Insurance Licensing Chapter 5

Coercion

A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but inly if the customer purchases an insurance policy from the bank in the amount of the loan. This is an example of

ABC

Ace, an independent agent, is appointed by ABC Insurance. Ace decides to place some advertisements in the paper so that people will be aware of the products. Some of the advertisements overstate the benefits of the policies. Who is responsible for this violation of advertising laws?

12 months

After a producer's license expires, they may reinstate it without having to take the licensing exam if they file for reinstatement within

$5,000 per violation

After finding that an individual is engaging in unlicensed insurance activity, the Commissioner issues a cease and desist order. If the respondent violates the order, they may be fined up to

$5,000

An agent breaks an insurance law regulating how long records must be kept. However, a penalty for breaking this law hasn't been established. What is the maximum penalty the Commissioner may impose on the agent?

The Federal Privacy Act of 1974

Because of the great amount of personal information that is available, and because of the increased number of agencies collecting and using this information, the Privacy Protection Study Commission was established to control the misuse of information and misinformation. This act is know as

Reinvestigate

Carl's application for a life policy was rejected because of information disclosed in an inspection report. Carl reviewed the consumer reporting agency's file and found they had incorrect information concerning his personal life. Carl can legally require the reporting agency to

24 months

How long is the licensing period in Mississippi?

3 years

If an insurance company has their Certificate of Authority revoked for failure to pay a judgment within 90 days, after paying the judgment, they will be barred from doing business in Mississippi for a period of

Authorized

If an insured meets the state's financial requirements and is approved to transact business in the state, it is considered to be

The Guaranty Association

If an insurer becomes insolvent, which of the following would pay benefits to policyholders?

30 days

Producers are required to report to the Commissioner any administrative actions taken against them within how many days?

15 days

The Commissioner must be notified of new producer appointment within

5 years

The Commissioner will examine financial records of every authorized insurer as often as deemed necessary, but at least every

24 hours every two years

The minimum continuing education requirement for life insurance agents is

Certificate of Authority

To legally transact insurance in this state, an insurer must obtain which of the following?

Nonrenewable coverage expiring in 8 years

To which of the following situations does the Replacement Regulation apply?

To protect policy owners against insurer insolvency

What is the purpose of the Insurance Guaranty Association?

The policyowner must sign a delivery receipt

What must happen when an individual policy or annuity has been personally delivered to the policyowner?

Replacement rule

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?