P&C Norris Pretest

An insurance agent must complete how many hours of continuing education?

Complete the approved courses as specified by the law every 2 years.

What is the maximum fine for an unintentional violation after an agent has been found guilty by the Insurance Commissioner and placed under a cease and desist order?

$1,000

A Property & Casualty agent must complete how many hours of continuing education?

12 hours every 2 years by their due date.

When a new Homeowners or Personal Auto Policy is insured, what is the usual length of time that a company can cancel a policy for any reason?

60 days.

A slippery floor is:

A hazard.

Rates charged for insurance coverage sold in this state must be:

Adequate.

When an insurer wants to advertise in this state, what must they submit to the Kansas Insurance Department?

Letter of compliance.

Within 30 working days of their occurrence, a licensed agent must report to the Commissioner of Insurance all of the following, EXCEPT:

Minor traffic violations.

If a complaint is filed against an agent in this state, the expense for the examination of the agent's business by the Insurance Commissioner is:

Paid by the agent examined if the complaint is justified.

When can an agent use statistics in advertising during a sales presentation?

When approved by their company.

An agent's records must be given to the Commissioner:

When requested by the Commissioner.

When does the policy period begin?

When the agent binds the coverage.

Fire is considered to be:

a cause of loss

What information must be included in agents' advertisements?

Agent's full name and phone number.

An advertisement includes all of the following, EXCEPT:

An inner-office memo.

Where should an agent send a petition after a revocation of license notice has been given?

Any court.

If a person deliberately withholds some information on an application for insurance, they are guilty of:

Concealment.

A foreign insurance company:

Has its home office located in another state.

To meet the requirements for a license in Kansas you must comply with all the following EXCEPT:

Have a high school diploma or equivalency.

To restore a person back to their original economic position before a loss, without provision for material gain, is the principal of:

Indemnity.

If an individual faces the risk of economic loss in the event of property damage or loss of life, this is represented by the principal of:

Insurable interest.

Under the jurisdiction of the unfair trade practices act, advertising can be considered to be all of the following, EXCEPT:

Policies issued by the federal government.

All of the following are unfair claims settlement practices, EXCEPT:

Providing a prompt and reasonable explanation for denial of a claim.

An insurance contract that indemnifies the insured to the actual amount of loss, or for a stated amount, is called a:

Reimbursement contract.

Actual cash value is defined as:

Replacement cost of the property, less depreciation, obsolescence and deterioration.

The following are all Unfair Trade Practices, EXCEPT:

Replacement.

A self-insurer deals with risk by:

Retaining the risk

All the following would have restricted rights in a contract, EXCEPT:

Retired persons.

If the Commissioner has reason to believe an agent is engaged in unfair or deceptive practices, their first action would be to:

Serve the offender with a statement of charges and notice of hearing.

If you are denied insurance because of your driving record, what law requires the insurance company to notify you of the reasons for denial?

The Unfair Trade Practices Act.

The replacement cost value is:

The actual cost to repair or replace at today's labor and material costs without allowances for deterioration, obsolescence and depreciation.

Which of the following could void a valid contract?

The applicant knows of an adverse health condition and fails to report it.

The Unfair Claims Settlement Act requires all of the following, EXCEPT:

The insurer must settle claim within 60 days from the date they agree to pay.

Who can cancel a binder?

The insurer.

In theory, an insurable risk should include all of the following characteristics, EXCEPT:

The loss must be catastrophic.

Replacing an existing policy to the detriment of the insured is considered:

Twisting.