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All the following are true concerning penalties of unfair trade practices except: A: commissioner can take action against the agent B: must be intentional C: purpose is to regulate trade practices D: $5000 fine

B: must be intentional can be unintentional

Conservation applies to: A: All of the above. B: Any insurer with a Certificate of Authority. C: Allows for rehabilitation such as reorganization, consolidation, conversion, merger, or any other action the Commissioner feels is required to return the insurer to financial stability. D: It refers to taking over and managing the affairs of a financially troubled insurer.

A: All of the above. All of these refer to Conservation by the Commissioner of an insurer.

All the following are true concerning termination of license except: A: licensee can give up their license with a 90 day notice B: license is terminated at the time a partnership or organization is dissolved if licensee is the organization C: a change in the partners of a partnership D: license is terminated at the death of licensee

A: licensee can give up their license with a 90 day notice A licensee can send a notice of resignation and return his/her license to the Commissioner and give up his/her insurance license at any time.

All the following statements are true except: A: nonadmitted insurers cannot write in California B: a standard market insurer writes for average or better insureds C: surplus line insurer can write business for nonadmitted companies D: admitted companies can do business in state

A: nonadmitted insurers cannot write in California unless a surplus lines broker is used

All the following are true for continuing education requirements except: A: New agents selling long-term care need 8 hours of continuing education credits a year for 4 years. B: A life agent needs 48 hours of continuing education credits for the first and second licensing periods C: A life agent needs 3 hours of Ethics training credits each license term. D: A property and casualty agent needs 24 hours of continuing education credits each license term.

B: A life agent needs 48 hours of continuing education credits for the first and second licensing periods A life agent would be required to complete 24 hours of CE's per license term.

All the following are examples of a pretext interview except: A: misrepresents the purpose of the interview B: refuses to identify themselves C: pretends to be someone they are not D: gathering information for underwriting

D: gathering information for underwriting Legal

Any person to whom the commissioner has issued a seizure order and who refuses to deliver any books, records, or assets of an insurer faces: A: Administrative fines only. B: A misdemeanor punishable by a $5,000 fine, if unintentional, or $10,000, if intentional. C: A misdemeanor punishable by a fine up to $1,000, a year in jail, or both. D: A felony punishable by a fine up to $1,000, a year in prison, or both.

TC: A misdemeanor punishable by a fine up to $1,000, a year in jail, or both. he fine is up to $1,000 and/or 1 year imprisonment for violation of summary seizure.

If someone has a Life Agent Combo and a Property/Casualty license, then how many CE hours would be required in the current license term? A: 50 hours B: 30 hours C: 24 hours D: 25 hours

C: 24 hours Since this person has a Life and P/C license then they would be required to complete 24 hours per license term.

Which of the following would require a Certificate of Registration to act as an Administrator in connect with collection of premiums and settling claims for life, health, or annuity coverages?. A: A union B: A Life Agent C: None of the above. D: A creditor on behalf of its debtors

C: None of the above. None of these would require a Certificate of Administration to act as an administrator.

__________ company is an unincorporated company that consists of subscribers managed by an attorney. A: Stock Insurance B: Mutual Insurance C: Reciprocal Insurance D: Governmental Exchange

C: Reciprocal Insurance A reciprocal company is an unincorporated company that consists of subscribers managed by an attorney. Participants in this pool are called subscribers or members and they share profits and losses in the same proportion as the amount of insurance purchased from the exchange by the members.

An analyst may not receive any fee not based upon a written agreement signed by the party to be charged. This agreement must include all the following, except: A: Amount of the fees B: A statement that information and services concerning insurance policies may be obtained from the insurer without cost C: Statement of services to be performed to which no fee will be charged D: Statement that the analyst has both a Life and A&H license and receives commissions for the sale of products.

C: Statement of services to be performed to which no fee will be charged The agreement must outline the services to be performed for which a fee is to be charged and the amount of the fee.

All the following are true concerning ethics with senior citizens except: A: no pretext interviews B: use simple language C: must give an additional 30 days more for a free look period than people who are not senior citizens D: do not oversell

C: must give an additional 30 days more for a free look period than people who are not senior citizens 30 total days not in addition to the normal 10 days.