Laws and Rules - CT
An annuity contract may be returned for a full refund during the
Free look period
A licensee whose name or address changes must notify the Commissioner within___days
30
An individual who intentionally violates a CT insurance law may be subject to a MAXIMUM fine of
$5,000
In CT, a producer cannot use his/her license for primarily writing controlled business. In order to conform to this requirement, annual premiums collected on controlled business cannot exceed _____ of total premiums.
10%
In CT, a temporary license may be issued for a period not to exceed ____days
180
An administrative action taken against a producer MUST be reported to the Commissioner within ___days
30
In CT, the HIV consent form
Must disclose who will be receiving a copy of the test results
Why does CT require insurers to maintain a minimum level of assets?
To demonstrate insurer solvency
Which of these is NOT considered a Federal punishment for unfair and deceptive insurance practices?
community service
How many days notice must a producer be given prior to a scheduled hearing?
30
The free look period provided in a life insurance policy is usually
10 days
Within____ month(s) of passing the CT producer licensing exam, an individual must apply for and be issued a license or be required to retake the exam
12
Life insurance policies cannot be backdated more than ____ month(s) from the date of issue
6
A consultant derives their income from which source?
Clients
After conducting a hearing, the commissioner is in power to issue a cease-and-desist order. A violation of such an order is punishable by monetary fine not exceeding
$50,000
The maximum prison sentence given under federal law for unfair and deceptive insurance practices is
15 years
A life insurance policy that is paid annually must contain a grace period of at least __days
30
Producers licensed in CT must notify the Insurance Department within _____ days of any change of name or address
30
Before soliciting insurance applications for an insurer, a producer must secure a(n)
Appointment
Which of the following is NOT the responsibility of an insurer?
Assuming liability for a producer's unauthorized acts
Any agreement that unreasonably restrains the business of insurance is a violation of which Unfair or Prohibited Insurance Practice?
Boycott, coercion and intimidation
An order issued by the commissioner that prohibits a specific practice listed in the order is called a(n)
Cease and desist order
Life settlement brokers are NOT allowed to
Complete transactions prior to being approved for a license
Life settlement proceeds may be subject to the claims of
Creditors
A(n)______ insurer is incorporated and formed in CT
Domestic
A temporary license may be issued to which of the following?
Employee of a disabled producer
Which of the following is NOT a duty of the Commissioner?
Enact legislation dealing with insurance
An example of an Unfair Claims Settlement Practice is
Failing to promptly investigate and settle legitimate claims
Which of the following is considered to be a prohibited insurance practice ?
Failing to submit premiums to the insurer
A producer is meeting with a client to determine whether an annuity will be suitable for purchase. Which of the following topics needs to be discussed with the client ?
Financial status of the client
John has a criminal record in which he was convicted of a felony that involved dishonesty. Under Federal law, how would John be able to engage in insurance transactions?
Given written consent by the state insurance regulatory agency
Which of the following is NOT classified as an "employee" under a group employer insurance plan ?
Independent contractors
Which of the following situations would qualify an insured to receive funds from an accelerated (living) benefit rider?
Insured is expressed to remain in a nursing home for life
Who is required to notify the producer in the event of appointment termination?
Insurer
Which of the following is NOT information needed to determine the suitability of an annuity recommendation?
Level of education
Misrepresentation on the application is
Material
A life insurance producer is required to give a disclosure notice about information practices to an applicant or proposed insured
Prior to or at the time of signing the application
At what point must a producer give notification to the Commissioner about using an assumed name ?
Prior to using the assumed name
Under federal law, which of the following actions may result in a producer becoming imprisoned?
Producer embezzling funds from an insurer
What is considered interstate travel under the Federal Fraud and False Statements Act?
Puerto Rico
Which of the following actions may result in a producers license being suspended by the commissioner?
Rebating part of a commission to the applicant
A life insurance policy owner sells her policy to a third party in a life settlement. Under this transaction, the policy owner
Receives an amount less than the policy's death benefit
Which of these is NOT an unfair Claims settlement practice?
Refusing to pay persons bringing false or fraudulent claims
An example of rebating would be
Splitting the commission with the buyer on a sale of insurance
Which entity is responsible for regulating claims settlement practices of insurers?
State insurance departments
An insured's statement of a policy's benefits which is to be used in marketing materials is called a(n)
Testimony
When testing for HIV, CT law requires a consent form
That discloses who may receive a copy of the results
Which of the following is the BEST candidate for a temporary insurance license?
The executor of the estate of a deceased licensed producer
Which of the following must clearly be illustrated in ALL sales material for market value adjusted annuities?
The market value adjustment can be either upward or downward
An individual in CT who charges a fee for giving advice on an insurance policy must be licensed as a consultant if the advice is give to
The policyholder
Charging different premiums to policyholders in the same risk classification is referred to as
Unfair discrimination
When an individual buys insurance under a threat made by a producer, a violation has occurred under the
Unfair trade practice act
According to federal fraud and false statements regulation, what is required for a prohibited person to transact insurance business in this state?
Written consent from the state insurance regulatory agency
Which of the following individuals is eligible to receive a temporary producer license?
A designated employee who is replacing a deceased producer
All of these are considered to be a violation of the Federal Fraud and False Statements Act EXCEPT
Claims reimbursement
The ___ has the ability to examine the records of authorized insurers because of the powers granted through the state statutes.
Commissioner
Which of these is NOT a punishment for committing an unfair or prohibited insurance practice ?
Community service
When evaluating an insurer's financial status, the Commissioner may consider each of the following EXCEPT
Comparing an insurer's agency agreement to determine maximum-paid commissions
A producer MUST notify the Commissioner for
Conducting business under an assumed name
A(n) _____is a licensee who charges a fee for contracted insurance advisory services.
Consultant
A(n) ___is a licensee who charges a fee for contracted insurance advisory services.
Consultant
Which term refers to insurance written on the interests of the licensee, the licensee's employer, or the licensee's immediate family?
Controlled business
A consumer who has been recently denied insurance, credit, or employment based on an unfavorable consumer report MUST be advised as such. Which of the following does this statue originate from?
Fair Credit Reporting Act
A(n) ______insurer writes business in a state other than the one in which it is domiciled.
Foreign
A(n)_____ insurer writes business in a state other than the one in which it is domiciled.
Foreign
A producer's license may only be suspended or revoked if the producer
Has been afforded a right to a hearing
A life insurance applicant is tested for HIV. The applicant MUST be informed that the testing
Helps determine the insurability of the applicant
The____ is responsible for reporting to the Commissioner any name or address change of the licensee
Licenser
Someone who is licensed to negotiate a life settlement contract is called a(n)
Life settlement broker
In CT, false advertising is an example of
Misrepresentation
Which of the following is NOT a valid reason for an insurer to contest A life insurance policy during the policy's first two years of existence?
Misstatement of age
James the producer has sold a life insurance contract to a client without using an illustration, even though his insurer offers one. For this particular transaction, the applicant
Must sign a statement that no illustration was provided
A producer sold a life insurance policy but did NOT provide the applicant with a basic illustration. In this situation, the insurer is REQUIRED to provide the applicant with a policy summary no later than the
Policy delivery date
A producer has indicated to a potential client that the proposed life insurance is covered by the CT Life and Health Insurance Guaranty Association. This action taken by the producer is
Prohibited by law
Replacement regulations exist in order to
Protect policyowners from misrepresentations and loss of benefits
Insurance producer Kelly offers insured a $500 shopping card if they purchase an insurance product through her. What is this an example of?
Rebating, which is an unfair trade practice
Which of the following facilitates nonresident licensing in the state of CT?
Reciprocity agreement
Which of the following would prevent a person from obtaining a CT resident producer license?
Residing in a state outside of CT
Security laws passed by Congress are enforced by which Federal agency?
Security and exchange commission
Which of these situations would NOT potentially involve a prison sentence under Federal Law?
Selling insurance with a nonresident license
Licensed producers in CT are authorized to
Solicit l, receive, and forward applications to the insurer
Persuading an insured, to the insured's detriment, to switch policies is called
Twisting
A life insurance policy may ONLY be contested by the insurer during the first_____ years of the contract
Two
Insurance crimes which affect interstate commerce are prosecuted by the
US Attorney General
After a life insurance policy has been in force for ___year(s), it becomes incontestable.
2
A producer must complete________ credit hours of continuing education for each licensing period.
24
Any administrative action taken against a producer MUST be reported to the Commissioner within__ days after the final disposition.
30
Which of the following is an example of defamation?
A producer who publicly and erroneously announces that an insurance company is insolvent
What is the best way to define life insurance replacement?
A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered
A(n) __ insurer operates in the US but is headquartered outside the US
Alien
A(n) ______ insurer operates in the United States but is headquartered outside the United States
Alien
A life settlement_____negotiates a life settlement between a policyowner and a life settlement provider.
Broker
A prospective client was intimidated by a producer to purchase an insurance contract. The producer could be found guilty of
Coercion
Which of the following is considered to be an example of unfair restraint of competition?
Coercion
In CT, continuing education courses must be approved by the
Commissioner
Which of the following does NOT involve a life settlement transaction?
Converting term life coverage to whole life insurer
If a life insurance applicant is shown future premiums are to be paid out of non-guaranteed values, the illustration used in the sales presentation MUST
Disclose that premium payments may need to be resumes depending on actual results
Group life plans sold in CT typically contain a conversion option. If the insured elects this option, the new policy
Does not require evidence of insurability
Which of the following would be considered a violation of CT insurance law?
Failure to remit premium in a timely manner
The Commissioner is empowered to perform each of the following acts EXCEPT
Make rules that are consistent with those of neighboring states
Which of the following is an example of defamation?
Making a statement that is false or maliciously critical of the financial condition of an insurer
According to the Federal Fraud and False Statements Act, which of these is considered to be an intentional violation?
Making false entries in a company's books
An insurance applicant has made a false statement on the application that will affect the insurer's decision on whether or not to issue the policy. This false statement is considered to be a(n)
Material misrepresentation
A producer's failure to provide title and true nature of a policy upon solicitation is an example of
Misrepresentation
Which of the following BEST defines the illegal act of twisting?
Misrepresenting a policy for the purpose of inducing a policyholder to change or replace an existing policy
Which of the following is considered to be an unfair claims settlement practice?
Misrepresenting pertinent policy provisions relating to coverage after a loss
If the commissioner requests access to a producer's business records, the producer
Must provide access to the records upon request
What must be disclosed when a producer advertises a life insurance policy?
Name of the actual insurer
During the sale of a life insurance policy, a producer may provide an incomplete illustration
Never
A(n) _______ producer lives in another state and transacts insurance in Connecticut
Non resident
Which of these is NOT an Unfair claims settlement practice?
Offering to settle a claim by arbitration
Which of the following is a requirement for an individual to receive an insurance license in CT?
Passing the appropriate examination
What is a life insurance producer authorized to do?
Solicit, receive and forward applications to the insurer
To secure authority for soliciting insurance products in the state of Connecticut, an insurance company must secure a certificate of authority from
The CT insurance Commissioner
If one producer provided a referral to another producer which results in the sale of an insurance contract, who will likely be be paid a commission?
The commission will likely be shared between the two producers
What is the primary reason for the Commissioner's examination of a producer's insurance records?
To determine compliance with state insurance laws and regulations