Kansas Rules and Regulations Common to All Lines

Each willful violation of the insurance statutes regarding unfair methods of competition may result in fines up to _____.

$5000 (aggregate $50,000)

When an agent's appointment is terminated, the insurance company must notify the Commissioner within _____ days.

30

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

Authorized

Which of the following insurance providers must be nonprofit and sell insurance only to its members? A. Reciprocal B. Fraternal C. Service D. Mutual

B. Fraternal

Which of the following is the closest term to an authorized insurer? A. Licensed B. Legal C. Admitted D. Certified

C. Admitted

Which of the following would be considered false advertising? A. Stating that a policy has limitations and exclusions B. Failing to include premiums in sales materials C. Implying that the agent is the insurer D. Stating the differences in benefits between Whole Life Insurance and Term Life Insurance

C. Implying that the agent is the insurer

If an applicant makes a false statement on his/her producer's license application, what is he/she guilty of? A. Misrepresentation B. False Advertising C. Perjury D. Defamation

C. Perjury

Which of the following manages the Kansas Life and Health Insurance Guaranty Association? A. The Commissioner B. Member Insurers C. The Board of Directors D. The State Department of Insurance

C. The Board of Directors

_____ is in the state. _____ is in another state. _____ is in another country.

Domestic; Foreign; Alien

Every insurer transacting life and/or health insurance in the stat as an admitted insurer must maintain membership in the ______.

Guaranty Association

_____ id defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy. Both the offer and acceptance of this is _____.

Rebating; illegal

In the context of a producer database maintained by the state of Kansas, another state or the NAIC, the term "producer" includes "_____."

agent

Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "______."

twisting

The Association is liable, at most, for $_____ in health insurance benefits (other than disability) for any one individual.

100,000

What is the fine for NOT completing CE requirements? A. $100 for each license suspension B. $500 for each license suspension C. $1000 for each license suspension D. $50 for each license suspension

A. $100 for each license suspension

When a hearing is scheduled, the Commissioner must give notice to all interested parties as to the time, place and purpose of hearing within how many days of the hearing? A. 15 days B. 20 days C. 5 days D. 10 days

A. 15 days

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of? A. False advertising B. Unfair claims C. Twisting D. Defamation

A. False advertising

The men and women who sell insurance products to the public are called A. Producers B. Commissioners C. Appointees D. Insurers

A. Producers

Giving a client an inducement to a sale not stated in the policy is an unlawful practice known as A. Rebating B. Twisting C. Unlawful Distribution of Dividends D. Coercion

A. Rebating

What is the maximum monetary fine for a nonwillful violation of insurance statues regarding unfair trade practices? A. $500 B. $1,000 C. $5,000 D. $10,000

B. $1,000 (this can be given up to 10 times = $10,000)

J is trying to become a licensed producer in this state. Unfortunately, he has failed his examination on the first try. How many times can J retake the exam before he has to wait 6 months? A. 1 B. 2 C. 3 D. 0

B. 2

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered A. A required disclosure B. A legal representation of the Association C. An unfair trade practice D. A misrepresentation

C. An unfair trade practice

A _____ is required in order to transact insurance.

Certificate of Authority