Ch: 10

how is the director of insurance selected for the office in this state? a) appointed by the board of directors b) appointed by the governor c) elected by the department of insurance d) elected by the federal board of insurers

b) appointed by the governor

earning commissions based on transactions with a person's friends and family is called? a) personal commissions b) controlled business c) personal business d) filial commissions

b) controlled business

Which of the following authorities is responsible for issuing all certificates and licenses? a) insurance licensing board b) department of insurance c) director d) federal association of insurers

c) director

An individual is required to have what type of license in order to sell, solicit, or negotiate insurance in the state of Nebraska a) merchant b) broker c) producer d) solicitor

c) producer

An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of? a) twisting b) controlled business c) rebating d) coercion

c) rebating

a director denied a license application. 15 days later, the applicant notifies the director he wants a hearing to be conducted regarding the decision. Within how many days must the hearing be held? a) 10 b) 15 c) 20 d) 30

d) 30

an insurance company cannot transact insurance until it obtains a? a) producer's certificate b) decree of power c) license of insurance transaction d) certificate of authority

d) certificate of authority

Circulating deceptive sales material to the public is what type of Unfair Trade Practice? a) defamation b) coercion c) misrepresentation d) false advertising

d) false advertising

Which of the following would be considered an unfair claims settlement practice? a) requesting the insured swear under oath concerning the facts of the claim b) the settlement of the claim is delayed for 30 days in order for the insured to conduct an investigation c) a claims adjuster advises the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered d) requesting the insured to submit a signed, proof of loss statement, after the insured has already verbally advised the insurer of the claim

d) requesting the insured to submit a signed, proof of loss statement, after the insured has already verbally advised the insurer of the claim

in addition to any applicable denial, suspension, probation, or revocation of a license a person who violates the insurance producers licensing act may receive a fine of up to? a) $1,000 b) $2,000 c) $3,000 d) $5,000

a) $1,000

all of the following are true regarding rebates except? a) rebates are allowed if it's in the best interest of the client b) rebates are only allowed if specifically stated in the policy c) rebating can by anything of economic value, given as an inducement to buy d) dividends are not considered to be rebates

a) rebates are allowed if it's in the best interest of the client

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? a) without receiving written consent from a federal judge b) without receiving written consent from an insurance regulatory authority c) under any circumstances d) unless they have served an appropriate prison sentence

b) without receiving written consent from an insurance regulatory authority

how often must a new set of continuing education requirements be completed by resident producers? a) every 5 years b) every 10 years c) every year d) every 2 years

d) every 2 years

an insurance company assured its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act? a) defamation b) unfair discrimination c) errors and omissions d) fraud

d) fraud

which of the following notifies the applicant that an investigative consumer report will be made? a) consumer report investigation notice b) disclosure of investigation notice c) notice of investigation d) fair credit reporting act disclosure

d) fair credit reporting act disclosure