Massachusetts License
Each domestic company must have its financial records examined by the Superintendent every ___ years.
5
A(n) _____ producer lives in another state and transacts insurance in Mass
nonresident
An insurance company may NOT use a policy form unless it has been approved by the Superintendent for at least ___ days
30
A Mass producer has violated an Unfair Trade Practice law. This producer may be filed up to _____ per violation
$1,000
What is NOT required for the renewal of a producer's license
Appointment by an insurer
Any agreement that unreasonable restrains the business of insurance is a violation if which Unfair Trade Practice
Boycott, coercion and intimidation
A foreign insurer wishing to conduct business in Mass MUST obtain a
Certification of authority
What is required for an insurer to conduct business in this state
Certification of authority
When a producer is appointed, the ____ is considered the principal
Insurer
Which situation would qualify for an insured to receive funds from an accelerated (living) benefit rider
Nursing home for life
Under Federal Law, which actions may result in a producer becoming imprisoned
Producer embezzling funds from an insurer
What is a life insurance producer authorized to do
Solicit, received and forwards applications to the insurer
The _____ has the ability to examine the records of authorized insurers because of the powers granted through state statutes
Superintendent
Who is typically the major personal contact with the insured
The producer originating the insurance application
A producer must report which of the following actions to the Superintendent
Using an assumed name
The ____ is required to notify the Superintendent in the event of appointment termination
insurer
What is the primary reason for the Superintendent's examination of a producer's insurance records
to determine compliance with state insurance laws and regulations
A life insurance policy can be contested by the insurer only during the first____ years of the contract
two
The free look period provided in a life insurance policy is usually ____ days.
10
In Mass, a temporary license may be issued for a period not to exceed ____ days
180
After a life insurance policy sold in Mass has been in force for ___ year(s), it becomes incontestable
2
A notice of information practices must be given to a policyholder at LEAST every ___ years
3
What is an example of defamation
A producer who publicly erroneously announces that an insurance company is insolvent
Life insurance replacement can be best defined as
A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered
A life insurance policyowner has a terminal illness. Which policy
Accelerated (living) benefit
What is the best definition of a producer
An individual appointed by an insurance company that represents the company and presents policies on its behalf
Refers to insurance written on the interests of the licensee, the licensee's employer, or the licensee's immediate family
Controlled business
Which of the following does NOT involve a life settlement transaction
Converting term life coverage to whole life insurance
The application is part of the annuity contract according to the
Entire Contract clause
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 statute originate from
Fair Credit Reporting Act
What is a likely penalty for a producer proven guilty of an unfair method of competition
License suspension or revocation
What is a potential punishment given to a producer found guilty of an unfair method of competition
License suspension or revocation
Who id required to notify the Superintended of a licensee's change of address
Licensee
Whose interests are being protected with the existence of replacement rules
Policyowner
Replacement regulation exist in order to
Protect policyowners from misrepresentation and loss of benefits
What is considered interstate travel under the Federal Fraud and False Statements Act
Puerto Rico
Insurance crimes which affect interstate commerce are prosecuted by the
US Attorney General
If a life insurance applicant is shown future premiums are to be paid out of non-guaranteed values, the illusion used in the sales presentation MUST
disclose that premium payments may need to be resumed depending on actual results
Defamation occurs when a producer makes a false statement intended to
be maliciously critical of the financial condition of an insurer
A prospective client was intimidated by a producer to purchase an insurance contract. The producer could be found guilty of
coercion
Group life plans sold in Mass typically contain a conversion option. If the insured elects this option, the new policy
does NOT require evidence of insurability
How often must a producer's license in Mass be renewed
every 3 years
Who is required to notify the producer in the even of appointment termination
insurer
When the Superintendent believes a producer has broken an insurance law, the Superintendent has the authority to:
issue a cease and desist order against the producer at a hearing
The Superintendent is empowered to perform each of the following acts EXCEPT
make rules that are consistent with those neighboring states
If the Commissioner requests access to a producer's business records, the producer
must provide access to the records upon request
Which of these is NOT an Unfair Claims Settlement Practice
offering to settle a claim by arbitration
The authority for a producer to bind an insurer to an insurance contract is found in the
producer's appointment
A producer has indicated to a potential client that the proposed life insurance policy is covered by the Mass Life and Health Insurance Guaranty Association. This action taken by the producer is
prohibited by law
A producer's insurance records must be provided to the Superintendent
upon request from Sup
Life settlement proceeds may be subject to the claims of
creditors
A producer's license may only be suspended or revokes if the producer
has been afforded the right to a hearing
A life insurance application is tested for HIV. The application MUST be informed that the testing
helps determine the insurability of the applicant
Someone who is licensed to negotiate a life settlement is called a(n)
life settlement broker
An example of rebating would be
splitting the commission with the buyer on a sale of insurance
According to the Federal Fraud and False Statements Act, which of these is considered to be an intentional violation
Make false entries in a company's books
Under which circumstance may an insurable interest exist between two individuals in absence of an economic interest
Marriage partners
Which of the following actions may result in a producer's license being suspended
Rebating a portion of the commission to the insured
Which of these is NOT an Unfair Claims Settlement Practice
Refusing to pay persons false or fraudulent claims
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
An example of misrepresentation is
a producer misleading or failing to adequately disclose the title and true nature of a policy offered to a potential insured
A(n) _____ insurer operates in the U.S but is headquartered outside of the U.S.
alien
A producer who is in violation of a deceptive act or practice may be fines up to
$1,000
Upon meeting company requirements, a lapsed life insurance policy may be reinstated for up to _____ year(s)
3
A life insurance policy may be legally backdated in Mass for up to ____ months.
6
Which of the following is considered to be an unfair claims settlement practice
Misrepresenting pertinent policy provisions relating to coverage after a loss
Which of the following is a requirement for an individual to receive an insurance license in MASS
Passing the appropriate examination
At what point must a producer give notification to the Superintendent about using an assumed name
Prior to using the assumed name
Which of the following would prevent a person from obtaining a Mass residential producer license
Residing in a state outside of Mass
If replacement was involved in the sale of a life insurance policy, a producer must provide a replacement notice no later than the
application date
Before an individual is permitted to act as an insurance agent, they must hold a valid insurance license and be ________ by an authorized insurer
appointed
Before soliciting applications for an insurer, a producer must secure a(n)
appointment
A life insurance producer is required to give a disclosure notice about information practices to an applicant
prior to signing the application
A producer who misrepresented pertinent policy provisions related to a claim committed a(n)
unfair claims settlement practice
Charging different premiums to policyholders in the same risk classification is referred to as
unfair discrimination
Which situation would NOT potentially involve a prison sentence under Federal Law
Selling insurance with a nonexistent license
Which entity is responsible for regulating claims settlement practices of insurers
State insurance departments
Which entity is responsible for regulation claims settlement practices of insurers
State insurance departments
Security laws passed by Congress are enforced by which Federal agency?
Security and Exchange Commission
The superintendent has reason to believe a producer is in violation of Massachusetts insurance law. Which of the following may be issued against the producer
Cease and desist order
All of these are considered to be a violation of the Federal Fraud and False Statement Acts EXCEPT
Claims reimbursement
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
An insurer may contest the validity of a life insurance policy during the policy's first two years for all of these reasons EXCEPT
Misstatement of age
While processing a life insurance claim, the insurer discovers that the insured's age was misstated on the application. Under these circumstances, the insurer is entitled
pay proceeds based on what the premiums would have purchased at the insured's actual age
A license whose name or address changes must notify the Superintendent within ___ days
30
A life insurance policy that is paid annually must contain a grace period of at least ___ days
30
Who is required to notify the Superintendent of a licensee's change of address
Licensee
Life settlement broker are NOT allowed to
complete transactions prior to being approved for a license
Which is NOT the responsibility of an insurer
Assuming liability for a producer's unauthorized acts
After conducting a hearing, the Superintendent is empowered to issue a cease and desist order. A violation of such an order is punishable by a monetary fine not to exceed
$10,000
The Superintendent must be notified by the insurer within ____ days of a producer's appointment
15
The maximum prison sentence given under federal law for unfair and deceptive insurance practices is
15 years
A Mass resident producer must be a least ____ years of age
18
How many days notice must a producer be given prior to a scheduled hearing
21 days
a notice of information practices must be given to a policyholder at LEAST every ____ year(s)
3
Any administrative action taken against a producer MUST be reported to the Superintendent within ___ days after the final disposition
30
Producers licensed in Mass must notify the Superintendent within ___ days of any change of name or address
30
After the first 3 years of licensure, a producer must complete___ credit hours of continuing education for each licensing period
45
In Mass, life insurance policy loans may charge a maximum
8%
Which individual is eligible to receive a temporary producer license
A designated employee who is replacing a deceased producer
Which of these is NOT considered to be an example misrepresentation
A producer comparing the benefits of competing insurance
Mass residential producer has been convicted of a felony. Under which circumstance may this producer resume engaging in insurance transactions
After the Commissioner gives written consent
Which of these is NOT considered a Federal punishment for unfair and deceptive insurance practices
community service
In order to renew a producer's license, continuing education credits must be completed
every three years
A(n)_____ insurer writes business in a state other than the one in which it is domiciled
foreign
An annuity contract may be returned for a full refund during the
free look period
In order for a prohibited person to sell insurance in Mass, they must have a(n)
letter signed by the Superintendent
A terminally ill policyowner sells his life insurance policy t a discount to help pay for medical expenses. This arrangement is referred to as a(n)
life settlement
Life settlements are typically negotiated through a(n)
life settlement broker
In Mass, false advertising is an example of
misrepresentation
In Mass, the Human Immunodeficiency Virus (HIV) consent form
must disclose who will be receiving a copy of the results
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 life insurance policyowner sells her policy to a third party in a life settlement. Under this transaction, the policyowner
receives an amount less than the policy's death benefit