Pre-Licensing Insurance Course Chapter 19 (Part 2)
Any person who commits an unfair trade practice or act will be subject to a: a. Lie detector test b. Writ of mandamus c. Cease and desist order d. Imprisonment
c. Cease and desist order
Any association, trust, or trust fund established for the benefit of the members is eligible for group life insurance if it has a minimum of at least how many persons insured at the outset of coverage? a. 10 b. 20 c. 50 d. 100
d. 100
Disclosure requirements for solicitation apply to: a. Annuities b. Credit life insurance c. Variable life insurance d. General Life insurance
d. General Life insurance
Which unfair practice is an insurer making false injurious statements regarding another insurer? a. Misrepresentation b. Defamation c. Unfair discrimination d. Rebating
b. Defamation
A basic life illustration must contain all of the following, EXCEPT: a. Numbered pages b. Any nonguaranteed elements c. Guaranteed death benefits d. Expiration date
d. Expiration date
A licensed insurance producer or limited lines producer shall, not more than 10 days after the producer receives a request in a registered or certified letter from the Commissioner, provide the Commissioner with a full and complete report listing: a. Each insured with which the viator has held an application during the preceding year b. Each insured with which the viator has held an engagement during the preceding year c. Each insurer with which the licensee has held an appointment during the preceding year d. Each licensee with which the agency has held a contract during the preceding year
c. Each insurer with which the licensee has held an appointment during the preceding year
All of the following are unfair claims settlement practices, EXCEPT: a. Failing to act promptly to communications with respect to claims b. Attempting to settle a claim for less than the reasonable amount c. False advertising d. Misrepresenting facts
c. False advertising
Which term cannot be used by an insurance agent? a. Financial planner b. Investment advisor c. Financial consultant d. All of the above
d. All of the above
Producers can have their license suspended if they: a. Receive a speeding ticket b. Fail to pay child support c. Are delinquent on their rent or mortgage payments d. Take on more than $10,000 in credit card debt
b. Fail to pay child support
What is required if a life policy is marketed with an illustration? a. A basic illustration must be prepared and delivered to the Commissioner b. A fee of $50 must be paid to the Department of Insurance c. The Secretary of State must be notified. d. A special form must be filed with the Commissioner
a. A basic illustration must be prepared and delivered to the Commissioner
When replacement life insurance is involved, who must be given copies of the policy summary? a. Applicant b. Existing insurer c. Replacing insurer d. Applicant, existing insurer, and replacing insurer
a. Applicant
If the Commissioner determines that the method of competition or an act or practice in question has been committed, the person charged with the violation will be served a: a. Cease and desist order b. Civil penalty of not less than $50,000 c. Writ of license forfeiture d. Declaration of remediation
a. Cease and desist order
Indiana's regulations regarding life insurance illustrations apply to which of the following? a. Individual life insurance b. Variable life insurance c. Credit life insurance d. Individual annuity contracts
a. Individual life insurance
Inducing a policyholder to switch insurance companies without regard to bad consequences is: a. Boycott b. Churning c. Twisting d. Defamation
c. Twisting
In Indiana, replacement is defined as: a. Any transaction in which new life insurance is purchased b. Proposing agent or insurer knows if existing life insurance has been lapsed c. Proposing insurer knows the existing life insurance is to be reissued with a reduction of cash value d. All of the above
d. All of the above
Refusing, because of the for-profit status of a hospital or medical facility, to make payments otherwise required to be made under a contract or policy of insurance for charges incurred by an insured in such a for-profit hospital or other for-profit medical facility licensed by the state department of health is a/an: a. Example of rebating b. Example of twisting c. Example of viatical profiling d. Violation of competition law
d. Violation of competition law
If replacement is involved, what must the agent give to the applicant at the time of taking an application? a. Copy of 'Important Notice Regarding Replacement of Life Insurance' b. Copy of all written sales materials c. Signed affidavit of sale d. Statement signed by the Commissioner
a. Copy of 'Important Notice Regarding Replacement of Life Insurance'
What is the purpose of solicitation rules? a. Disclosure of certain information to applicants during life insurance solicitation b. Disclosure of financial information of the insurance company c. Explanation of the way life insurance should be solicited d. Establish a marketing plan for the sale of life insurance
a. Disclosure of certain information to applicants during life insurance solicitation
All of the following are excluded from life insurance illustration rules, EXCEPT: a. Individual life insurance policies b. Life insurance policies with no illustrated death benefits on an individual exceeding $10,000 c. Variable life insurance d. Individual and group annuity contracts
a. Individual life insurance policies
Which of the following is illegal? a. Sharing commissions b. Refusing commissions c. Earning commissions on old business d. Earning commissions on transferred business
a. Sharing commissions
Any written or oral statements, which misrepresent the terms, conditions, or benefits of a policy, for the purpose of inducing a policyholder to lapse on his current insurance and take out another policy is known as: a. Twisting b. Rebating c. Sharing commissions d. A Ponzi scheme
a. Twisting
Disclosure requirements apply to which of the following? a. Whole life insurance b. Variable life insurance c. Credit life insurance d. Annuities
a. Whole life insurance
Indiana's regulations regarding illustrations do not apply to life insurance policies with no illustrated death benefits on any individual exceeding: a. $5,000 b. $10,000 c. $20,000 d. $25,000
b. $10,000
An applicant for replacement insurance must be provided a 'free look' period, where the applicant is free to return the policy with a full refund of any premiums already paid within: a. 10 days b. 15 days c. 20 days d. 30 days
b. 15 days
Each insurer shall maintain at its home office or principal office, a complete file containing one copy of each life insurance form authorized by the insurer for a period of: a. 2 years b. 3 years c. 4 years d. 5 years
b. 3 years
Insurers must keep replacement registers for the later of the next succeeding regular examination by the Insurance Department or: a. 2 years b. 3 years c. 4 years d. 5 years
b. 3 years
Which unfair practice is one insurer making false injurious statements regarding another insurer? a. Misrepresentation b. Defamation c. False financial statements d. Rebating
b. Defamation
In Indiana, the maximum time allowed for conversion from a group life insurance policy to an individual life insurance policy is: a. 30 days b. 45 days c. 60 days d. 90 days
c. 60 days
Any reference to policy dividends must: a. Give the amount of the dividends b. Give the date when they are awarded c. Mention that they are not guaranteed d. All of the above
c. Mention that they are not guaranteed
The Buyer's Guide is published by: a. FINRA b. SEC c. National Association of Insurance Commissioners d. Indiana Insurance Department
c. National Association of Insurance Commissioners
When a life insurance policy is a replacement, who must sign statements acknowledging that the policy is a replacement? a. The insured only b. The agent only c. The insured and the agent d. The insured, the agent and the insurer
c. The insured and the agent
What can happen to the original life insurance policy when it is replaced with a new life insurance policy? a. Reissued with a reduction in cash value b. Converted to reduced paid-up insurance c. Amended so as to effect a reduction in benefits d. All of the above
d. All of the above
Which of the following groups is ineligible for group life insurance? a. A labor union of 20 employees b. A trust of 2 employers c. An employer of 50 persons d. An association of 50 persons
d. An association of 50 persons
Replacement rules apply to: a. Group life insurance b. Convertible term insurance c. Group credit life insurance d. Purchase of a new individual policy
d. Purchase of a new individual policy
The purpose of replacement regulations includes all of the following, EXCEPT: a. Establish penalties for failure of compliance b. Protect interests of life insurance policy owners c. Regulate activities of insurers/agents regarding replacing all existing life insurance d. Regulate the policy holders' activities of insurance fraud
d. Regulate the policy holders' activities of insurance fraud
Which of the following is NOT included in the Policy Summary? a. Address of the insurance agent b. Phone number of the insurance agent c. The benefits of the policy d. Required premiums
b. Phone number of the insurance agent
Making a misleading statement to induce a person to lapse, surrender, or convert an insurance policy is known as: a. Coercion b. Twisting c. Conservation d. Replacement
b. Twisting
What document must be given to a replacement applicant at the time of taking the application? a. "Indiana Laws Regarding Replacement of Life Insurance" b. "Replacement of Life Insurance in the State of Indiana" c. "Replacement of Life Insurance and its Implications" d. "Important Notice Regarding Replacement of Life Insurance"
d. "Important Notice Regarding Replacement of Life Insurance"
If an agent gives his client a TV as a 'gift' for applying for a $1 million whole life insurance policy, which unfair trade practice has the agent used? a. Misrepresentation b. Defamation c. False financial statements d. Rebating
d. Rebating
Entering into any contract, combination in the form of a trust or otherwise, or conspiracy in restraint of commerce in the business of insurance is a/an: a. Example of rebating b. Example of twisting c. Example of unfair discrimination d. Violation of competition law
d. Violation of competition law
Presenting an oral or written statement that the person knows to contain materially false information as part of and material to the rating of an insurance policy is an example of: a. Insurance fraud b. Viatical tampering c. Twisted indemnity d. Rebate discrimination
a. Insurance fraud
It is considered an unfair practice to refuse to insure an individual or to limit the amount, extent, or kind of coverage available to an individual solely because that individual: a. Is blind b. Has refused to pay premiums c. Does not meet policy age requirements d. Has filed claims in the past
a. Is blind
What is the minimum number of employers in a trust for it to be eligible for group life insurance? a. 1 b. 2 c. 5 d. 7
b. 2
Within how many business days from the date of receipt of a complaint, the insurer must provide to the Commissioner and the complaining party a written report containing the specific reasons for actions taken by the insurer with respect to the claim? a. 5 b. 20 c. 45 d. 90
b. 20
Any person who violates a cease and desist order of the Commissioner may, after notice and hearing and upon order of the Commissioner, be subject to a civil penalty of not more than: a. $10,000 for each act or violation b. $15,000 for each act or violation c. $20,000 for each act or violation d. $25,000 for each act or violation
d. $25,000 for each act or violation
What is the minimum number of members in an association at outset for it to be eligible for group life insurance? a. 20 b. 30 c. 50 d. 100
d. 100
For how much time after its last use is an insurer required to maintain each authorized life insurance form? a. 6 months b. 1 year c. 2 years d. 3 years
d. 3 years
Anyone who is convicted of a criminal felony that involves a breach of trust, dishonesty, or a violation of the Fraud Act is prohibited from engaging in the business of insurance without first obtaining a: a. Pardon b. Vote of confidence c. Waiver of written consent d. Statement of wrongdoing
c. Waiver of written consent
Suggesting a policy is better suited for a prospective applicant than the facts would indicate is: a. Defamation b. Twisting c. Misrepresentation d. Rebating
c. Misrepresentation
Disclosure requirements apply to which of the following? a. Life insurance from a pension plan b. Group life insurance c. Annuities d. Individual life
d. Individual life
What unfair trade practice manipulates through the threat of a negative result? a. Twisting b. Churning c. Coercion d. Intimidation
d. Intimidation
All of the following are grounds for suspension of an insurance producer's license, EXCEPT: a. Forgery b. Failure to pay child support c. Failure to pay federal income taxes d. Failure to satisfy continuing education requirements
c. Failure to pay federal income taxes
When someone has been engaged in or is engaging in an unfair trade practice or deception, the Commissioner of Insurance: a. Must provide in writing an order to cease and desist from engaging in the practice b. Must issue a fine no less than $25,000 or more than $250,000 c. Must suspend or revoke the offender's certificate of authority d. Must order the local district attorney to imprison the offender
a. Must provide in writing an order to cease and desist from engaging in the practice
Which of the following is NOT an unfair claim settlement practice? a. Offering opinions or insurance policy provisions relating to coverages at issue b. Failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies c. Failing to adopt and implement reasonable standards for the prompt investigation of claims arising under insurance policies d. Refusing to pay claims without conducting a reasonable investigation based upon all available information
a. Offering opinions or insurance policy provisions relating to coverages at issue
Where a life insurance policy replacement is involved, a replacing insurer must give the applicant a/an: a. Policy Summary b. Book of coupons c. Seal of approval d. Advertisement brochure
a. Policy Summary
Within 20 business days from the date of receipt of a complaint, an insurer must provide: a. To the Commissioner and the complaining party a written report b. To the NAIC and the complaining party an oral report c. To FINRA and the complaining party a verbal report d. To the NAIC and FINRA a written report
a. To the Commissioner and the complaining party a written report
The Commissioner would NOT levy a civil penalty, place an insurance producer on probation, or suspend a producer's license for which of the following actions? a. Having been convicted of a felony b. Providing complete information on a license application c. Improperly withholding, misappropriating, or converting any monies or properties received in the course of doing insurance business d. Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility
b. Providing complete information on a license application
Giving any incentives, inducements, favors, stocks or bonds, dividends, payments, etc. that are not plainly expressed in the contract is known as: a. Noncompliance b. Rebating c. Racketeering d. Defamation
b. Rebating
What is it called when an agent offers to pay an individual if the individual will purchase a contract for insurance? a. Twisting b. Rebating c. Unfair discrimination d. Sharing commissions
b. Rebating
All of the following are defined as unfair methods of competition and unfair and deceptive acts and practices in the business of insurance, EXCEPT: a. Rebating b. False advertisement c. Incentives d. Defamation
c. Incentives
Which of the following is NOT an unfair claim settlement practice? a. Trying to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed b. Not attempting in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear c. Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds d. Attempting to settle a claim for less than the amount to which a reasonable individual would have believed the individual was entitled by reference to written or printed advertising material accompanying or made part of an application
a. Trying to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed
If Bill is entitled to convert from a group life insurance policy to an individual life insurance policy and is not informed of this right at least 15 days before expiration, how much additional time can he be given to convert? a. 10 days b. 15 days c. 20 days d. 30 days
b. 15 days
Who publishes the Buyer's Guide? a. The Insurance Commissioner b. The National Association of Insurance Commissioners c. The Department of Insurance d. Each insurance company
b. The National Association of Insurance Commissioners
Any reference to policy dividends during solicitation must include a statement that dividends are: a. Perpetual b. Exclusionary c. Not guaranteed d. On a monthly basis
c. Not guaranteed
An agent for Waller Insurance sought to sell policies to a prospective client who already had similar policies with another insurer. He presented the case in such a manner that it appeared the policy he was selling offered far broader basic coverage than it actually offered. He suggested the possibility of simply letting the older policy lapse and purchasing a policy from him. His practice in this case is called: a. Rebating b. Unfair claims and practices c. Twisting d. Misrepresentation
c. Twisting
All of the following are considered unfair trade practices, EXCEPT: a. Misrepresenting pertinent facts relating to coverage b. Threatening a client to discourage them c. Offering to settle claims for a less than fair amount d. Acknowledging communications promptly
d. Acknowledging communications promptly
How do solicitation rules assist the buyer of life insurance? a. Improves buyer's ability to choose an appropriate life insurance plan b. Improves buyer's understanding of terms of insurance plan c. Improves buyer's understanding of relative costs of the insurance plan d. All of the above
d. All of the above
If a Life Insurance Cost Index is used in a presentation, which of the following must be included in a supporting statement? a. That it is only useful for comparing similar policies b. That it is based on the company's current dividend scale c. That dividends are not guaranteed d. All of the above
d. All of the above
When replacement life insurance is involved, who must be given copies of all sales proposals? a. Applicant b. Existing insurer c. Replacing insurer d. Applicant, existing insurer, and replacing insurer
d. Applicant, existing insurer, and replacing insurer
If a life policy has a 10-day free look period, when does a producer have to deliver the Policy Summary? a. Before the initial meeting b. Prior to the applicant signing the contract c. Prior to accepting the applicant's initial premium d. Before the policy is delivered or at delivery
d. Before the policy is delivered or at delivery
All of the following are defined as unfair methods of competition and unfair and deceptive acts and practices in the business of insurance, EXCEPT: a. False advertisement b. Rebating c. Defamation d. Incentives
d. Incentives
Giving, as an inducement to contract insurance, special favors, advantages in the dividends or benefits, or any valuable consideration not specified in the contract is known as: a. Rebating b. Swirling c. Unfurling d. Retreading
a. Rebating
What is the purpose of Indiana's solicitation rules? a. To improve a buyer's ability to choose the most appropriate life insurance plan b. To allow an agent to determine the appropriate cost for the policy c. To allow the state to better manage the solicitation process d. All of the above
a. To improve a buyer's ability to choose the most appropriate life insurance plan
If an insurance company should fail, the maximum amount of protection provided by the Indiana Insurance Guaranty Association is between: a. $100,000 and $300,000 b. $200,000 and $400,000 c. $300,000 and $500,000 d. $400,000 and $600,000
a. $100,000 and $300,000
The minimum number of labor unions in a trust for it to be eligible for group life insurance is: a. 1 b. 2 c. 5 d. 7
a. 1
The additional period for a person insured under a group life insurance to convert to an individual policy expires how many days after the person is given notice of the conversion right? a. 15 days b. 20 days c. 30 days d. 31 days
a. 15 days
If a life policy does NOT have a 10-day free look period, when does a producer have to deliver the Buyer's Guide to an applicant? a. Before the initial meeting b. Prior to the applicant signing the contract c. Prior to accepting the applicant's initial premium d. Before the policy is delivered or at delivery
c. Prior to accepting the applicant's initial premium
Between individuals of the same class and equal expectation of life in the rates charged for the policy, no insurance producer may: a. Unfairly discriminate b. Commonly differentiate c. Legitimately categorize d. Justifiably catalog
a. Unfairly discriminate
Which of the following terms CANNOT be used in a life insurance illustration? a. Death taxes b. Vanishing premium c. Nonguaranteed d. All of the above
b. Vanishing premium
How much time does an applicant for replacement life insurance have to return a policy for a full refund? a. 10 days b. 15 days c. 20 days d. 30 days
c. 20 days
What is knowingly making any misleading representation or incomplete or fraudulent comparison of an insurance contract for the purpose of inducing any person to convert any insurance contract from another insurer? a. Twisting b. Swirling c. Churning d. Morphing
a. Twisting
Replacement laws/rules do NOT include: a. A transaction in which new life insurance is to be purchased b. A transaction involving individual or group credit life insurance c. A transaction where existing life insurance will be lapsed, forfeited or surrendered d. A transaction where existing life insurance will be reissued with a reduction in cash value
b. A transaction involving individual or group credit life insurance
Which of the following is NOT required on a life insurance illustration? a. Sex of the insured b. Initial premium payment c. Initial death benefit d. Dividend election option
b. Initial premium payment
What is described by: "No person may make any written or oral statements, which misrepresent the terms, conditions, or benefits of a policy, for the purpose of inducing a policyholder to lapse on his current insurance and take out another policy?" a. Rebating b. Twisting c. Sharing commissions d. Unfair discrimination
b. Twisting
The Indiana Life and Health Insurance Guaranty Association in total benefits for any one person for all coverages provides a maximum of: a. $300,000 b. $750,000 c. $1,500,000 d. $3,000,000
a. $300,000
What is the minimum number of labor unions in a trust for it to be eligible for group life insurance? a. 1 b. 2 c. 5 d. 7
a. 1
What is the maximum time allowed in Indiana someone can be given to convert from a group life insurance policy to an individual life insurance policy? a. 20 days b. 30 days c. 45 days d. 60 days
d. 60 days
What is a policyholder's punishment for deliberate false statements on an insurance application? a. Fined up to $50,000 per act and/or imprisonment for a maximum of 10 years b. Imprisoned for up to 10 years c. Fined $100,000 d. Loss of insurance policy and a fine of $5,0000
a. Fined up to $50,000 per act and/or imprisonment for a maximum of 10 years
Which of the following is NOT subject to provisions of the Indiana Insurance Fraud Act? a. Viators b. Insurers c. Insurance Agents d. Employees of Insurers
a. Viators
When must the existing insurer be sent a copy of the 'Important Notice Regarding Replacement of Life Insurance' signed by the agent and applicant? a. The date of policy issue b. Within 3 working days of the date the application is received or the date of policy issue, whichever is sooner c. Within 5 working days of the date the application is received or the date of policy issue, whichever is sooner d. Within 7 working days of the date the application is received or the date of policy issue, whichever is sooner
b. Within 3 working days of the date the application is received or the date of policy issue, whichever is sooner
What unfair trade practice manipulates through the prospect of something desirable? a. Twisting b. Churning c. Coercion d. Intimidation
c. Coercion
Which of the following unfair trade practices does NOT involve misrepresentation? a. Boycott b. Churning c. Twisting d. Defamation
a. Boycott
Any person who commits an unfair trade practice or act will be subject to: a. A cease and desist order b. An inquiry by the Commissioner c. An examination by the NAIC d. An assessment by FINRA
a. A cease and desist order
Soliciting or accepting new or renewal insurance risks by or for an insolvent insurer, reinsurer, or other entity is an example of: a. Insurance fraud b. Viatical tampering c. Twisted indemnity d. Rebate discrimination
a. Insurance fraud
Who are replacement regulations designed to protect? a. Insureds b. Agents c. Insurers d. The state
a. Insureds
In addition to or in lieu of any applicable denial, suspension, or revocation of a license a person may, after a hearing, a person violating the licensing laws of Indiana will be subject to the imposition by the Commissioner of a civil penalty of: a. Not less than $50 and not more than $10,000 b. Not less than $100 and not more than $20,000 c. Not less than $500 and not more than $30,000 d. Not less than $1000 and not more than $40,000
a. Not less than $50 and not more than $10,000
A producer sat down with a prospective client and gave a visual presentation contained the principal benefits of the policy he was trying to sell. Although he mentioned that it also had 'the usual' conditions, he did not include those in his visual presentation or specify what they were. The producer was engaging in: a. Twisting b. Misrepresentation c. Coercion d. Rebating
b. Misrepresentation
What is the rule for displaying guaranteed and non-guaranteed benefits in a life insurance sales presentation? a. Non-guaranteed benefits must not be shown during a presentation. b. Guaranteed and non-guaranteed benefits must always be combined. c. Guaranteed and non-guaranteed benefits may be combined if the guaranteed portion is also shown separately. d. Guaranteed and non-guaranteed benefits must never be combined.
c. Guaranteed and non-guaranteed benefits may be combined if the guaranteed portion is also shown separately.
If an insurance company should fail, which of the following is the maximum amount of protection provided by the Indiana Life and Health Insurance Guaranty Association? a. Health insurance benefit: $5,000 per insured life b. Life insurance death benefit: $25,000 per insured life c. Life insurance cash surrender: $100,000 per insured life d. Health insurance cash surrender: $500,000 per insured life
c. Life insurance cash surrender: $100,000 per insured life
Replacement rules require that copies of all of the following must be kept, EXCEPT: a. A crossed indexed replacement register b. Policy Summary c. All sales proposals d. All sales materials
d. All sales materials
Circulation of a maliciously critical statement about any insurer's financial condition to injure the insurer is called: a. Coercion b. Conservation c. Unfair discrimination d. Defamation
d. Defamation
It is illegal to do any of the following, EXCEPT: a. To readjust premium rates, made retroactive for the policy year, for group insurance policies based on loss or expense. b. To misrepresent the terms of a policy. c. Make a false entry in a statement of an insurer with intent to deceive and agent. d. An order to fine an insurance producer
a. To readjust premium rates, made retroactive for the policy year, for group insurance policies based on loss or expense.
What is a written or oral statement that misrepresents terms, conditions or benefits of a policy so that the policyholder is induced to lapse on their current insurance or take out another policy? a. Twisting b. Unfair discrimination c. Rebating d. Sharing commissions
a. Twisting
Which of the following correctly gives the Indiana definition of an advertisement? a. Any written statement given or made during a sales presentation b. Any oral statement given or made during a sales presentation c. Any written or oral statement given or made during a sales presentation d. Any written or oral statement given or made before, during or after a sales presentation
c. Any written or oral statement given or made during a sales presentation
How many days does the Commissioner have from the date of receipt of a written complaint about an unfair claim settlement practice to deliver a copy of the complaint to the insurer? a. 10 days b. 15 days c. 20 days d. 30 days
a. 10 days
Insurers must keep replacement registers for a minimum of: a. 3 years b. 4 years c. 5 years d. 6 years
a. 3 years
If replacement is involved, an agent must submit to the replacing insurer with the application a: a. Copy of the 'Important Notice Regarding Replacement of Life Insurance' b. Signed affidavit of sale c. Copy of all sales materials initialed by the applicant d. Statement signed by the applicant acknowledging replacement
a. Copy of the 'Important Notice Regarding Replacement of Life Insurance'
For each deceptive act and/or practice committed by a producer, the Commissioner may levy a civil penalty that is a maximum of: a. $1,000 b. $10,000 c. $25,000 d. $75,000
c. $25,000
For health insurance policies that have a deficiency on a claim filed on paper, how many days does the insurer have to notify the provider? a. 10 days b. 30 days c. 45 days d. 60 days
c. 45 days
A replacing insurer must include as part of a completed life insurance application: a. Signed statement by the applicant regarding replacement b. Signed statement by the agent acknowledging replacement being involved in the transaction c. Both of the above d. None of the above
c. Both of the above
Which of the following might NOT be grounds for the Commissioner to punish or penalize an insurance producer? a. Unwittingly accepting insurance business from an unaccredited individual b. Having an insurance producer license denied, suspended, or revoked in any other state c. Failing to pay child support obligations or state taxes d. Failing to timely inform the Commissioner of any change of address
a. Unwittingly accepting insurance business from an unaccredited individual
Where a replacement is involved, the agent must: a. Provide and leave with the applicant the original or a copy of all written Sales Proposals used for presentation to the applicant b. Present to the applicant, not later than at the time of taking the application, a copy of the "Important Notice Regarding Replacement of Life Insurance." c. Submit to the replacing insurer with the application, a copy of the "Important Notice Regarding Replacement of Life Insurance" signed by the agent and the applicant d. All of the above
d. All of the above
Which of the following is excluded from life insurance illustration rules? a. Group life insurance certificates b. Group life insurance policies c. Individual life insurance policies d. Credit life insurance
d. Credit life insurance
The Commissioner can suspend or revoke the license of a producer who committed any of the following acts, EXCEPT: a. Incorrectly stating the terms of an insurance policy to a client b. Providing incorrect, incomplete, misleading, or materially false information or omitting relevant information when filing for license or license renewal c. Selling a replacement policy d. Getting a license for the purpose of writing controlled business
c. Selling a replacement policy
Replacement does not include which of the following? a. Individual or group credit life insurance b. Group life insurance c. Convertible term insurance d. All of the above
d. All of the above
Making, publishing, or circulating an advertisement that is untrue, deceptive, or misleading is: a. Defamation b. Twisting c. Misrepresentation d. False advertising
d. False advertising
How would an insurance agent's actions be characterized if he told a prospective client an HMO is a form of insurance? a. Defamation b. Misrepresentation c. Twisting d. Unfair trade
b. Misrepresentation
If an agent waives the applicant's initial policy premium as a favor for purchasing a life insurance policy, which of the following unfair trade practices has the agent used? a. Twisting b. Boycott c. Illegal inducement d. Misrepresentation
c. Illegal inducement
Relating only the benefits and not including a description of conditions or limitations is: a. Defamation b. Twisting c. Misrepresentation d. Rebating
c. Misrepresentation
A basic illustration must contain: a. Age of proposed insured b. The date it was prepared c. Any nonguaranteed elements d. All of the above
d. All of the above
