Life insurance - Chapter 13 Illinois Laws and Rules Pertinent to Insurance

T the producer has just collected premium monies from a client. T may personal hold these funds for a MAXIMUM of __ days before depositing them in a Premium Fund Trust Account.

15

A policyowner 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

Producers must report felony convictions to the Director within __days after the entry date of the judgement.

30

The Director MUST be notified of the producer's change of home address within __days

30

According to Illinois insurance law, life insurance claim payments made after __ days from receipt of satisfactory proof of loss must receive the insurer's current interest rate.

31 days if not the insurer shall pay interest on the claim at a rate no less that that paid on proceeds left on deposit with the insurer, computed from the date of death

which of these actions is the Director empowered to do?

administer insurance licensing exams

The Life and Health Insurance Guaranty Association

assumes the financial obligations of insolvent insurance companies

Life insurance illustrations must include all of these EXCEPT

beneficiary's name

replacement can be defined as

exchanging an existing policy for a new policy

During a sales presentation for a participating life insurance policy, a producer MUST

include a statement that dividends are not guaranteed during the sales presentation for a participating life insurance policy, a producer MUST include a statement that dividends are not guaranteed

All of these are required to be included in a life insurance illustration EXCEPT

insurer's mortality table

A license may be denied, suspended, or revoked if the license

is found guilty of misrepresentation

When a producer submits an insurance application, the application is Required to contain the producer's

name and signature

J has been issued a temporary insurance producer license. How many of these licenses may J hold in a lifetime?

one

A producer has influenced an existing policyowner to cancel an existing whole life policy purchase a new universal life policy. This transaction is called a(n):

replacement taking an existing whole life policy and converting it to reduced paid-up insurance while immediately taking out a new life policy is considered a for of replacement, which is a heavily regulated transaction.

What would be a potential consequence for a producer who misappropriates insurance funds held in the fiduciary capacity?

The Director may suspend or revoke the producer's license

All of these statements concerning a licensee's responsibility for premiums received are true EXCEPT

The licensee must hold them in a separate account before transmitting them to the insurance company

Insurance applications MUST contain which of these disclosure requirements?

The soliciting producer's name

Who negotiates viatical settlements between a policy owner and a viatical settlement provider?

Viatical settlement broker

Which of these is a REQUIREMENT for obtaining a nonresident insurance producer license?

A similar license must be held by the produce in his/her state of residence

Q the producer knowingly misappropriated fiduciary money in the amount of $150. This is his second offense. Q will likely be charged with a

Class 4 felony if an insurance producer knowingly misappropriates or converts fiduciary moneys in the amount of $150 or less, he or she is guity of a class A misdemeanor. repeated occurrences is a class 4 felony.

In Illinois, the Free look period begins with which of the following signed documents?

Delivery receipt

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

Which of the following would be a valid reason for the Director to deny an insurance license?

Failing to report a felony

Which of these accounts are producer license fees deposited into?

Insurance Producer Administrative Fund

During the course of an insurance business transaction, who does the producer legally represent?

Insurance company

Which of these is NOT an unfair method of competition?

Replace coverage written by another producer

a prelicensing course must be successfully completed for which of the following

Resident producer