Iowa Laws and Regulations Review

$5000

Fine per WILLFUL violation of insurance law

$1000

Fine per violation of insurance law

up to $10,000

For violation of cease and desist order

2 years

Group life insurance policies have an incontestable period of

within 12 months

How long after the expiration date may a resident producer reinstate their license?

60 days.

If an insurer believes that it has received a fraudulent claim, it must notify the bureau and request an investigation within:

30 days

If any producer changes their name or address, they have within _____ days of the change to notify the Commissioner.

30 days

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

Admitted

The closest term to an authorized insurer

The Life and Health Guaranty Association maintains:

- A health insurance account. - An annuity account. - An unallocated annuity contract account.

Maximum interest rates for life insurance policy loans

- Determined by the Insurance Code - Never determined by insurer

True regarding rebates:

- Only allowed if specifically stated in the policy - Rebating can be anything of economic value, given as an inducement to buy - Dividends are not considered to be rebates (An illegal act)

In order to send important documents to the insured through electronic mail services,

- The insured must first consent to the delivery method. - The insurer must relay all software requirements needed to open the delivery method. - The insurer must let the insured know he or she may choose to not elect the delivery method.

Who must be licensed?

Anyone who solicits insurance or receives commission from the sale of insurance must be licensed

Certificate of Authority

Before insurers may transact business in a specific state, they must apply for and be granted a license or:

Authorized

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

Fraternal Benefit Society

An organization formed to provide insurance benefits for members of an affiliated lodge, religious organization, or fraternal organization

The policyowner

When making a recommendation for a group life insurance policy, ______ must be regarded by the producer when determining the suitability of a particular policy

At least 10 days after the notice

When must hearings be held?

Coercion

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

2 employees at the date of issue

A group life insurance policy issued to an employer to insure employees of that employer must cover at least

The Iowa Life and Health Guaranty Association

A nonprofit legal entity created to ensure payments of benefits and continued coverage

The producer must surrender his/her producer's license from the other state.

When a nonresident Iowa producer moves to Iowa and becomes an Iowa resident,

$50,000

Aggregate (total) fine for WILLFUL violations of insurance law in 6 months

$10,000

Aggregate fine for violations of insurance law

Foreign

An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?

Not part of an illustration used in selling life insurance policies

An insured's financial status is

The life of a debtor.

Credit life insurance insures

Not considered a rebate.

Dividends from a mutual insurer are

Obtain a list of all life insurance policies that will be replaced

During replacement of life insurance, a replacing insurer must

The Life Insurance Solicitation Regulation

Establishes required and prohibited actions for companies and producers in order to provide adequate info. to consumers regarding life ins. products and their costs

100

In Iowa, a group insurance policy issued to trustees of a fund established by two or more employers must cover how many eligible, insurable employees at the time of issue?

Fits one of the descriptions established by the Insurance Division

In Iowa, group insurance may be written to provide insurance coverage for any group that

5 years

Insurers must be examined every

Decreasing term

Most commonly used in credit life insurance

Unfair trade practice of rebating

Telling a client that his first premium will be waived if he purchases the policy today

4 years

The Commissioner's term of office is

Credit life insurance

The creditor is the beneficiary for the amount of benefit equal to the outstanding balance of the loan.

The amount to be repaid under the contract

The initial amount of credit life insurance may NOT exceed

180 days

The maximum amount of time that a person can have a temporary producer's permit

The purpose of life insurance solicitation regulations

To help consumers compare life insurance products in regard to their relative cost

30 days

Upon receiving a certificate of noncompliance from the child support recovery unit (CSRU), the Commissioner will issue a notice to suspend licensing activity for how long after the notice?

A violation as defined in the Unfair Settlement Practices occurs.

When a claims adjusters advises the insured that if the claim goes into arbitration, the insured would probably receive less than what is currently being offered,

Issuing sales material with exaggerated statements about policy benefits.

Which of the following best describes a misrepresentation?

36, 3

______ credit hours of continuing education must be completed within ______ years.