Life Insurance: Chapter 5: Quiz

which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?

Fraternal benefit society

If a person accumulates more continuing education hours than is necessary to fulfill the requirements of the 2 year period which of the following will occur?

The extra hours may be continued into the next period

An agent's appointment has been denied. Which of the following is true?

state taxes may be refunded upon request

which of the following is an example of the producer's fiduciary duties?

the trust that a client places in the producer in regard to handling the premiums

Who might receive dividends from a mutual insurer?

Policyholders

The Office of Insurance Regulation is responsible for all of the following insurer activities EXCEPT a) issue of securities b) viatical statements c) policy forms d) premium financing

a) issue of securities

which of the following is true regarding an agent's appointment

an agent may have multiple appointments at the same time

Which of the following is an agreement between an insured and an insurer, where the insurer agrees to indemnify the insured for specific losses in exchange in premiums?

The insurance contract

what term is used for replacing insurance policies for the sole purpose of making commission?

churning

which of the following authorities grant and revoke certificate of authority licenses?

department of financial services

the requirement that agents not commingle insurance monies with their own funds is known as

fiduciary responsibility

Pertaining to insurance, which of the following is an example of a producer's fiduciary responsibility?

promptly forwarding premiums to insurance companies

an insurance agent x has been found guilty of a felony and was sentenced for 3 years in prison. What would be the appropriate plan of action?

send a written notification to the department of insurance

which of the following types of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?

twisting

all of the following can be described as twisting except? a) misrepresenting the terms and conditions of the existing policy to make the new one look more attractive b) embellishing the terms of the proposed policy in order to convince the insured to swithc c) making an incomplete comparison of the existing to the proposed policy d) explaining to the client the advantages of permanent insurance over term and suggesting changes in the policy

d) explaining to the client the advantages of permanent insurance over term and suggesting changes in the policy