Primerica Health License: State Laws, Rules and Regulations

B. Reciprocity agreement.

A nonresident agent is allowed to conduct insurance transactions in Georgia because his home state allows Georgia residents to transact insurance business in it. This is known as a/n A. Appointment. B. Reciprocity agreement. C. Nonresident arrangement. D. Overinsurance.

B. Pay dividends to the policyowner

A participating insurance policy may do which of the following? A. Require 80% participation B. Pay dividends to the policyowner C. Provide group coverage D. Pay dividends to the stockholder

B. Commingling.

A producer who fails to separate premium monies from his own personal funds is guilty of A. Theft. B. Commingling. C. Larceny. D. Embezzlement.

A. The insured who is 60 years old

A qualified long-term care insurance policy must provide compound annual inflation protection to which of the following insureds? A. The insured who is 60 years old B. The insured who is 75 years old C. The insured who is 80 years old D. All insureds

D. A felony.

A willful violation of an agent's fiduciary responsibility that involved funds exceeding $1,000 will be considered A. A minor violation. B. Subject to imprisonment. C. A misdemeanor. D. A felony.

A. The trust that a client places in the producer in regard to handling premiums.

A. The trust that a client places in the producer in regard to handling premiums. B. An obligation to state every known fact about the policy the producer is selling. C. A duty to base all transactions upon the principle of Utmost Good Faith. D. The obligation to tell the truth to the best of one's knowledge

D. 90 days

After an insurer has filed an application for a certificate of authority, how long does the Commissioner have to approve the application? A. 15 days B. 30 days C. 45 days D. 90 days

C. Twisting.

Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of A. Misrepresentation. B. Rebating. C. Twisting. D. Defamation.

C. 5 years

Agents, subagents, and counselors are required to maintain records of all insurance transactions for what time period? A. 1 year B. 3 years C. 5 years D. 7 years

C. 30 days.

All accident and health insurance policies issued in this state must include a grace period of at least A. 7 days. B. 10 days. C. 30 days. D. 60 days.

B. 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 A. Making an incomplete comparison between the existing and proposed policies B. Explaining to client the advantages of permanent insurance over term and suggesting changing policies C. Misrepresenting the terms and conditions of the existing policy to make the new one more attractive D. Embellishing the terms of the proposed policy in order to convince the insured to switch

C. Placing advertisements for an insurer.

All of the following are examples of transacting insurance in Georgia EXCEPT A. Preliminary insurance negotiations. B. Making an insurance contract go into effect. C. Placing advertisements for an insurer. D. Insurance solicitation.

A. Rebates are allowed if it is in the best interest of the client.

All of the following are true regarding rebates EXCEPT A. Rebates are allowed if it is in the best interest of the client. B. Rebates are only allowed if specifically stated in the policy. C. Rebating can be anything of monetary value given as an inducement to purchase insurance. D. Dividends are not considered to be rebates.

B. Suggesting negotiations in settling the claim.

All of the following are unfair claims settlement practices EXCEPT A. Failing to acknowledge pertinent communication pertaining to a claim. B. Suggesting negotiations in settling the claim. C. Refusing to pay claims without conducting a reasonable investigation. D. Failing to adopt and implement reasonable standards for settling claims.

B. Dividends from a mutual insurer.

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT A. An offer to share in commissions generated by the sale. B. Dividends from a mutual insurer. C. An offer of employment. D. Stocks, securities, or bonds.

A. Producers may repeat the same courses to meet the required CE hours for a licensing period.

All of the following statements regarding continuing education requirements in this state are true EXCEPT A. Producers may repeat the same courses to meet the required CE hours for a licensing period. B. CE hours must be completed every 2 years by the last day of the producer's birth month. C. Ethics education is required every licensing period. D. Excess hours may be carried over to the next licensing period.

B. An agent misrepresents policy benefits to convince a policyowner to replace policies.

All of the following would be considered rebating EXCEPT A. An agent offers tickets to a baseball game as an inducement to buy insurance. B. An agent misrepresents policy benefits to convince a policyowner to replace policies. C. An agent offers the use of his lake house to a client as an inducement to buy an insurance policy from him. D. An agent offers to share his commission with a policyholder.

A. Misdemeanor.

An agent commingled $500 of insurance premiums collected with new applications with his personal funds. The agent could be found guilty of a A. Misdemeanor. B. Felony. C. Fiduciary crime. D. Breach of contract.

D. Always representing the insured.

An agent is acting ethically in all of the following situations EXCEPT A. Working within the conditions of his/her contract. B. Representing the insurer, not the insured. C. Keeping customers' best interests in mind. D. Always representing the insured.

D. Only to individuals.

An agent license can be issued A. To a natural person or a corporation. B. To partnerships. C. Any person approved by the Commissioner. D. Only to individuals.

A. 6

An agent must be a resident of the state and be present in the state for at least how many months each year? A. 6 B, 1 C, 3 D. 4

C. 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 A. Twisting. B. Controlled business. C. Rebating. D. Coercion.

C. 30 days

An insurance agent has received a request for a hearing from the Commissioner. Within how many days must the hearing be held? A. 10 days B. 15 days C. 30 days D. 45 days

A. Represent the client.

An insurance agent's responsibilities include all of the following EXCEPT A. Represent the client. B. Perform faithfully. C. Represent the insurer. D. Perform professionally.

C. 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? A. Twisting B. Defamation C. False advertising D. Unfair claims

D. Foreign

An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming? A. Alien B. Domestic C. Unauthorized D. Foreign

D. Controlled

An insurance producer just sold an insurance policy to his sister. What kind of business is this? A. Illegal B. Internal C. Personal D. Controlled

C. The replacing insurer

An insured buys a Medicare Supplement insurance policy from a new insurer; this policy will replace one provided to her by another insurer. Which of the following must provide her with a notice of replacement? A. Medicare B. The existing insurer C. The replacing insurer D. The Commissioner

C. Mutual

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy? A. Nonprofit service organization B. Stock C. Mutual D. Reciprocal

D. Illegal

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. The insurer is hoping that this advertising will help to eliminate the competition and therefore create a monopoly. Which of the following best describes this act? A. This is legal, provided that the information can be verified. B. Legal, if the Guaranty Association endorses it C. Legal, provided that the other insurers are paid royalties for the usage of their names D. Illegal

C. 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? A. Illegal until endorsed by the Guaranty Association B. Legal, provided that the other insurers are paid royalties for the usage of their names C. Illegal under any circumstances D. Legal, provided that the information can be verified

D. Authorized insurer.

An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an A. Local insurer. B. Certified insurer. C. Self-insurer. D. Authorized insurer.

C. The time of initial solicitation.

An outline of coverage must be given to the applicant for a long-term care policy no later than A. 5 days after the initial solicitation. B. 10 days upon request. C. The time of initial solicitation. D. The delivery of the policy.

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 A. Rebating. B. Twisting. C. False advertising. D. Coercion

D. 5 years

Authorized insurance companies are examined by the Commissioner at least once every A. Year B. 2 years C. 3 years D. 5 years

C. Apparent

Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe? A. Implied B. Assumed C. Apparent D. Express

D. False advertising

Circulating deceptive sales material to the public is what type of Unfair Trade Practice? A. Defamation B. Coercion C. Misrepresentation D. False advertising

A. Elected to office

How is the Commissioner of Insurance selected to be the chief officer of the Department of Insurance? A. Elected to office B. Hired by the Department C. Nominated by insurers D. Appointed by the Governor

C. 4 years

How long is the Commissioner's term of office? A. 2 years B. 3 years C. 4 years D. 6 years

C. 30 days

How long is the free-look period for long-term care policies issued in Georgia? A. 10 days B. 20 days C. 30 days D. 60 days

C. 90 days

How long is the waiting period for benefits to be paid in a long-term care policy or rider? A. 30 days B. 60 days C. 90 days D. 120 days

A. Every 2 years

How often does an agent's insurance license expire? A. Every 2 years B. Every 3 years C. The license is perpetual. D. Annually

C. Every 3 years

How often must the Commissioner of Insurance examine health maintenance organizations (HMOs) authorized to do business in this state? A. Annually B. Every 2 years C. Every 3 years D. Every 5 years

A. 10 days

How soon from the reinstatement of a health insurance policy would a loss be covered? A. 10 days B. 30 days C. 60 days D. 7 days

C. Churning.

If an agent advises a policyholder to replace an insurance policy but only does so for the purpose of making commissions, the agent has committed an act of A. Defamation. B. Coercion. C. Churning. D. Misrepresentation.

C. 30 days

If an agent changes his residence address, within how many days must the agent notify the Commissioner of the change? A. 10 days B. 15 days C. 30 days D. 60 days

B. A notice regarding replacement

If an applicant intends to replace any existing accident and sickness policy with a Medicare supplement policy, what must the agent furnish to the applicant? A. Proof of insurance B. A notice regarding replacement C. A copy of the application D. A signed copy of the replacement notice

C. An unfair trade practice.

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.

B. The policy will not lapse since payment to the agent is the same as a payment to the insurer.

If an insurance premium is paid by the policyowner to the agent, and the agent fails to remit that premium to the insurer, which of the following statements is true? A. The policy will lapse since the premium was not received by the insurer. B. The policy will not lapse since payment to the agent is the same as a payment to the insurer. C. The premium will be taken out of the Guaranty Association funds. D. The agent's license will be automatically revoked.

C. 5 months

If an insured's cognitive impairment results in the lapse of a long-term care policy, how long from the policy lapse may the insured request reinstatement? A. 30 days B. 3 months C. 5 months D. 6 months

B. Authorized.

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be A. Approved. B. Authorized. C. Certified. D. Qualified.

B. The Chief Deputy Commissioner will serve as the Commissioner until the next election.

If the Commissioner is not able to serve due to disability, resignation, or death, which of the following will happen? A. The Department will form a committee to serve as the Commissioner until the next election. B. The Chief Deputy Commissioner will serve as the Commissioner until the next election. C. The Governor will serve as the Commissioner until the next election. D. The Department will elect a new Commissioner immediately.

C. Company.

In any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the A. Applicant. B. Insured. C. Company. D. Beneficiary.

A. Handling insurer funds in a trust capacity.

In insurance transactions, fiduciary responsibility means A. Handling insurer funds in a trust capacity. B. Maintaining a good credit record. C. Being liable with respect to payment of claims. D. Commingling premiums with agent's personal funds.

B. $1,000

In this state, what is the maximum fine for transacting insurance without a license? A. $500 B. $1,000 C. $5,000 D. $10,000

B. It is never legal to limit coverage based on marital status.

In which of the following situations is it legal to limit coverage based on marital status? A. Divorce within the last six months of applying for insurance B. It is never legal to limit coverage based on marital status. C. Excessive number of divorces, as defined by the Insurance Code D. Legal separation during the application process

B. A statement that the insured does not automatically qualify for Medicare Part A.

Insurers or agents soliciting partnership policies must provide each prospective applicant with all of the following EXCEPT A. A statement that the insured does not automatically qualify for Medicaid. B. A statement that the insured does not automatically qualify for Medicare Part A. C. A Partnership Program Notice. D. A Partnership Disclosure Notice.

C. Sexual orientation

It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability? A. Gender B. Address C. Sexual orientation D. Age

A. Any reason

Medicare supplement policies must have a notice prominently printed on the first page stating the applicant is entitlement to a 30-day free-look period, which allows the applicant to return the policy for which of the following reasons? A. Any reason B. Unsatisfactory premium rates C. Pre-existing condition limitations D. Renewal provisions

B. Surgical expenses of persons eligible for Medicare.

Medicare supplements specifically exclude all of the following EXCEPT A. Any Health Care Prepayment Plan providing benefits related to Social Security. B. Surgical expenses of persons eligible for Medicare. C. Medicare Advantage plans. D. Outpatient prescription drug plans.

D. Not taxable since the IRS treats them as a return of a portion of the premium paid.

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are A. Paid at a fixed rate every year. B. Taxable as ordinary income. C. Guaranteed. D. Not taxable since the IRS treats them as a return of a portion of the premium paid.

D. 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 A. Concealment. B. Unfair claim practice. C. Rebating. D. Misrepresentation.

C. Every 24 months

Once an agent has met the requirements to sell long-term care insurance partnership policies, how often must the agent complete the 4 hours of ongoing training courses? A. Every 6 months B. Every 12 months C. Every 24 months D. Never

C. 8 hours

Once an individual is licensed as an insurance producer for life or accident and health insurance, how many hours of training must the producer complete initially to sell long-term care insurance partnership policy? A. 4 hours B. 6 hours C. 8 hours D. 12 hours

B. Promptly forwarding premiums to the insurance company

Pertaining to insurance, what is the definition of a fiduciary responsibility? A. Offering additional coverage to clients B. Promptly forwarding premiums to the insurance company C. Helping insureds to file claims D. Performing reviews of insured's coverage

B. The total premiums on controlled business exceed the total premiums on all other business written.

Producers will be deemed to be using their license primarily to write controlled business if, during any 12-month period, A. The total premium on controlled business equals 15% or more of the total of all premiums on business written. B. The total premiums on controlled business exceed the total premiums on all other business written. C. The licensees write more than 5 policies classified as controlled business. D. The licensees write more than two policies on themselves or their property.

C. Obtaining a partnership policy license from the Commissioner.

Qualifications for soliciting, selling or negotiating a long-term care partnership policy include all of the following EXCEPT A. Completing an initial 8-hour training. B. Completing ongoing 4-hour training every 24 months. C. Obtaining a partnership policy license from the Commissioner. D. Being appointed.

B. Inviting prospective clients to the grand opening of the company's new office.

State law specifically prohibits using illegal inducements in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT A. Offering benefit certificates or securities in return for purchasing insurance. B. Inviting prospective clients to the grand opening of the company's new office. C. Issuing or delivering insurance company stock in return for purchasing insurance. D. Promising returns and profits from the purchase of insurance.

C. The chief officer of the Department of Insurance.

The Commissioner of Insurance is A. Used as a synonym for the Department of Insurance. B. The national head of all state insurance departments. C. The chief officer of the Department of Insurance. D. The President of the NAIC.

D. Express authority.

The authority granted to an agent through the agent's contract is referred to as A. Apparent authority. B. Implied authority. C. Absolute authority. D. Express authority.

C. 5%

The inflation protection feature in long-term care policies issued in this state must provide protection for inflation at what percent annually? A. 2% B. 3% C. 5% D. 8%

C. Fiduciary responsibility.

The requirement that agents not commingle insurance monies with their own funds is known as A. Express authority. B. Accepted accounting principal. C. Fiduciary responsibility. D. Premium accountability.

D. $10,000.

The violation of a cease and desist order may result in a fine of A$3,000. B$5,000. C$7,500. D$10,000.

B. Certificate of Authority

To legally transact insurance in this state, an insurer must obtain which of the following? A. Certificate of Insurance B. Certificate of Authority C. Power of Attorney D. Business entity license

B. Misdemeanor.

Transacting insurance without a license in this state is considered a(n) A. Coercion. B. Misdemeanor. C. Felony. D. Insurance fraud.

C. Discrimination

Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called? A. Misrepresentation B. Adverse selection C. Discrimination D. Law of large numbers

D. Agent's contract with the principal

What documentation grants express authority to an agent? A. Agent's insurance license B. Fiduciary contract C. State provisions D. Agent's contract with the principal

D. An insurer with a home office in another state

What is a foreign insurer? A. An insurer with a home office in another country B. An insurer with licensed agents doing business in other countries C. An insurer with licensed agents who are citizens in more than one country D. An insurer with a home office in another state

C. It allows an insurer to transact insurance in Georgia.

What is the function of a certificate of authority? A. It is given to the Department of Insurance by the Federal Insurance Regulation Board to allow it to enforce the provisions of the Insurance Code. B. It is presented to all agents when they receive their licenses. C. It allows an insurer to transact insurance in Georgia. D. It gives the Commissioner of Insurance his or her authority.

B. Ownership

What is the major difference between a stock company and a mutual company? A.Types of policies issued B. Ownership C. Amount of benefits D. Number of producers

B. 15 months

What is the maximum period of time a temporary license can be in force? A. 1 year B. 15 months C. 6 months D. 3 months

B. Commissioner

What is the title of the chief officer of the Department of Insurance? A. Superintendent B. Commissioner C. President D. Director

D. Churning

What term is used for replacing insurance policies for the sole purpose of making commissions? A. Misrepresentation B. Replacement C. Coercion D. Churning

D. Defamation.

When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of A. Misrepresentation. B. Discrimination. C. Nothing, unless the remarks were in writing D. Defamation.

D. June 30 of the year following issuance

When do certificates of authority expire in Georgia? A. January 1 of the year following issuance B. After 2 years C. Every December 31 D. June 30 of the year following issuance

A. Every 2 years on the last day of the producer's birth month

When does a producer's license expire? A. Every 2 years on the last day of the producer's birth month B. Every even-numbered year C. Every 3 years D. Annually on January 1

D. Foreign

When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer? A. Domestic B. Alien C. Nonadmitted D. Foreign

B. Hold a hearing.

When the Commissioner believes that a person has engaged in an unfair method of competition or an unfair trade practice, before issuing a cease and desist order, the Commissioner must A. Contact the insurer. B. Hold a hearing. C. Revoke the person's license. D. Subpoena witnesses.

B. Alien insurer.

When transacting business in this state an insurer formed under the laws of another country is known as a/an A. Admitted insurer. B. Alien insurer. C. Domestic insurer. D. Foreign insurer.

C. Discrimination.

When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered A. Controlled business. B. Adverse selection. C. Discrimination. D. Twisting.

D. Implied

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business? A. Apparent B. Assumed C. Express D. Implied

C. Implied

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business? A. Assumed B. Express C. Implied D. Apparent

B. Express and implied

Which of the following are the authorities that an agent can hold? A. Primary and secondary B. Express and implied C. Apparent and allowed D. Authorized and admitted

C. Issuing sales material with exaggerated statements about policy benefits

Which of the following best describes a misrepresentation? A. Making a maliciously critical statement that is intended to injure another person B. Discriminating among individuals of the same insuring class C. Issuing sales material with exaggerated statements about policy benefits D. Making a deceptive or untrue statement about a person engaged in the insurance business

C. Domestic

Which of the following best describes an insurance company that has been formed under the laws of this state? A. Alien B. Foreign C. Domestic D. Sovereign

B. Making derogatory oral statements about another insurer's financial condition

Which of the following best describes the unfair trade practice of defamation? A. Refusing to deal with other insurers B. Making derogatory oral statements about another insurer's financial condition C. Assuming the name and identity of another person D. Issuing false advertising material

B. Commissioner of Insurance

Which of the following entities has the power to issue certificates of authority? A. Federal Insurance Regulation Board B. Commissioner of Insurance C. Department of Insurance D. NAIC

C. Stock

Which of the following insurers are owned by stockholders? A. Reciprocal B. Fraternal C. Stock D. Mutual

C. Underwriting the contract

Which of the following is NOT a responsibility of an insurance agent? A. Explaining policy provisions B. Submitting the application to the insurer C. Underwriting the contract D. Delivering the contract

A. Making comparisons between different policies

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices? A. Making comparisons between different policies B. Stating that the insurance policy is a share of stock C. Exaggerating the benefits provided in the policy D. Stating that the competitors will arbitrarily increase their premiums each year

D. It is issued to group insurance participants.

Which of the following is NOT true regarding a Certificate of Authority? A. It may be necessary for transacting business in a specific state. B. It is equivalent to an insurance license. C. It is issued by the state department of insurance. D. It is issued to group insurance participants.

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

Which of the following is an example of a producer being involved in an unfair trade practice of rebating? A. Making deceptive statements about a competitor B. Telling a client that his first premium will be waived if he purchases the insurance policy today C. Inducing the insured to drop a policy in favor of another one when it is not in the insured's best interest D. Charging a client a higher premium for the same policy as another client in the same insuring class

C. Admitted

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

D. These policies may not contain limitations of coverage except for those permitted by the pre-existing condition clause.

Which of the following is true regarding Medicare Supplement policies? A. There are no limitations or exclusions on these policies. B. These policies may contain the same benefits as provided by Medicare. C. Specifically named diseases can be excluded if using a waiver. D. These policies may not contain limitations of coverage except for those permitted by the pre-existing condition clause.

D. That its policies are covered by a state Guaranty Association

Which of the following may NOT be included in an insurance company's advertisement? A. The policies' limitations or exclusions B. The name of a specific agent C. An identification of a limited policy as a limited policy D. That its policies are covered by a state Guaranty Association

C. A person who negotiates insurance contracts

Which of the following persons is required to hold a producer license? A. A person who takes messages related to claims B. A person who administers employee benefits C. A person who negotiates insurance contracts D. A person who creates insurance advertisements

B. Counselor

Which of the following positions is responsible solely for offering advice on insurance policies (for a fee)? A. Broker B. Counselor C. Agent D. Sub-agent

D. Replacing insurance policies for the purpose of making commissions is legal.

Which of the following statements is INCORRECT? A. Misrepresenting the true nature or facts of a policy or its benefit in order to induce a policyholder to surrender one policy and replace it with another is illegal. B. It is illegal to be involved in any activity of boycott, coercion, or intimidation that is intended to restrict fair trade or to create a monopoly. C. Discrimination in rates, premiums, policy benefits, etc. for persons within the same class or with the same life expectancy is illegal. D. Replacing insurance policies for the purpose of making commissions is legal.

A. 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. Defamation B. Undercutting C. Twisting D. Slandering

C. Transacting insurance

Which of the following terms refers to the acts of soliciting insurance, making an insurance contract effective, and dealing with matters arising from that contract? A. Executing insurance B. Effectuating insurance C. Transacting insurance D. Conducting business

B. Apparent

Which of the following types of agent authority is also called "perceived authority"? A. Fiduciary B. Apparent C. Express D. Implied

A. 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? A. Discriminating in benefits and coverages based on the insured's habits and lifestyle B. Charging applicants with similar health histories different premiums based on their ethnicity C. Cancelling individual coverage based on the insured's marital status D. Assigning different risk classifications to applicants based on gender identity

C. Agent C uses her license to write only business other than controlled.

Which of the following would NOT be a violation of state insurance regulations? A. Agent A uses her license to write only insurance for herself and her immediate family. B. Agent B charges his clients a consulting fee, in addition to the premium for placing a policy. C. Agent C uses her license to write only business other than controlled. D. Agent D collects premiums due on policies and deposits the funds in his own personal account.

C. Controlled business

Which of the following would NOT be considered an unfair and deceptive practice? A. Defamation B. Misrepresentation C. Controlled business D. Rebating

D. Confirming future dividends in a life insurance proposal

Which of the following would be considered an illegal inducement to purchase insurance? A. Mailing an agency brochure to a prospective client B. Listing the insurance companies the agency represents in a letter C. Inviting prospective clients to the grand opening of the producer's new office D. Confirming future dividends in a life insurance proposal

A. Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered

Which of the following would be considered an unfair claims settlement practice? A. Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered B. Requesting the insured to submit a signed proof of loss statement, after the insured has already verbally advised the insurer of the claim C. Requesting the insured swear under oath concerning the facts of the claim D. Delaying the settlement of a claim for 30 days in order for the insured to conduct an investigation

D. A salaried employee who advertises and solicits insurance

Which of the following would be required to be licensed as an insurance producer? A. A person whose activities are limited to producing insurance advertisements B. A salaried full-time employee who furnishes information for group insurance C. An insurance company director who performs executive, administrative and managerial duties D. A salaried employee who advertises and solicits insurance

D. A salaried employee who advertises and solicits insurance

Which of the following would be required to be liscensed as an insurance producer? A. A person whose activities are limited to producing insurance advertisements B. A salaried full time employee who furnishes information for group insurance C. An insurance company director who performs executive, administrative, and managerial duties D. A salaried employee who advertises and solicits insurance

Time limit on certain defenses

Which provision stipulates that misstatements made in a health insurance application may not be used to deny a claim after the policy has been in force for 2 years? A. Time limit on certain defenses B. Contestability clause C. Grace period D. Payment of claims

B. Twisting

Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another? A. Rebating B. Twisting C. Switching D. False advertising

D. Registered voters

Who elects the Commissioner of Insurance to office? A. The State Department of Insurance B. NAIC C. Member insurers D. Registered voters

A. Policyholders

Who might receive dividends from a mutual insurer? A. Policyholders B. Subscribers C. Stockholders D. Agents