ND Credit Insurance Quiz
Any party aggrieved by the Commissioner of Insurance may make written application for a hearing within ____ days of the order. A. 30 B. 90 C. 60 D. 10
A. 30.
Pre-existing condition exclusions only apply to a time period of: A. 6 months before and 6 months after inception (12 months on transactions exceeding 36 months) B. 3 months before and 12 months after inception C. 12 months before and 12 months after inception D. the entire transaction
A. 6 months before and 6 months after inception (12 months on transactions exceeding 36 months).
An insurer holding a Certificate of Authority is known as: A. admitted B. approved C. accepted D. pre-approved
A. admitted.
A Credit Life or Credit Accident and Health Insurance Policy may be issued for delivery only by: A. an authorized insurer. B. a licensed securities representative. C. unlicenced vendors. D. a surplus lines insurer.
A. an authorized insurer.
Which of the following requirements for licensing is incorrect: A. applicants must be age 21 or older B. application must be on the state form C. application must be accompanied by a fee D. applicant must pass a licensing exam
A. applicants must be age 21 or older.
The license an insurer must hold to legally transact insurance in North Dakota is known as: A. certificate of authority B. certificate of compliance C. certificate of approval D. certificate of acceptance
A. certificate of authority.
"I am in good health to the best of my knowledge and belief" is traditionally called a ____: A. good health statement B. healthy statement C. statement for good health D. underwriting statement
A. good health statement.
The validity of the credit policy may not be contested except for nonpayment of premiums after it has been in force for two years from its date of issue describes: A. incontestable clause B. casual contest C. grace period D. contestable contest
A. incontestable clause.
The suicide exclusion on Credit Life is for: A. one year B. two years C. three years D. the full term of the transaction
A. one year.
Decreasing term premiums are usually: A. prepaid for the duration of the loan. B. paid monthly. C. paid annually. D. paid by pre-authorized checking.
A. prepaid for the duration of the loan.
Credit laws permit creditors to ____ that the borrower insure the collateral against physical loss. A. require B. suggest C. make D. ask
A. require.
Credit life premiums on monthly outstanding balance plans are determined by multiplying the rate per $____ times the current month's debt balance. A. $50 B. $1,000 C. $100 D. $10
B. $1,000.
Violating a cease and desist order by the Commissioner can result in a maximum fine of: A. $10,000 for all violations B. $10,000 for each violation C. $5,000 per violation D. $1,000 per violation
B. $10,000 for each violation.
A person who violates a Cease & Desist Order is subject, after a hearing, to a penalty of up to $____ for each violation. A. $1,000 B. $10,000 C. $5,000 D. $100
B. $10,000.
Agriculture loans may be insured by level term insurance, if the loan period is: A. 6 months or less. B. 12 months or less. C. 18 months or less. D. 5 years or less.
B. 12 months or less.
The Commissioner of Insurance shall examine all insurers licensed in ND every ____ years. A. 10 B. 5 C. 3 D. 7
B. 5.
The following means a lender of money or lesser of services: A. Dealer B. Creditor C. Creator D. Debtor
B. Creditor.
____ insures the excess of the outstanding indebtedness over the primary property insurance benefits that may occur in the event of a total loss to a collateral asset. A. GDP B. GAP C. GOP D. GRP
B. GAP.
An insurance producer's license may be granted to all of these, EXCEPT: A. a person B. an insurance consultant C. a business entity D. an agency
B. an insurance consultant.
All of the following are qualifications for a ND Insurance license, EXCEPT: A. be competent B. be untrustworthy C. be of good personal and business reputation D. be financially responsible
B. be untrustworthy.
Regarding the solvency of an insurer, the Insurance Commissioner can: A. neither C or D B. both C & D C. ask them to restore deficiencies in reserves D. step in and take over management of insurer
B. both C & D.
____ is an unfair trade practice in which an insurance producer uses physical or mental force to persuade an applicant to buy insurance. A. illegal inducement B. coercion C. unfair discrimination D. fraud
B. coercion.
Which if the following is not paid because an insurance policy was purchased: A. insurer B. consultant C. insurance producer D. surplus lines producer
B. consultant.
Which of the following protects the interest of both the creditor and the debtor. A. single interest coverage B. dual interest coverage C. credit or debt coverage D. both interested coverage
B. dual interest coverage.
The Commissioner shall revoke a Certificate of Authority immediately if he finds any of the following, EXCEPT: A. false annual report B. excess number of appointed agents C. unfair discrimination D. unfair trade practices
B. excess number of appointed agents.
All policy forms and rates must be: A. filed with the Commissioner B. filed with and approved by the Commissioner C. permanently recorded in the insurer's records D. approved by the agents appointed by the insurer
B. filed with and approved by the Commissioner.
In considering the filing of a rate increase by an insurer, the insurance Commissioner would examine all of the following EXCEPT: A. mortality factors. B. health data. C. age data. D. company loss ratios.
B. health data.
Loss Ratio is defined as: A. unpaid claims to paid premiums B. incurred claims (losses) to revenue (premiums) C. paid claims to unpaid premiums D. incurred premiums to revenue claims
B. incurred claims (losses) to revenue (premiums).
____ is when a person or organization has an interest, financial or otherwise, in preserving the value of something. A. insurable concern B. insurable interest C. insurable claim D. insurable standing
B. insurable interest.
All of the following are parts of an insurance contract, EXCEPT: A. exclusions B. insuring argument C. declarations D. definitions
B. insuring argument.
All of the following are examples of unfair claim settlement practices, EXCEPT: A. knowingly misrepresenting policy provisions to the claimant B. not allowing claimant to choose the adjuster to handle the claim C. offering settlement for less than is reasonable D. not handling claims in a prompt, fair and equitable manner
B. not allowing claimant to choose the adjuster to handle the claim.
Involuntary unemployment insurance is: A. required of all credit card holders B. not available to self-employed C. commonly sold on installment loans exceeding 60 months D. available to cover job loss by willful misconduct
B. not available to self-employed.
The agent's license is: A. renewed by request only B. renewable biannually C. perpetual D. renewed only by application
B. renewable biannually.
One of the ways that insurers protect against adverse selection is: A. carefully screening vendors B. restrictive provisions C. increasing premiums D. carefully reviewing claims
B. restrictive provisions.
Proceeds, in the event of death of the insured, in excess of the indebtedness, are payable to: A. the creditor. B. the borrower's estate. C. the insurer. D. the agent.
B. the borrower's estate.
No insurer may use premium rates which exceed: A. the competition. B. those on file with the Commissioner. C. the industries average. D. last year's rates.
B. those on file with the Commissioner.
Aleatory contracts permit an ____ exchange between the parties: A. even B. uneven C. unfair D. improper
B. uneven.
Violating a license provision may, after a hearing, result in a civil fine of: A. $10 to $100 B. $50 to $500 C. $100 to $1,000 D. $500 to $5,000
C. $100 to $1,000.
Premiums for most credit life and credit disability plans are determined by multiplying the rate per $____ times the initial amount of indebtedness. A. $50 B. $1,000 C. $100 D. $10
C. $100.
An insurer must issue an amount of $____ credit life insurance without regard to debtor's or creditor's health status. A. $10,000 B. $50,000 C. $5,000 D. $1,000
C. $5,000.
The minimum premium refund on credit insurance required by North Dakota Century Code is: A. $1.00 B. $2.00 C. $5.00 D. $10.00
C. $5.00
Joint life plans insuring two debtors is available by multiplying the premium for one by: A. 1.2 B. 1.5 C. 1.7 D. 1.9
C. 1.7.
If the commissioner of Insurance refuses to issue a license to an applicant, a hearing, if requested, must be held within ____ days notice to the applicant. A. 90 B. 30 C. 10 D. 60
C. 10.
The elimination period choices on Credit Disability plans are: A. 1 day, 8 days B. 10 days, 20 days C. 14 days, 30 days D. 20 days, 30 days
C. 14 days, 30 days.
When the Commissioner requests information regarding a possible violation, the agent must respond within ____ days. A. 10 B. 30 C. 20 D. 60
C. 20.
The renewal date of an agent's appointment is: A. June 1 B. December 31 C. May 1 D. January 1
C. May 1.
The commissioner must maintain surveillance over authorized Credit insurers in North Dakota: A. quarterly. B. monthly. C. annually. D. biennially
C. annually.
In order to legally transact insurance in ND, an insurer must have a current and valid: A. certificate of authenticity B. certificate of origin C. certificate of authority D. certificated of agreement
C. certificate of authority.
If a creditor requires a debtor to purchase credit insurance from the creditor, the creditor would be guilty of: A. defamation B. controlled business C. coercion D. rebating
C. coercion.
Property insurance purchased in conjunction with a credit transaction exceeding $300 is known as: A. credit life B. credit health C. credit property D. credit unemployment insurance
C. credit property.
All policy forms, risk classification and rates must be ____ by the Insurance Commissioner. A. overseen B. filed with and unapproved C. filled with and approved D. filed
C. filled with and approved.
Credit disability insurance is usually sold: A. to unemployed people. B. without credit life insurance. C. in conjunction with credit life insurance. D. without an elimination period.
C. in conjunction with credit life insurance.
All of the following are essential elements of a legally binding contract, EXCEPT: A. offer and acceptance B. considerations C. incompetent parties D. legal purpose
C. incompetent parties.
All consumer credit insurance must be evidenced by an ____ or ____ which must be delivered to the debtor. A. policy billing/ group policy B. individual certificate/ group certificate C. individual policy/ group certificate D. group billing/ group policy
C. individual policy/ group certificate.
The following licenses are available from the Department of Insurance, EXCEPT: A. insurance producer B. surplus lines producer C. insurance advocate D. insurance consultant
C. insurance advocate.
All of the following are true of the Commissioner of Insurance, EXCEPT: A. must have lived in North Dakota for previous 5 years B. must be 25 years of age C. is elected every 2 years D. reports violations of ND Insurance law to the North Dakota Attorney General
C. is elected every 2 years.
Disclosure information given to the debtor in writing: A. is optional B. is not required C. is required D. irrelevant
C. is required.
The term of a Credit Life Insurance policy commences: A. on the date of application. B. on the date of the first periodic installment. C. on the date the debtor becomes obligated to the creditor. D. on the debtors birthday.
C. on the date the debtor becomes obligated to the creditor.
The standard insurance rates the state proposes for credit insurance sold in ND are called: A. prima donna rates B. prime amount rates C. prima fascie rates D. prima factual rates
C. prima fascie rates.
____ is offering any sales commission, valuable consideration or premium that is not expressed in the contract as an inducement to purchase insurance or annuities. A. controlled business B. false advertising C. rebating D. defamation
C. rebating.
If the Commissioner has a conflict of interest, examinations are to be done by: A. securities commissioner B. tax commissioner C. state auditor D. attorney general
C. state auditor.
If an insurer is in financial trouble, the Commissioner may do all of these, EXCEPT: A. step in to take over management B. require the insurer to restore deficiencies in reserves C. terminate all appointed agents of the insurer D. instruct insurer to discontinue certain practices
C. terminate all appointed agents of the insurer.
All claims must be promptly reported to: A. the agent. B. the creditor. C. the insurer or its delegate claim representative. D. the debtor.
C. the insurer or its delegate claim representative.
Ambiguities in a contract of adhesion are usually decided against: A. the insured B. the agent C. the insurer D. the claimant
C. the insurer.
Continuing education requirements for an agent include all of the following, EXCEPT: A. 24 hours required biannually B. CE hours may be completed by classroom instructor or internet courses C. there is a CE requirement for a Credit Insurance license D. report due by last day of birth month, with a $25 filing fee
C. there is a CE requirement for a Credit Insurance license
All of the following are exclusions for GAP coverage EXCEPT: A. wear and tear B. war C. total loss of an automobile D. damage outside of the U.S.
C. total loss of an automobile.
If the vendor is given the authority by the insurer to prepare individual policies, the insurance becomes effective: A. when the creditor prints the loan papers B. when the debtor asks the creditor for a loan C. when the debtor signs the loan papers and becomes the obligated to the creditor D. when the creditor signs the loan papers
C. when the debtor signs the loan papers and becomes the obligated to the creditor.
"Total disability" during the first 12 months applies to: A. any occupation B. any occupation you are suited for, based on education, training and experience C. your current occupation D. a job you will be trained to do
C. your current occupation.
A producers insurance license may be suspended or revoked if the producer fails to respond within ____ days to a written request from the Commissioner of Insurance for information regarding any violation of licensing law. A. 10 B. 30 C. 60 D. 20
D. 20.
The Commissioner must be notified of an agent's address change within: A. 10 days B. 15 days C. 20 days D. 30 days
D. 30 days.
Credit Life may not be written on persons over the age of: A. 18 B. 21 C. 60 D. 70
D. 70
All of these are able to be given a debtor as "evidence of coverage" EXCEPT: A. a policy B. a group certificate C. a signed copy of the application if the insurer issues the policies D. A statement of coverage prepared by the vendor
D. A statement of coverage prepared by the vendor.
Credit insurance may be issued in which form(s)? A. individual, or group life insurance policies B. individual, or group credit or disability policies C. combination plans including both credit life and credit disability D. All of the above
D. All of the above
Credit insurance can be issued as: A. individual policies B. italicized policies C. group plan where the creditor holds a master policy (contract) D. Both A & C
D. Both A & C.
Which statement is true about sharing commissions? A. producers can share commissions with consultants B. producers can share commissions with clients if the Commissioner is notified C. sharing commissions is prohibited D. Producers can share commissions with other properly licensed producers
D. Producers can share commissions with other properly licensed producers.
The Commissioner's general duties include all of the following, EXCEPT: A. report insurance law violations to the attorney general B. submit a biennial report to the governor C. manage, control, and supervise the State Fire and Tornado Fund D. Send agents to prison for committing insurance law felonies
D. Send agents to prison for committing insurance law felonies.
When you pass this test you will be licensed as: A. an agent B. a broker C. a consultant D. a limited insurance representative
D. a limited insurance representative.
A license as an insurance consultant is not required of all of these, EXCEPT: A. an attorney acting in the attorney's professional capacity B. a trust officer acting in the normal course of employment C. CPA's acting in their professional capacity D. a security representative furnishing insurance advice as a consultant
D. a security representative furnishing insurance advice as a consultant.
A temporary agents license can be issued under all of these circumstances, EXCEPT: A. agent's death B. agent's disability C. agent enters active military service D. agent reaches age 70
D. agent reaches age 70.
G.A.P. coverage is used to provide coverage on: A. mortgages B. hospital bills C. lines of credit D. auto loans
D. auto loans.
Insurers accomplish protecting them from adverse selection by: A. restrictive provisions and exclusions B. screening of applications for insurance C. neither A or B D. both A & B
D. both A & B.
An insurance license continues in perpetuity unless: A. the licensee voluntarily consents to retake the insurance exam B. the licensee is suspended, revoked, or refused by the commissioner C. the licensee dies D. both B & C
D. both B & C
The initial amount of Credit Life Insurance: A. is selected by the vendor without debtor approval B. can be any amount desired. C. cannot include interest on the installment purchase. D. cannot exceed the total amount repayable under the contract.
D. cannot exceed the total amount repayable under the contract.
The initial amount of life insurance ____ repayable under contract. A. can exceed the total amount B. is not equal to the amount C. might be able to exceed the total amount D. cannot exceed the total amount
D. cannot exceed the total amount.
All of these apply to controlled business, EXCEPT: A. getting licensed just to buy insurance yourself B. controlled business includes the licensee, immediate family and employer C. is measured by percentage of total commission earned in 12 months D. credit insurance
D. credit insurance.
For credit disability insurance, the ____ is the policyowner and the ____ is the insured. A. denier/lister B. applicant/debtor C. creditor/applicant D. creditor/debtor
D. creditor/debtor.
The Commissioner is required to examine domestic insurers: A. annually B. triennially C. biennially D. every 5th year
D. every 5th year.
Prohibited practices include all of the following, EXCEPT: A. rebating B. coercion C. defamation D. false arrest
D. false arrest.
The policy holder is entitled to a _____ of 30 days for the payment of any premium due, except the first, during which the policy continues in force. A. benefit payment B. insurable interest C. free look D. grace period
D. grace period.
All of the following must be licensed for insurance sales or advertising activities in North Dakota, EXCEPT: A. insurance producers B. consultants C. non-resident producers D. home office underwriters
D. home office underwriters.
All of these would be Unfair Trade Practices, EXCEPT: A. rebating B. misrepresentation C. fraud D. honesty
D. honesty.
Possible vendors for Credit Insurance are all of these EXCEPT: A. retailers B. banks C. finance companies D. hospitals
D. hospitals.
Policies or certificates must contain all of these EXCEPT: A. name of debtor(s). B. amount and term of coverage. C. premium. D. insurer's financial rating.
D. insurer's financial rating.
When the elimination period is "retroactive" all these are true, EXCEPT: A. coverage is retroactive to the first day of the disability B. premium rates are higher than on plans that are not C. it is available on both a 14 and 30 day basis D. it covers claims otherwise excluded, due to pre-existing conditions
D. it covers claims otherwise excluded, due to pre-existing conditions.
Credit disability insurance can be issued for a maximum of: A. 5 years. B. 7 years. C. 10 years. D. length of the loan.
D. length of the loan.
Standard Credit Accident and Health policies contain policy provisions limiting coverage for all of these EXCEPT: A. pre-existing conditions. B. pregnancy, intentional self-injury. C. war and military service. D. minimum age.
D. minimum age.
Only the ____ borrower is eligible for involuntary unemployment insurance on installment credit. A. secondary B. additional C. first named D. primary
D. primary.
The Commissioner may suspend or revoke an agent's license for all of the following, EXCEPT: A. improper handling of the client's money B. forging another's name on an insurance application C. using coercive and fraudulent practices D. selling insurance on a Sunday
D. selling insurance on a Sunday.
An insurance transaction includes any of these, EXCEPT: A. execution of an insurance contract B. solicitation C. negotiation preliminary to execution D. taking a client's renewal premium
D. taking a client's renewal premium.
The types of Credit Life plans available are all of these, EXCEPT: A. decreasing term B. level term C. monthly outstanding balance D. universal life
D. universal life.