Life Insurance CHPT V
Which of the following is an example of a producers fiduciary responsibilities? A. forwarding premiums to insurer B. performing review of clients coverage C. offering additional coverage to a client D. helping clients to file claims
A. forwarding premiums to insurer
Commissioner of Insurance is responsible for all of the following EXCEPT? A. Issuing Certificate of Authority B. enforcing the Insurance Code C. setting premium rates D. issuing cease and desist order
A. issuing Certificate of Authority
Producers who wish to sell variable insurance in this state must be registered with what entity? A. NAIC B.SEC C. FINRA D. IRS
A. NAIC
An insurer who deliberately makes malicious critical statement about another insurance company is guilty of an illegal trade practice called A. discrimination B. defamation C. misrepresentation D. false advertisement
A. discrimination
Agent who offers cash reward to a prospect for buying a policy is guilty of? A. twisting B. misrepresentation C. rebating D.fraud
B. misrepresentation
If a producer license was revoked for a violation against the insurance code, when can the producer apply for the new license? A. after 30 days B. after 1 year C. after 2 years D. never
C. after 2 years
Which discrimination would be considered legal? A. rates with person in same class B. premiums for persons within the same life expectancy C. in benefits on the basis of different life expectancy D. policy benefits on the basis of marital status
C. benefits on the basis of different life expectancy
Which of the following persons is required to have a producers agent? A. director of insurance whose duties are of administrative nature B. assistant who secures and furnishes info on group insurance C. salaried employee who advertises D. agents administrative assistant
A. director of insurance whose duties are that of administrative nature
How many continuing education hours must a producer complete on the subject of ethics every licensing period? A. 2 hours B. 3 hours C. 5 hours D. 10 hours
B. 3 hours
Within what time period must producers remit collected premiums to insurer? A. 30 days B. 45 days C. 60 days D. 90 days
B. 45 days
If a license changes his or her residence address, within how many days must the Commissioner of Insurance be notified? A. 15 days B. 30 days C. 90 days D. The Commissioner only needs to be notified if a licensee business address changes.
D. The Commissioner only needs to be notified if a licensee business address changes
a producers license may be suspended or revoked for all of the following reasons except? A. misappropriating fund belonging to insured or the insurer B. demonstrating incompetence or unworthiness C. sharing commissions with another agent D. participating in any unfair method of competition
D. participating in any unfair method of competition
All of the following are unfair claims settlement practices XCEPT? A. suggesting negotiations in settling the claim B. failing to adopt and implement reasonable standards for settling claims C. failing to acknowledge pertinent communication pertaining to a claim D.refusing to pay claims without conducting a reasonable investigation
C. failing to acknowledge pertinent communication pertaining to a claim
If the Commissioner issues a cease and desist order, that means insurer must A. surrender Certificate of Authority B.suspend all insurance transaction in this state C. stop committing particular violation D. terminate all producer appts.
C. stop committing violation
What is the purpose of requiring licenses for persons who transact insurance? A. generate income for Dep. of Insurance B. protect insurance companies from incompetent insurance producers C. be able to collect commissions D. protect general public
D. protect general public
