Chapter 11 crash course
According to Illinois insurance law, Life insurance claims made after____ days from receipt of satisfactory proof of loss must receive the insurance current interest rate.
31 days
A temporary insurance license is valid for up to ________ days.
90 days
Which of the following types of insurance may a limited lines producer sell?
Industrial life
All of these are unfair trade practices except
Reinsurance
A license may be denied, suspended, or revoked if the licensee
is found guilty of misrepresentation
Defamation occurs when a producer makes a false statement intended to
malign another insurer
An example of an unfair claims settlement practice is
turning down a claim without providing the basis of denial
Illinois insurance law specifically allows the Director to issue a temporary license to which of the following individuals?
A surviving spouse of a deceased producer
In a viatical settlement, how much does the policy owner receipt for a life insurance policy?
Amounts less than the death benefit
The Illinois Life and Health Insurance Guaranty Association is funded buy authorized insurance in the state. One of the rules of this organization is to
Assist in the prevention of insurer insolvencies
Before applying for an Illinois resident producer license, and applicant must
Complete a pre-licensing course
What must be signed by both the producer and applicant when an existing life insurance policy is being re-issued with a reduction in cash value?
Notice regarding replacement
Which of the following actions by a producer would not result in a license suspension or revocation?
Producer sells a replacement policy that causes an insured to lapse an existing policy
A producer completes an application with a client for $50,000 life insurance policy. At what point is the latest a policy summary and buyers guide must be given to the applicant?
Upon policy delivery
During the course of an insurance business transaction, who does the producer legally represent?
insurance company
A(n) ________ lines Producer may sell travel accident insurance in Illinois.
limited
One roll of the life and health guaranty association is to
maintain public confidence in the promises of insurers
The Director of insurance is authorized to
make reasonable insurance rules and regulations
J is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of?
twisting
How many days is a temporary producer's license valid?
180
A producer must complete ___ hour(s) of ethics per continuing education reporting period.
3
An individual received a quote from an insurance company that is a different rate from individuals in the same risk class. The insurance company may be accused of
Unfair discrimination
Who negotiates viatical settlement between a policyowner and a viatical settlement provider?
Viatical settlement broker
A hearing must be held not later than _____ days after the request for the hearing is received by the Director.
10
The free-look period for life insurance policies issued in Illinois is _______ days
10 days
A lapsed producer's license may be reinstated without having to pass a written exam at the license lapses within ______ months after the renewal fee due date.
12
T the producer has just collected premium monies from a client. T may personally hold these funds for a MAXIMUM of __ days before depositing them in a premium Fund Trust Account
14
What is the MINIMUM age for an individual to be a Licensed Illinois insurance producer?
18
All of the following are examples of insurance advertisement except
A memo from an employer announcing the availability of coverage for employees
A producer is attempting to replace an existing life insurance policy with a new one. What must this producer submit as part of the application?
A signed statement by the applicant regarding the replacement
Which of the following is considered to be misrepresentation?
An agent guaranteeing a policy's dividends
Life insurance illustrations must include all of these EXCEPT
Beneficiary's name
An example of life insurance policy replacement would be which of the following?
Cash surrender an existing life policy and purchasing a new life policy
Q the producer gave his client a rebate as an enticement to purchase insurance. Q may be found guilty of a
Class B Misdemeanor
Which of the following is considered a producers fiduciary responsibility?
Collect premiums and remit to the insurance company as soon as reasonably possible
A business entity wishes to become approved as a producer for soliciting insurance business. Before doing so, the business entity is required to submit to the Director a(n)
Designated producer assigned for compliance with Illinois insurance laws
The guaranty fund
Ensures that claims filed against insolvent insurance companies will be paid
How often must insurance producer's a license be renewed?
Every two years
Which of the following would be a valid reason for the Director to deny an insurance license?
Failing to report a felony
Which licensee faces possible license revocation by the Director?
Licensee who commingles monies belonging to policyholders with personal funds
The Illinois Life and Guaranty Association has regulations that apply ONLY to
Life and health policies issued by companies authorized in Illinois
An Illinois producer must do which of the following to continue as a residential licensee?
Meet continuing education requirements
A producer is circulating incorrect information about the benefits of a policy. This producer may be found guilty of
Misrepresentation
Stating that dividends are guaranteed is considered to be
Misrepresentation
Which unfair trade practice involves making a false statement on an insurance application in order to receive money from an insurer?
Misrepresentation
An example of an unfair claims practice would be
Misrepresenting insurance policy provisions affecting a loss
In the event of a replacement, what must be given to the insurance applicant at the time of the application
Notice regarding replacement
Which of these contracts are affected by replacement regulations?
Ordinary Life Insurance
Which of the following would be a valid reason for suspending or revoking an insurance producers license?
Participating in the act of twisting
In Illinois, which of the following must be delivered to a policy owner upon the sale of an individual life insurance policy?
Policy summary and buyers guide
Life insurance replacement regulation protects the interest of
Policyowner
Producers must keep record of service fees charged or received for a period of _________ year(s).
Seven
Which of the following is not considered rebating?
Sharing commission with an agent licensed in the same line of business
Why would the Director issue a temporary license?
To allow the personal representative of a deceased producer to provide service to existing policy owners
Why would the Director examine the records of an insurance company?
To determine the solvency of the company
The Life and Health Insurance Guaranty Association is
assumes the financial obligations of insolvent insurance companies
A brochure including an untrue statement regarding a competitor's ability to pay claims is an example of
defamation
Which unfair trade practice involves making false statements about the financial condition of another insurance company?
defamation
It is acceptable to discriminate the amount of benefits for life and health policies between individuals of
different classes
Replacement can be defined as
exchanging an existing policy for a new policy
An example of an unfair claims practice would be
failing to effectuate prompt, fair, and equitable settlements of a claim
A hearing must be held before a producer's license can be suspended or revoked. Prior to the hearing, the Commissioner of Insurance is required to
give written notice to the producer
The Director is appointed by the
governor
The Director
has Authority to review policy forms if they will be issued for delivery in Illinois
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
J has been issued a temporary insurance producer license. How many of these licenses may J hold in a lifetime?
one
An accelerated (living) benefit is payable based upon the occurrence of a qualifying event. This qualifying event is certified by a(n)
physician
An applicant may NOT Be refused insurance coverage due to
race
A producer has influenced an existing policy owner to convert an existing whole life policy to reduced paid up insurance. The producer then sells the policy owner a new universal life policy. This transaction is called
replacement
An example of rebating would be
returning a portion of a premium as inducement to purchase insurance
Which of these actions does not constitute life insurance policy replacement?
Convert term coverage to a whole life policy
____________ Could have claimed to viatical settlement proceeds.
Creditors
Illinois' 10-day free-look period for life insurance policies begins at the
Date of delivery
Which of these accounts are producer license fees deposited into?
Insurance producer administrative fund
The total amount of premiums that a producer writes on a controlled business may not exceed the total amount written on all other business within a ______ month period.
12 I license is deemed to be used for controlled business F, during the immediate proceeding 12 month period, the total premiums on control business exceed the total premiums on all other business.
Which of these actions by a licensee would not likely result in a license suspension or revocation?
Sharing commission with another similarly-licensed agent
Which of the following statements is correct about the Director's authority to examine the business records of a producer?
The Director may examine them whenever it is deemed necessary
What would a potential Consequence for a producer who misappropriate insurance funds held in a fiduciary capacity?
The Director may suspend or revoke the producers license
Insurance applications must contain which of these disclosure requirements?
The soliciting producer's name
Every ______ year(s), a Producer must complete 24 hours of continuing education.
Two years
A policy owner decides to cancel an insurance policy within 90 days of the issue date. As a result of this cancellation, the producer is required to refund a prorated portion of any fee charged within _______ Days of receiving the cancellation notice.
30
A producer must report a felony conviction to the Director within ___ days of the conviction.
30
The Director must be notified of a producer's change of home address within _______ days.
30
the standard grace period for premium payments on all individual life insurance policies issued in Illinois is ___ days
30
The holder of a business entity registration is required to notify the director within __ days of a change in office location
30 days
All of the following are examples of insurance advertisement except
An employer newsletter announcing the availability of coverage for employees
Which of these statements accurately reflects Illinois law regarding life insurance advertisements?
An insurance agency is responsible for advertisements placed by its insurance producers
Which of the following is a requirement to attain a non-resident producer license?
B license as a producer in the producers state of domicile
How is the Illinois Life and Health Insurance Guaranty Associated funded?
From member companies
An entity that acts as an insurance producer
Has the same bond requirements as an individual producer
During a sales presentation for participating life insurance policy, a producer must
Include a statement that dividends are not guaranteed
Who signs a "Notice Regarding Replacement" Formed when an application is taken for a new life insurance policy that replaces an existing one?
Producer and applicant
Which of the following is NOT a valid reason for the Director to revoke a producer's license?
Producer is insolvent
Which of the following actions by a producer would not result in a license suspension or revocation?
Producer representing a foreign insurance company
Which of the following is not a valid reason for the Director to suspend or revoke a producers license?
Producer represents more than one insurance company
Which of the following triggers an accelerated (living) benefit?
Qualifying the event
The act of replacing an existing insurance policy with another is called
Replacement
Which of these is not an unfair method of competition? Publish misleading information about insurance coverage Replace coverage written by another producer Monopolize the business of insurance Misrepresent any facts about an insurance policy
Replace coverage written by another producer
What is the Illinois' definition of life insurance replacement?
A transaction in which a new policy is bought an old policy is terminated
