State Laws Chapter 8 Test

Domestic

A ____ insurer is one that has been incorporated or formed in Mississippi under the Laws of Mississippi

Ten

A hearing is held within ___ days after the notice is served.

One

A licensee whose license has been revoked cannot be relicensed for at least ___ years from the revocation's effective date

30

A nonresident producer who moves from one state to another or a resident producer who moves from Mississippi to another state shall file a change of address and provide cerficiation from the new resident within _____ days of changing legal residence

Alien

A surplus lines insurer who is based in a country outside of the US is referred to as a ___ insurer

5

All insurers must be able to furnish the producer's and applicant's signed statements with respect to financing and replacement for at least ____ years after the termination or expiration of the proposed policy or contract

Amount of surcharges to be applied to policy

Amount of liability is the most paid by the insurer regardless of all of the following except:

Appointed

An insurance producer cannot act as an agent for an insurer unless the producer is _____ as the insurer's agent

Studying for and sitting for an insurance exam is not deemed an insurance

An insurance transaction includes any of the following actions within the context of an insurance contract, except

Misdemeanor

Any person who conducts or attempts to conduct any insurance transaction/solicitation without having proper licensure or not in accordance with the Insurance Code shall be deemed guilty of a:

Defamation

Any written statement that is false or maliciously critical regarding an insurers's financial condition to injure the insure or any person engaged in the insurance business is known as:

12

Every individual seeking to renew an insurance producer license that has been in effect for less than 18 months most complete ___ hours of continuing education courses

24

Every individual seeking to renew an insurance producer license that has been in effect for more than 18 months, then ____ hours of continuing education coursed are required, three of which must be in ethics.

One

If a producer's license is allowed to lapse for a period of more than____ years, the licensee will be required to take the applicable examination again and meet prelicensing requirements.

The unlicensed employee can pass along the referral fee to the prospective insured

Insurance agencies or producers may pay a referral fee to any unlicensed employee who refers a prospective insured to the producer or agency under all of the following circumstances except:

Properly licensed

It is an unfair trade practice for a commission, service fee, brokerage or other valuable consideration to be paid to a person for selling, soliciting or negotiating insurance in Mississippi if that person is not:

Rebating

Knowingly paying, allowing, or giving, or offering to pay, as an inducement to buy insurance, or other special consideration not specifies in the policy is known as:

Fiduciary

Licensed persons who receive money from an insured intended for the insurer (i.e. premium) or money from the insurer intended for the insured (i.e. premium refunded) are considered to be a

Twisting

Making any misrepresentation designed to induce a policyholder to laps, forfeit, or surrender a policy is known as:

Five

One of the duties of the existing insurer being replaced is within ____ business days of receiving the notice of replacement, send a letter to the policy or contract of the right to receive information regarding the existing policy or contract values.

Converted from a term life policy to a whole life policy within the same company by exercising the conversion option

Replacement refers to any transaction involving new coverage that will cause an existing life insurance policy or annuity to be affected in all of the following ways except:

Knowingly accepting insurance business from an individual who is licensed

The Commissioner may place on probation, suspend, revoke, or refuse to issue or renew an insurance producer's license, or levy a civil penalty for any one or more of the following clauses, except:

Has the power to put in jail those who fail to comply with an subpoena issued

The Commissioner of Insurance can do all of the following except:

180

The Commissioner of Insurance may issue a temporary insurance producer license, without requiring an examination, for a period not to exceed _____ days.

Making any changes in the insurance laws he/she may see is in the public's best interest

The Commissioner of insurance has the responsibility and authority for all of the following, except:

PIA

The Social Security Survivor Benefit is computed using which of the following:

30

The free look period for a replacement policy is ____ days

Amount of surcharges to be applied to policy

The limit of liability is the most paid by the insurer regardless of all of the following, except

1035 exchange transactions between two different insurers

The replacement regulations apply to which of the following:

$5,000

Unless a penalty for a Mississippi Insurance Code violation is specifically provided, the offender shall be guilty of a misdemeanor, punishable by a fine of not more than:

$100,000

What is the maximum dollar amount that the Mississippi Life and Health Insurance Guaranty Association will ever be held liable in terms of net cash surrender and net cash withdrawal values?

$500,0000

What is the maximum dollar amount that the Mississippi Life and Health insurance Guaranty Association will ever be held liable in terms of basic hospital medical and surgical insurance?

$300,000

What is the maximum dollar amount that the Mississippi Life and Health insurance Guaranty Association will ever be held liable terms or disability insurance?

Member Insureres

Where does the money come from to fund the Mississippi Life and Health Insurance Guaranty Association?

All life and health insurers that hold certificates of authority to transact a business in Mississippi

Which one of the following is required to be a member of the Mississippi Life and Health Insurance Guaranty Association

To protect policyowners, insureds, and beneficiaries of contracts issued by member insurers who become insolvent or otherwise unable to perform their contractual obligations

Which one of the following states the mission of the Mississippi Life and Health Insurance Guaranty Association

Increasing term

Which type of term protection has an increasing face value as the insured gets older?

To determine whether such person has been or is engaged in any unfair method of competition, or in any unfair deceptive trade practice

Why does the commissioner of insurance have the power to examine and investigate the affairs of every person engaged in insurance transactions in Mississippi?

Controlled

_____ business occurs when during any 24 month period more than 35% of a producer's total commissions is acquired from policies sold to family, relatives, employers, employees or business associates