Chapter 15

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

A The insurance commissioner

An insurer has _____ days from when an application for life insurance is submitted by a licensed life agent not yet appointed by the insurer, to file a notice of Appointment with the Commissioner. A 28 B 14 C 21 D 31

B 14

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

B 30

In California it is the obligation of each life, life and disability, and disability insurance agent to preserve and maintain, at their place of business, all applicable production records relating to policies sold for a minimum of ___ years. A 7 B 5 C 3 D 10

B 5

In an insurance transaction, a(n) ______ represents the insurance company. A Solicitor B Agent C Broker D Administrator

B Agent

Furnishing false information to the Commissioner is subject to a civil penalty of $100,000 plus what amount per 30 days period of noncompliance? A $5,000 B $1,000 C $10,000 D $500

A $5,000

Insurers must reply to a notice of loss within how many days of receiving it? A 15 B 10 C 20 D 5

A 15

The California Insurance Code requires all producers who meet with prospective clients age 65 and older in their homes for the purpose of transacting life insurance, annuities, or disability insurance products to first provide a written notice of the first meeting at least _____ hours in advance. A 24 B 72 C 48 D 96

A 24

The Code requires insurers to notify the Fraud Division within how many days of uncovering an incident of actual or suspected fraud? A 60 B 20 C 10 D 30

A 60

All Internet advertisements directed to California insurance consumers must include the agent's _____________ in addition to the agent's principal place of business. A California insurance license number B Phone number C Home address D Mail address

A California insurance license number

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 Certificate of Authority B Letter of Acceptance C Acknowledgment D Approval

A Certificate of Authority

The Commissioner may disapprove the use of any true or fictitious name for all of the following reasons, except the name: A Describes the true nature of the work the licensee is authorized to transact B Implies that the licensee is an underwriter, though the licensee can use the designations of Chartered Life Underwriter when entitled C Infers that the licensee will engage in activities not permitted under licenses held D Interferes with a name already filed by another licensee

A Describes the true nature of the work the licensee is authorized to transact

A licensed producer may not do which of the following? A Enter into an exclusive relationship with a lender to provide homeowners insurance to loan applicants B Advertise the availability of insurance products approved for sale in California C Solicit business from a loan applicant who has not opted out of information sharing by the lender D Provide a binder of insurance for a homebuyer contingent upon close of escrow

A Enter into an exclusive relationship with a lender to provide homeowners insurance to loan applicants

Every licensee must include the license number on all of the following, except: A Home address labels B Price quotations C Printed advertisements D Business cards

A Home address labels

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

A The maximum amount that will be paid to a covered person on behalf of an admitted insolvent insurer is $500,000 per life

Any notice required to be given to an insured by the insurer may be mailed, postage paid, and addressed to the policyowner, insured, claimant, or beneficiary to be notified at the: A Business address B Last known address of record C Agent's business office address D Home address

B Last known address of record

Any person who acts, offers to act, or assumes to act in a capacity for which a license is required without holding a license is guilty of a ___________, punishable by a fine of up to $50,000 and/or 1 year in jail. A Felony B Misdemeanor C Civil infraction D Code violation

B Misdemeanor

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

B Misstated the terms of a policy for the purpose of inducing a policyholder to lapse a policy

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 Limited license B Restricted license C Temporary license D Probationary license

B Restricted license

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

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

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

C 2

How much time does a licensee have to respond to the Department of Insurance after receiving an inquiry concerning a claim? A 15 calendar days B 10 business days C 21 calendar days D Not more than 72 hours, excluding weekends and holidays

C 21 calendar days

The Commissioner may disapprove the use of any true or fictitious name for all of the following reasons, except the name: A Implies that the licensee is an underwriter, though the licensee can use the designations of Chartered Life Underwriter when entitled B Infers that the licensee will engage in activities not permitted under licenses held C Describes the true nature of the work the licensee is authorized to transact D Interferes with a name already filed by another licensee

C Describes the true nature of the work the licensee is authorized to transact

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 self-employed tailor doing business as Tom Thumb Tailors C Tom Thumb Tailors, a business operated by Tom Thumb, a sole proprietor D Tom Thumb, a tailor who is employed by a dry cleaner

C Tom Thumb Tailors, a business operated by Tom Thumb, a sole proprietor

What is the maximum number of appointments a producer may accept? A 3 B 1 C Unlimited D 2

C Unlimited

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

D Permit an insurance company to transact business

Regarding Proof of Notice under the California insurance code, the __________ is responsible for notifying the insurer of address changes including any change of email address. A Agency B Beneficiary C Agent D Policyowner

D Policyowner

Which of the following may result when any producer, agent, or broker knowingly commits an unfair trade practice? A Any company with whom they have an agency contract will be fined B It is considered a felony and the agent will face a minimum of 10 years in prison C There is no penalty for violating an unfair trade practice if a specific statute was not violated D They may have their license revoked

D They may have their license revoked