CT LOW
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases an insurance policy from the bank in the amount of the loan. This is an example of ACoercion BLoading. CDefamation. DTwisting.
ACoercion
Circulating deceptive sales material to the public is what type of Unfair Trade Practice? AFalse advertising BDefamation CCoercion DMisrepresentation
AFalse advertising
An agent recently was found to have obtained a license through fraud. In addition to license revocation, the Commissioner may impose what maximum fine? A$1,000 B$5,000 C$10,000 D$25,000
B$5,000
An insurance producer who positions a sale of insurance to an applicant as being required to be in compliance with a lender's insurance requirement is guilty of which of the following? A.Discrimination B.Coercion of borrower C.Controlled business D.Defamation
B.Coercion of borrower
Within how many days after the receipt of the proceeds may the owner rescind the life settlement contract? A10 days B15 days C30 days D60 days
B15 days
How long must insurers keep records of all printed, published, or prepared advertisements? A3 years B4 years C5 years DIndefinitely
B4 years
Applicants for a license must furnish satisfactory evidence of all of the following to the Commissioner EXCEPT A.Financial responsibility. B.Trustworthiness and competence. C.State residency. D.Good moral character
C.State residency.
To meet the continuing education requirements, producers must complete at least A16 hours annually. B20 hours annually. C18 hours biennially. D24 hours biennially.
D24 hours biennially.
What is the purpose of Life Insurance Solicitation regulation? ATo provide information regarding replacement of policies BTo identify the required and prohibited actions for insurance advertising CTo help producers understand different insurance policies DTo help consumers compare life insurance products in regard to their relative cost
DTo help consumers compare life insurance products in regard to their relative cost
What is the key element of fiduciary capacity? ARisk BConsideration CRebating DTrust
DTrust
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 a)Rebating. b)Twisting. c)False advertising. d)Coercion.
b)Twisting.
All of the following are considered unfair trade practices in the business of insurance EXCEPT ARebating. BDefamation. CSharing commissions. DBoycott.
CSharing commissions.
Which of the following would not be a violation of state insurance regulations? AProducer B charges his clients, in addition to the premium, a consulting fee. BProducer C uses her license to write only business that is not controlled. CProducer D collects premiums due on policies and deposits the funds in his own personal account. DProducer A uses her license to write only insurance for herself and her immediate family.
BProducer C uses her license to write only business that is not controlled.
A temporary license may be issued without examination to all of the following, EXCEPT AThe surviving spouse of a deceased producer. BThe spouse of a retired producer. CThe legal guardian of a disabled producer. DThe designee of a producer entering active service in the U.S. Navy.
BThe spouse of a retired producer.
In which of the following situations is it legal to limit coverage based on marital status? ALegal separation during the application process BDivorce within the last six months of applying for insurance CIt is never legal to limit coverage based on marital status. DExcessive number of divorces, as defined by the Insurance Code
CIt is never legal to limit coverage based on marital status.
Which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home? AGuaranteed insurability BPayor benefit CLong-term care DAccidental death
CLong-term care
Which of the following would not be a violation of state insurance regulations? AProducer C uses her license to write only business that is not controlled. BProducer D collects premiums due on policies and deposits the funds in his own personal account. CProducer A uses her license to write only insurance for herself and her immediate family. DProducer B charges his clients, in addition to the premium, a consulting fee.
AProducer C uses her license to write only business that is not controlled.
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of ARebating. BCoercion. CTwisting. DControlled business.
ARebating.
Basic policy illustration formats must include all of the following EXCEPT AThe illustration may only be on white colored paper. BThe labeled date the illustration was created. CEach page must be numbered. DThe assumed dates of payment receipt must be clearly defined.
AThe illustration may only be on white colored paper.
What is the purpose of Life Insurance Solicitation regulation? ATo help producers understand different insurance policies BTo help consumers compare life insurance products in regard to their relative cost CTo provide information regarding replacement of policies DTo identify the required and prohibited actions for insurance advertising
BTo help consumers compare life insurance products in regard to their relative cost
The Commissioner investigates claims filed against a licensee and finds that the licensee has chronically violated several insurance regulations. The Commissioner decides to hold a hearing. What is the minimum amount of notice that the licensee must be given for the hearing? A15 days B20 days C30 days D10 days
C30 days
Under what circumstance may a creditor of an insured, not named as beneficiary, seek entitlement to the proceeds of a life insurance death benefit? AUnder no circumstance BWhen the indebtedness was incurred after the policy was issued CWhen the indebtedness was incurred before the policy was issued DIf the policy was purchased with the intent to defraud the creditor
DIf the policy was purchased with the intent to defraud the creditor
Which rule would apply when an applicant is going to cash in an old policy and use the funds to purchase a new policy? AReinstatement BConversion CDisclosure DReplacement
DReplacement
The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT a)The beneficiary's life expectancy. b)Projected interest rates. c)Face amount of the policy. d)The insured's age at death.
d)The insured's age at death.
An insured recently discovered that the interest rate on his policy loan once again increased. Which of the following is the shortest amount of time that could have passed since the last change in the insured's interest rate? A1 month B3 months C6 months D12 months
B3 months
A producer is charged with a violation of the Insurance Code in another jurisdiction. The producer must now notify the Commissioner of the charges within A10 days. B30 days. C60 days. D90 days.
B30 days.
Which of the following would be considered an illegal inducement to purchase insurance? AListing the insurance companies the agency represents in a letter BInviting prospective clients to the grand opening of the producer's new office CConfirming future dividends in a life insurance proposal DMailing an agency brochure to a prospective client
CConfirming future dividends in a life insurance proposal
An attempt by the existing insurer to dissuade a current policyowner from the replacement of existing life insurance is known as ANegotiations. BRebating. CConservation. DSolicitation.
CConservation.
In which of the following situations has replacement occurred? AAn applicant buys life insurance for the first time. BAn applicant buys a new policy but intends to keep the old policy in force. CAn insured terminates group life coverage in order to buy an individual whole life policy. DA policyowner borrows 25% of their cash value to buy a new policy.
DA policyowner borrows 25% of their cash value to buy a new policy.
Which of the following features of the Indexed Whole Life policy is NOT fixed? a)Policy period b)Cash value growth c)Premium d)Death benefit
b)Cash value growth
Which of the following statements is correct regarding a whole life policy? a)The policyowner is entitled to policy loans. b)Cash values are not guaranteed. c)The policy premium is based on the attained age. d)The death benefit may increase or decrease during the policy period.
b)Cash values are not guaranteed.
What type of premium do both Universal Life and Variable Universal Life policies have? a)Decreasing b)Increasing c)Flexible d)Level fixed
c)Flexible
Which statement is NOT true regarding a policy summary? AIt must be combined with a sales illustration. BIt is generally given to applicants before acceptance of the initial premium. CIt must include the generic name of the basic policy and each rider. DIt must include the date the policy summary is prepared.
AIt must be combined with a sales illustration.
In Connecticut, what is the maximum interest rate that may be charged by an insurance company on a policy loan? A4% B8% C10% D12%
B8%
Which of the following is another term for an authorized insurer? ALegal BAdmitted CCertified DLicensed
BAdmitted
How often must life settlement brokers renew their license? AOnce every 4 years BAnnually CSemi-annually DOnce every 2 years
BAnnually
An insurance producer just sold an insurance policy to his sister. What kind of business is this? APersonal BControlled CIllegal DInternal
BControlled
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice? AUnfair Discrimination BDefamation CIllegal DA legal advertising strategy
CIllegal
All of the following are the duties of the replacing producer where replacement is involved EXCEPT ASubmit to the replacing insurer a copy of all soliciting material. BSubmit to the replacing insurer a statement signed by the applicant as to whether or not there is existing life insurance. CSend a letter to the policyowner of the right to receive information regarding the existing policy. DProvide a copy of all solicitation material used for presentation to the applicant
CSend a letter to the policyowner of the right to receive information regarding the existing policy.
All of the following are general requirements of a qualified plan EXCEPT A The plan must provide an offset for social security benefits. B The plan must be communicated to all employees. C The plan must be for the exclusive benefits of the employees and their beneficiaries. D The plan must be permanent, written and legally binding.
A The plan must provide an offset for social security benefits.
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered AA required disclosure. BA legal representation of the Association. CAn unfair trade practice. DA misrepresentation.
CAn unfair trade practice
Upon the decision to nonrenew a license or deny an application for a license, the Commissioner must do all of the following EXCEPT AState the reason for denial or nonrenewal. BHold a hearing upon request. CIssue a cease and desist order. DNotify the individual in writing.
CIssue a cease and desist order.
Upon the death of the member insured under a group life policy, what will happen to the dependent's coverage? AThe dependent's coverage will terminate. BThe dependent may convert to an individual policy with proof of insurability. CThe dependents will continue their coverage under the group policy. DThe dependent can convert to an individual policy without proof of insurability.
DThe dependent can convert to an individual policy without proof of insurability.
All of the following would be considered an insurance transaction EXCEPT AAdvising a policyholder regarding a claim. BNegotiating coverage. CObtaining an insurance license. DSoliciting a policy.
CObtaining an insurance license.
What is the main purpose of the regulation on life insurance policy illustrations? ATo help producers submit proper reports to the department of insurance BTo present a life policy in a visual way CTo help customers make educated decisions in buying life insurance DTo compare life policies
CTo help customers make educated decisions in buying life insurance
If an insured under a variable life insurance policy dies, how will the insurer respond to outstanding policy loans? A The loan amounts are deducted from the death benefit. B The policy is withheld until payments are met. C The loan amount is charged to the beneficiaries. D The loans are waived.
A The loan amounts are deducted from the death benefit.
Which of the following is TRUE regarding the accumulation period of an annuity? a)It is also referred to as the annuity period. b)It is a period of time during which the beneficiary receives income c)It is limited to 10 years. d)It is a period during which the payments into the annuity grow tax deferred.
d)It is a period during which the payments into the annuity grow tax deferred.
An agent uses an insurer's illustration. He obtains proper approval and does not change the illustration in any way. The illustration involves projected amounts, and the agent stipulates that the amount would not be guaranteed. Which of the following is true? AThe illustration is fine the way it is. BThe agent must stipulate that the illustration is not part of the contract. CIt is illegal to include a nonguaranteed amount in an illustration. DThe agent needs to change the illustration to include guaranteed amounts only.
BThe agent must stipulate that the illustration is not part of the contract.
If an insured continually uses the automatic premium loan option to pay the policy premium, a)The policy will terminate when the cash value is reduced to nothing. b)The face amount of the policy will be reduced by the automatic premium loan amount. c)The cash value will continue to increase. d)The insurer will increase the premium amount.
a)The policy will terminate when the cash value is reduced to nothing.
How often must the Commissioner examine all insurers to guard against insurance company insolvency? A.nnually B.At least once every 3 years C.At least once every 5 years D.As often as the Commissioner deems necessary
D.As often as the Commissioner deems necessary
How many days after coverage under a group plan ends may an insured convert to an individual policy without evidence of insurability? A10 days B14 days C30 days D31 days
D31 days
The Insurance Department has received complaints about a particular producer regarding policy-selling conduct. What can be issued that would legally force the producer to stop the acts in violation? AWrit of noncompliance BStop-action order CLimitation of power DCease and desist order
DCease and desist order
A schedule of maximum fees which may be charged by insurance producers may only be established by AThe Branch Manager. BThe Managing Agent. CThe Agency By-laws. DThe Commissioner..
DThe Commissioner..
The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the a)Reinstatement clause .b)Insuring clause. c)Misstatement of Age clause. d)Incontestability clause.
d)Incontestability clause.
All of the following are true regarding rebates EXCEPT a)Rebates are only allowed if specifically stated in the policy. b)Rebating can be anything of monetary value given as an inducement to purchase insurance. c)Dividends are not considered to be rebates. d)Rebates are allowed if it is in the best interest of the client.
d)Rebates are allowed if it is in the best interest of the client.
Which two terms are associated directly with the way an annuity is funded? a)Increasing or decreasing b)Immediate or deferred c)Renewable or convertible d)Single payment or periodic payments
d)Single payment or periodic payments
Which of the following is NOT true regarding a Certificate of Authority? AIt is issued to group insurance participants. BIt may be necessary for transacting business in a specific state. CIt is equivalent to an insurance license. DIt is issued by the state department of insurance.
AIt is issued to group insurance participants.
Which of the following best describes annually renewable term insurance? A It is level term insurance. B It requires proof of insurability at each renewal. C Neither the premium nor the death benefit is affected by the insured's age. D It provides an annually increasing death benefit.
A It is level term insurance.
How many hours of Connecticut continuing education must a nonresident producer complete every 2 years? A0 B3 C18 D24
A.0
When appointing a producer, an insurer must file a notice of appointment to the Department of Insurance within A15 days. B20 days. C30 days. D31 days.
A15 days.
An insurance producer who positions a sale of insurance to an applicant as being required to be in compliance with a lender's insurance requirement is guilty of which of the following? ADiscrimination BCoercion of borrower CControlled business DDefamation
BCoercion of borrower
The term "illustration" in a life insurance policy refers to AA depiction of policy benefits and guarantees. BCharts and graphs. CA presentation of nonguaranteed elements of a policy. DPictures accompanying a policy.
CA presentation of nonguaranteed elements of a policy.
A producer will be receiving compensation directly from a customer for an issued policy. Which of the following must be disclosed to the customer before the compensation can be received? AProducer's rate scale BProducer's average commission for a similar policy CThe amount of compensation the producer will receive DAn estimate for the compensation
CThe amount of compensation the producer will receive
What is the limit to the number of times that the Commissioner can examine the books and records of an insurance company? AEvery 6 months BOnce every 5 years CThere is no limit. DOnce a year
CThere is no limit.
Which of the following is true regarding the renewals of producer licenses? ALicenses expire every 2 years on the last day of the producer's birth month. BLicenses expire every 2 years on January 1st. CAll producers must renew their licenses every even-numbered year. DLicenses must be renewed annually.
ALicenses expire every 2 years on the last day of the producer's birth month.
Which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home? ALong-term care BAccidental death CGuaranteed insurability DPayor benefit
ALong-term care
A producer will be receiving compensation directly from a customer for an issued policy. Which of the following must be disclosed to the customer before the compensation can be received? AThe amount of compensation the producer will receive BAn estimate for the compensation CProducer's rate scale DProducer's average commission for a similar policy
AThe amount of compensation the producer will receive
Which rule would apply when an applicant is going to cash in an old policy and use the funds to purchase a new policy? ADisclosure BReplacement CReinstatement DConversion
BReplacement
All of the following are unfair claims settlement practices EXCEPT AFailing to acknowledge pertinent communication pertaining to a claim. BSuggesting negotiations in settling the claim. CRefusing to pay claims without conducting a reasonable investigation. DFailing to adopt and implement reasonable standards for settling claims.
BSuggesting negotiations in settling the claim.
Any references to policy dividends must include a statement of what? AThat the dividends are subject to surcharges BThat the dividends are not guaranteed CThat the dividends are subject to taxation DThat the policy is subject to verification
BThat the dividends are not guaranteed
State law specifically prohibits using illegal inducements in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT APromising returns and profits from the purchase of insurance. BOffering benefit certificates or securities in return for purchasing insurance. CInviting prospective clients to the grand opening of the company's new office. DIssuing or delivering insurance company stock in return for purchasing insurance.
CInviting prospective clients to the grand opening of the company's new office.
What method do insurers use to protect themselves against catastrophic losses? a)Indemnity b)Pro rata liability c)Risk management d)Reinsurance
d)Reinsurance
Which of the following is NOT true concerning temporary licenses? AThe Commissioner may limit the authority of any temporary licensee in any way deemed necessary. BA temporary license may be revoked if it's in the best interest of the insured. CThe Commissioner may require for the temporary licensee to be sponsored by a licensed producer who assumes responsibility for all acts of the temporary licensee. DA temporary license may continue after the owner disposes of the business, as long as it's under 180 days.
DA temporary license may continue after the owner disposes of the business, as long as it's under 180 days.
Which of the following is NOT found in the Buyer's Guide that is provided to prospective buyers? ATypes of life insurance that are available BHow much life insurance might be needed CComparison of the cost of similar life insurance policies DFinancial strength of the insurer
DFinancial strength of the insurer
Which of the following would NOT be considered grounds for the Commissioner to suspend an insurance producer's license? AProducer misrepresented information on his application for licensure. BProducer had his license revoked in a neighboring state. CProducer ignored a subpoena order from the Commissioner. DProducer is found guilty of a misdemeanor.
DProducer is found guilty of a misdemeanor.
During the solicitation process for life insurance, a producer must provide a notice of information practices to all applicants. The notice must include all of the following information EXCEPT AThe time limit for obtaining personal information on the insured. BIf personal information may be collected from someone other than the insured. CThe types of investigative techniques that may be used to collect personal information. DThe type of personal information that may be collected.
AThe time limit for obtaining personal information on the insured.
Which of the following dates must be contained in a policy summary? AThe date that the producer was licensed BThe date the summary was prepared CThe date the application was signed DThe date that the policy was issued
BThe date the summary was prepared
When a whole life insurance policy provides accelerated living benefits in the event of the insured being diagnosed with a terminal illness, this is provided under a(n) ARider attached to the policy. BWaiver added to the policy. CAssignment of the death benefit. DMandatory standard provision of the policy.
ARider attached to the policy.
All of the following are potential grievances for which an insured may be compensated by the Brokered Transactions Guaranty Fund EXCEPT AMisrepresentation by producer. BDissatisfaction with policy. CUnlawful obtainment of money through fraud. DEmbezzlement of money or property.
BDissatisfaction with policy.
Which of the following would NOT be considered grounds for the Commissioner to suspend an insurance producer's license? AProducer had his license revoked in a neighboring state. BProducer ignored a subpoena order from the Commissioner. CProducer is found guilty of a misdemeanor. DProducer misrepresented information on his application for licensure.
CProducer is found guilty of a misdemeanor.
Which of the following occurs when the state in which the person resides accords the same privilege to residents of Connecticut? ACertificate of Authority BNonresidency CReciprocity DIndemnity
CReciprocity
When a policyowner assigns interest in a whole life insurance policy, the new owner may do all of the following EXCEPT ACancel the policy. BRequest a policy loan from the policy's cash values. CChange the beneficiary. DChange the insured.
DChange the insured.
Insurance agents act on behalf of AThe insureds. BThemselves. CThe Department of Insurance. DThe insurer.
DThe insurer.
Which is TRUE about the cash surrender nonforfeiture option? a)The policy remains active for some time after the policyholder opts for cash surrender .b)The policyholder receives the original cash value of the policy. c)Funds exceeding the premium paid are taxable as ordinary income. d)After the cash surrender, the insured is covered for a grace period of one month.
c)Funds exceeding the premium paid are taxable as ordinary income.
In forming an insurance contract, when does acceptance usually occur? a)When an insurer delivers the policy b)When an insurer receives an application c)When an insured submits an application d)When an insurer's underwriter approves coverage
d)When an insurer's underwriter approves coverage