Exam Fx part 7 Insurance regulations

what is the maximum penalty for habitual willful noncompliance with the fair credit reporting act 1,000 100 per violation revocation of license 2,500

2,500

how many hours of ethics education are producers required to complete every licensing period? 1 hour 3 hr 1- hr 12 hr

3 hours

within how many days after receiving proof of death are group life insureres required to pay the policy proceeds to the beneficiary? 10 days 15 30 60

30

how many days to report to the commissioner any criminal prosecutions brought against them? 7 days 10 days 30 days 60 days

30 days

an insurer must pay interest on death benefits payable under the terms of a life insurance policy

insuring the life of any person who was a resident of this state at the time of death

Who may share in the commission from the sale of a life insurance policy?

only producers properly licensed for the type of insurance transaction

who can be granted a temporary license?

producers spouse or designee in case the licensed producer dies or becomes disabled

An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?

rebating

under a group plan for an association the term "employee" may include spouses of association employees spouses of officers retired employees of the association all of the above

retired employees of the association

the commissioner can approve rates, withdraw rate approvals but not .......... rates

set rates

what type of violation is transacting insurance without a license Misdemeanor Class B felony Class A felony gross misdemeanor

Class B felony

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to 3 years 5 years 10 years 12 years

10 years

what is the penalty for the insurer who fails to refund premiums within 30 days after the free-look period 3% 5% 10% 12%

10%

what is the penalty for the insurer who fails to refund premiums within 30 days after the free-look period 3% 5% 10% 12%

10%

every order by the commissioner suspending any insurance license must specify the period during which the suspension will be effective and may not last longer than 2 years 6 months 12 months 18 months

12 months

once a producers appointment is filed, within how many days will the commissioner verify the appointment (for eligible producers)? 3 days 10 days 15 days 30 days

15 days

two individuals who are in the same risk and age class are charged different rates for their insurance policies due to an insignificant factor. What is this called?

Discrimination

What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is?

Misrepresentation

if a producer has procured insurance coverage for a policyowner through an unauthorized insurer, which of the following could happen?

The producer may be held personally liable for policy claims

when is the insurer NOT required to deliver a policy summary to a policy applicant

When the insurer provides an illustration during the sale of a policy

which of the following is required annuity suitability training for producers who want to sell annuities

a one time 4 hour course

which of the following is issued by the state department of insurance to show that the insurer has power to write insurance contracts in that state certificate of insurance binder license certificate of authority

certificate of authority

what are producers required to do in order to renew their license

complete continuing education hours and pay a renewal fee

legally acceptable attempt by an exsisting insurer to perseaude their client to continue an exsisting life insurance policy using written communication is called, from replacing insurer is called disclosure replacement retention conservation

conservation

The act of trying to discourage a policyholder from dropping his/her existing policy is called baiting bargaining conservation effort dissuasive effort

conservation effort

If a producer makes maliciously critical statements about another insurer, what is this illegal practice called?

defamation

making fast statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance slandering defamation undercutting twisting

defamation

in group life insurance, if an insurer was unable to pay out the proceeds unitl the 45th day after receiving proof of death, what will be the interest on the proceeds? 3% 12% either 8% or 12% either 8% or insurers current rate, whichever is greater

either 8% or insurers current rate, whichever is greater

If an agent converts premium he collects for his personal use, he can be charged with: unethical conduct twisting fiduciary liability embezzlement

embezzlement

the general powers and duties of the insurance department include all of the following except

enacting statutes to regulate the insurance industry correct bc: laws are made and passed by the state legislature

group life insurance policies delivered in this state must contain all of the following provisions except incontestability of 2 yrs a copy of the application is considered part of the policy statements of the applicant are considered warranties a grace period of 30 days

statements of the applicant are considered warranties

when an agent is soliciting a policy through an insurer, whose responsibility is it to determine that the insurer is authorized to transact business in this state? the applicants the policyowners the companys the agents

the agents

Who must be notified of a producer's change of address?

the department of insurance

When can the Commissioner or Director examine insurers?

whenever deemed necessary, but at least one every few years

How long is the grace period in a group life insurance policy in this state? 10 days 15 31 45

31

If the benefits from a life insurance policy are not paid to the beneficiary within 90 days, what is the minimum interest rate the insurer will have to pay on the 91st day

8% min plus 3% so 11%

how long does any person receiving written notification of the commissioners order to respond and request a hearing 30 days 60 days 90 days 120 days

90 days

which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

The fair credit reporting act