Life insurance Code and ethics
Any person who engages in any unfair method of competition or deceptive acts as a viable to a state for a civil penalty in a fine of $5000 for each act in addition if determined the actors will forward the fine will not exceed
$10,000
Obtaining information under false pretense is a violation that would be a maximum fine for any agent found guilty of
$10,000
And insured files a fraudulent claim for $100,000 is the maximum find that the insured could be ordered to pay if convicted of insurance fraud
$200,000
What is the minimum fine for acting as an Agent for a non-admit it and sure in the transaction of insurance business
$500
The commissioner has the authority to issue a cease and desist order against any person acting as an insurance agent or broker without a license. The commissioner may also impose a penalty for each day to order is violated in the amount
$5000
What is the purpose of California laws regulating production agencies
- Avoid unnecessary federal regulation, - provide protection for the clients by requiring producers to maintain professional standards of conduct, - they are mainly concerned with standardizing
And insurance cancels an insurance policy what period of time must a premium refund be issued
25 days
An elder according to the California insurance code is at least
65 years old
Which of the following statements is not true regarding insurance solicitor in California
A solicitor me act as an insurance agent at the same time
An agent offers life insurance for no cost to people buying property in a local development with the commissioner investigates the agents actions which of the following is a NOT likely consequence
Agent will be charged with a felony and or up to 10 years in jail
And ensure who transacts insurance in the state but he's articles of incorporation or register in Canada are considered what type of insurance
Alien
In which Medicare supplement policy is our core benefits found
All plans
The agents authority to transact insurance business or an insurance is effective
As of the date that the notice of appointment is sign
We must agents keep records associated with insurance transactions
At their principal place of business
Wind me a representation be withdrawn by the the
Before the insurance is in effect
And insurance producer who buy contract is bound to write insurance for only one company is classified
Captive agent
A lender who conditions approval of a loan on the condition that the borrower purchases insurance from a lender may be guilty of
Coercion
friendly fire
Deliberately ignited flame or glow that stays within its intended confines
For senior agents the requirements for continuing education for California partnership for long-term care policies is
Eight hours each reporting period
All of the following may be covered under the employers liability policy except
Employers eligible for 24 hour coverage
If an agent Unintentionally gives a client incorrect information what professional insurance would pay for losses or defend the agent against any results lawsuit
Errors and omissions
Hostile Fire
Escapes its intended confines
Regulating the operation of purchasing groups is one of the purposes of the
Federal liability risk retention act
The insurance solicitor is only found in which field of insurance
Fire and casualty
And insured has purchased a variable annuity he has not waived his rights during the free look. Where will the premiums be initially invested during the free look.
Fixed income or money market account
According to the California law, If an insurance company includes a fraudulent claim clause in the contract regarding a legal ramification of false claims the clause must be preceded by which statement
For your protection California law requires the following to appear on this form
An agent with an active license cannot act as a broker unless
He does not have an appointment with the company that he is brokering
And insured negligently misrepresents information on his auto insurance policy which circumstance will he be able to avoid policy cancellation
If he provides corrected information to the insurance within 20 days after receiving notice of cancellation
In which of the following scenarios with a producer be allowed to obtain insurance through and an authorized user
If there are no authorized insurance for a specific type of coverage in this state
Fraudulent activities in healthcare or estimated in billions of dollars annually this results in
Increase in health care cost for everyone
In California and employer has three choices to provide required workers compensation insurance. Which of the following is not one of those choices
Individual plans provided by employees
Home service insurance is a variation of which type of life policy
Industrial life insurance
What type of life insurance is usually written for small amounts and requires frequent premiums that are collected by the agent
Industrial life insurance
All of the following must be communicated in an insurance contract except
Information the other party already knows
In California a person applying for insurance license is considered to have been convicted of a misdemeanor or felony if the person entered all the following please except
Innocent
Which of the following best describes a misrepresentation
Issuing sales materials with exaggerated statements about policy benefits
When an agent does not hold an active appointment with insurance what happens to the agents license
It becomes inactive
All of the following are true regarding 24 hour coverage except
It can be distributed through a life insurance policy
What happens to the insurance license of a corporation when the corporation cease to exost
It terminates
Which of the following is not a license in the state of California
Life broker
According to California insurance code the term shell describes what kind of action
Mandatory
And example of an alien ensure doing business in the state is formed under the laws of
Mexico
And insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest with the agent guarantees hard evidence that he knows will be possible. What term describes with the agent has done
Misrepresentation
The written instrument in which the contract of insurance is set forth is known as the
Policy
In California which system is used to approve or disapprove rate filings
Prior
What is the purpose of errors and omissions insurance
Protect agents against charges that don't properly serve the kite
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
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
Rebating
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 without
Receiving written consent from an insurance regulatory authority
What method do insurers use to protect themselves against catastrophic losses
Reinsurance
The entity pursues liquidation of insolvent insurer
State government
Which of the following best defines indemnification
The act of one person who agrees to restore an injured person to the condition they enjoyed prior to the loss
And employer on the verge of bankruptcy to save money decides to cancel the workers compensation plan what would happen
The business may be closed under a cease and desist order a seat by the Department of industrial relations
Which of the following is not a factor in determining the rates charge for California state compensation insurance fund for insurance issue by it
The extent to which the employees in a particular establishment have or have not someone dependent on them for support
The commissioner may disapprove the use of any name for licensee for any of the following reasons except
The licensee already has an approved name
A life settlement contract phone does the life settlement broker represent
The owner
A warranty may relate to which of the following
The past the present and the future
Which of the following selections correctly describes the California State compensation insurance fund
The state entity that exist so we to transact Worker's Compensation insurance on a nonprofit basis
Which of the following best describes the term 24 hour coverage in relation to Worker's Compensation insurance
This represents a two pronged coverage workers compensation during work hours and regular medical coverage outside of work
According to the California insurance code all of the following or general powers and duties of the commissioner and insurance except
To delegate the power to approve the settlement
What is the purpose of the California state compensation insurance fund
To make workers compensation insurance available especially to smaller companies with more limited payrolls
How does insurance distribute the financial consequences of individual losses
Transfer the risk to all persons insured
Representations and insurance contracts qualify as
implied warranties
Life insurance policy can be delivered by all the following means except
priority mail
And insurance company devices and intimidation strategy in order to order a large portion of the insurance market which of the following describes this
Illegal
Life insurance agent may not transact
Life insurance
All of the following may recommend life insurance contracts for their perspective clients in perspective insurance except
Life solicitors
A person who knowingly and willingly obtained information about an individual from an insurance company agent or organization supporting insurance under false pretense is shall be fined
No more than $10,000 imprisonment not to exceed one year or both
According to the CIC when an insured has functionally identical coverage that overlap or duplicate benefits To the extent that the coverage is no cost effective this represents
Overloading
A statement made by an applicant for insurance that must be true in every respect is considered to be a
Representation
The commissioner of insurance supervisors and regulates the insurance affairs in the state of California and is chosen by
The people
removal
Coverage provided for five days at another location for insured quantity that is removed to protect the property from an insured peril
When would the insured be Allowed to use the information obtained through the pretext interview
In the investigation of a claim suspected as fraudulent
Any person or a government entity that provides information about an individual to an agent, insurance company, or insurance support organization is known as a
Institutional source
A person who transaction assurance business other than life insurance for compensation from and on behalf of another person but not on behalf of or a Representative of an insurance company for which he has an appointment is called
Insurance broker
A natural person that is employed to aid and insurance agent or insurance broker and the transacting of insurance business other than life insurance transaction is called
Insurance solicitor
A person applying for an insurance license in California was previously found guilty in a trial in which they entered a plea of nolo contedere. What is this mean
No contest
Supplemental coverage paid for all of the following in core policy plan a Medicare coverage except
Part a deductible
Agency persuade insurance to buy a policy in favor of another one that might not be in the insured's best interest are guilty of
Twisting
When can a life on the agent transact disability insurance on behalf of an authorized insurer
Upon obtaining a sign by the insured notice of appointment
If a policy specifies the value of the insured Object in the policy itself what type of policy is it
Valued
A type of policy that used To provide a specific amount of replacement cost for a given risk after and insured property has been destroyed is called
Valued policy
For the purpose of a contract which of the following could be considered a personal
And association, a business trips, limited liability corporation
When long-term care insurance covers care in a person's home or in a skilled or residential facility the policy may be labeled as
Comprehensive
In order to be financially solvent and ensure must accomplish all of the following except
Contribute a specific amount of capital reserve to the state
