Ch8: Life Insurance: State Law (ID)
Annuities issued in Idaho must include a provision stating that a contract will be incontestable after it has been in force for
2 years - Except for nonpayment of premium, the incontestability period begins 2 years after the issue date of the contract.
In Idaho, the free look period for individual life insurance policies is:
20 days - If after examining the policy, the purchaser of an individual life insurance policy is not satisfied, the policy can be returned within 20 days of its delivery.
Which of the following are part of the legal responsibility of maintaining an insurance license?
A producer must inform the Director of any change in address within 30 days
Which of the following statements about the Idaho licensing examination is FALSE? - A person who fails to pass may retake the exam - An applicant must apply for their license within 30 days after passing the exam - Examination requires a nonrefundable fee - Producer license applicants must pass a written examination
An applicant must apply for their license within 30 days after passing the exam - Licensing applications must be received by the Department within 180 days of successful completion of the examination.
Which of the following are false regarding the Life and Health Insurance Guaranty Association?
An insurer has the option of becoming a member of the Association - Insurers transacting insurance in Idaho are required to be members of the Association.
An insurer is prohibited from contesting any claim on a life insurance policy after the annual premiums have been paid for ___ years
An insurer is prohibited from contesting any claim on the policy after the annual premiums have been paid for 2 years.
In Idaho, any minor that is at least ____ years old may contract for insurance on their own life, health, property, or liabilities.
Any minor that is at least 15 years old is considered to have competent legal capacity to contract for insurance.
Which of the following gives an insurer the authority to transact insurance in Idaho?
Certificate of Authority - A Certificate of Authority is proof of an insurer's authority to transact insurance within a particular jurisdiction, such as a state.
Which of the following types of policies are exempt from the Idaho life insurance replacement regulations: - Adjustable life - Credit life insurance - Universal life - Whole life
Credit life insurance - Whole life, universal life and adjustable life are subject to state replacement regulations.
A producer who intentionally makes a false statement about the financial condition of a competing insurer may be found guilty of:
Defamation - Making a false statement regarding the financial condition of any person, including an insurance company, is considered defamation.
A retail producer sells insurance:
Directly to a consumer - A retail producer solicits, negotiates, or sells an insurance contract directly to a consumer. A wholesale producer solicits, negotiates, or sells an insurance contract directly with a retail producer.
Select the most accurate description of continuing education requirements for Idaho resident producers:
Every 2 years, complete 24 credit hours (3 hours of which must be in ethics) - Resident licensees must complete 24 total credit hours of approved education courses, 3 of which must be in ethics, during each 2-year licensing period.
After being demanded, a hearing must be held within:
Hearings are held within 30 days after the date a hearing is demanded.
In Idaho, the free look period for an annuity is ___ days.
In Idaho, the free look period for an annuity is 20 days.
If an Idaho producer is subject to criminal prosecution or administrative action in another jurisdiction, that producer must:
Inform the Director within 30 days - A producer who is the subject of any criminal prosecution or administrative action in another jurisdiction must notify the Director. Notice must be within 30 days of the administrative action's final disposition, or within 30 days of the initial pretrial hearing date of a criminal prosecution. Notice must include a copy of the order or complaint and other relevant legal documents.
Which of the following statements is NOT correct concerning policy loans? - Policy loans must available after the policy has been in effect for 6 months - Insurers may establish adjustable interest rates for policy loans - An insurer may defer a policy loan for 6 months after the application is made - Fixed interest on a policy loan may not exceed 8% per annum
Policy loans must available after the policy has been in effect for 6 months - Policy loans must available after the policy has been in effect for 3 years.
Which of the following is NOT among the powers and duties of the Director? - Issue cease and desist orders - Act as judge in felony cases - Conducting investigations, examinations, and hearings associated with administering the insurance laws - Establish rules and regulations needed to enforce the insurance laws
The Director does not act as judge in felony cases.
The penalty applicable to a person who transacts insurance without proper licensing or after such licensing has been suspended or revoked is in an amount up to:
The penalty applicable to a person who transacts insurance without proper licensing or after such licensing has been suspended or revoked is in an amount up to $15,000.
With respect to insurance contracts issued in Idaho, which of the following statements is false? - No basic insurance policy or annuity contract may be issued in this state, unless the form has been filed with the Director - Any person of competent legal capacity may contract for insurance - Payment by the insurer under a life policy or annuity contract does not fully discharge the insurer from all claims under the policy - A minor that is at least 15 years old can purchase their own insurance policy
Payment by the insurer under a life policy or annuity contract does not fully discharge the insurer from all claims under the policy - Payment by the insurer under a life policy or annuity contract must fully discharge the insurer from all claims under the policy.
Which of the following is false regarding the Disclosure to Owner upon Application? -Receipt of the proceeds of a life settlement may adversely affect the owner's eligibility for Medicaid or other government benefits -Possible alternatives to life settlement contracts -That a life settlement broker represents the insurer -Proceeds of the life settlement could be subject to the claims of creditors -
That a life settlement broker represents the insurer - A life settlement broker represents the owner, and not the insurer or the life settlement provider.
With regard to examinations by the Director, the Director:
The Director must conduct an examination of an insurer at least once every 5 years.
If the Director revokes an Idaho producer's life and health license, which of the following is TRUE? - If the producer holds a license in another line, they can still transact insurance in that line - The producer may transact insurance as a nonresident - The producer must wait 6 months before applying for licensure again - The producer will be without licensure in any line for at least 1 year
The producer will be without licensure in any line for at least 1 year - Suspension, revocation, or refusal of any one license automatically suspends, revokes, or refuses all other licenses held by the licensee. The Director will not issue or renew a license to any person whose license has been revoked until at least 1 year has passed.
The reinstatement period for individual life insurance policies is:
The reinstatement period for individual life insurance policies is 3 years.
How many credit hours of continuing education must a producer complete every renewal period?
24 (with at least 3 hours in ethics) - A producer must complete 24 credit hours of continuing education every renewal period with at least 3 hours in ethics.
Which of the following statements about Idaho producer licensing renewal is FALSE? - The producer must furnish proof of completion of approved courses to the Director - The producer must furnish proof of completion of approved courses to the Director - A continuing education course cannot be taken more than two times within the same renewal period - Renewal is not complete until CE hours have been satisfied
A continuing education course cannot be taken more than two times within the same renewal period - Continuing education course cannot be taken more than once in the same renewal period.
Violations of Idaho insurance law can result in any of the following, EXCEPT: - Suspension or revocation of a certificate of authority or license - Imprisonment for up to 6 months - A fine of up to $1,000, both for individuals and for any other entity - Both fines and imprisonment
A fine of up to $1,000, both for individuals and for any other entity - Each code violation is subject to an administrative penalty of up to $1,000 for any individual or natural person, or up to $5,000 for any other entity.
A limited lines producer is authorized to sell all of the following, except: - Credit insurance - Mortgage Life - Accident and health - Travel accident
A limited lines producer is not authorized to sell accident and health insurance.
All of the following are true regarding a nonresident license, except: - A person residing in another state may be licensed as a nonresident producer if the person is currently licensed in their home state - A nonresident licensee may be authorized for any line of insurance for which the licensee is not authorized in their home state - A person residing in another state must be in good standing in addition to being currently licensed in their home state - A person residing in another state may be licensed as a nonresident producer if the person's home state issues nonresident producer licenses to Idaho residents on a reciprocal basis
A nonresident licensee may be authorized for any line of insurance for which the licensee is not authorized in their home state - A nonresident licensee may only be authorized for the line(s) of insurance for which the licensee is authorized in their home state.
All of the following are true regarding a nonresident license, except: - A person residing in another state may be licensed as a nonresident producer if the person is currently licensed in their home state - A person residing in another state may be licensed as a nonresident producer if the person's home state issues nonresident producer licenses to Idaho residents on a reciprocal basis - A nonresident licensee may be authorized for any line of insurance for which the licensee is not authorized in their home state - A person residing in another state must be in good standing in addition to being currently licensed in their home state
A nonresident licensee may be authorized for any line of insurance for which the licensee is not authorized in their home state - A nonresident licensee may only be authorized for the line(s) of insurance for which the licensee is authorized in their home state.
All of the following are true regarding a nonresident license, except: - A person residing in another state may be licensed as a nonresident producer if the person's home state issues nonresident producer licenses to Idaho residents on a reciprocal basis - A nonresident licensee may be authorized for any line of insurance for which the licensee is not authorized in their home state - A person residing in another state may be licensed as a nonresident producer if the person is currently licensed in their home state - A person residing in another state must be in good standing in addition to being currently licensed in their home state
A nonresident licensee may be authorized for any line of insurance for which the licensee is not authorized in their home state - A nonresident licensee may only be authorized for the line(s) of insurance for which the licensee is authorized in their home state.
Which of the following statements regarding producer licensing is TRUE? - Nonresidents may negotiate insurance in Idaho without being licensed - A person cannot sell any line of insurance for which they are not licensed - In Idaho, an unlicensed person can only sell limited lines insurance - A license is granted to a producer by an insurer
A person cannot sell any line of insurance for which they are not licensed - A person may not transact insurance in any line of authority for which they are not licensed. Licenses are granted by the Director, not by insurers.
Who among the following is NOT exempt from pre-licensing education or examination? - A person who is currently licensed for any line of authority in another state - An applicant who applies within 90 days of the cancellation of the applicant's previous license - A person whose home state certifies that he/she was in good standing in that state - A person desiring a limited lines license
A person who is currently licensed for any line of authority in another state - A person who is currently licensed for any line of authority in another state is not exempt unless the line for which the person is authorized is the same line for which the person is applying.
Who among the following is NOT exempt from pre-licensing education or examination? - A person whose home state certifies that he/she was in good standing in that state - A person desiring a limited lines license - An applicant who applies within 90 days of the cancellation of the applicant's previous license - A person who is currently licensed for any line of authority in another state
A person who is currently licensed for any line of authority in another state - A person who is currently licensed for any line of authority in another state is not exempt unless the line for which the person is authorized is the same line for which the person is applying.
Who among the following must be licensed in Idaho? - An officer, director, or employee of an insurer or of a producer, who does not receive a commission for policies sold - An association administering benefits for the association's own employees - A person who provides information for the purpose of selling group insurance and does not receive a commission - A person who receives a commission, but only for providing information related to group insurance
A person who receives a commission, but only for providing information related to group insurance - A person who provides information related to group insurance is exempt from licensing only if such person does not receive a commission.
Which of the following is true regarding pre-existing conditions in a small employer health benefit plan in Idaho? - A pre-existing condition is a condition that existed 12 months prior to policy effective date - A pre-existing condition is a condition that existed 24 months prior to policy effective date - A pre-existing condition is a condition that existed 6 months prior to policy effective date - A pre-existing condition is a condition that existed 63 days prior to policy effective date
A pre-existing condition is a condition that existed 6 months prior to policy effective date
Which of the following is true regarding pre-existing conditions in a small employer health benefit plan in Idaho? - A pre-existing condition is a condition that existed 63 days prior to policy effective date - A pre-existing condition is a condition that existed 12 months prior to policy effective date - A pre-existing condition is a condition that existed 24 months prior to policy effective date - A pre-existing condition is a condition that existed 6 months prior to policy effective date
A pre-existing condition is a condition that existed 6 months prior to policy effective date and may only be excluded for 12 months following the effective date of coverage.
Which of the following are part of the legal responsibility of maintaining an insurance license? - A producer must inform the Director of any change in address within 60 days - A producer must inform the Director of any change in address within 30 days - A producer must inform the Director of any change in address within 10 days - A producer must inform the Director of any change in address within 90 days
A producer is required notify the Director within 30 days of a change in address.
Which of the following is incorrect with regard to commissions and compensation? - An insurer or producer may pay commissions to a duly licensed producer for negotiating, soliciting, or effecting insurance contracts - An insurer or producer may not pay a commission to a person for selling, soliciting, or negotiating insurance in this state if that person is required to be licensed and is not licensed - No person may accept a commission for selling, soliciting, or negotiating insurance in Idaho if that person is required to be licensed and is not - A producer may not assign their commissions to anyone other than a currently licensed producer
A producer may not assign their commissions to anyone other than a currently licensed producer - A producer may assign their commissions to anyone regardless of whether they are a licensed producer.
All of the following are required qualifications for a producer license, EXCEPT: - Have not committed any act, which is ground for denial, suspension or revocation of license - Pass a licensing examination - Be at least 21 years of age - Pay the license fee
A producer must be at least 18 years of age. The age requirement for an adjuster license is 21.
A producer must maintain and make available records of transactions for:
A producer must maintain and make available records of transactions for at least 5 years.
A producer must report any administrative action taken against them in another jurisdiction within ___ days of the final disposition.
A producer must report any administrative action taken against them in another jurisdiction within 30 days of the final disposition.
A producer who voluntarily terminates their license can apply to be relicensed without testing if: - Application is received by the Department within 12 months after the termination and the continuing education requirements were completed during the licensing period prior to voluntary termination - Application is received by the Department within 24 months after the termination and the continuing education requirements were completed during the licensing period prior to voluntary termination - Application is received by the Department within 12 months after the termination and the continuing education requirements will be completed during the next licensing period - Application is received by the Department within 6 months after the termination and the continuing education requirements were completed during the licensing period prior to voluntary termination
A producer who voluntarily terminates their license can apply to be relicensed without testing if application is received by the Department within 12 months after the termination and the continuing education requirements were completed during the licensing period prior to voluntary termination.
A limited lines producer is authorized to sell all of the following, except: - Travel accident - Credit insurance - Mortgage Life - Accident and health
Accident and health - A limited lines producer is not authorized to sell accident and health insurance.
Which of the following is NOT considered an insurance transaction? - Addressing policyholder complaints - Soliciting an insurance application - Making a proposal to solicit an insurance policy - Preliminary negotiations
Addressing policyholder complaints - Addressing policyholder complaints does not constitute an insurance transaction.
Which of the following is NOT considered an insurance transaction? - Making a proposal to solicit an insurance policy - Preliminary negotiations - Addressing policyholder complaints - Soliciting an insurance application
Addressing policyholder complaints does not constitute an insurance transaction.
The act of negotiating includes the following, except: - Advising a prospective purchaser regarding a policy's terms with a subsequent sale of insurance - Advising a prospective purchaser regarding a policy's conditions without a subsequent sale of insurance - Advising a prospective purchaser regarding a policy's benefits with a subsequent sale of insurance - Corresponding with a prospective purchaser regarding a policy's benefits with a subsequent sale of insurance
Advising a prospective purchaser regarding a policy's conditions without a subsequent sale of insurance - There has to be a sale or purchase of insurance for any of these acts to constitute negotiating.
The act of negotiating includes the following, except: - Corresponding with a prospective purchaser regarding a policy's benefits with a subsequent sale of insurance - Advising a prospective purchaser regarding a policy's terms with a subsequent sale of insurance - Advising a prospective purchaser regarding a policy's conditions without a subsequent sale of insurance - Advising a prospective purchaser regarding a policy's benefits with a subsequent sale of insurance
Advising a prospective purchaser regarding a policy's conditions without a subsequent sale of insurance - There has to be a sale or purchase of insurance for any of these acts to constitute negotiating.
If a person is found to be in violation of an unfair trade practice, penalties include all of the following, EXCEPT: - An administrative penalty of up to $50,000 - Suspension or revocation of a license - Individuals may be fined up to $1,000 per violation - Imprisonment for up to 6 months
An administrative penalty of up to $50,000 - An insurer who violates the Code may be subject to an administrative penalty of up to $10,000.
If a person is found to be in violation of an unfair trade practice, penalties include all of the following, EXCEPT: - Imprisonment for up to 6 months - Suspension or revocation of a license - An administrative penalty of up to $50,000 - Individuals may be fined up to $1,000 per violation
An administrative penalty of up to $50,000 - An insurer who violates the Code may be subject to an administrative penalty of up to $10,000.
All of the following statements regarding the standard provisions of an annuity delivered in Idaho are correct, except: - An annuity may not be reinstated - An annuity must contain an Entire Contract provision - The grace period for an annuity is 30 days - An annuity must pay any accrued dividends annually
An annuity may not be reinstated - An annuity may be reinstated at any time within one year from the default in making payments, unless it has been surrendered for the cash value.
Which of the following are false regarding the Life and Health Insurance Guaranty Association? - Other member insurers are assessed to provide money for the claims of an insolvent insurer - It prevents financial loss to policyholders when an insurer becomes insolvent - The Association is not liable for more than $300,000 in benefits for life insurance and disability insurance - An insurer has the option of becoming a member of the Association
An insurer has the option of becoming a member of the Association - Insurers transacting insurance in Idaho are required to be members of the Association.
A producer who voluntarily terminates their license can apply to be relicensed without testing if:
Application is received by the Department within 12 months after the termination and the continuing education requirements were completed during the licensing period prior to voluntary termination
A business entity that acts as an insurance producer in Idaho must do all of the following, EXCEPT: - Pay fees - Obtain a producer license - Designate one agent responsible for compliance - Apply for a business entity license
Apply for a business entity license - Any business entity that acts as an insurance producer must obtain a producer license, pay the required fees, and designate a licensed agent who will be responsible for the business entity's compliance.
The Insurance Director is:
Appointed by the Governor - The Director is not elected, but is appointed by the Governor and not the Mayor.
Permitting individuals of the same class and equal life expectancy to be charged different rates for life insurance or annuities is an example of what type of unfair trade practice?
Discrimination - Permitting individuals of the same class and equal life expectancy to be charged different rates for life insurance or annuities does not constitute prohibited underwriting; Boycott constitutes unreasonable restraint of, or monopoly in, the insurance business.
Publishing or circulating any untrue, deceptive, or misleading statement about the business of insurance is considered:
False advertising - Publishing or circulating any untrue, deceptive, or misleading statement about the business of insurance or the conduct of a person's insurance business is false advertising.
Which of the following statements is NOT correct regarding the nature of group life insurance? - If the employer pays the entire premium, all employees must be covered without evidence of insurability - If the employees pay the premiums, the employer is not required to cover all employees - The policy premium will be paid either by the employer, the employees or both - Retired employees may be covered under group life insurance
If the employer pays the entire premium, all employees must be covered without evidence of insurability - If the employer pays the entire premium, all employees must be covered, subject to the insurer's requirements for evidence of insurability.
Which of the following statements is NOT correct regarding the nature of group life insurance? - If the employer pays the entire premium, all employees must be covered without evidence of insurability - Retired employees may be covered under group life insurance - If the employees pay the premiums, the employer is not required to cover all employees - The policy premium will be paid either by the employer, the employees or both
If the employer pays the entire premium, all employees must be covered without evidence of insurability - If the employer pays the entire premium, all employees must be covered, subject to the insurer's requirements for evidence of insurability.
Credit life insurance and credit disability insurance may be issued in any of the following forms, except: - Group disability insurance - Individual term life insurance - Group term life insurance - Individual whole life insurance
Individual whole life insurance - Credit life insurance and credit disability insurance is not issued under whole life insurance because the need is not permanent, and the face amount of the policy should decrease in accordance with the decreasing amount of debt.
Credit life insurance and credit disability insurance must be issued in the following forms, except: - Group disability insurance - Individual whole life insurance - Group term life insurance - Individual term life insurance
Individual whole life insurance - Credit life insurance and credit disability insurance is not issued under whole life insurance because the need is not permanent, and the face amount of the policy should decrease in accordance with the decreasing amount of debt.
Credit life insurance and credit disability insurance must be issued in the following forms, except: - Group term life insurance - Individual whole life insurance - Group disability insurance - Individual term life insurance
Individual whole life insurance - Credit life insurance and credit disability insurance is not issued under whole life insurance because the need is not permanent, and the face amount of the policy should decrease in accordance with the decreasing amount of debt.
The Director has the right to suspend or revoke a license if the licensee:
Is convicted of or pleads guilty to any felony, or to certain kinds of misdemeanors - The Director may impose licensure penalties on a licensee who is convicted of, or pleads guilty to, any felony, or to a misdemeanor that demonstrates bad moral character.
The Director may revoke, suspend, or refuse to renew a license for all the following, except: - Issued insufficient coverage to a customer through apparent authority - Cheated on an insurance examination - Mishandling funds - Being in arrears in paying child support
Issued insufficient coverage to a customer through apparent authority
The Director may revoke, suspend, or refuse to renew a license for all the following, except: - Issued insufficient coverage to a customer through apparent authority - Cheated on an insurance examination - Mishandling funds - Mishandling funds
Issued insufficient coverage to a customer through apparent authority - If a licensee issues insufficient coverage to an individual through apparent authority, this is not grounds for license suspension, nonrenewal or revocation.
All the following are considered fraudulent insurance acts, EXCEPT: - Presenting a claim for payment that contains false, incomplete, or misleading information that is material to the claim - Accepting a premium payment for insurance knowing the coverage will not be carried out - Transacting insurance without being properly licensed - Making a complete comparison of the conditions of a policy to induce an insured to cancel their policy
Making a complete comparison of the conditions of a policy to induce an insured to cancel their policy - It is not a fraudulent act or a violation to make a complete comparison to induce an insured to cancel their policy.
Credit disability insurance benefits:
May not exceed the amount of scheduled monthly payment - Credit disability benefits are designed to pay the monthly installments on a loan if the insured becomes disabled. The benefit cannot exceed the amount of the monthly payment. Coverage cannot be required to be purchased through the creditor. Credit life insurance is paid in a lump sum upon the death of the debtor.
A producer who makes a statement that an insurance policy as a share of stock is guilty of:
Misrepresentation - Misrepresenting any insurance policy as being a share of stock is a misrepresentation.
Which of the following statements about fiduciary responsibilities is TRUE? - Using fiduciary funds for personal use is a Class A misdemeanor - Funds payable to a policyholder must be sent within 30 days - A producer must keep detailed records when depositing fiduciary funds into their own personal account - Producers are required to maintain a separate account for fiduciary funds
Producers are required to maintain a separate account for fiduciary funds - Using fiduciary funds for personal use is a felony. Producers must use a separate account for funds belonging to others in order to avoid mixing fiduciary funds with their own personal funds. Fiduciary funds payable to a claimant or policyholder must be sent within 14 days.
Which of the following statements about fee disclosure is TRUE? - Only wholesale producers are allowed to charge fees - Producers cannot charge any fee without first disclosing it in writing - Only retail producers can charge fees - Producers must explain any fees after they are charged
Producers cannot charge any fee without first disclosing it in writing - Before charging a fee to a consumer, a retail producer must a written statement to the consumer that describes the services the producer will perform and the fees the producer will receive. Before charging a fee to a retail producer, a wholesale producer must provide a written statement to the retail producer that describes the services the wholesale producer will perform and the fees the wholesale producer will receive.
A producer may not solicit the sale of an annuity unless they have completed a one-time _______ hour training course.
Producers must complete a one-time 4-hour training course.
Which of the following is NOT an unfair claims practice? - Promptly acknowledging communications pertinent to a claim - Misrepresenting pertinent policy facts or provisions to claimants - Failing to attempt, in good faith, to promptly, fairly, and equitably settle a claim in which the insurer's liability has become reasonably clear - Requiring an insured to sue by offering less than the amount due
Promptly acknowledging communications pertinent to a claim is required with respect to claim practices.
If a license has been expired for 1 year or more, the person must:
Reapply and retest as a new applicant - If the license has been expired for 1 year or more, the individual must reapply and retest as a new applicant.
Which of the following is NOT a purpose of the rules regarding replacement of life insurance in Idaho? - Protect the interests of life insurance and annuity purchasers - Regulate the activities of insurers and agents - Regulate the amount of commission earned in a replacement transaction - Reduce the opportunity for misrepresentation
Regulate the amount of commission earned in a replacement transaction - The rules regarding replacement of life insurance do not regulate the amount of commission earned by the agent.
Which of the following is NOT a purpose of the rules regarding replacement of life insurance in Idaho? - Regulate the amount of commission earned in a replacement transaction - Reduce the opportunity for misrepresentation - Protect the interests of life insurance and annuity purchasers - Regulate the activities of insurers and agents
Regulate the amount of commission earned in a replacement transaction - The rules regarding replacement of life insurance do not regulate the amount of commission earned by the agent.
A new life policy is being purchased, and the agent knows that an existing contract through a different insurer will be lapsed. This is an example of (policy):
Replacement - Purchasing a new policy while allowing an existing policy to lapse is policy replacement.
In Idaho, the duration of the grace period period for individual life insurance policies is ____ days.
The duration of the grace period for Idaho individual life insurance policies is 30 days.
The duration of the grace period for group life insurance policies in Idaho is ____ days.
The duration of the grace period for group life insurance policies is 31 days.
The duration of the grace period for group life insurance policies is ___ days
The duration of the grace period for group life insurance policies is 31 days.
Which of the following statements is correct concerning conversion provisions in group life insurance policies? - There must be a provision that if an insured dies during the conversion period, no benefit is payable under the group policy - There is no conversion privilege available to the spouse of an insured when insurance is terminated for such spouse - The group policy may limit the amount of an individual policy to the lesser of the insured's terminated group coverage (minus the amount of any group insurance he/she becomes eligible for within 31 days of the termination) or $2,000 - There must be a provision allowing anyone who has been covered under the group policy for at least one year to convert to an individual policy upon termination of the group policy
The group policy may limit the amount of an individual policy to the lesser of the insured's terminated group coverage (minus the amount of any group insurance he/she becomes eligible for within 31 days of the termination) or $2,000 - There must be a provision allowing anyone who has been covered under the group policy for at least 5 years to convert to an individual policy upon termination of the group policy. There must be a provision that if an insured dies during the conversion period, the amount that he/she would have been entitled to convert is payable as a claim under the group policy. When insurance is terminated for the spouse of an insured, such spouse is entitled to conversion.
Which of the following is correct with respect to annuity suitability requirements in Idaho? - The insurer or producer must make reasonable efforts to obtain a consumer's suitability information before the annuity is purchased, exchanged or replaced - A producer still has an obligation regarding the suitability of annuity for an applicant if the applicant decides to enter into the annuity transaction not based on the insurer's or agent's recommendation - Only the insurer has a responsibility to determine suitability - An insurer may issue an annuity regardless of whether the annuity is suitable based on the consumer's suitability information
The insurer or producer must make reasonable efforts to obtain a consumer's suitability information before the annuity is purchased, exchanged or replaced - An insurer may not issue an annuity recommended to a consumer unless there is a reasonable basis to believe the annuity is suitable based on the consumer's suitability information. A producer does not have an obligation regarding the suitability of annuity for an applicant if the applicant decides to enter into the annuity transaction not based on the insurer's or agent's recommendation. Both the insurer and producer have a responsibility to determine suitability.
The Right of Rescission Disclosure must provide that:
The owner has a right of 20 days to unconditionally rescind a life settlement contract from the time of execution of the contract until after the receipt of the life settlement proceeds
Which of the following statements is false? - If the naming of a beneficiary was done to defraud a creditor, the beneficiary of the life insurance policy is not entitled to receive benefits - The right of annuity contract beneficiaries to receive contract benefits is not impaired by creditor claims under any circumstances - The right of beneficiaries to receive life insurance proceeds take precedence over the rights of creditors - The beneficiary of a life insurance policy is entitled to receive benefits despite the claims of any creditors
The right of annuity contract beneficiaries to receive contract benefits is not impaired by creditor claims under any circumstances - The right of annuity contract beneficiaries to receive contract benefits is not impaired by creditor claims unless benefit payments are set up to defraud creditors or periodic benefits are more than $1,250 per payment.
Which of the following statements is false? - The right of beneficiaries to receive life insurance proceeds take precedence over the rights of creditors - The beneficiary of a life insurance policy is entitled to receive benefits despite the claims of any creditors - If the naming of a beneficiary was done to defraud a creditor, the beneficiary of the life insurance policy is not entitled to receive benefits - The right of annuity contract beneficiaries to receive contract benefits is not impaired by creditor claims under any circumstances
The right of annuity contract beneficiaries to receive contract benefits is not impaired by creditor claims under any circumstances - The right of annuity contract beneficiaries to receive contract benefits is not impaired by creditor claims unless benefit payments are set up to defraud creditors or periodic benefits are more than $1,250 per payment.
If there is sufficient divisible surplus, policy dividends may be payable from a participating life insurance policy issued in Idaho no later than the end of the:
Third policy year - There must be a provision in participating policies that, beginning no later than the third policy year, the insurer will annually determine the divisible surplus.
With regard to a producer's fiduciary capacity, all of the following are true, except: - All premiums received must be remitted to the insurer at least within 21 days of receipt - Funds payable to a policyholder must be remitted to the policy holder within 14 days of receipt - All premiums that are the insurer's, or unearned premiums that are the insured's, may not be commingled with a producer's personal funds - Unearned premiums that are the insured's, may be commingled with a producer's personal funds under certain conditions
Unearned premiums that are the insured's, may be commingled with a producer's personal funds under certain conditions - All premiums that are the insurer's, or unearned premiums that are the insured's, may not be com-mingled with a producer's personal funds under any circumstances. The producer must establish a separate account.
With regard to a producer's fiduciary capacity, all of the following are true, except: - All premiums that are the insurer's, or unearned premiums that are the insured's, may not be commingled with a producer's personal funds - Unearned premiums that are the insured's, may be commingled with a producer's personal funds under certain conditions - All premiums received must be remitted to the insurer at least within 21 days of receipt - Funds payable to a policyholder must be remitted to the policy holder within 14 days of receipt
Unearned premiums that are the insured's, may be commingled with a producer's personal funds under certain conditions - All premiums that are the insurer's, or unearned premiums that are the insured's, may not be com-mingled with a producer's personal funds under any circumstances. The producer must establish a separate account.
Which of the following statements is correct regarding agent appointments? - When appointing a new agent, the insurer has 15 days to notify the Director - Agents should file a notice of appointment with each insurer they wish to represent - An insurer who terminates an agent's appointment must notify the Director within 10 days after the effective date of termination - Only the Director can terminate an agent appointment
When appointing a new agent, the insurer has 15 days to notify the Director - Insurers must notify the Director within 15 days of a producer's appointment, starting from either the date the agency contract is completed, or the first insurance application is submitted.
When is a life policy NOT assignable?
When the beneficiary designation is irrevocable - A life policy is not assignable when the beneficiary designation is irrevocable.
