Insurance Regulation Exam FX 15 Questions
nonresident
An out-of-state producer wants to start selling insurance in this state. What type of license should the producer obtain?
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 known as
The spouse of a retiring insurance producer.
A temporary producer license could be issued without examination to all of the following EXCEPT
A license to practice law.
An applicant for a Counselor's license in Michigan must possess all of the following EXCEPT
Illegal under any circumstances
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
$5
How much is an agent's appointment fee?
It allows for up to 15 excess credit hours to be carried forward to the next reporting period.
Michigan's continuing education requirement has each of the following characteristics EXCEPT
Producer commission schedules.
The following areas are regulated by the Insurance Department EXCEPT
Consists of completing 24 hours of CE each biennium.
In Michigan the state's continuing education requirement
A producer's retirement
In this state, a temporary license may be issued for any of the following reasons EXCEPT
Two letters of recommendation attesting to trustworthiness, reliability, and good reputation.
Which is NOT required of an applicant for an insurance license in Michigan?
Rebates are allowed if it's in the best interest of the client.
All of the following are true regarding rebates EXCEPT
Discriminating in benefits and coverages based on the insured's habits and lifestyle
Which of the following will NOT be considered unfair discrimination by insurers?
Twisting
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
30
Within how many days does a licensee have to inform the Commissioner of a change of address?
Collect premiums for in-force policies and explain coverages to clients that have existing policies written by her father.
M, who is not licensed as an insurance agent, works part-time in her father's insurance agency. M may perform all of the following duties EXCEPT
Misrepresentation
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
In the preceding 12 months.
The Commissioner may waive pre licensing requirements or examinations for someone who has been a licensed insurance producer
12 months
Within what time period after completing prelicensing education must an applicant file a certificate of education completion with the Commissioner?
180 days
A temporary license in this state is valid for a maximum of
illegal
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?
Solicit business as an insurance producer
A licensed counselor MAY NOT perform which of the following duties?
Coercion
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as
90 days
If a licensee does not earn 24 hours of Continuing Education by the license review date, the license will be suspended for up to how many days?
False Financial Statements
When an insurance agency published an advertising brochure, it emphasized the company's financial stability and sound business practices. In reality, its financial health is terrible, and the company will soon have to file for bankruptcy. Which of the following
Business Entity
Which of the following could be used when a corporation, association, partnership, or limited liability partnership acts as a producer?
The designee of a producer that is called to active service with the Navy
Which of the following individuals could qualify for a temporary insurance license?
Defamation
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?
A person who negotiates insurance contracts
Which of the following persons is required to hold a producer license?
False advertising
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?
Explaining to client the advantages of permanent insurance over term and suggesting changing policies
All of the following actions can be described as twisting EXCEPT
Sharing Commissions
All of the following are considered unfair trade practices in the business of insurance EXCEPT
An agent misrepresents policy benefits to convince a policyowner to replace policies.
All of the following would be considered rebating EXCEPT
30 days
If an insurer terminates a producer, the Commissioner must be notified. How many days does the insurer have to deliver this notice?
15 days
If an insurer wishes to appoint a producer, it must file a notice of appointment within how many days of the date that the contract is executed?
Making comparisons between different policies
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?
A salaried employee who advertises and solicits insurance
Which of the following would be required to be licensed as an insurance producer?
Rebating
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
