AD Banker Life and Health Chap 15

Anyone refusing to deliver any of the books, records, or assets of a person against whom a seizure order has been issued will be guilty of a misdemeanor and punishable by fine of up to what amount?

$1,000

Persons who willfully commit unfair acts and practices may be issued a cease and desist order, carrying administrative penalties of up to how much per act?

$10,000

Engaging in an unfair method of competition unwillingly subjects an agent to a civil penalty up to _______ per violation.

$5,000

The Commissioner may suspend or revoke a license or certificate of authority, not to exceed ______ year(s), of anyone for willfully violating the prohibition on arranging for the sale of free insurance.

1

A license which has been revoked may not be reinstated within:

1 year

An individual license will automatically terminate immediately upon the death of the licensee or if the license has not been renewed within _____ months following its expiration.

12

In California, upon receiving any communication from a claimant, regarding a claim, that reasonably suggests that a response is expected, every licensee shall immediately, but in no event more than _____ calendar days after receipt of the communication, furnish the claimant with a complete response based upon the facts as known.

15

An agent whose license is suspended for more than ___ years will need to retake the prelicensing course and pass the qualifying exam.

2

Upon receiving a request for records, insurers and/or agents must deliver the records to the Commissioner within ____ days.

30

After expiration or cancellation, agents and brokers must keep records of every insurance transaction for at least ___ years.

5

Under the California Insurance Code, Life and Disability insurance agents must maintain records in their place of business for at least _____ years and must be open to inspection or examination by the Commissioner at all times.

5

Under the California Insurance Code, records must be kept by agents for at least _____ years following actual policy delivery, or the date of application if no policy is issued.

5

Under the California Insurance Code, the Commissioner has continuing authority to act against a former agent whose license has been surrendered or expired for up to:

5 years

A licensee who has applied to renew a license will be entitled to continue operating under the existing license for _____ days after its specified expiration date, or until notified by the Department that the renewal application is deficient, whichever comes first.

60

Under the California Long-term Care Education Requirements newly licensed agents who intend to market Long-Term Care insurance must complete a(n) _____-hour course in Long-Term Care insurance in each of their first 4 years of licensing (two terms).

8

The Commissioner must approve which of the following agency names:

A bona fide natural name of an individual

Which of the following would likely be considered a deceptive advertising?

A magazine advertisement for a product not available for sale in California without a disclaimer concerning its availability

Which of the following is not an example of an unfair trade practice?

Advertising on the internet

All licensed producers must complete a minimum of how many hours of continuing education prior to each license renewal?

All licensed producers must complete a minimum of 24 hours of continuing education prior to each license renewal. Agents who complete more than the minimum required hours will have excess hours 'rolled over' to the next license term.

Which circumstance would be a basis for a producer to have their California insurance license, suspended, revoked, or renewal refused?

All of the answers listed

Which statement is false regarding fraudulent claims in California?

Any insurer that believes that a fraudulent claim is being made shall report the fraudulent claim to the Bureau of Fraudulent claims within 30 days of such discovery

All of the following are allowed or true regarding a producer or agent, except:

As an incentive to close a sale, they may offer discounts of premium to a prospective client

The California Insurance Code requires all producers who meet with established clients age 65 and older in their homes for the purpose of transacting life insurance, annuities, or disability insurance products be given the required written notice:

At least 24 hours in advance of the meeting

Which of the following is not an unfair claims settlement practice?

Attempting to settle claims by arbitration

A Life and Disability Analyst cannot be employed or paid by the insurer and must meet all of the following requirements, except:

Be at least age 18

Entering into an agreement that would result in an unreasonable restraint of, or monopoly in the business of insurance is considered:

Boycott, Coercion, or Intimidation

All internet advertisements directed to California insurance consumers must include the agent's _____________ in addition to the agent's principal place of business.

California insurance license number

A Life-Only Agent who is not also licensed as an Accident and Health Agent may transact:

Certain disability benefits as riders to life or annuity contracts and are subject to specific continuing education requirements

Under the California insurance code, the penalty for unlawfully acting as an insurer without a(n) _____________ is imprisonment (state or county jail) not to exceed 1 year, and/or a fine not to exceed $100,000.

Certificate of Authority

An agent's license remains in active status as long as all of the following conditions are met, except:

Commission income equals or exceeds $25,000

A person will be deemed to be transacting insurance when the person advertises on the internet, and does any of the following, except:

Communicates an invitation to inquire

In a presentation to the local life underwriter association, Randy wrongly stated that ABC insurer is in financial difficulty. Randy may be guilty of:

Defamation

The Insurance Commissioner may examine the records of an insurer in order to:

Determine the insurer's solvency

Every licensee must file with the Commissioner in writing the true name of the individual or organization and all _______names under which business will be conducted.

Fictitious

An insurer cannot consider sexual orientation in its underwriting criteria or use marital status, living arrangements, occupation, sex, beneficiary designation or Zip Code to determine whether to require a test for the presence of:

HIV

Under the California insurance code an insurer is entitled by law to rescind a policy in all of the following cases, except:

Immaterial misrepresentation

An agent's license will remain active as long as all of the following requirements have been met, except:

Insurer sales quota

Licensees must make all records available to the Commissioner including all files for how many years prior to the request?

Insurers specifically are required to maintain claim data so that it is accessible, legible, and retrievable for examination, and must be able to provide the claim number, line of coverage, date of loss, date of acceptance, date of payment, date of denial or closing without payment. This data must be available for all open and closed files for the current year, and the 4 preceding years.

Which statement is true of the California Insurance Code?

It establishes as a goal that policies be reasonably priced and widely available

Any notice required to be given to an insured by the insurer may be mailed, postage paid, and addressed to the policyowner, insured, claimant, or beneficiary to be notified at the:

Last known address of record

Under the California Insurance Code, all life __________ are agents when transacting life or disability insurance, regardless of the language the insurance company may use in its agency agreements, advertising, or other communication.

Licensees

Funds controlled by the California Guarantee Association are used to:

Pay claims of insolvent insurers

Funds controlled by the Guarantee Association are used to:

Pay claims of insolvent insurers

The purpose of a Certificate of Authority is to:

Permit an insurance company to transact business

A Life Settlement Broker is exclusively the representative of the __________ who seeks to sell his interest in the policy.

Policyowner

Regarding Proof of Notice under the California insurance code, the __________ is responsible for notifying the insurer of address changes including any change of email address.

Policyowner

An agent would be guilty of pretexting or conducting a pretext interview in which of the following situations?

Pretends to be someone or something other than an insurance producer in order to obtain personal nonpublic information about someone in connection with an insurance transaction

A _________ involves an attempt to obtain personal, non-public information through deception, and leading the person to believe a meeting will be held with someone other than a licensed agent or insurance company representative acting in an authorized capacity.

Pretext interview

When a producer offers a prospective insured a portable dishwasher as a bonus for purchasing a policy, he/she could be guilty of:

Rebating

Which of the following is not an unfair trade practice?

Replacement of policies

As a disciplinary measure when a violation of the Insurance Code would justify suspension, revocation or denial of license, the Commissioner may revoke the permanent license and issue a:

Restricted license

All of the following are considered duties of the California Insurance Commissioner, except:

Set insurance rates

An employee of an agency must be licensed as a producer if he/she:

Solicits applications and receives commissions

Who enforces the regulations found in the CCR?

The insurance commissioner

Which of the following is not a reason why a license may be suspended or revoked after it has been issued?

The licensee does intend actively and in good faith to carry on as a business with the general public the transactions which would be permitted by the issuance of the license applied for

Which one of the following is not a reason why a license may be suspended or revoked after it has been issued?

The licensee has a good business reputation

Which statement is false of the California Life and Health Guarantee Association?

The maximum amount that will be paid to a covered person on behalf of an admitted insolvent insurer is $500,000 per life

The California Insurance Code requires all producers who meet with prospective clients age 65 and older in their homes for the purpose of transacting life insurance, annuities, or disability insurance products to first provide a written notice of the first meeting which provides information concerning all of the following, except:

The name, home address and social security number of all individuals attending the meeting

Which statement is false regarding the operation of nonadmitted insurers in California?

These insurers are subject to the financial solvency regulation and enforcement that applies to California licensed insurers

A license that has been revoked may not be reinstated within:

Under the California Insurance Code, a license that has been revoked may not be reinstated within 1 year of revocation.

Forcing insureds to sue the insurer to collect on a claim by offering substantially less than the amount eventually recovered is a violation of the:

Unfair Claims Settlement Practices Act

Which of the following is not an unfair discriminatory practice:

Using an applicant's birthplace for purposes of identifying the applicant

When are Errors and Omissions claims filed?

When clients file a report or a complaint

In which of the following situations may an unlicensed person conduct business for a licensed Broker-Agent?

When winding down the business of a deceased or disabled Broker-Agent, including receiving commissions for new business prior to death or disability

Which is not a duty of the Commissioner?

Writing insurance laws