Insurance regulations

Which of the following would be considered an illegal inducement to purchase insurance

confirming future dividends in a life insurance proposal

A premium payment is due on the Saturday before Memorial Day. What is the latest the insured can mail the payment for it to be considered on time?

Tuesday after the due date

What is the minimum age for obtaining an insurance producer's license in this state?

18

How many hours of continuing education are producers required to complete every licensing period?

48

What is the penalty for IRA distributions that are below the required minimum for the year?

50%

Which of the following is a qualification for an adjuster's license

must be at least 18

Which of following is Not qualification for obtaining a producers license?

must be retained by a licensed insurance agency

If an insurance policy does not have the proper countersignature

the policy will still be considered valid

In Arizona, the Director of Insurance serves

At the pleasure of the Governor.

Property and casualty producers can usually do something for their clients that life and health producers cannot provide. What is this service?

Bind coverage

In life insurance, producers are permitted to share or split commissions, providing that

Both are properly licensed for the line of insurance.

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?

It is only taxable if the cash value exceeds the amount paid for premiums.

A life insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible, Which term describes what the agent has done?

Misrepresentation

Death benefits payable to beneficiary under a life insurance policy are generally

Not subject to income taxation by the Federal Government.

What part of the Internal Revenue Code allows an owner of a life insurance policy or annuity to exchange or replace their current contract with another contract without creating adverse tax consequences?

Section 1035 Policy Exchange

What type of annuity activity will cause immediate taxation of the interest earned?

Surrendering the annuity for cash

Which of the following best describes taxation during the accumulation period of an annuity?

Taxes are deferred.

An agent's license expired on December 1, 2015. His renewal application was not received until July 31, 2016. Which of the following is true regarding the license's renewal?

The Director may accept the application, provided that the agent pays the appropriate renewal fees plus a $100 late fee.

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

The Fair Credit Reporting Act

The Director may require a producer to submit fingerprints in all of the following situations EXCEPT

Upon insurer insolvency. Upon license issuance, renewal, suspension, revocation, merger or acquisition, the Director may require producers to submit full sets of fingerprints.

Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE?

Withdrawals are not taxable.

Any person who knowingly attempts to obtain money, goods, or any other things of value with the intent to cheat and defraud is guilty of

a felony

Who requires that a prospective producer take and pass a written examination on the kinds of insurance business specified in application?

Director

When contributions to an immediate annuity are made with before-tax dollars, which of the following is true of the distributions?

Distributions are taxable.

All of the following are true regarding rebates EXCEPT

Dividends are not considered to be rebates. B. Rebates are allowed if it is in the best interest of the client. Rebates are only allowed if specifically stated in the policy. Rebating can be anything of monetary value given as an inducement to purchase insurance.

Which of the following is used to determine the annuity amounts that are not taxable?

Exclusion ratio

The following are all causes for the insurance director to suspend or impose conditions upon the continuance for a producers license except

evidence that the producer is a poor personal credit risk

Which of the following best describes the unfair trade practice of defamation

making derogatory oral statements about another insurer's financial condition

Which of the following could be considered an adjuster

paid claim investigators

If after an examination and a hearing the director determines that an insurer has failed to comply with the insurance code statutes regarding charging extra fees or applying service charges, the director will order the insurer to

refund the fee to the customer

The national do not call registry was created to regulate

telemarketers

Who decides if a licensed property or casualty insurance producer can be licensed as a resident surplus line broker

the director

Which of the following pays for the examination of an insurer's services fees to determine compliance with the state insurance code

the insurer

If taken as a lump sum, life insurance proceeds to beneficiaries are passed

Free of federal income taxation.

In life insurance policies, cash value increases

Grow tax deferred.

An insured has a Modified Endowment Contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true?

He will have to pay a penalty if he is younger than 59 1/2.

Every producer must maintain a place of business in Arizona

Accessible to the public.

When a new insurance company wishes to transact business in the state, it must do all of the following EXCEPT

Obtain approval of each of its corporate officers and executives.

If a premium payment is mailed, how can an insurer establish the date of payment?

The postmark on the envelope

Insurance institutions and producers must provide notice of their information gathering practices to applicants and policyholders no later than

The time the policy is delivered.

the 30 day payment of claims requirement applies to which of the following persons?

a state worker filling a person injury claim