Ch 15 - CA Ethics and Laws

Insurers and Agents must provide books and records within how many days of request? A 15 B 30 C 5 D 10

30 -------- Upon receiving a request for records, insurers and/or agents must deliver the records to the Commissioner within 30 days.

Upon receiving a request for records, insurers and/or agents must deliver the records to the Commissioner within ____ days. A 7 B 10 C 30 D 60

30 -----------

Insurers and Agents must provide books and records within how many days of request? A 15 B 5 C 10 D 30

30 ----------- Upon receiving a request for records, insurers and/or agents must deliver the records to the Commissioner within 30 days.

After receiving a claim, the insurer must correspond with the claimant at intervals of not less than how many days until the claim is resolved? A 21 B 10 C 15 D 30

30 ------------- An insurer must correspond with the claimant not less often than every 30 days. Following the initial receipt of a claim, the insurer is required to acknowledge the claim within 15 days.

Under the California Annuity Suitability Education Requirements, a life-only agent who sells annuity products to individual consumers must complete ___ hours of subsequent training every 2 years prior to license renewal. A 5 B 4 C 3 D 6

4 ---------- Under the California Annuity Suitability Education Requirements, a life-only agent who sells annuity products to individual consumers must complete 4 hours of subsequent training every 2 years prior to license renewal.

Licensees must make all records available to the Commissioner including all files for how many years prior to the request? A 4 B 8 C 5 D 1

4 --------------- Insurers specifically are required to maintain claim data so that it is accessible, legible, and retrievable for examination, and must be able to provide the claim number, line of coverage, date of loss, date of acceptance, date of payment, date of denial or closing without payment. This data must be available for all open and closed files for the current year, and the 4 preceding years.

A restricted license requires the agent to comply with all laws, complete all CE requirements and license renewals on time for up to: A 4 years B 5 years C 7 years D 10 years

4 years --------------- Under the California Insurance Code, a restricted license requires the agent to comply with all laws, and complete all CE requirements and license renewals on time for up to 4 years.

After expiration or cancellation, agents and brokers must keep records of every insurance transaction for at least ___ years. A 3 B 2 C 5 D 10

5 ------------- Records of insurance transactions must be kept on file for at least 5 years after the expiration or cancellation date.

Under the California Insurance Code, Life and Disability insurance agents must maintain records in their place of business for at least _____ years and must be open to inspection or examination by the Commissioner at all times. A 4 B 5 C 3 D 2

5 ------------- Under the California Insurance Code, Life and Disability insurance agents must maintain records in their place of business for at least 5 years and must be open to inspection or examination by the Commissioner at all times.

Under the California Insurance Code, records must be kept by agents for at least _____ years following actual policy delivery, or the date of application if no policy is issued. A 4 B 5 C 2 D 3

5 ---------------- Under the California Insurance Code, records must be kept by agents for at least 5 years following actual policy delivery, or 5 years from the date of application if no policy is issued.

Under the California Long-term Care Education Requirements newly licensed agents who intend to market Long-Term Care insurance must complete a(n) _____-hour course in Long-Term Care insurance in each of their first 4 years of licensing (two terms). A 8 B 10 C 6 D 12

8 ----------- Under the California Long-term Care Education Requirements newly licensed agents who intend to market Long-Term Care insurance must complete an 8-hour course in Long-Term Care insurance in each of their first 4 years of licensing (two terms).

A Property & Casualty Broker-Agent who is also licensed as a Life-Only agent may not charge a fee to a consumer for which of the following acts? A Analyzing a consumer's homeowners and auto insurance needs if the sale of an insurance product results from the analysis B Analyzing a person's universal life insurance policy C Conducting a search of companies when seeking auto insurance coverage for the consumer D Placing the customer's homeowners insurance business with an insurance company that also pays a commission to the Broker-Agent

Analyzing a person's universal life insurance policy ----------- Only a licensed Life & Disability Insurance Analyst may charge a consumer a fee to analyze a life or disability insurance policy or annuity. There is no prohibition against a Broker-Agent from charging a fee to represent a consumer and also collecting a commission for placing a consumer's business with an insurer, but the Broker-Agent is expected to disclose to the consumer that a commission may be paid to the Broker-Agent in addition to any fee charged.

Which statement is false regarding fraudulent claims in California? A While investigating suspected fraud claims, insurers and agents will have access to all relevant public records required to be open for inspection B Any insurer that believes that a fraudulent claim is being made shall report the fraudulent claim to the Bureau of Fraudulent claims within 30 days of such discovery C Each admitted insurer must maintain a unit to investigate possible fraudulent claims by insureds D If an insured signs a fraudulent claim form, he/she may be guilty of perjury

Any insurer that believes that a fraudulent claim is being made shall report the fraudulent claim to the Bureau of Fraudulent claims within 30 days of such discovery ------------ Any insurer that believes that a fraudulent claim is being made shall report the fraudulent claim to the Bureau of Fraudulent claims within 60 days of such discovery.

A life or accident and health agent must provide at the time of ___________ the effective date of coverage, if known, or the circumstances under which coverage will be effective if there exists conditions precedent to coverage. A Policy delivery B Any required paramedical exam C Application or receipt of premium D Solicitation, illustration, or proposal presentation

Application or receipt of premium --------------- Under the California Insurance Code, a life or accident and health agent must provide at the time of application or receipt of premium the effective date of coverage, if known, or the circumstances under which coverage will be effective if there exists conditions precedent to coverage.

All of the following are allowed or true regarding a producer or agent, except: A As an incentive to close a sale, they may offer discounts of premium to a prospective client B As an incentive to close a sale, they may place coverage on a brokerage basis with a company the agent does not represent, to serve a prospective client C As an incentive to close a sale, they may commit themselves to professional insurance counseling at no charge to the prospective client D As an incentive to close a sale, they may select the lowest priced policy from the companies they represent to offer to a prospective client

As an incentive to close a sale, they may offer discounts of premium to a prospective client ---------------------- Discounts of premium are considered rebates and are prohibited by law.

Which of the following actions by an insurer is considered an unfair claims practice? A Notification that a fair and reasonable estimate must be provided before starting repairs B Requiring that a proof of loss be filed within a certain period C Requiring the insured to submit a complete inventory of property loss D Attempting to settle a claim for less than the amount that the insured is entitled to under the policy

Attempting to settle a claim for less than the amount that the insured is entitled to under the policy ------------------ Attempting to settle a claim for less than the insured is entitled is an unfair claims settlement practice.

When a producer, agent, or broker makes a false statement about the benefits or the nature of an insurance policy, the person is guilty of: A Defamation B Misrepresentation C Intimidation D Twisting

Misrepresentation --------- Making any statement that misrepresents the benefits or true nature of an insurance policy is known as Misrepresentation.

What is it called when a producer, agent, or broker makes a false statement about an insurer's financial condition? A Defamation B Twisting C Misrepresentation D Rebating

Misrepresentation ---------------- Misrepresentation includes making any statement misrepresenting the terms of any policy, using any name or title misrepresenting the true nature of any policy, misrepresenting the financial condition of any insurer, or making any misrepresentation to a policyholder insured by any company for the purpose of inducing the policyholder to lapse, forfeit, or surrender a policy.

A producer may be guilty of misrepresentation if he/she: A Misstated the terms of a policy for the purpose of inducing a policyholder to lapse a policy B Issued a settlement check that totally releases the insurer C Denied a claim for failure of the policyholder to prove damages D Requested timely written notice of loss for all claims

Misstated the terms of a policy for the purpose of inducing a policyholder to lapse a policy ----------- Misrepresentation includes making, issuing, or circulating any estimate, illustration, circular, or statement misrepresenting the terms of any policy issued; using any name or title misrepresenting the true nature of any policy or class of policies; misrepresenting the financial condition of any insurer; or making any misrepresentation to a policyholder insured by any company for the purpose of inducing the policyholder to lapse, forfeit, or surrender a policy.

Funds controlled by the Guarantee Association are used to: A Pay claims of insolvent insurers B Subsidize state premium taxes C Subsidize investment income losses D Subsidize insurer reserves

Pay claims of insolvent insurers ---------- The Guarantee Association pays claims to the insureds of insolvent admitted insurers.

An agent whose license is suspended for more than ___ years will need to retake the prelicensing course and pass the qualifying exam. A 2 B 3 C 5 D 4

2 ---------- A license suspended for more than 2 years will require the agent to retake the prelicensing course and pass the qualifying exam.

All CA resident insurance licenses renew every _____ years on the last day of the month in which the license was originally issued. A 5 B 2 C 3 D 4

2 ---------- Under the California Insurance Code, all licenses renew every 2 years on the last day of the month in which the license was originally issued.

All CA resident insurance licenses renew every _____ years on the last day of the month in which the license was originally issued. A 5 B 3 C 4 D 2

2 ---------------- Under the California Insurance Code, all licenses renew every 2 years on the last day of the month in which the license was originally issued.

Funds controlled by the California Guarantee Association are used to: A Subsidize investment income losses B Pay claims of insolvent insurers C Subsidize insurer reserves D Subsidize state premium taxes

Pay claims of insolvent insurers -------------- The Guarantee Association pays claims to the insureds of insolvent admitted insurers.

Anyone refusing to deliver any of the books, records or assets of a person against whom a seizure order has been issued will be guilty of a misdemeanor and punishable by fine of up to what amount? A $10,000 B $25,000 C $1,000 D $5,000

$1,000 --------- Anyone refusing to deliver any of the books, records or assets of a person against whom a seizure order has been issued will be guilty of a misdemeanor and punishable by fine of up to $1,000, imprisonment of up to 1 year, or both.

Anyone refusing to deliver any of the books, records or assets of a person against whom a seizure order has been issued will be guilty of a misdemeanor and punishable by fine of up to what amount? A $10,000 B $25,000 C $1,000 D $5,000

$1,000 ------------------- Anyone refusing to deliver any of the books, records or assets of a person against whom a seizure order has been issued will be guilty of a misdemeanor and punishable by fine of up to $1,000, imprisonment of up to 1 year, or both.

Errors and Omissions (E&O) policies are typically offered with a minimum limit of liability of how much? A $100,000,000 B $1,000,000 C $100,000 D $10,000,000

$1,000,000 ------------- Errors and Omissions insurance is usually offered with a minimum limit of liability of $1,000,000.

Any insurer who knowingly violates any of the anti-discriminatory practices will be assessed a civil penalty in the amount of ____________, plus any court costs. A $1,000,000-$5,000,000 B $10,000-$50,000 C $100,000-$500,000 D $1,000-$5,000

$1,000-$5,000 ------------ Under the California insurance code any insurer who knowingly violates any of the anti-discriminatory practices will be assessed a civil penalty in the amount of $1,000-$5,000, plus any court costs.

Any insurer who knowingly violates any of the anti-discriminatory practices will be assessed a civil penalty in the amount of ____________, plus any court costs. A $100,000-$500,000 B $1,000-$5,000 C $1,000,000-$5,000,000 D $10,000-$50,000

$1,000-$5,000 ------------- Under the California insurance code any insurer who knowingly violates any of the anti-discriminatory practices will be assessed a civil penalty in the amount of $1,000-$5,000, plus any court costs.

The maximum amount of life insurance death benefit on any one insured life, regardless of the number of policies, covered by the California Life and Health Guarantee Association is: A $300,000 B $500,000 C $100,000 D $1,000,000

$300,000 --------- $300,000 is the maximum covered in life insurance death benefit.

The maximum amount of life insurance death benefit on any one insured life, regardless of the number of policies, covered by the California Life and Health Guarantee Association is: A $500,000 B $100,000 C $1,000,000 D $300,000

$300,000 ---------------- $300,000 is the maximum covered in life insurance death benefit.

Engaging in an unfair method of competition unwillingly subjects an agent to a civil penalty up to _______ per violation. A $500 B $5,000 C $50,000 D $1,500

$5,000 ----------- Engaging in unsuitable insurance transactions also subjects the agent to administrative penalties imposed by the Commissioner. A first violation invites a fine of up to $5,000.

The Commissioner may suspend or revoke a license or certificate of authority, not to exceed ______ year(s), of anyone for willfully violating the prohibition on arranging for the sale of free insurance. A 2 B 3 C 1 D 4

1 --------- Under the California Insurance Code the Commissioner may suspend or revoke a license or certificate of authority not to exceed 1 year of anyone for willfully violating the prohibition on arranging for the sale of free insurance.

The Commissioner may suspend or revoke a license or certificate of authority, not to exceed ______ year(s), of anyone for willfully violating the prohibition on arranging for the sale of free insurance. A 4 B 3 C 1 D 2

1 ------------- Under the California Insurance Code the Commissioner may suspend or revoke a license or certificate of authority not to exceed 1 year of anyone for willfully violating the prohibition on arranging for the sale of free insurance.

A license which has been revoked may not be reinstated within: A 18 months B 1 year C 2 years D 3 years

1 year ------------- Under the California Insurance Code, a license which has been revoked may not be reinstated within 1 year of revocation.

An individual license will automatically terminate immediately upon the death of the licensee or if the license has not been renewed within _____ months following its expiration. A 12 B 36 C 18 D 24

12 ------------ Under the California Insurance Code, an individual license will automatically terminate immediately upon the death of the licensee or if the license has not been renewed within 12 months following its expiration.

A license may be renewed without examination within _____ months of its expiration date by payment of a penalty fee equal to 50% of the 2-year license fee. A 30 B 12 C 18 D 24

12 -------------- Under the California Insurance Code, a license may be renewed without examination within 12 months of its expiration date by payment of a penalty fee equal to 50% of the 2-year license fee.

The Commissioner must approve which of the following agency names: A One which infers the licensee will engage in activities not permitted under the license B One which implies that the licensee is an underwriter C One already filed by another licensee D A bona fide natural name of an individual

A bona fide natural name of an individual ---------- The Commissioner may disapprove of the use of true or fictitious names that are misleading, but not a bona fide natural name of an individual.

Which of the following would likely be considered a deceptive advertising? A Failure to include a statement that the insurer is a member of the California Insurance Guarantee Association B A magazine advertisement for a product not available for sale in California without a disclaimer concerning its availability C Including a statement of the insurer's current financial strength rating D A statement that the insurer handles claims quickly and efficiently

A magazine advertisement for a product not available for sale in California without a disclaimer concerning its availability -------------- Advertising a product the insurer is unwilling or unable to sell in California is deceptive if the advertising fails to include a disclaimer that a product 'may not be available in all states.' Advertising an insurer's participation in one or both of the Guarantee Associations is a prohibited act.

Which of the following would likely be considered a deceptive advertising? A A magazine advertisement for a product not available for sale in California without a disclaimer concerning its availability B Failure to include a statement that the insurer is a member of the California Insurance Guarantee Association C Including a statement of the insurer's current financial strength rating D A statement that the insurer handles claims quickly and efficiently

A magazine advertisement for a product not available for sale in California without a disclaimer concerning its availability ---------------- Advertising a product the insurer is unwilling or unable to sell in California is deceptive if the advertising fails to include a disclaimer that a product 'may not be available in all states.' Advertising an insurer's participation in one or both of the Guarantee Associations is a prohibited act.

Which of the following would constitute a pretext interview? A Disguising one's true identity in the investigation of a claim B A producer so entitled adds CPCU to her business cards and letterhead C A producer represents himself as a Medicare Adviser or Specialist D A producer meets with a senior in his home more than 24 hours after providing a Scope of Appointment notice to the individual

A producer represents himself as a Medicare Adviser or Specialist ---------------------- The use of words or titles such as Medicare Adviser or Specialist are prohibited by the Insurance Code.

Which of the following is not an example of an unfair trade practice? A Advertising on the internet B Discriminating between persons of the same class that have essentially the same hazard C Misrepresenting the benefits of an insurance policy D False entry

Advertising on the internet ------------ Advertising on the Internet is not an unfair trade practice.

Which of the following is not an example of an unfair trade practice? A Advertising on the internet B Discriminating between persons of the same class that have essentially the same hazard C False entry D Misrepresenting the benefits of an insurance policy

Advertising on the internet -------------- Advertising on the Internet is not an unfair trade practice.

Entering into an agreement that would result in an unreasonable restraint of, or monopoly in the business of insurance is considered: A Deceptive Advertising B Defamation C Boycott, Coercion, or Intimidation D Discrimination

Boycott, Coercion, or Intimidation ---------- Entering into any agreement that would result in an unreasonable restraint of, or monopoly in the business of insurance is known as Boycott, Coercion, or Intimidation.

A person cannot transact any class of insurance business in this state without first being admitted or authorized by securing a(n)___________ from the Commissioner. A Acknowledgment B Letter of Acceptance C Certificate of Authority D Approval

Certificate of Authority ------------- Under the California insurance code a person cannot transact any class of insurance business in this state without first being admitted or authorized by securing a Certificate of Authority from the Commissioner.

Under the California insurance code, the penalty for unlawfully acting as an insurer without a(n) _____________ is imprisonment (state or county jail) not to exceed 1 year, and/or a fine not to exceed $100,000. A Letter of Acceptance B Certificate of Authority C Acknowledgment D Approval

Certificate of Authority -------------- Under the California insurance code the penalty for unlawfully acting as an insurer without a Certificate of Authority is imprisonment (state or county jail) not to exceed 1 year, and/or a fine not to exceed $100,000.

Under the California insurance code, the penalty for unlawfully acting as an insurer without a(n) _____________ is imprisonment (state or county jail) not to exceed 1 year, and/or a fine not to exceed $100,000. A Letter of Acceptance B Approval C Certificate of Authority D Acknowledgment

Certificate of Authority --------------- Under the California insurance code the penalty for unlawfully acting as an insurer without a Certificate of Authority is imprisonment (state or county jail) not to exceed 1 year, and/or a fine not to exceed $100,000.

Under the California Insurance Code, the records required to be maintained for each insurance transaction must include all of the following, except: A Amounts and policy numbers of each transaction B Dates C Commission disclosures D Names

Commission disclosures ----------- Under the California Insurance Code, the records required to be maintained must include names, dates, amounts, and policy numbers of each transaction.

An agent's license remains in active status as long as all of the following conditions are met, except: A At least one active Notice of Appointment is on file with the Commissioner B Renewal fees are paid C Continuing education requirements have been met D Commission income equals or exceeds $25,000

Commission income equals or exceeds $25,000 ----------------- Under the California Insurance Code, an agent's license remains in active status as long as renewal fees are paid, continuing education requirements have been met, and at least one active Notice of Appointment is on file with the Commissioner.

In Errors and Omissions terms, what does inadequacy mean? A Failing to answer all of the questions on the application B Failing to obtain professional designation C Failing to obtain the lowest premium D Failing to obtain proper type or amount of coverage for a client

Failing to obtain proper type or amount of coverage for a client --------------- Failing to obtain proper type or amount of coverage for a client is the definition of inadequacy.

In Errors and Omissions terms, what does inadequacy mean? A Failing to obtain professional designation B Failing to answer all of the questions on the application C Failing to obtain proper type or amount of coverage for a client D Failing to obtain the lowest premium

Failing to obtain proper type or amount of coverage for a client ------------------- Failing to obtain proper type or amount of coverage for a client is the definition of inadequacy.

Offering any kind of insurance as an inducement to the purchase of property or services without a separate fee charged to the insured for the insurance is a violation and is considered: A Defamation B Discrimination C Replacement D Free Insurance

Free Insurance -------------- No insurer or agent may offer any kind of insurance or annuities in this state as an inducement to the purchase or rental by the public of any property, or services, without any separate charge to the insured for such insurance. Offering free insurance is a violation that may result in suspension or revocation of a license.

An insurer cannot consider sexual orientation in its underwriting criteria or use marital status, living arrangements, occupation, sex, beneficiary designation or Zip Code to determine whether to require a test for the presence of: A Diabetes B Heart conditions C HIV D Cancer

HIV ----------- Under the California insurance code an insurer cannot consider sexual orientation in its underwriting criteria or use marital status, living arrangements, occupation, sex, beneficiary designation or Zip Code to determine whether to require a test for the presence of HIV.

An insurer cannot consider sexual orientation in its underwriting criteria or use marital status, living arrangements, occupation, sex, beneficiary designation or Zip Code to determine whether to require a test for the presence of: A Diabetes B Heart conditions C HIV D Cancer

HIV --------------- Under the California insurance code an insurer cannot consider sexual orientation in its underwriting criteria or use marital status, living arrangements, occupation, sex, beneficiary designation or Zip Code to determine whether to require a test for the presence of HIV.

Under the California insurance code an insurer is entitled by law to rescind a policy in all of the following cases, except: A Immaterial misrepresentation B Intentional or unintentional concealment of information material to the risk being insured C Violation of a warranty D An intentional and fraudulent omission of matters proving the falsity of a warranty

Immaterial misrepresentation --------------

All licensees are required to report a change of home, business, mailing and email address to the Commissioner: A Within 10 days B Immediately C Within 30 days D Within 60 days

Immediately ------------- Under the California Insurance Code, all licensees are required to provide the Commissioner with a home address, business address, mailing address, and a valid email address. In the event any or all of these addresses change, the change must be reported immediately to the Commissioner.

An agent's license will remain active as long as all of the following requirements have been met, except: A A Notice of Appointment is on file with the Commissioner B Insurer sales quota C Continuing education D Renewal fees are paid

Insurer sales quota ----------- As long as the agent pays renewal fees, has a notice of Appointment on file with the Commissioner and the continuing education hours have been met, the license will remain active. A minimum number of sales is not a licensing requirement.

Which is true of the California Insurance Code? A It establishes that the Department of Insurance will be headed by a Commissioner appointed by the Governor B It may be revised by the Commissioner at his/her discretion C It identifies many unethical practices and serves as a complete guide to ethical behavior D It establishes as a goal that policies be reasonably priced and widely available

It establishes as a goal that policies be reasonably priced and widely available ------------ The California Insurance Code establishes as a goal, that policies be reasonably priced and widely available.

Which is true of the California Insurance Code? A It establishes as a goal that policies be reasonably priced and widely available B It may be revised by the Commissioner at his/her discretion C It identifies many unethical practices and serves as a complete guide to ethical behavior D It establishes that the Department of Insurance will be headed by a Commissioner appointed by the Governor

It establishes as a goal that policies be reasonably priced and widely available -------------- The California Insurance Code establishes as a goal, that policies be reasonably priced and widely available.

Which is true of the California Insurance Code? A It establishes that the Department of Insurance will be headed by a Commissioner appointed by the Governor B It identifies many unethical practices and serves as a complete guide to ethical behavior C It may be revised by the Commissioner at his/her discretion D It establishes as a goal that policies be reasonably priced and widely available

It establishes as a goal that policies be reasonably priced and widely available ---------------------- The California Insurance Code establishes as a goal, that policies be reasonably priced and widely available.

There are no brokers for which line of insurance in California? A Personal lines B Casualty C Life D Surety

Life ----------- There are no brokers for life or disability insurance in California. All life licensees are agents when transacting life or disability insurance, regardless of the language the insurance company may use in its agency agreements, advertising, or other communication.

There are no brokers for which line of insurance in California? A Life B Personal lines C Surety D Casualty

Life --------------- There are no brokers for life or disability insurance in California. All life licensees are agents when transacting life or disability insurance, regardless of the language the insurance company may use in its agency agreements, advertising, or other communication.

Chapter 15 Exam 1 / 15 Which of the following is an example of concealment? A Mary inadvertently answers 'No' to the question, 'Have you been involved in more than one traffic collision in the past three years?' believing her accident happened more than three years ago B Mary answers 'No' to the question 'Have you been convicted of driving under the influence in the past ten years?' when she is scheduled to appear for trial for a DUI arrest tomorrow morning C Mary tells her agent she paid a traffic citation for speeding ten days ago, but her agent marks the application 'No' without Mary's knowledge because he knows the ticket will not show up on her driving record for at least 90 days D Mary indicates on her application that her annual mileage is 15,000, when she knows that she drives more than 450 miles per week to and from work

Mary answers 'No' to the question 'Have you been convicted of driving under the influence in the past ten years?' when she is scheduled to appear for trial for a DUI arrest tomorrow morning --------------------- Concealment involves the failure to communicate known information or information material to a risk. An inadvertent or intentional incorrect answer is a misrepresentation, not a concealment, even if committed by the agent without the insured's knowledge. Failure to communicate an upcoming trial for a traffic offense is a concealment of material information, even though the answer may be technically correct.

The purpose of a Certificate of Authority is to: A Give a producer authority to represent a certain insurer B Permit a deceased producer's relative to act for the producer C Permit an insurance company to transact business D Allow producers to transact business

Permit an insurance company to transact business ------------- A Certificate of Authority permits an insurance company to transact business.

An agent would be guilty of 'pretexting' or conducting a 'pretext interview' in which of the following situations? A Pretends to be someone or something other than an insurance producer in order to obtain personal non-public information about someone in connection with an insurance transaction B Pretending to be an employee of a local utility company when attempting to obtain information in the investigation of an insurance claim C Sends unsolicited text messages to persons who are not existing client D Advises a client to lapse, forfeit, or surrender any insurance contract on the basis of misrepresentation or fraud

Pretends to be someone or something other than an insurance producer in order to obtain personal non-public information about someone in connection with an insurance transaction ----------------- Pretending to be someone other than an agent or broker when transacting insurance is prohibited, and may be a state or federal crime under specific circumstances. Pretending to be someone else during the investigation of an insurance claim is not prohibited and is a common practice by insurance company and law enforcement investigators working undercover.

An application for __________ of an expired license without retesting may be filed after the expiration date until the same month and day of the next succeeding year, providing the delinquent fee for that year is paid. A Re-issuance B Reinstatement C Reconsideration D Renewal

Renewal ------------- Under the California Insurance Code, an application for renewal of an expired license without retesting may be filed after the expiration date until the same month and day of the next succeeding year, providing the delinquent fee for that year is paid.

An application for __________ of an expired license without retesting may be filed after the expiration date until the same month and day of the next succeeding year, providing the delinquent fee for that year is paid. A Re-issuance B Renewal C Reconsideration D Reinstatement

Renewal -------------- Under the California Insurance Code, an application for renewal of an expired license without retesting may be filed after the expiration date until the same month and day of the next succeeding year, providing the delinquent fee for that year is paid.

As a disciplinary measure when a violation of the Insurance Code would justify suspension, revocation or denial of license, the Commissioner may revoke the permanent license and issue a: A Restricted license B Probationary license C Limited license D Temporary license

Restricted license ----------- Under the California Insurance Code, as a disciplinary measure when a violation of the Insurance Code would justify suspension, revocation or denial of license, the Commissioner may revoke the permanent license and issue a restricted license.

The Insurance Commissioner has all of the following powers, except: A Assess civil penalties for failure of an insurance company to provide requested information concerning insurance fraud B Suspending or revoking the license of a producer convicted of insurance fraud C Investigate suspected insurance fraud D Sentencing a person to state prison for conviction of insurance fraud

Sentencing a person to state prison for conviction of insurance fraud ---------- Only a state court may convict and sentence a person who commits insurance fraud.

All of the following are considered duties of the California Insurance Commissioner, except: A Regulate the internal affairs of the Department of Insurance B Structure and control insolvency procedures C Keep all papers as required by law D Set insurance rates

Set insurance rates ---------

Which of the following is not a responsibility of the Insurance Commissioner? A Order rates for Workers' Compensation insurance reduced B Order rates for Workers' Compensation insurance increased C Reject a requested rate increase for Workers' Compensation insurance D Set the rates for Workers' Compensation insurance

Set the rates for Workers' Compensation insurance ------------

An employee of an agency must be licensed as a producer if he/she: A Does not solicit insurance or take applications B Performs only clerical services on an hourly wage C Assists a licensed producer but does not receive compensation D Solicits applications and receives commissions

Solicits applications and receives commissions ----------------- If an employee solicits applications or receives commissions, they must be licensed.

All Internet advertisements by nonresident agents directed to California insurance consumers must clearly indicate the: A State of resident licensing B Email address C Home address D Phone number

State of resident licensing ------------- Under the California Insurance Code, all Internet advertisements by nonresident agents directed to California insurance consumers must clearly indicate their state of resident licensing.

In California, all of the following are recognized ethical standards, except: A Obeying all rules and regulations B Recommending products that meet customer needs C Increasing your level of competence D Staying in touch with your customers on a weekly basis

Staying in touch with your customers on a weekly basis ----------- While 'Staying in touch with customers' is an ethical precept in California, no regular period of time is mentioned.

If an agent permits an unlicensed employee to perform acts for which a license is required, the agent is subject to having his/her license: A Denied B Withheld C Decertified D Suspended or revoked

Suspended or revoked ---------- Under the California Insurance Code, an agent is responsible for the actions of his/her employees, and if an agent permits an unlicensed employee to perform acts for which a license is required, the agent is subject to having his/her license suspended or revoked.

If an agent permits an unlicensed employee to perform acts for which a license is required, the agent is subject to having his/her license: A Withheld B Denied C Decertified D Suspended or revoked

Suspended or revoked ------------------ Under the California Insurance Code, an agent is responsible for the actions of his/her employees, and if an agent permits an unlicensed employee to perform acts for which a license is required, the agent is subject to having his/her license suspended or revoked.

Which of the following is enacted by the California legislation? A The California Regulatory Code B A cease and desist order C The Code of Ethics D The California Insurance Code

The California Insurance Code ------------ The Insurance Code is the set of statutes enacted by the state legislature (or by the voters through ballot referendum), which regulate the business of insurance in California. Only the state legislature has the authority to write or amend the Insurance Code.

Which of the following statements is incorrect? A Ethics are based on an accepted standard of right and wrong behaviors B Insurance producers must be aware of both the Insurance Code and the Code of Regulations C The Insurance Code identifies all possible ethical issues which may arise D The Insurance Code identifies many ethical situations which may arise

The Insurance Code identifies all possible ethical issues which may arise ---------- The Insurance Code and Code of Regulations do not provide a complete guide to ethical behavior.

Which of the following statements is incorrect? A Insurance producers must be aware of both the Insurance Code and the Code of Regulations B Ethics are based on an accepted standard of right and wrong behaviors C The Insurance Code identifies all possible ethical issues which may arise D The Insurance Code identifies many ethical situations which may arise

The Insurance Code identifies all possible ethical issues which may arise -------------- The Insurance Code and Code of Regulations do not provide a complete guide to ethical behavior.

An insurer may refuse to accept an application for insurance in which of the following circumstances? A The applicant is not a natural U.S. citizen B The application is incomplete C The applicant fails to identify his or her gender D The applicant is unmarried

The application is incomplete ------------- An insurer is not required to accept an incomplete application, but it may not discriminate on the basis of marital status, national origin, or gender.

Who enforces the regulations found in the CCR? A The California legislature B The NAIC C The insurance commissioner D The public, via a referendum

The insurance commissioner ------------ The Commissioner enforces the Code by writing and adopting regulations that specify the manner of enforcement or provide details that are not explicitly cited in the Code.

Which of the following is not a reason why a license may be suspended or revoked after it has been issued? A The licensee has submitted to the Commissioner a false or fraudulent certificate of prelicensing or continuing education B The licensee does intend actively and in good faith to carry on as a business with the general public the transactions which would be permitted by the issuance of the license applied for C The licensee has knowingly misrepresented the terms or effect of an insurance policy or contract D The licensee has previously engaged in a fraudulent practice or act or has conducted any business in a dishonest manner

The licensee does intend actively and in good faith to carry on as a business with the general public the transactions which would be permitted by the issuance of the license applied for ---------- Under the California Insurance Code, a reason why a license may be suspended or revoked after it has been issued includes the licensee does not intend actively and in good faith to carry on as a business with the general public the transactions which would be permitted by the issuance of the license applied for.

Which statement is false of the California Life and Health Guarantee Association? A Annuity benefits cannot exceed $250,000 in present value B The maximum amount that will be paid to a covered person on behalf of an admitted insolvent insurer is $500,000 per life C The Association establishes a mechanism to pay claims that are unpaid as a result of the insolvency of a member insurer D Member insurers are those that are admitted to transact insurance in California and are required to participate

The maximum amount that will be paid to a covered person on behalf of an admitted insolvent insurer is $500,000 per life ------------- The maximum amount payable for a life insurance death benefit per life is $300,000.

Which of the following is true regarding the California Insurance Guarantee Association? A Membership in the Association is voluntary on the part of insurers B Membership in the Association is voluntary on the part of producers, agents, and brokers C It gives producers, agents, and brokers an excellent tool to induce prospects to purchase insurance D The primary purpose is to protect insureds from insurers that become insolvent

The primary purpose is to protect insureds from insurers that become insolvent --------------- The purpose of the California Insurance Guarantee Association is to protect policyholders and beneficiaries from the insolvency of insurance companies.

Which of the following is not a natural person? A Tom Thumb, a retired tailor who still owns Tom Thumb Tailors B Tom Thumb, a tailor who is employed by a dry cleaner C Tom Thumb Tailors, a business operated by Tom Thumb, a sole proprietor D Tom Thumb, a self-employed tailor doing business as Tom Thumb Tailors

Tom Thumb Tailors, a business operated by Tom Thumb, a sole proprietor --------- A natural person is a living (or formerly living) human being. A business entity is not a natural person, even when operated as a sole proprietorship.

Which of the following is not an unfair discriminatory practice: A Using an applicant's birthplace for purposes of identifying the applicant B Determining insurability using an applicant's race C Determining insurability using an applicant's sexual orientation D Refusing to accept an application due to an applicant's marital status

Using an applicant's birthplace for purposes of identifying the applicant ------------ The applicant's birthplace can be used only for purposes of identifying the applicant and not to discriminate against the applicant.

When are Errors and Omissions claims filed? A When policies are issued other than at the standard rate B When clients file a report or a complaint C When producers fail to provide their business card at the time of solicitation or sale D Within 6 months of premium payment

When clients file a report or a complaint ------------- Claims are filed due to client reports (complaints) and for a number of reasons, including negligence or inadequacy.

In which of the following situations may an unlicensed person conduct business for a licensed Broker-Agent? A When winding down the business of a deceased or disabled Broker-Agent, including receiving commissions for new business prior to death or disability B For up to 60 days following the expiration of the Broker-Agent's license because the Broker-Agent did not complete the required continuing education C When the unlicensed person receives no compensation for such acts D When the Broker-Agent notifies the Commissioner that he or she will be on an extended vacation and names the person who will act in his or her place

When winding down the business of a deceased or disabled Broker-Agent, including receiving commissions for new business prior to death or disability ---------------- The Code permits an unlicensed person to wind down the business of a licensed producer who is deceased or incapacitated, including receiving commissions for business submitted prior to death or disability. The unlicensed person may not transact any new business.

Which of the following risks may not be insured by a non-admitted company? A Marine builders risk B Workers' Compensation C International maritime transportation D Property and liability insurance for aircraft or spacecraft

Workers' Compensation ---------------- The Insurance Code requires employers to obtain Workers' Compensation insurance only from an admitted insurer.

Which is not a duty of the Commissioner? A Keeping books and records on file B Writing insurance laws C Inquiring into violations of insurance law D Structuring and controlling insolvency procedures

Writing insurance laws ------------------ Insurance laws are enacted by the state legislature.