XCEL Chapter 12 Idaho Laws and Rules
The standard grace period for an individual life insurance policy sold in Idaho is
30 days
An insurer producer is BEST defined as
A person who has a contract with an insurance company to represent it
What is the purpose of the Idaho life and health insurance guaranty association
Ensures that claims filed against insolvent insurance companies will be paid
What provision states that the policy and the application shall constitute the entire contract between the parties?
Entire contract
An example of an unfair claims settlement practice is
Failing to adopt reasonable standards for prompt claims investigations
A producers meeting with a client to determine whether an annuity would be suitable for purchase. Which of the following topics needs to be discussed with this client?
Financial objectives
A life settlement broker may NOT
Make any transactions before being approved for a license
Defamation occurs when a producer makes a false statement intended to
Malign another insurer
An example of an Unfair Claims settlement practice is
Misrepresenting policy provisions affecting a loss
Replacement regulation is designed to protect
Policy owners from misrepresentations and loss of benefits
An example of misrepresentation is
Providing incorrect, misleading, incomplete, or materially untrue information in the license application
Barry offers Chris his mountain cabin for The Weeknd to secure his order for his insurance business. This is an example of
Rebating
Which of the following is an example of a producers fiduciary duty?
Recording receipt and remittance of premiums due to the insurance company
Which of the following actions is required by a producer who is replacing an existing life insurance policy
Submit to the replacing insurer a list of the policies to be replaced
A producer has committed an Insurance crime that violates U.S. code 1033 (interstate commerce). Who would be responsible for the prosecution of this crime?
Us attorney General
The fair Credit Reporting Act protects consumers
With guidelines regarding credit reporting and distribution
A producer must notify the director within__ days of a felony conviction
30 days
A producer must report to the director any administrative action or criminal charges taken against the producer within _____days of the final disposition of the matter
30 days
Every producer license in Idaho must notify the Director within ___ days of any change of address
30 days
________ is the authority given to a producer to sell, solicit, or negotiate policies on behalf of the insurer
Appointment
As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?
Coercion
________ can be defined as the act of using threat or force to restrict insurance business
Coercion
An alien insurer
Is an insurer operating in the US but headquartered outside the US
Terminally- I'll life insurance policy owners may sell their policy at a discount to a third party. This type of agreement is called a(n)
Life settlement
Idaho requires a licensee to complete ____hours of continuing education hours each licensing period
24
If an insurer terminates, a producers appointment, it must notify the Director within____ days of the termination
30
The director must examine the financial affairs of each admitted insurer operating in Idaho at least once every
5 years
A life policy loan in Idaho cannot charge a fixed rate of interest higher than
8%
Tim the insurance producer, Calex, initial premium during an insurance transaction, then deposit the check into his personal checking account. In this situation, the crime of_____ has been committed.
Fraud
A foreign insurance company doing business in Idaho
Is a company domiciled under the laws of another state
A non-admitted insurance company
Is not protected by the guaranty fund
Tim's individual life insurance policy has just recently lapsed. His policy may be reinstated at any time within ______ years(s)
3 years
A temporary license is valid for a maximum of __________ days.
180
How long after it's effective date, will an individual life insurance policy become incontestable?
2 years
A life insurance replacement transaction gives a policy owner of the right to return the policy for 100% refund within____ days of the policy delivery
20 days
Which of the following is not a circumstance to watch a temporary producer license can be issued?
Prospective producer who is waiting to take the state licensing examination
An insurance producer agrees to pay the first monthly premium for an insurance applicant. This is called a(n)
Rebate
Insurance producer Kelly offers an insured a $500 shopping card if an insured product is purchased through her. What is this an example of?
Rebating