QUIZ 3

If a license is in the possession of the insurer or the licensee`s employer, the licensee may surrender his/her license: after written notice is delivered to the Commissioner. at any time. after notifying the Commissioner and a mandatory 30 days waiting period. after the termination of employment with an insurer.

after written notice is delivered to the Commissioner.

Agents must keep good records and make them available to the DOI for a period of: 3 years 2 years 1 year 5 years

5 years

All of the following are examples of fiduciaries EXCEPT: Vendor Executors Corporate directors Administrators

Vendor

To handle long term care insurance, an agent of more then four years must satisfy the continuing education requirement of: a 4 hour course in each of the first 4 years of licensing. an 8 hour course in each of the first 4 years of licensing. 8 hours of LTC training each license term. a 4 hour course in each of the first 2 years of licensing.

8 hours of LTC training each license term.

Which of the following is not a person under the Code? An estate of a deceased An entity A family An individual

A family

When can a partnership continue if a new partner joins? After all the partners file a written notice with the Commissioner within 45 days. After the Commissioner is notified and a new license is issued. After the new partner is issued a license by the department and the old license is terminated. After the department is notified within 30 days and the changes are approved.

After the department is notified within 30 days and the changes are approved.

Every applicant for a license to act as an agent must have filed with the Commissioner:

a notice of appointment to do business in the state.

If someone has a Life Agent Combo and a Property/Casualty license for 10 years, then how many CE hours would be required in the current license term? 24 hours 25 hours 30 hours 50 hours

24 hours

Every licensee shall prominently put their license number on all of the following except: Price quote Phone book listing in the white pages Neighborhood advertising flyer Business cards

Phone book listing in the white pages

According to the qualifications of an insurer under the California Code a person can be any of the following EXCEPT: a human being at least age 16 who is competent and not intoxicated an estate of a deceased person a trust a corporation

a human being at least age 16 who is competent and not intoxicated

Records must be made available to the Commissioner: at all time within 30 days upon written request within 5 days

at all times

For an agent or solicitor to be valid to transact requires: an appointment neither are required a proper license both are required

both are required:an appointment a proper license

When should a licensee notify the Commissioner of a change in address? immediately after notifying the company the licensee is employed with within the 10 day grace period within the 30 day grace period

immediately

Insolvency means: a company has more earned premium than claims made an insurer`s inability to meet its financial obligations when they are due a company has more claims than earned premium to pay for those claims an insurer`s inability to meet the standards set by the DOI

insurer`s inability to meet its financial obligations when they are due

In lieu of denying an application for a license the Commissioner can: neither of these charge extra fees issue a restricted license either of these

issue a restricted license

A licensee may surrender his/her license: after notifying the Commissioner and a mandatory 30 day waiting period. after written notice to the Department and the Commissioner after the next January 1. after the termination of employment with an insurer. upon written notice to the Department of Insurance at any time.

upon written notice to the Department of Insurance at any time.

Commissioner may give an order that records be brought current within: 60 days of the order 90 days of the order 15 days of the order 30 days of the order

60 days of the order

The marketing/sales department is responsible for: advertising, promoting and distributing an insurer`s products to the public. using claims history, statistics, and computer data to predict losses. receiving claim requests, evaluating them, and paying those claims that are covered by the terms of the contract and rejecting those that are not. receiving applications for insurance and then deciding if the company should approve or reject the application.

advertising, promoting and distributing an insurer`s products to the public.

Appointments are terminated: any of these license fees paid late by either agent or insurer termination of license

any of these

In order to update, add or change a statute a bill must be passed by the legislature and then presented to the governor. If the statute is passed, it will go into effect: immediately on the next fiscal year on the next August 1st on the next January 1st

on the next January 1st

After providing an opportunity for a hearing, the Commissioner may deny an application for a license based on the following reasons EXCEPT: the applicant has acted as a licensed person before the license was issued the applicant is disabled the applicant was convicted of a felony the applicant lied on the application

the applicant is disabled

The actuarial department is responsible for:

using claims history, statistics and computer data to predict losses.

_____ refers to the inability of the insurer to meet its financial obligations when they are due. Actuarial Non-Admitted Paid in capital Insolvency

Insolvency

Which of the following is NOT true about the California Insurance Code and the California Code of Regulations. The CIC and the CCR are a complete guide to ethical behavior. IThe CIC is written, updated, and changed by the California State legislature. The Department of Insurance implements, enforces and monitors the CIC. The CIC gives the Commissioner the power to institute rules and regulations which are called the CCR.

The CIC and the CCR are a complete guide to ethical behavior.

Which of the following is NOT a valid reason for the Commissioner to deny the use of a name when filing with the Insurance Commissioner? The name gives the impression the licensee is authorized to conduct a type of business it cannot legally conduct. The name is politically connected to the government. The name would interfere or is too similar to the name of another agency already licensed by the Commission. The name would lead the public in the wrong direction.

The name is politically connected to the government.

All Property and Casualty Broker/Agents are required by law to display to the public: The institution of education where they received their degree. Their license to sell insurance displayed in their training room. The types of insurance they are licensed to sell displayed in their personal office. Their license to sell insurance, displayed in a place where it can be easily seen.

Their license to sell insurance, displayed in a place where it can be easily seen.

A Property and Casualty Agent is required to continue their education by completing: a total of 100 hours during the first 4 years of licensing. a total of 55 hours during the first 2 years of licensing. a total of 24 hours per license term. a total of 25 hours during the first 2 years of licensing.

a total of 24 hours per license term.

It is against the law for an insurance licensee to offer free insurance to: anyone as an incentive to acquire some other type of business. family and other relatives. anyone, regardless the reason. those who cannot afford it.

anyone as an incentive to acquire some other type of business.

Commissioner can suspend a permanent license without a hearing, except: conviction of any felony none are exceptions client co-signing a loan license revoked last 5 yrs

client co-signing a loan

Transacting via internet with a California resident would not require: name on license license number license expiration state licensee is domicile

license expiration

An organization ceases to exist as an entity eligible to hold a license upon all of the following EXCEPT: upon dissolution of a co partnership or upon any change in membership of a co partnership. upon dissolution of a corporation. upon the termination of an association. upon the termination of a key employee.

upon the termination of a key employee.

Informational records must be kept a minimum of: indefinitely 12 months 5 years 18 months

18 months

What is the difference between an admitted and a non-admitted insurer? An admitted insurer is a company that has met all of the qualifications designed by the DOI and has received a Certificate of Authority from the DOI to transact insurance in California, whereas a non-admitted insurer has not complied or been denied. An admitted insurer is a company that has met most of the qualifications designed by the DOI and has received a Certificate of Authority from the DOI to transact insurance in California, whereas a non-admitted insurer has not applied or been denied. An admitted insurer has met all the qualifications designed by the DOI but hasn`t received a Certificate of Authority because they are not licensed in the state of California and a non-admitted insurer is licensed in the state of California. A non-admitted insurer is a company that has met all of the qualifications designed by the DOI and has received a Certificate of Authority from the DOI to transact insurance in California, whereas an admitted insurer has not complied or been denied.

An admitted insurer is a company that has met all of the qualifications designed by the DOI and has received a Certificate of Authority from the DOI to transact insurance in California, whereas a non-admitted insurer has not complied or been denied.

An agent or broker may charge an extra fee for services above and beyond what are considered normal duties. Which of the following is NOT considered an extra service? Additional activities Services performed as a convenience to the insured that result in extra expense to the broker or agent Application paperwork Additional research

Application paperwork

A subsidiary (A company for which a majority of the voting stock is owned by a holding company.) formed to insure the parent company is called a(n): Captive insurer Fraternal Co-op insurer Inter-insurance exchange

Captive insure