Pre-Licensing Insurance Course Chapter 19 (Part 1)
What is the minimum fine for failing to inform the Commissioner of a change of address? a. $50 b. $100 c. $200 d. $500
a. $50
The Insurance Commissioner is required to give bond in the sum of: a. $50,000.00 b. $62,000.00 c. $75,000.00 d. $100,000.00
a. $50,000.00
An insurance producer may receive qualification for a license in which of the following lines of authority? a. Casualty Insurance b. Title insurance coverage c. Accident and health or sickness insurance d. All of the above
d. All of the above
Insurance brokers represent: a. Insureds b. Insurers c. Underwriters d. The state of Indiana
a. Insureds
The minimum age to become a licensed insurance agent in Indiana is: a. 17 b. 18 c. 21 d. 22
b. 18
The continuing requirement for long-term care producers is: a. 5 hours every 2 years b. 6 hours every 2 years c. 9 hours every 3 years d. 12 hours every 4 years
a. 5 hours every 2 years
How many days after an agency appoints a producer do they have to file a notice of appointment? a. 15 days b. 20 days c. 30 days d. 45 days
a. 15 days
How many days does an insurer have to inform a producer of a termination of their appointment? a. 15 days b. 20 days c. 30 days d. 45 days
a. 15 days
To appoint a producer, the insurer must file a notice of appointment within: a. 15 days b. 21 days c. 30 days d. 31 days
a. 15 days
Producer licenses must be renewed every: a. 2 years b. 3 years c. 4 years d. 5 years
a. 2 years
What is the maximum percentage during any 12-month period that an insurer's commissions can be from controlled business? a. 25% b. 35% c. 45% d. 50%
a. 25%
Resident limited lines producers must complete at least how many hours of continuing education courses? a. 5 hours b. 6 hours c. 9 hours d. 12 hours
a. 5 hours
A person who is not a resident of Indiana and who is licensed as a limited lines credit insurance producer or another type of limited lines producer in the person's home state shall, upon application, receive a nonresident limited lines producer license granting: a. The same scope of authority b. A similar scope of accreditation c. A comparable scope of endorsement d. An analogous scope of certification
a. The same scope of authority
The Indiana state exam tests all of the following, EXCEPT: a. The total number of active licensees in the United States b. Knowledge concerning the lines of authority for which application is made c. Duties and responsibilities of a licensee d. Insurance laws and administrative rules of Indiana
a. The total number of active licensees in the United States
What is the rule for someone accepting commissions who should be licensed and is not? a. They can never accept commissions. b. They can accept commissions if they are in the process of being licensed. c. They can accept commissions if the insurer agrees to the arrangement. d. They can always commissions.
a. They can never accept commissions.
An insurance producer who allows their license to lapse may renew his license by fulfilling all continuing education hours and paying all fees due within: a. 6 months b. 12 months c. 18 months d. 24 months
b. 12 months
Resident insurance producers in Indiana must complete a minimum of how many hours of continuing education? a. 12 hours b. 20 hours c. 24 hours d. 32 hours
b. 20 hours
How many hours of prelicensing education are required for someone who will sell only life insurance? a. 16 hours b. 24 hours c. 32 hours d. 40 hours
b. 24 hours
Producers must notify the Commissioner of a change of address within: a. 10 days b. 30 days c. 45 days d. 60 days
b. 30 days
How many months does an applicant for a resident insurance producer license have to file a course completion certificate with the Commissioner? a. 3 months b. 6 months c. 9 months d. 12 months
b. 6 months
How many hours of continuing education are required for a resident limited lines producer with a title qualification each licensing period? a. 5 hours b. 7 hours c. 8 hours d. 10 hours
b. 7 hours
An insurance company that is allowed to transact insurance business in Indiana is classified as: a. A domestic insurer b. An admitted insurer c. A commercial insurer d. A non-admitted insurer
b. An admitted insurer
Which of the following is NOT a requirement for an insurance producer license? a. Have not committed any act that is a ground for denial b. Be at least 19 years of age c. Has completed a certified pre-licensing course of study d. Has successfully passed the examinations
b. Be at least 19 years of age
What is an insurance license for an insurer called in Indiana? a. Certificate of Insurance b. Certificate of Authority c. Producer's License d. License of Authority
b. Certificate of Authority
Insurance that is written in the interests of the licensee, his immediate family, or his employer is called: a. Incestuous business b. Controlled business c. Unregulated business d. Restricted business
b. Controlled business
A certificate of authority: a. Is issued by an insurer to an applicant who has met educational and age requirements to apply for an agent's or broker's license to solicit, sell, or negotiate insurance b. Is an insurer's license to do business in Indiana c. Is an agent's or broker's license to do business in Indiana d. Gives an agent applicant the right to take the IN Insurance Producer's Test for Certification
b. Is an insurer's license to do business in Indiana
All of the following people can act as a producer without being licensed in Indiana, EXCEPT: a. Person who is an officer that is not compensated for an insurance transaction. b. Person who negotiates life insurance in Indiana. c. Person who furnishes only title insurance rate information. d. Person whose activities are limited to advertising.
b. Person who negotiates life insurance in Indiana.
A consultant's license is valid for: a. 6 months b. 12 months c. 24 months d. 36 months
c. 24 months
How many days after receipt of a notice of appointment does the Commissioner have to verify the appointment? a. 15 days b. 20 days c. 30 days d. 45 days
c. 30 days
How many days does a licensee have to notify the Commissioner of Insurance of any change of residential, mailing, or business address? a. 10 days b. 14 days c. 30 days d. 31 days
c. 30 days
How many days does an insurer have to inform the Commissioner of a termination of appointment? a. 15 days b. 20 days c. 30 days d. 45 days
c. 30 days
Producers must retain the certificate of completion for a continuing education course for at least: a. 2 years b. 3 years c. 4 years d. 5 years
c. 4 years
The Commissioner is required to examine all licensed insurers in Indiana at least once every: a. Year b. 3 years c. 5 years d. 6 years
c. 5 years
An insurance producer is NOT required to complete continuing education courses if he has been a licensed insurance producer continuously for 20 years and is at least: a. 55 b. 65 c. 70 d. 75
c. 70
How many days after cancellation of an applicant's previous license must the application exempting the applicant from prelicensing education be submitted? a. 30 days b. 60 days c. 90 days d. 120 days
c. 90 days
If Doug has a producer's license in good standing in Michigan and moves to Indiana, how much time does he have to apply for a producer's license in Indiana without having to complete any prelicensing education or take the examination? a. 30 days b. 60 days c. 90 days d. 120 days
c. 90 days
If a person licensed as an insurance producer in another state moves to Indiana, the person must make application to become a resident licensee within: a. 30 days b. 60 days c. 90 days d. 120 days
c. 90 days
Which of the following is an example of an alien insurance company in Indiana? a. An insurance company in Florida b. An insurance company in Texas c. An insurance company in France d. An insurance company in Louisiana
c. An insurance company in France
What is a foreign insurer? a. An insurer formed under the laws of Indiana b. An insurer formed under the laws of any state but Indiana c. An insurer formed under the laws of any U.S. jurisdiction but Indiana d. An insurer formed under the laws of any place but Indiana
c. An insurer formed under the laws of any U.S. jurisdiction but Indiana
Which company serves the insurance industry by connecting insurance carriers, agencies and brokers, agents, education providers and state regulators through a comprehensive online network? a. AT&T b. Verizon c. Sircon d. Time Warner
c. Sircon
What is the minimum number of course hours required for prelicensing education for a combined life and health insurance course? a. 24 hours b. 32 hours c. 36 hours d. 40 hours
d. 40 hours
Who of the following is required to be licensed as an insurance producer? a. An officer of an insurer who does not receive any commission b. A person whose activities are limited to advertising c. A salaried full-time employee who advises an employee's employer about insurance interests d. A part-time employee who sometimes negotiates insurance
d. A part-time employee who sometimes negotiates insurance
Who of the following must take the licensing exam? a. An insurance producer b. An insurance consultant c. A surplus lines producer d. All of the above
d. All of the above
Who of the following would be considered an insurance consultant? a. An individual who offers any advice concerning insurance b. An individual who offers any counsel concerning insurance c. An individual who offers an opinion concerning insurance d. All of the above
d. All of the above
Which of the following is NOT part of the licensing exam? a. Knowledge of the lines of authority for which application is made b. Duties and responsibilities of a licensee c. Insurance laws and administrative rules of Indiana d. Insurance laws and restrictions of the United States
d. Insurance laws and restrictions of the United States
Is an insurance producer's license required for an officer, director, or employee of an insurer or an insurance producer who does not receive any commission on policies written or sold to insure risks in Indiana? a. Always b. Only if the Commissioner provides an oral waiver c. Only if the NAIC provides a written waiver d. Never
d. Never
When can a person required to be licensed accept commissions from an insurance company? a. Always b. When the insurance company agrees c. When the Commissioner makes an exemption d. Never
d. Never
A limited lines producer with a title qualification must complete at least 1 hour of instruction each licensing period in all of the following, EXCEPT: a. Title insurance underwriting b. Escrow issues c. Annuities d. Principles of the federal Real Estate Settlement Procedures Act
d. Principles of the federal Real Estate Settlement Procedures Act
What is the penalty for a late renewal of an insurance producer's license? a. $50 b. $100 c. Twice the normal renewal fee d. Three times the normal renewal fee
d. Three times the normal renewal fee
The producer must submit to the Commissioner a continuing education statement listing: a. The courses taken b. The number of hours completed c. The school or schools at which the hours were completed d. The instructors for the courses taken
a. The courses taken
What does a certified financial planner have to do to apply for an insurance producer license in Indiana? a. Pay fees, complete the prelicensing education and pass the full exam b. Pay fees and pass the full exam c. Pay fees and pass the Indiana-only portion of the exam d. Pay fees
c. Pay fees and pass the Indiana-only portion of the exam
How often may the Commissioner conduct an examination of a licensed insurer? a. As often as he wants b. No more than once a year c. No more than once every 2 years d. No more than once every 5 years
a. As often as he wants
What is the maximum time a temporary insurance producer license can be valid? a. 180 days b. 12 months c. 18 months d. 24 months
a. 180 days
How many hours of continuing education are required for a resident limited lines producer each licensing period? a. 5 hours b. 7 hours c. 8 hours d. 10 hours
a. 5 hours
An insurance producer includes all of the following, EXCEPT: a. A business entity b. A solicitor c. A surplus lines broker d. An insurance agent
a. A business entity
Who of the following is NOT required to complete continuing education courses to renew a license? a. A limited line credit insurance producer b. A personal lines property and casualty insurance producer c. A life insurance producer d. A title insurance producer
a. A limited line credit insurance producer
Who pays for an insurer's examination? a. The insurer b. The Commissioner c. The Insurance Department d. The state of Indiana
a. The insurer
What type of insurer is authorized by the Commissioner to transact insurance in Indiana? a. Alien b. Foreign c. Non-admitted d. Admitted
d. Admitted
How many hours of continuing education are required for a long-term care producer each licensing period? a. 5 hours b. 7 hours c. 8 hours d. 10 hours
a. 5 hours
Which of the following individuals may be issued a temporary license? a. Producer's spouse b. Producer's friend c. Producer's sibling d. Producer's child
a. Producer's spouse
Who is in charge of the Department of Insurance? a. Insurance Director b. Insurance Superintendent c. Insurance Commissioner d. Insurance Chairman
c. Insurance Commissioner
A person who holds an Indiana nonresident producer's license and moves from one state to another state must file a change of address within: a. 20 days b. 30 days c. 45 days d. 60 days
a. 20 days
The Commissioner must give a bond of: a. $25,000.00 b. $50,000.00 c. $75,000.00 d. $100,000.00
b. $50,000.00
What type of insurance company is organized under the insurance laws of Indiana? a. Alien b. Foreign c. Domestic d. Mutual
c. Domestic
Limited lines insurance includes which of the following? a. Flight insurance b. Funeral insurance c. Title insurance d. All of the above
d. All of the above
Which of the following is NOT included in limited lines credit insurance? a. Voluntary life insurance b. Credit disability insurance c. Credit property insurance d. Involuntary unemployment insurance
a. Voluntary life insurance
Limited lines insurance means any form of insurance with respect to which authority is granted by a home state that restricts the authority granted by a limited lines producer's license to: a. Less than total authority in the associated major lines b. Comparable authority in the associated major lines c. Similar authority in the associated major lines d. Analogous authority in the associated major lines
a. Less than total authority in the associated major lines
The Commissioner may by order limit the authority of a temporary licensee in any way considered necessary: a. To protect insureds and the public b. To accredit insureds and insurers c. To recognize the insureds of Indiana d. To certify the insurers of Indiana
a. To protect insureds and the public
How often must insurance producer licenses be renewed? a. Every 6 months b. Every year c. Every 2 years d. Every 3 years
c. Every 2 years
The Insurance Commissioner is an active member of what organization? a. Insurance Commissioners of America b. American Insurance Commissioners Association c. National Association of Insurance Commissioners d. State Insurance Commissioners Federation
c. National Association of Insurance Commissioners
Is an insurance producer's license required for an individual who furnishes only title insurance rate information at the request of a consumer and does not discuss the terms or conditions of a title insurance policy? a. Always b. Only if the Commissioner provides an oral waiver c. Only if the NAIC provides a written waiver d. Never
d. Never
A temporary license will not authorize the holder to: a. Sell or solicit new insurance accounts b. Solicit or negotiate new insurance accounts c. Advertise or solicit new insurance accounts d. Sell, solicit, or negotiate new insurance accounts
d. Sell, solicit, or negotiate new insurance accounts
A resident individual applying for an insurance producer license, a consultant's license, or a surplus lines producer license must pass a written examination unless: a. The individual is exempt b. The individual has held a license for at least 10 years c. The individual has held a license for at least 15 years d. The individual has held a license for at least 20 years
a. The individual is exempt
The Commissioner of Insurance is required to be a regulatory, active member of: a. The NAIC b. The Democratic Party c. The Republican Party d. The governor's party
a. The NAIC
What is the total number of course hours required for prelicensing for the health insurance course? a. 16 b. 20 c. 24 d. 32
c. 24
Which of the following requirements for licensing does a nonresident producer NOT have to meet? a. The person is currently a resident of Indiana b. The person has submitted the proper request for licensure and has paid the fees required c. The person has submitted or transmitted to the Commissioner the application for licensure that the person submitted to the person's home state d. The person's home state awards non-resident producer licenses to residents of Indiana on the same basis as non-resident producer licenses are awarded to residents of other states
a. The person is currently a resident of Indiana
A consultant license can be issued for what maximum amount of time? a. 12 months b. 24 months c. 36 months d. 48 months
b. 24 months
Individuals renewing their solicitor's license must complete how many hours of continuing education credit each year? a. 15 hours b. 24 hours c. 32 hours d. 36 hours
a. 15 hours
For which of the following would a consultant license most likely be required? a. A paralegal working in Indiana b. A duly licensed insurance producer or surplus lines producer c. A trust officer of a bank acting in the normal course of the trust officer's employment d. An actuary or a certified public accountant who provides information, recommendations, advice, or services in the actuary's or certified public accountant's professional capacity
a. A paralegal working in Indiana
An insurance company that is organized under the laws of a country other than the United States is called: a. An alien insurer b. A foreign insurer c. A domestic insurer d. An unincorporated insurer
a. An alien insurer
The Indiana Commissioner is appointed by the: a. Public b. Governor c. Attorney General d. Association of Insurers
b. Governor
If all applicable fees are paid and continuing education requirements are met, an insurance producer license remains in effect unless and/or until: a. Revoked by the Commissioner of Insurance b. Surrendered by the licensee c. Suspended by the Department of Insurance d. All of the above
d. All of the above
Who of the following is eligible for a temporary insurance producer license? a. A surviving spouse of a licensed insurance producer b. A member of a licensed insurance producer business entity on the death of the designated producer c. A designee of a licensed insurance producer entering active service of the U.S. armed forces d. All of the above
d. All of the above
An insurance producer is defined as all of the following, EXCEPT: a. An individual who sells insurance b. An individual who solicits insurance c. An individual who negotiates insurance d. An individual who settles claims
d. An individual who settles claims
Who creates the insurer producer application? a. The state of Indiana b. The Department of Insurance c. The Indiana Insurance Commissioner d. The National Association of Insurance Commissioners
d. The National Association of Insurance Commissioners
Who of the following designations is required to complete prelicensing education? a. Medical Doctor (MD) b. Chartered Financial Consultant (ChFC) c. Chartered Life Underwriter (CLU) d. Certified Financial Planner (CFP)
a. Medical Doctor (MD)
Which of the following is NOT a power or duty of Indiana's Commissioner of insurance? a. Auditor of insured solvency b. Regulation of insurance industry in Indiana c. Submitting an annual report to the governor d. Other matters relevant to the regulation of the business of insurance
a. Auditor of insured solvency
Which of the following is NOT a power or duty of Indiana's Commissioner of insurance? a. Conducting interviews and accreditations of FINRA officials b. Enforcing insurance regulations c. Examination of insurers and all employees, including all records d. Investigating fraud and violations of the insurance laws and regulations governing Indiana
a. Conducting interviews and accreditations of FINRA officials
For which of the following lines of authority may an insurance producer NOT receive qualification? a. Dividend restricted line wellness insurance b. Personal lines property and casualty insurance coverage c. Title insurance coverage d. Variable life and variable annuity products insurance
a. Dividend restricted line wellness insurance
Of the 7 hours of continuing education that a limited lines producer with a title qualification, one of these hours must be in one of the following, EXCEPT: a. Ethical practices in all business b. Title insurance underwriting c. Principles of the federal Real Estate Settlement Procedures Act d. Escrow issues
a. Ethical practices in all business
The insurer examined is responsible for paying the reasonable costs of the examination incurred by the: a. Insurance Department, Commissioner and his examiners b. Continuing Education Department, Commissioner and FINRA c. Continuing Education Department and FINRA d. The Insurance Commissioner and FINRA
a. Insurance Department, Commissioner and his examiners
Which of the following requirements for licensing does a resident producer NOT have to meet? a. Is at least 21 years of age b. Has successfully passed the exams for the lines of authority for which the individual has applied c. Has not committed any act that is a ground for denial, suspension, or revocation d. Has paid the nonrefundable application and examination fees
a. Is at least 21 years of age
How does the Insurance Commissioner get their position? a. Elected every 2 years b. Elected every 4 years in the same election as the governor c. Appointed by the Governor d. Appointed by the Department of Insurance
c. Appointed by the Governor
The Commissioner's duties include all the following, EXCEPT: a. Licensing of insurance companies b. Regulation of premium rates c. Assigning producers to certain areas of the state d. Investigating fraud and violations of the insurance laws
c. Assigning producers to certain areas of the state
What is an alien insurer? a. An insurer formed under the laws of any state but Indiana b. An insurer formed under the laws of any U.S. jurisdiction but Indiana c. An insurer formed under the laws of any place but Indiana d. An insurer formed under the laws of any place but a U.S. jurisdiction
d. An insurer formed under the laws of any place but a U.S. jurisdiction
An insurer may not transact insurance business in Indiana without first having been issued a: a. Certificate of honor b. Certificate of trust c. Certificate of approval d. Certificate of authority
d. Certificate of authority
Which of the following terms refers to insurance written in the interests of the licensee, his immediate family, or his employer? a. 50% of the total commissions b. Controlled business c. Limited liability business d. Limited liability enterprise
b. Controlled business
What may admitted insurers in Indiana receive from the Department of Insurance? a. Producer license b. Separate account c. Certificate of authority d. Certificate of insurance
c. Certificate of authority
What is a limited lines insurance producer license? a. A license for only a limited number of insurance lines b. A license for lines of insurance with limits on the maximum benefits c. A license for less than total authority in the associated major line d. A license for a minimum number of lines
c. A license for less than total authority in the associated major line
Which of the following is NOT a power or duty of Indiana's Commissioner of insurance? a. Accreditation of insurance cooperatives b. Licensing of producers c. Regulation of premium rates and policy forms d. Record-keeping of insurer solvency
a. Accreditation of insurance cooperatives
A person or entity licensed to sell, solicit, or negotiate insurance is called: a. An insurance broker b. An insurance producer c. An insurance company d. An insurance agent
a. An insurance broker
Which of the following insurance producers IS required to complete continuing education courses to renew a license? a. An insurance producer who is at least 60 years of age and has been a licensed insurance producer continuously for at least 15 years immediately preceding the license renewal date. b. A limited lines producer who is licensed without examination. c. A limited line credit insurance producer. d. An insurance producer who is at least 70 years of age and has been a licensed insurance producer continuously for at least 20 years immediately preceding the license renewal date.
a. An insurance producer who is at least 60 years of age and has been a licensed insurance producer continuously for at least 15 years immediately preceding the license renewal date.
Which of the following is NOT required for a nonresident producer's license? a. He must submit a certified copy of his resident license application to the Commissioner. b. He must file an application for licensure and pay all required fees. c. He must own real estate in the state of Indiana. d. He must hold a license as an insurance producer in good standing in his home state.
c. He must own real estate in the state of Indiana.
When must the Insurance Commissioner report to the Governor about the insurance companies in Indiana? a. In January b. In April c. In December d. As often as the Governor requests
c. In December
What does a chartered life underwriter have to do to apply for an insurance producer license in Indiana? a. Pay fees, complete the prelicensing education and pass the full exam b. Pay fees and pass the full exam c. Pay fees and pass the Indiana-only portion of the exam d. Pay fees
c. Pay fees and pass the Indiana-only portion of the exam
In Indiana, an insurance producer must be authorized to conduct insurance business within the state by: a. The Legislature of the State of Indiana or its deputies b. The Indiana Life and Health Guaranty Association c. The Commissioner d. The state of Indiana
c. The Commissioner
Limited line credit insurance does NOT include which of the following? a. Mortgage life insurance b. Credit disability insurance c. Voluntary unemployment insurance d. Guaranteed automobile protection insurance
c. Voluntary unemployment insurance
What is the grace period for waving the penalty for a late renewal of an insurance producer's license? a. 10 days b. 15 days c. 30 days d. 31 days
d. 31 days
How many hours of continuing education are required for a solicitor each licensing period? a. 8 hours b. 10 hours c. 20 hours d. 15 hours
d. 15 hours
Who is a person who holds himself out to the public as being engaged in the business of offering for a fee any advice, counsel, opinion, or service with respect to the benefits, advantages, or disadvantages promised under any policy of insurance that could be issued in Indiana? a. Consultant b. Mentor c. Intermediary d. Mediator
a. Consultant
For how much time must an insurance producer retain the certificate of completion of a continuing education course? a. 1 year b. 2 years c. 3 years d. 4 years
d. 4 years
How many hours of prelicensing education are required for someone who will sell both life and health insurance? a. 16 hours b. 24 hours c. 32 hours d. 40 hours
d. 40 hours
Who of the following is NOT required to have an insurance consultant license? a. An attorney b. A trust officer of a bank c. A certified public accountant d. A limited lines producer
d. A limited lines producer
An individual or corporation CANNOT concurrently hold a consultant license and a/an: a. Insurance producer's license b. Surplus lines producer's license c. Limited lines producer's license d. All of the above
d. All of the above
An insurance producer may receive qualification for a license in which of the following lines of authority? a. Personal lines property and casualty insurance coverage b. Credit limited line credit insurance c. Title insurance coverage d. All of the above
d. All of the above
Someone must be licensed if they do which of the following? a. Sell insurance b. Solicit insurance c. Negotiate insurance d. All of the above
d. All of the above
A temporary insurance producer license expires at the time the owner or the personal representative: a. Disposes of the business b. Incorporates the business c. Restructures the business d. Decertifies the business
a. Disposes of the business
An individual insurance producer who allows the individual insurance producer's license to lapse and has completed all required continuing education before the license expired may, not more than 12 months after the expiration date of the license: a. Reinstate the same license without the necessity of passing a written examination b. Reinstate the same license but must pass an oral examination c. Reinstate the same license after a 30-day waiting period d. Reinstate the same license after a 60-day waiting period
a. Reinstate the same license without the necessity of passing a written examination
A nonresident person will NOT receive a nonresident producer license if: a. The person has not paid the fees required b. The person has submitted the proper request for licensure c. The person is currently licensed as a resident in their home state and has not violated any laws d. The person's home state awards non-resident producer licenses to residents of Indiana on the same basis
a. The person has not paid the fees required