Insurance Regulation
How much is an agent's appointment fee?
$5
Within what time period after completing prelicensing education must an applicant file a certificate of education completion with the Commissioner?
12 months
If a licensee does not earn 24 hours of Continuing Education by his/her review date, his/her license will be suspended for up to how many days?
90 days
Licensees who are currently licensed, and have recently become residents of the state of Michigan may not have to complete any prelicensing education. To qualify for this exemption, they must apply to become resident licensees within a few days of establishing a legal residence within how many days?
90 days
When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of
Defamation
In this state, a temporary license may be issued for any of the following reasons EXCEPT
A producer's retirement
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of
Coercion
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as
Coercion
The Commissioner may waive prelicensing requirements or examinations for someone who has been a licensed insurance producer
In the preceding 12 months
Michigan's continuing education requirement has each of the following characteristics EXCEPT
It allows for up to 15 excess credit hours to be carried forward to the next reporting period
The following areas are regulated by the Insurance Department EXCEPT
Producer commission schedules
Which of the following could be used when a corporation, association, partnership, or limited liability partnership acts as a producer?
Business Entity
When an insurance agency published an advertising brochure, it emphasized the company's financial stability and sound business practices. In reality, its financial health is terrible, and the company will soon have to file for bankruptcy. Which of the following terms best describes the advertisement?
False financial statement
Which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance
In Michigan the state's continuing education requirement
Consists of completing 24 hours of CE each biennium
If an insurer wishes to appoint a producer, it must file a notice of appointment within how many days of the date that the contract is executed?
15 days
A temporary license in this state is valid for a maximum of
180 days
If an insurer terminates a producer, the Commissioner must be notified. How many days does the insurer have to deliver this notice?
30 days
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
Illegal under any circumstances
In which of the following situations is it legal to limit coverage based on martial status?
It is never legal to limit coverage based on martial status
Which of the following best describes the unfair trade practice of defamation?
Making derogatory oral statements about another insurer's financial condition
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
Misrepresentation
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of
Rebating
When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this the company charged him a higher rate for his insurance. This practice is considered
Discrimination
Within how many days does a licensee have to inform the Commissioner of a change of address?
30 days
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverage's based on the insured's habits and lifestyle
Giving a client an inducement to a sale not stated in the policy is an lawful practice known as
Rebating
