Insurance pt. 5

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10 years

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to

False advertising

Circulation deceptive sales material to the public is what type of Unfair Trade Practice

Adjuster

Which of the following entities investigates and negotiated settlement of claims arising under insurance contracts, on behalf of an insurer?

Fraternal benefit society

Which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?

The trust that a client places in the producer in regard to handling premiums

Which of the following is an example of a producer's fiduciary duty?

Discriminating in benefits and coverage based on the insured's habits and lifestyle

Which of the following will NOT be considered unfair discrimination by insurers?

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

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

Coercion

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

30 days

After receiving a cease and desist order, how long does a person have to request a hearing?

Putting the client's best interests before their own

In what way can an agent demonstrate a high standard of ethics?

Misrepresentation

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of

Misdemeanor

Selling insurance policies without an appropriate license in this state is considered a

15 days

The Commissioner must be notified of new producer appointment within

24 hours every two years

The minimum continuing education requirement for life insurance agents is

Corporate bond

Upon assuming office, the Commissioner must post a(n)

Defamation

When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of

Foreign

When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?

Admitted

Which of the following is another term for an authorized insurer?

30

Within how many days must the insurer that terminates an agent's appointment notify the Commissioner?

The referral fee must be a one-time nominal, fixed-dollar amount

An agent wants to pay a referral fee to an unlicensed employee of a licensed agent. Which of the following statements is true?

A person who investigates claims arising under insurance contracts for fee or commission

An example of an insurance adjuster would be

Fraud

An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?

Reinvestigate

Carl's application for a life policy was rejected because of information disclosed in an inspection report. Carl reviewed the consumer reporting agency's file and found they had incorrect information concerning his personal life. Carl can legally require the reporting agency to

Obtain a list of all life insurance policies that will be replaced

During replacement of life insurance, a replacing insurer must do which of the following?

Statement of Good Health

Eddie submitted an application for life insurance without paying the premium. The application was approved, and now the agent is delivering the policy. What should the agent have Eddie sign?

Without receiving written consent from an insurance regulatory authority

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

180 days

Following the death of a licensed agent, the executor or administrator of the deceased agent's estate, or the next of kin could obtain a temporary insurance license, without testing, issued for a period of

Solicit new business

Following the death of her husband, an insurance agent, Mary obtained a temporary insurance license. This license will allow Mary to do all of the following, except

Promptly forwarding premiums to the insurance company

Pertaining to insurance, which of the following is an example of a producer's fiduciary responsibility?

Inviting prospective clients to the grand opening of the company's new office

State law specifically prohibits using illegal inducements in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT

Policyholders of any contract of insurance delivered in Mississippi

The Commissioner of Insurance may examine books and records of any of the following EXCEPT

$10,000

The Commissioner sent a producer a letter, and requested a response from that producer. The producer lost the letter, and, subsequently, never replied. What is the greatest civil penalty she could be assessed for this?

5 years

The Commissioner will examine financial records of every authorized insurer as often as deemed necessary, but at least every

If an insurer becomes insolvent, which of the following would pay benefits to policyholders?

The Guaranty Association

Promote the public welfare

The purpose of insurance regulation is to

The state

The regulation of the insurance industry primarily rests with

Fiduciary Responsibility

The requirement that agents not commingle insurance monies with their own funds is known as

Issue a cease and desist order

When the Commissioner determines that a licensee has violated the regulation of the Mississippi Insurance Code, the Commissioner's first response is likely to be

Alien insurer

When transacting business in this state insurer formed under the laws of another country is known as a/an

Issuing sales material with exaggerated statements about policy benefits

Which of the following best describes a misrepresentation?

Domestic

Which of the following best describes an insurance company that has been formed under the laws of this state?

Notice Regarding Replacement

Which of the following documents must be provided to the policyowner or applicant during policy replacement?

A sub-agent selling on a commission basis

Which of the following employees of an insurance producer must be licensed?

Only written statements can be considered fraud

Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance?

It is issued to group insurance participants

Which of the following is NOT true regarding a Certificate of Authority?

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

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

30 days

Producers are required to report to the Commissioner any administrative actions taken against them within how many days?

The policyowner must sign a delivery receipt

What must happen when an individual policy or annuity has been personally delivered to the policyowner?

Existing with the same insurer

When an individual life insurance policy is being replaced, the old policy must be all of the following EXCEPT

The Insurance Commissioner

When an insurer terminates the appointment of one of their agents for cause, the insurer is obligated to notify which of the following?

Handling insurer funds in a trust capacity

In insurance transactions, fiduciary responsibility means

An insurer with a home office in another state

What is a foreign insurer?

35% of aggregate premium in any 24 months

What is the highest percentage of controlled business that a licensed agent is allowed to write?

$1,000

What is the maximum fine for attempting to obtain a license through fraud or misrepresentation?

To protect policyowners against insurer insolvency

What is the purpose of the Insurance Guaranty Association?

Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction

All of the following violations may result in an agent's imprisonment EXCEPT

Obtaining an insurance license

All of the following would be considered an insurance transaction EXCEPT

An agent misrepresents policy benefits to convince a policy owner to replace policies

All of the following would be considered rebating EXCEPT

Commingling

A producer who fails to separate monies from his own personal funds is guilty of

A misdemeanor

A violation of any provision of the insurance laws of Mississippi is considered

ABC

Ace, an independent agent, is appointed by ABC Insurance. Ace decides to place some advertisements in the paper so that people will be aware of the products. Some of the advertisements overstate the benefits of the policies. Who is responsible for this violation of advertising laws?

12 months

After a producer's license expires, they may reinstate it without having to take the licensing exam if they file for reinstatement within

$5,000 per violation

After finding that an individual is engaging in unlicensed insurance activity, the Commissioner issues a cease and desist order. if the respondent violates the order, they may be fined up to

November 20

After receiving a cease and desist order, a licensee requests a hearing regarding an alleged violation on November 10. What is the earliest date the hearing can be held?

Rebating

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

Nonrenewable coverage expiring in 8 years

To which of the following situations does the Replacement Regulation apply?

Discrimination

Two individual 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?

5 years

What is the minimum required time period during which replacing insurers must keep records pertaining to a replacement transaction?

Illegal

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?

Illegal under any circumstances

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; insurers cannot pay commissions to people not licensed to transact insurance

An insurer wants to reward its office assistants by paying them a commission on each insurance contract sold. This is

Elected by the public for a 4-year term in the same election in which other state officials are chosen

How is the Commissioner of Insurance in Mississippi?

The producer must provide the applicant with a Notice Regarding Replacement

How must a replacing producer respond to an applicant wishing to replace existing life insurance?

5 days

If a producer's appointment is denied by the Commissioner, the Commissioner must notify the appointing agency within

24

If an agent has been licensed for over 18 months, for how many hours of continuing education is the agent responsible?

3 years

If an insurance company has their Certificate of Authority revoked for failure to pay a judgment within 90 days, after paying the judgment, they will be barred from doing business in Mississippi for a period of

An unfair trade practice

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

The producer must be notified in writing

If the Commissioner has determined not to renew a producer's license, which of the following needs to happen?

A fine of up to $500 and up to 2 years in jail

In Mississippi, any person who acts as an agent without having the proper license may be found guilty of a misdemeanor and subject to a penalty of

Twisting

Agent's who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of

Explaining to client the advantages of permanent insurance over term and suggesting changing policies

All of the following actions can be described as twisting EXCEPT

Sharing commissions

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

Rebates are allowed if it is in the best interest of the client

All of the following are true regarding rebates EXCEPT

Dividends from a mutual insurer

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

Attempting to settle an insurance claim through arbitration

All of the following may be grounds for license suspension or revocation EXCEPT

$5,000

An agent breaks an insurance law regulating how long records must be kept. However, penalty for breaking this law hasn't been established. What is the maximum penalty the Commissioner may impose on the agent?

Rebating

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

Controlled

An insurance producer just sold an insurance policy to his sister. What kind of business is this?

Apply and pay a fee to a nonresident license in this state

In order to get a nonresident license in this state, producers must

Certificate of Authority

To legally transact insurance in this state, an insurer must obtain which of the following?

Making comparisons between different policies

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

That its policies are covered by a state Guaranty Association

Which of the following may NOT be included in an insurance company's advertisement?

Replacement rule

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Twisting

Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?

Return the policy to the insurer

Agent D submitted an application for life insurance on client A. No money was sent with the application. When Agent D attempted to deliver the policy, he discovered that A had suffered a heart attack since the application was taken. The agent should

The Federal Privacy Act of 1974

Because of the great amount of personal information that is available, and because of the increased number of agencies collecting and using this information, the Privacy Protection Study Commission was established to control the misuse of information and misinformation. This act is known as

Coercion

Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as


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