Chapter 11 Exam- Iowa Laws and Rules

A labor union must have at LEAST ____ members to be issued a group life policy

10

How many days is a temporary producers license valid

180

P is the beneficiary of a life insurance policy. The insured of this policy has died and P submits satisfactory proof of loss. If the insurer does NOT pay the proceeds within __ days, the insurer must pay interest on the proceeds.

30

When an employee is terminated, how long does this employee have to convert group life coverage to an individual plan?

31 days

A life policy loan in Iowa cannot charge a fixed rate of interest higher than

8%

S the producer has deposited premiums collected from clients into his personal bank account. This illegal act is called

Commingling

when making a recommendation to a consumer to purchase an annuity, the producer must make reasonable efforts to obtain suitability information. Suitability information includes

age, annual income, financial experience

A _____ ______ is the signed document that starts the free-look period

delivery receipt

The act of an insurance company publishing misleading information about its policy's provisions is called

false advertising

The Iowa Life and Health Insurance Guaranty Association is

funded by insurance companies through assessments

A life insurance policy owner may sell their policy to a(n) ______ in order to receive a percentage of the policys face value.

viatical settlement provider

A producer's license may be suspended or revoked if the license

writes primarily controlled business

An unintentional violation of Iowa Insurance law could lead a producer to a fine of up to ____ per violation

$1,000

According to Iowa insurance law, anyone found to have violated a cease and desist order may be subject to a fine up to _____ for each violation

$10,000

Life insurance death benefits up to ________ are guaranteed by the Iowa Life and Heath Guaranty Association.

$300,000

A producer who intentionally violates an insurance law of Iowa may face a penalty of up to

$5,000

An individual life insurance policy issued in Iowa must have free-look period of at least __ days.

10

A group life insurance policy insured may assign up to ____ of the insureds coverage

100%

An insurance company is required to send forms for filing proof of loss to a claimant within __ days after company receives notice of a claim.

15

Which of following is considered to be misrepresentation

A producer guaranteeing a policy's dividends

An example of unfair discrimination would be

An insurance company that charges different premiums for insureds in the same risk classification

An example of false advertising would be

An insurer exaggerating its dividends in a magazine advertisement

______ is the authority given to a producer to transact business of behalf of the insurer

Appointment

Which of the following is a requirement to attain a nonresident producer license?

Be licensed as a producer in the producers state of domicile

An example of life insurance policy replacement would be?

Cash surrender an existing whole life policy and purchasing a new whole life policy

W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim?

The proceeds would be reduced based on whatever the premium would have been if purchased at age 59

Which situation does NOT require a producer to provide a suitability statement to annuity company

When a producer discusses annuities in general with a client, but no specific recommendation is made

A domestic insurance company in Iowa MUST

be organized under Iowa insurance laws

An individual covered under Group Life insurance policy is considered to be a(n)

certificate holder

What does the Iowa Life and Health insurance Guaranty Association provide

claim payments of admitted, insolvent insurance companies

J is a producer who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this producer be found guilty of?

coercion

Who is responsible for administering insurance laws?

commissioner

Iowas 10-day free-look period for life insurance policies begins at the

date of delivery

A producer who makes a false statement intended to malign another insurance company is committing the illegal act of

defamation

An individual who has a contract with an insurance company to represent is called a(n)

producer

The _____ must provide an insured with proper disclosure concerning the replacement of a life insurance policy.

producer

No one may be denied coverage by an insurance company due to

race

According to Iowa law, group life insurance conversion privileges must NOT

require evidence of insurability

The commissioner of insurance is the chief officer of the Iowa Insurance Division and is appointed by the

governor

Which of the following is a requirement to be eligible for a group life policy in iowa

group must be informed for a purpose other then obtaining insurance

An example of rebating would be

offering a client something of value not stated in the contract in exchange for their business

life insurance replacement regulation protects the interests of?

Policyowner

Which of the following is NOT a situation that involves life insurance policy replacement

Maintaining an existing policy and applying for a new one

Which of these is NOT considered to be a replacement?

Term coverage is converted to an individual permanent plan with the same insurer

Replacement can be defined as

exchanging an existing policy for a new policy

Defamation occurs when a producer makes a false statement intended to

malign another insurer

B the producer would like to sell an annuity to his client. Before selling the annuity, B needs to collect all of the following information from his client EXCEPT

maritime status

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

is found guilty of misrepresentation in obtaining the license

A commissioner may

examine insurer solvency

Which of the following is NOT an example of "conducting insurance business"?

selling shares of stock

Group Life policies in Iowa are required to contain a conversion privilege that allows conversion

to an individual policy for a stated period of time

within how many days must a licensee notify the insurance division of change in address?

30

Which of these is NOT a duty of the Commissioner.

Create new insurance laws

A hearing must be held before a producer's license can be suspended or revoked. Prior to the hearing, the Commissioner is required to

Give written notice to the producer

A(n) ______ sells, solicits, or negotiates insurance on behalf of insurance companies for compensation.

producer

Insurance issued on a debtor to cover outstanding balances on installment loans is called

Credit life

The insurance company that Jack represents has been placed into rehabilitation, but jack continues to tell clients the company is "financially strong" and he uses an outdated financial rating to back up his claim. What unfair trade practice has Jack committed.

False financial statements

Which of the following is standard provision of the conversion privileges in a Group Life policy

Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis

Which of the following is NOT a reason for the Commissioner to revoke a producers license?

Producer is insolvent

Obtaining information from the applicant to determine whether an insurance or annuity products is appropriate is called

Suitability