CH. 5 Quiz

If, after a hearing, the commissioner determines that the person charged has violated insurance regulations and knows or should have known he/she was in violation, the amount of the fine will be

$5,000 for each violation, not to exceed $50,000 in a 6 month period.

after receiving an application for a hearing, the commissioner must hold a hearing within

30 days

Every year, the Commissioner submits to the Hawaii legislature a report that contains all of the following EXCEPT

A list of all new licensees and analysis of insurance contracts they transacted

Which of the following would not be a violation of state insurance regulations?

Agent C uses her license to write only business other than controlled

which of the following lines of insurance may be transacted by an insurer in Hawaii without a valid certificate of authority?

All of the above

two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. what is this called?

Discrimination

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

Dividends from a mutual insurer

Which of the following is an example of an unfair claims settlement practice?

Failure to promptly settle a claim when liability has been clearly established.

all of the following are classes of insurance EXCEPT

Funeral

who might receive dividends from a mutual insurer?

Policyholders

All fees, charges, commissions and other considerations charged for insurance must be stated in the

Premium

all of the following are true regarding rebates EXCEPT

Rebates are allowed if it's in the best interest of the client.

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Rebating

Paul is a producer in California and wants to become a producer in Hawaii. The commissioner will waive certain examination requirements, provided that California would waive these same requirements if a Nebraska producer sought licensure in Hawaii. What term is used to describe this phenomenon

Reciprocity

Which of the following is a characteristic of a Reciprocal Insurance Exchange?

The chief administrator of the insurer is called an "attorney -in-fact"

A broker, no matter where located, may act as a broker for a life insurance producer in Hawaii so long as the producer has been licensed to sell life insurance for at least

1 year

An insurer must appoint a licensee before he/she is authorized to transact insurance business. The insurer must file a notice of appointment within

15 days from the date of the first insurance application is submitted

an insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. which of the following best describes this act?

Illegal under any circumstances

In which of the following situations is it legal to limit coverage based on martial status?

It is never legal to limit coverage based on martial status

The commissioner has the authority to do any of the following EXCEPT

Levy a fine for a violation of the insurance Code

Which of the following is not considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

a producer in another state wants to become a producer in Hawaii. the other state gives the same privileges to Nebraska producers wanting to be licensed in that state as it does its own producer of the other state what is this called?

Reciprocity

All of the following are considered unfair practices in the business of insurance EXCEPT

Sharing commissions

Which of the following individuals could qualify for a temporary insurance license?

a designee of a producer who is called to active military service

It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability?

sexual orientation

which of the following is an example of a producer being involved in an unfair trade practice of rebating?

telling a client that his first premium will be waived if he purchases the insurance policy today.