General Principles: Insurance Regulations Sub 3
An insurer who unintentionally makes an error underwriting, issuing and renewing a single policy would incur how many violations under Unfair Practices?
3
Life agents must maintain records regarding policies sold in this state for how many years?
5
When an agent holds both a life and property & Casualty license they are considered to be __ licensed
Concurently
A licensee can return a license to the Commissioner
TRUE
An insurer who accepts an application from a agent not specifically appointed by that insurer and then issues a policy form that application must forward to the insurance commissioner (DOI) a notice of appointment within __ days.
14
A person not licensed as a life agent or licensed less than one year is required to complete how many hours of education in life settlements before becoming eligible to apply for the life settlement broker license?
15 hours
An application for a license can be denied without a hearing if the application has had a previous application denied for cause within the last __ years
5
If an agent submits a renewal application with applicable fee on or before the expiration date they will be able to transact/operate for up to __ days after the specified expiration date
60
License needed to sell health insurance:
A & H
Who is not required to obtain a life settlement brokers license even though they may be representing the policy owner (seller) in a life settlement transaction?
A CPA, financial planner or attorney
What always requires approval before usage is?
Agency name
License issued to those who transact life and diablility for a fee is called a
Analyst
If an agent's license is inactive they cannot transact any insurance business for which a license is required to transact they would need to file an __
Appointment
A P & C broker/agent needs to complete 25 hours the first 4 twelve month periods following the date of the original license was issued
FALSE
A co-partnership whose membership has changed must return the old license with signatures of the original partners to the commissioner with an explananton
FALSE
A life broker represents the insured
FALSE
A solicitor is employed by an agent who sells auto, worker's comp. homeowners, and life.They can sell all lines as the agent who employs them
FALSE
Agent records must include printed material in use which has been distributed by the insurer
FALSE
An agent or broker who receives compensation for arranging or directing sales in connection with premium financing must disclose all their commissions to the insured
FALSE
An application for license can be denied if the applicant has been charged with a felony
FALSE
In order to be qualified to sell LTC insurance in the state of Ca. agents are required to pass a LTC exam every 10 years
FALSE
In regards to an organization license when a corporation is entirely dissolved, the license is continued if an original partner remains with the new corporation
FALSE
The DOI cannot disapprove the use of any true corporate name
FALSE
An agent's appointment is terminated if another insurer submits an appointment
FALSE, Unlimited # of appointment
When a agent holds both a life and property & casualty license their continuing education hours are 25 per year for either licence.
FALSE; 24 total
An organization will cease to exist as an entity eligible to hold a license for termination of a key employee
FALSE; Fire anyone you want
A license is considered inactive if the fees are not current
FALSE; License expired
A partnership change requires a new app, more money, within 30 days, new name approved, and you can transact under your own license, as well as incorporating
FASLE
Application for a license may be denied if the applicant has been convicted/committed of a ___ or ___ of the insurance code
Felony, misdemeanor
Those who licensed to act as a viatical settlement broker have or have not met the requirements for the new life settlement broker license
Have
Any change in any of these addresses the DOI must be notified when and how?
Imediatly through elctronic means
When fees and education are current but there is nor appointment a license is considered to be?
Inactive
A natural person that is employed by an agent or broker to assist in all lines of insurance other than life insurance (and now disability) is know as the ___ ___
Insurance solicitor
A natural person who solicits and services life insurance for the Agent who employes them would be licensed as a ___ ___
Life agent
License needed to sell annuities:
Life agent license
A customer service representative who only solicits and services life insurance world need which license?
Life agent, everyone
A life agent who has been licensed for over one year would need to do what to obtain a Life Settlement Broker's license?
Pay fees
The font size that must be used for the licensee's license number on all price quotes, business cards, and printed material must be the same size as the licensee __ , __ , or __
Phone, fax or address
A life settlement broker represents only the ___ also known as the seller and has a fiduciary duty to act in their best interest
Seller
A new licensee has the authority to transact when the insurer signs the notice of appointment
TRUE
According to the ode of judgment against an applicant who entered a plea of "nolo contendere" is considered to be convicted
TRUE
Aiding, assisting, or acting in behalf of a nonadmitted is not considered legal unless performed by a surplus lines agent/broker
TRUE
An agent or broker must keep records of compensation from a premium financier for 3 years
TRUE
Appointments are terminated by either the agent or insurer at termination of employment, license expiration, or death or agent
TRUE
Attempting to settle a claim for less than the claimant believes he/she is entitled by reference to written or printed advertisement is considered an unfair and deceptive act
TRUE
Change in partnership would require at least one person who will exercise the agency powers of the partnership remain with the new co-partnership for the license to continue
TRUE
If the applicant has had any professional license denied for any cause by any licensing authority within five years the Commissioner would most likely deny their application without a hearing
TRUE
If the applicant has had any professional, vocational, or occupational licensee denied for any cause by any licensing authority within five years the commissioner would most likely deny their application without a a hearing
TRUE
Insurance records must be made available at all times for the Commissioner for inspection
TRUE
Life agent's records must include outline of coverage, all polices sold by the agent, and all correspondence between agent and policyholder
TRUE
Penalty fro engaging in unfair practices is no more than $5000 if not willful, and no more than $10,000 if willful
TRUE
Signature of the general partner on the application for registration is required if there has been a change in membership in the co-partnership
TRUE
The California Insurance Code defines a life agent as a Life Agent only
TRUE
The California LTC continuing education requirement do not apply to non-resident agents if their state requires CE hours, exception is LTC and annuity requirements
TRUE
At the dissolution of an entity their insurance license can transfer to the new entity if someone from the old license stays with the new company and a new application and fees are filed within 30 days
TRUE; Does not say dissolved entirely
A life agent can submit an application to an insurer they are not appointment with as long as they are appointed within 14 days of the application date
TRUE; license and appointment
A person who diverts or misappropriates fiduciary funds is guilty of
Theift
Name is least 3 words that an agency name cannot end with:
Underwriter, company and insurance
An agency that represents an insurer can leave the name of the insurer in their advertising, letterhead, etc. as long as it clears states the relationship between the two. What is not an acceptable word in stating the relationship?
Underwriting or underwriter
What four addresses are required by the DOI?
email, residence, work, mailing address
Status of license when fees are not paid current is ___
expired
When an agent handles money in a trust capacity they are said to be acting as a
fiduciary
The renewal of a license must be filed on or before the __ __ if the period for which the license was issued
last day
If in the possession of an employer a written notice __ must be given to the Commissioner
of intent