Chapter 11 - xcel
obtain the consumer's signed statement documenting his or her refusal to provide suitability information
If an applicant for an annuity refuses to provide suitability information, the producer should
receive a certificate of authority from Colorado
If an insurer is authorized to conduct business in another state and wishes to conduct business in Colorado, it must..
A relationship of special trust and confidence when a person is entrusted with another's funds
A fiduciary responsibility is defined as
Obtain an insurance policy through an insurer of the borrower's preference.
As a condition to be approved for a loan, a creditor may require the borrower to
Date of death
From what point must the insurer pay interest on the proceeds of a death claim?
Coverage is contigent upon the insurer's underwriting policies
If a producer completes an insurance application, collects the initial premium and issues the appropriate receipt,...
required if the claim was not paid within 30 days of the date insurer received the claim.
Interest on life insurance proceeds is...
Higher premiums
Paying insurance premiums on a more frequent basis will cause the policy to have
The 9/11 terrorist attacks
The USA Patriot act was signed into law as a response to
100 hours of prelicensing education
To be licensed to sell life, accident, and health insurance in Colorado, an applicant must complete...
Reason stated why the policy will lapse.
Which of the following is required for a life insurance Lapse Notice?
The licensee's total premiums on controlled business exceeded the total premiums on all other business.
A license is deemed to be used for controlled business if during any 12-month period...
issue a statement to the policyowner explaining the coverage, provision, or laws on which denial was based.
When a claim has been denied, the insurer must
sexual orientation
When a life insurance underwriter is determining insurability, it is illegal to base these decisions on ___.
When insurable interest exists
When is it appropriate for a producer's spouse to be the primary beneficiary on an applicant's life insurance policy?
as often as deemed necessary
When may the Commissioner conduct an examination of an insurance company?
Determining the marital status of the applicant.
When recommending the purchase or exchange of an annuity, a producer must determine the suitability of the purchase by performing all of the following EXCEPT
Certificates
Which of the following documents are not required to mention the Colorado Fraud Statute
Reviewing and approving license applications
Which of the following is a duty of the commissioner?
Describing a universal life policy as a security.
Which of the following is an example of misrepresentation?
A person generally is considered to have an unlimited insurable interest in himself or herself.
Which of the following statement is CORRECT regarding insurable interest in a life insurance contract?
The replacing insurer must maintain copies of all records regarding replacement for at lease 5 years.
Which of the following statements is true regarding the replacement of a life insurance policy in Colorado?
When insurable interest exists
Which situation allows the producer to also be the beneficiary on a client's application for life insurance?
It's never okay
In Colorado, which of the following is true regarding the commingling of an insured'd funds with the funds of the producer?
Selling prepaid legal services
Licensing is required for all of the following except.
$20k b/c the policy has past 1 year
On June 1, 2004 G takes out a $20k Whole life insurance policy with an Accidental Death and dismemberment rider. On July 1, 2005 G intentionally overdoses on sleeping pills and takes her own life. What will G's beneficiary receive as a death benefit?
guilty of a felony
All of the following penalties apply to anyone giving intentional false testimony during an insurance examination EXEPT
issue prison sentences
In addition to suspending/revoking license and issuing fines, the Commissioner has the authority to do all of the following except...
be justified by actuarial statistics
If an insurance company wishes to discriminate rates based on gender, it must...
misrepresentation
A producer license may be suspended or revoked if the producer is found to be engaging in ...
45
A producer must remit premiums to the insurer within ___ days after receipt.
Controlled business
A producer that only sells insurance to family members is said to be engaging in
500
A producer who violates a cease and desist order may, after a hearing, be fined up to $___.
misrepresentation
A verbal or written statement which misleads a policy's features, benefits, or coverage is considered ___.
Certificates of authority
According to the Colorado Fraud Statute, all of the following must contain a warning against insurance fraud EXCEPT
defamation
Circulation of a maliciously critical statement about an insurer's financial condition meant to damage the insurer's reputation or business is called...
Single premium whole life
Colorado's replacement rules apply to all of the following types of insurance EXCEPT
Prior to using the assumed name.
If a producer chooses to conduct business under an assumed name, when must notification be given to the Commissioner?
the Commissioner will not renew the license
If a producer is found to be writing primarily controlled business, ...
"Separate insurance trust account."
If a producer is going to deposit any premium into a bank account prior to remitting the funds to the insurer, he/she must use a ...
rebating
If a producer offers to refund part of a prospect's premium in exchange for the purchase of a life insurance policy, the producer is committing the illegal act of
15 days
T calls to file a claim on his health insurance policy. Within how many days must the insurer provide Ts proof of loss forms?
5
When replacing an exiting life insurance policy, the replacing insurer must notify the existing insurer within ___ business days.
Insurer
Ultimately who is responsible for a producer-generated advertisement?
1 year
Under the suicide clause, a life insurance claim cannot be denied due to suicide after a period of ___ from the policy's effective date.
A producer may never commingle personal funds with funds paid by or to a client.
Which of the following is CORRECT regarding a producer's fiduciary responsibility with client's funds?
Comprehensive coverage may increase under the new policy.
Which of the following is NOT a problem when existing life insurance is replaced with new coverage?
Guaranteed
Which of the following words may be used in the advertisement of life insurance or annuities?
30 days
An insurer that terminates a producer's appointment must inform the Commissioner within how many days?
15
In Colorado, a life insurance applicant has ___ days after policy delivery for a full refund of premium if not satisfied for any reason.
Writing controlled business
The commissioner may issue an emergency cease and desist order without a hearing for all of the following circumstances EXCEPT
may not be issued to a group formed solely for the purpose of obtaining insurance
To be valid, a group life insurance policy...
If there is suspicion of an unauthorized person engaging in insurance business without being licensed.
When may the commissioner issue an emergency cease and desist order?
free-look period
Which of the following offers an insurance applicant the right to review the contract and receive a full refund?
A new policy that causes an existing life insurance policy to be surrendered
Which of the following potential insurance sales would be subject to replacement regulations?
A copy of the notice must be signed by the applicant and submitted with the application
Which of the following statements regarding the Notice Regarding Replacement of Life Insurance is CORRECT?
Corporate executive
Who is not eligible to receive commissions from the sale of an insurance product?
24
renewing a producer's license requires ___ hours of continued education every 2 years.
31 days
A group life insurance policy holder must be given a grace period per premium payment of how many days?
There is a reasonable explanation of the claim
An insurer cannot deny a claim unless
Within 5 business days of the insurer receiving the application
If an annuity application was not taken in person, an insurer must provide the applicant a Buyer's Guide
10,000
What is the maximum amount the commissioner can fine an insurer for each violation of a cease and desist order?
A guardian will be court-appointed in the event of a death claim
When a minor is designated as the sole primary beneficiary,...
Communication or materials used within an insurer's own organization.
All of the following are considered a form of advertisement EXCEPT
replacement
In Colorado, all of the following are considered unfair trade practices except
insured can determine the benefit amount.
Employer noncontributory group life policies must allow for all of the following EXCEPT
Appointed by the Governor
How does the Commissioner attain this position?
5 years
How long must a replacing insurer maintain the records of a replacement transaction?
A non-admitted insurer
A company that has not been authorized to operate in Colorado is known as
skydiving
A health insurer may exclude medical coverage for any claims that result from
applicant.
A life insurance applicant realized he failed to disclose material history and calls the producer. Any changes made to the application must be initialed by the...
The claim will be denied under the suicide provision.
G takes out a life insurance policy on October 8th, 2008. On August 3, 2009, G takes his own life. When G's beneficiary files a claim,...