Insurance Exam Prep Question
Which of the following is NOT true of the Iowa Life and Health Guaranty Association Act
It covers all policyholders insured by unlicensed insurers
A Temporary License may be issued to approved individuals for a period of
90 days with extensions up to 180 days
Which of the following individuals would be required to be licensed
An insurance consultant that receives commissions from a producer
Producers are only permitted to share or split commissions if
Both are licensed for the same line of authority
Which of the following is NOT considered an unfair claims settlement practice
Failure to pay a claim not covered
Which of the following is NOT true of the Iowa Insurance Fraud Act
Persons are always civilly liable as the result of filing reports with law enforcement agencies
Which of the following activities require an individual to be licensed as a producer
Signing an insurance application
Which of the following Acts was established to protect individuals from possible abuses of information contained in their credit files
The Fair Credit Reporting Act
All of the following are functions and objectives of the insurance division EXCEPT
To ensure competitive rates
The activity of exchanging a gift or other consideration as an inducement for the purchase of insurance is
a rebate
The maximum fine for failing to adhere to a cease and desist order is
$10,000
A producer must notify the insurance division of a name change within
30 days
All of the following are true of an agency appointment EXCEPT
Individuals employed by appointed agencies may initiate sales activities upon successful completion of their state exam
All of the following characterize the processing of complaints filed with the insurance division against producers and insurers EXCEPT
It is under the jurisdiction of the state's Attorney General
A producer licensed for life, accident, and health insurance
May complete 36 approved credits in life, health, property, or casualty
The Unfair Trade Practices Act
Regulates trade practices by defining practices that constitute unfair methods or competition and/or deceptive practivces
All of the following are examples of unfair trade practices EXCEPT
Replacement when in the best interest of the insured and when all applicable replacement forms are completed
An Agency License is
Voluntary and available upon request from the insurance division
A producer represents
the insurer
An applicant for a producer's license must be at least
18 years old
The practice of giving back to an insured a portion of the commissions earned on the sale of a policy is
A rebate
All of the following applicants may be denied a producer's license EXCEPT
A stockbroker
Which of the following activities would require an agency employee to be licensed?
Counseling an applicant on a product
All of the following would be considered an unfair claims practice EXCEPT
Dealing with the insured or claimant in good faith
An agreement of intimidation that results in the unreasonable restraint of trade or monopoly in the business of insurance would be considered
Boycott and coercion
All of the following are prohibited insurance practices EXCEPT
Direct Mail Marketing
All of the following are true of the Continuing Education Regulation EXCEPT
Continuing education is waived for producers that have a law degree
All of the following activities would be sufficient to warrant the suspension of a producer's license EXCEPT
Failure to complete a credentialed education program
Which of the following policies is covered under the Iowa Life and Health Insurance Guaranty Association Act
A life insurance policy issued by an admitted insurer
Which of the following is NOT a requirement necessary to qualify as a producer in Iowa
Complete a 36 hour licensing course
Which of the following would be considered an illegal inducement
Confirming future dividends in a proposal
An insurance producer that misrepresents the benefits, advantages and conditions of an insurance policy
Has engaged in an unfair insurance practice Has violated Iowas Unfair Insurance Practices Act May be fined and/or have his license suspended by the insurance division
A Temporary License allows an executor or administrator of a deceased producer's estate to do all of the following EXCEPT
Circumvent the normal licensing process
