Life License Chapter 5

An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an

Authorized insurer

An insurer just filed a premium rate with the Commissioner. Assuming the rate is not denied, within how many days can the insurer begin using that premium rate?

31

If a producer's appointment is denied by the Commissioner, the Commissioner must notify the appointing agency within

5 days

A resident of another state that moves to Mississippi has how many days after establishing residency too make application to Mississippi for license without taking an exam or completing prelicensing?

90

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

A delivery receipt must be signed.

Which of the following is the closest term to an "authorized" insurer?

Admitted

What documentation grants express authority to an agent?

Agent's contract with the principal

In order for an insurer to legally transact insurance, it must obtain which of the following?

Certificate of Authority

An insurance producer just sold an insurance policy to his sister. What kind of business is this?

Controlled

How is the Commissioner of Insurance selected in Mississippi?

Elected by the public for a 4-year term in the same election in which other state officials are chosen

The requirement that agents not commingle insurance monies with their own funds is known as

Fiduciary responsibiliby

In insurance transactions, fiduciary responsibility means

Handling insurer funds in a trust capacity.

What authority is NOT stated in an agent's contract but is required for the agent to conduct business?

Implied

The commissioner believers that an agent is engaged in an unfair trade practice. The commissioner may

Issue a cease and desist order

What is the significance of a conditional receipt?

It is intended to provide coverage on a date earlier than the date of the issuance of the policy.

Upon assuming office, the Commissioner must

Post a performance bond

The purpose of insurance regulation is to

Promote the public welfare

Limited Lines producers are authorized to sell and service with lines of insurance?

Title insurance

According to Title 18, Sections 1033 & 1034 of US Code

any oral or written statements by any person engaged in the business of insurance that are false or any omissions of material fact are considered unlawful insurance fraud. This includes statements made on an application for insurance, renewal of a policy, claims for payment or benefits, premiums paid, and financial condition of an insurer.

The authority granted to an agent through the agent's contract is referred to as

express authority

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

twisting

A commissioner must be notified of new producer appointment witin

15 days

The minimum continuing education requirement of life insurance agents is

24 hours every two years

What authorities can an agent hold

Express and implied

After receiving a cease and desist order, a licensee requests a hearing regarding an alleged violation on Nov. 10. What is the earliest date the hearing can be held?

Nov. 20

What is an example of apparent authority of an agent appointed by an insurer?

The agent accepts a premium payment after the end of the grace period.

Following the death of a licensed agent, the executor or administrator of the deceased agent's estate, or the next of kin could obtain a temporary insurance license, without testing, issued for a period of

180 days

An example of an insurance adjuster would be

A person who investigates claims arising under insurance contracts for fee or commission

An agent accepts the premium payment 35 days after it is due, telling the insured that there will not be a problem keeping the policy in force. This is an example of what ;;type of agent authority?

Apparent

rebating is defined as

offering any inducement in the sale of insurance products that is not specified in the policy, including money, reductions, in commissions, promises, and personal service.

Rod wants to pay his initial life insurance premium in advance. Which of the following best describes his situation?

rod can pay his premium as early as he wants, even with his application.

An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a

Authorized insurer

A limited line credit insurance producer transacts any insurance offered in connection with

The extension of credit

If a producer's license has been revoked, how soon can the producer apply for a new license?

Within 1 year of the effective date of revocation

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

Without receiving written consent from an insurance regulatory authority.

Fraternal insures operate on the basis of a lodge or charitable organization, but

they may also sell formal insurance plans for the benefit of their members

In 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

3 years

Within how many days must the insurer that terminates an agent's appointment notify the Commissioner

30

After receiving a cease and desist order, how long does a person have to request a hearing?

30 days

If a producer's appointment is not renewed, or is terminated, the Commissioner must be notified within

30 days

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

5 Years

What is the minimum required time period during which replacing insurers must keep records pertaining to a replacement transaction?

5 years

In Mississippi, any person who acts as an agent without having the proper license may be found guilty of a misdemeanor and subject to a penalty of

A fine of up to $500 and up to 2 years in jail

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association that would be considered

An unfair trade practice

During the term of office as Commissioner, that individual also serves as

State Fire Marshal

When an insurer terminates the appointment of one of their agents for cause, the insurer is obligated to notify which of the following?

The insurance commissioner

What is the minimum age to apply for a resident license in this state?

18

What is the maximum fine for licensing violations by an agent or an applicant for a license?

$1,000

The Commissioner sent a producer a letter, and requested a response from that producer. The producer lost the letter, and, subsequently, never replied. What is the greatest civil penalty she could be assessed for this?

$10,000

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to

10 years

After a producer's license expires, he may reinstate it without having to take the licensing exam if he files for reinstatement witin

12 months

The regulation of the insurance industry primarily rests with

The state

Congress passed the Federal Privacy act of 1974 to protect

the consumer's rights to privacy by limiting what information can be collected, how it may be collected and how it may be used

What are the characteristics of a fraternal benefit society

the organization must be nonprofit, have a lodge system that includes ritualistic work and maintain a representative form of government with elected officers.