Life Producer

After an insurer receives an itemized bill related to a valid motor vehicle policy claim, it must be paid within

20 days

An insurer has evidence that one of its insureds has submitted a fraudulent claim. To avoid penalties for not reporting fraud, the insurer must notify the Director no later than within

60 days

In order to get a nonresident license in this state a producer must

Apply and pay a fee to a nonresident state that reciprocates.

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

$2,500

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

10 years

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

The maximum time limit for reinstatement after a policy has elapsed is usually

3 years

Which of the following is the closest term to an authorized insurer?

Admitted

Which of the following is NOT covered by the Guaranty Association Act? a) The portion of a variable life policy not guaranteed by an insurer b) The portion of any policy under which the risk is borne by the policyholder c) Policies issued by mutual benefit associations d) All of the above

All of the above

A participating insurance policy may do which of the following?

Pay dividends to the policyowner

If there is a criminal prosecution taken against a producer in another jurisdiction, when must the producer report that to the Director?

Within 30 days of the initial pretrial hearing date

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

Without receiving written consent from an insurance regulatory authority.

Fire insurance companies must report to the state fire marshal any settlements related to fire losses in amounts of

$1,000 or more

If an employer decides to change its life insurance policy to a similar one with a different insurer, which of the following describes the extent that replacement regulations will be exercised?

Replacement regulations will not apply in this situation.

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

The Fair Credit Reporting Act

When the Director requests a hearing, written notice must be submitted how many days in advance?

14 days

Each violation of the Insurance Code can result in fines up to $1,000 or imprisonment for

6 months

Which type of insurance is based on mutual agreements among subscribers?

Reciprocal insurance

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customer's associates, friends, and neighbors provide the report's data.

Lyle has a $10,000 term life policy. He paid the $200 annual premium on February 1. Lyle fails to renew the policy and dies on February 28 of the following year. Minus interest, how much will the beneficiary receive from Lyle's insurance company?

$9,800

When the Director examines an insurer, which entity pays the expenses?

Insurers

Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?

Life expectancy

After passing the state exam, an individual must apply for a license within

180 days

The Director may issue a temporary producer's license without requiring an examination for a maximum period of

180 days.

An individual is currently licensed in another state, although she resides in Idaho. In order to avoid a prelicensing examination, how soon after cancelling her previous license should she apply for a resident license?

90 days

All of the following are regulated areas of the insurance industry EXCEPT

Commissions.

All of the following violations may result in an agent's imprisonment EXCEPT

Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.

An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?

Fraud

Replacement rules do not apply in all of the following situations EXCEPT

The existing life insurance is a nonconvertible term policy with less than 10 years to expire.

All of the following are true about the relationship between a producer and the insurer EXCEPT:

The insurer is responsible for all of the producer's actions.

Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of

Twisting

Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?

Twisting