company being examined B) the entity that requested the examination C) the department of insurance D) the insurance guaranty association
the company being examined
to send important documents to the insured through electronic mail services all of the following must be met EXCEPT A) the insured must first consent to the delivery method B) the insurer must relay all software requirements needed to open the documents C) the insurer must let the insured know he or she may choose to not elect the delivery method D) the insured must be made aware that choosing another method may affect the validity of the document
the insurer must be made aware that choosing another method may affect the validity of the document
a nonresident Iowa producer moves to Iowa and becomes an Iowa resident. which of the following is true? A) if the other state would allow former Iowa resident to maintain their resident license after moving to the other state, then Iowa will do the same B) the producer must surrender his/her producers license from the other state C) the producer may maintain the license held in both states D) the producer must appeal to the commissioner for a special dual state license
the producer must surrender his/her producers license from the other state
