The insurance market place
It is the insurers responsibility to make certain that the application is filled out completely, correctly, and to the best of their knowledge
All of the following are true statements regarding the agent responsibilities in connection with the completion of application except
Insurance premium quotes
All of the following must be included in the ad over the Internet except
Five years after policy delivery or initial application if no policy was issued
All records relating to insurance application and delivery must be maintained by the insurer for a period of
The insurer signs the appointment form
An agent can begin to solicit business for a company when
Apparent
An agent except the premium payment 35 days after it is due, telling the insured that there will not be a problem keeping the policy in force. This is an example of what type of agent authority?
They will be carried over into the next licensing period
An agent has completed 30 hours of continuing education by the end of a license period instead of the required 24 hours. What will happen to the six hours in excess?
The principal
An agent is a legal person who acts on behalf of
Always representing the insured
An agent is acting ethically and all of the following situations except
Filed an application for renewal and paid the renewal fee on or before the expiration date
An agent may continue operating under an expired license for a period of 60 days provided that the agent has
An agent ask on behalf of the principal/insurance company
An agent or producer ask on behalf of which of the following persons?
An errors and omission and will be covered by an errors and omissions policy
An agent solicited a policy for a client who originally qualified for standard premiums. During the underwriting process, the applicant was rated as a substandard risk and I signed a higher premium. Upon policy delivery, the agent failed to mention that the premiums would be higher, and the client files a lawsuit against the insurer. This is an example of
The definition of a fiduciary is
An agent/broker who handles ensure funds in the trust capacity
He was directed by law to have a license prominently displayed in the office
An applicant has just received his property and casualty broker license. His office is so small that he can barely sit down at his desk without bumping the world. Display just above this ad is a cream with his new license. When asked why he had that big frame in such a small office, the broker stated that
There are no grounds for which license could be denied based on the information provided
An applicant has submitted an application for a life agent license in the state of California. Five years ago the applicant was charge with, but not convicted of a felony and another state. The California commissioner could deny the license on the grounds that the applicant
Binder
An applicant is purchasing a homeowners policy. A producer comes to her home, fills out the paperwork, and tells the applicant that her home will be covered as soon as she signs all of the paperwork, and that she will receive a new policy in the mail in five business days. Even though the policy is not issued, the applicants home is temporarily covered until then. Which of the following makes that possible?
Has a contract with one company
An exclusive agent
More than one Insurer
An independent agent may have contracts with which of the following?
Life insurance
An insurance agent may not transact
Represent the client
An insurance agents responsibilities include all of the following except
Non-admitted company
An insurance company that is not authorized to do business in the state of California is known as a
The partnership files notice with the department within 30 days and the change is approved
An insurance partnership can continue with new partners as long as
Errors and omissions coverage
An insurance policy that protects an insurance agent from financial losses that might be incurred if an insured files a lawsuit as a result of that agent either giving incorrect advice for not informing the client of important information is called
Mutual
And insured purchased an insurance policy five years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy
Upon continuance for only one person from the previous copartnership to the new co-partnership
And organization ceases to exist as an entity eligible to hold a license for all of the following reasons except
30 days
Any borrower has free choice of insured in the state of California. If the borrower fails to provide proof of insurance to the lender, the lender has the right to furnish the needed insurance. How many days before the expiration of the policy must the borrower provide such and proof of insurance?
14 days
Any licensed agent may submit an application for insurance to an insurer without an appointment. However, the insurer must submit the notice of appointment to the commissioner within how many days?
Do all of the above Disclose to the insured that compensation was received, disclose the amount of compensation, and maintain records of financing agreement for three years
Any person engaged in business as an insurance agent or broker who participates in the arrangement of a premium financing agreement and receives compensation for such services must
2
Bob owns an insurance company. How many (real or fictitious) may his business have?
Commissioner
Every applicant for an insurance license in the state must have filed on his or her bed have a notice of appointment with which authority?
Three
How many hours of continuing education and ethics most agents complete each licensing term?
Send the license to the commissioner for termination
If a license would like to terminate his license and has it in his possession, what would we have to do?
The policy will not lapse since payment to the agent is the same as a payment to the insurer
If an insurance premium is paid by the policy owner to the agent, and the agent feels to remit that premium to the insurer, which of the following statements is true?
Authorized
If an insurer me to the states financial requirements and was approved to transact business in the state, it is considered to
The owner
In a life settlement contract, how much does the life settlement broker represents
Handling insurer funds in a trust capacity
In insurance transactions, fiduciary responsibilities means
Certificate of authority
In order for an insurer to legally transact insurance, it must obtain which of the following?
Disclose the fee in writing to, and have it approved by, the client in advance
In order to be paid for his or her services, the life and disability insurance analyst must do which of the following?
Direct response system
In which distribution system must the potential client take the initiative and respond to an advertisement three telephone or male contact with the insurer?
Acting as an agent for a non-admit it and sure unless he surplus lines broker is considered a
Misdemeanor
The legal term "nolo contendre" means
No contest
Fiduciary responsibility
The requirement that agents not commingle Insurance Monies with their own funds is known as
An insurance solicitor
A natural person that is employed to aid in insurance agent or insurance broker in the transacting of insurance business other than life insurance transactions is called
Pay dividends to the policy owner
A participating insurance policy may do which of the following?
The applicant must be at least 21 years of age
To be licensed as a life and disability analyst in the state of California, and applicant must meet all of the following requirements except
File a surety bond with the commissioner
To make sure that an agent license stays active, the agent of an insurer must see that all the following are done except
Misdemeanor
Transacting insurance without a license is considered a
Insurance agent or broker
Under California law, and insurance solicitor is a natural person employed to aid a
If the actual service means the policies premium will no longer cover the cost of issuing and servicing it
Under what circumstances may an agent charge extra service fees
24 hours every two years
What are the continuing education requirements for life on the agent in California?
It terminates
What happens to a corporation license if the corporation is dissolved?
The licensee
Who is responsible for notifying the commissioner of the licensees change of address?
An insurance broker
A person who transacts insurance business, other than life insurance, for compensation from an on behalf of another person, but not on behalf of or as a representative of an insurance company for which he has an appointment it's called
24
A property and casualty agent has been licensed for seven years. How many continuing education hours must agent complete this licensing period?
Suspense system
A record keeping system that lists all policies including that inception and expiration dates with the purpose of tracking policies for renewal is known as
One or more fire and casualty broker agent can employ a solicitor simultaneously
According to California insurance code, the duties and requirements of solicitor, agent and broker or all distinct from one another. Which of the following is true?
ABC insurance services
According to the agency name/use of name provision of the California insurance code, which of the following names for an insurance producer may be approved for use?
Agent
According to the law of agency, the principal is represented by a
Five years
After cancellation or expiration of a policy, insurance agents are required to keep detailed bank and financial records about the transaction for a minimum of
Contracted by
Al life agent may use the name of corporation or association on any stationary or advertisement to identify the relationship and all of the following ways except
A property and casualty license is a person who, for a fee, agrees to make an investigation for the purpose of updating information in the course of participating in the disposal of any claim under the policy of insurance
All of the following are true regarding a property and casualty license except
Any printed materials generally use by the insurer, either directly or indirectly by its agents
Records required to be maintained or to be made available by insurer include all the following except
High-risk individuals
Surplus lines insurance usually involves insurance for which type of Individuals?
Surplus lines coverage
A form of coverage designed to place risk for which no market is available through the original program or agency system is called
Any violation of the cease or desist order is a felony
Paula is negotiating a loan from Cal bank. The bank requires Paula to purchase insurance from their sister company, we got you insurance as a stipulation for the loan. According to the California regulations, all of the following would be true except
Immediately
The address of the office for the transaction of insurance business needs to be specified on the original application and all renewal applications every licensee must notify the commissioner in writing of any address changes
Express authority
The authority granted to an agent through the agents contract is referred to as
The notice is signed by the insurer
The authority to transact insurance under an appointment becomes affective as of the day
The prerequisites for the license applied for has been accomplished
The commissioner has the right and responsibility to investigate all application for licensure to assure that
Five years
The commissioner me to spend and applicants license without hearing if the applicant has had another professional license suspended or revoked within the what time period?
Failure to properly identify the insured's risk
The commissioner me, without hearing, suspension agents license for all the following reasons except
All of the following are true statements regarding the California financial responsibility law
The individual is responsible for providing archival copies of auto liability policies
Fire and casualty
The insurance solicitor is only found in which field of insurance?
$1000
The maximum penalty for failure to print an individual agents license number on print a document is
$500
What is the minimum fine for acting as an agent free not admitted insurer in the transaction of insurance business?
Protects agent against charges that they didn't properly serve a client
What is the purpose of errors and omissions insurance
Direct response
What is the term for a sales campaign conducted through the mail?
Principal
What is the term for that entity that an agent represents regarding contractual agreements with third parties?
Personal lines
What license allows an agent to transact only automobile, personal watercraft, residential property, earthquake, flood, inland marine and umbrella insurance.
A license to sell insurance, which must be displayed in a place where it can be seen easily
What must all property and casualty agent display in their offices?
It becomes inactive
When an agent does not hold any active appointments with insurers, what happens to the agents license?
When no company appointment is in effect for the license
When is an insurance license considered in active?
The owner of the life insurance policy
Which of the following best defines the owner and a life settlement contract?
They are written for the clients of the producer covered by the policy
Which of the following does not apply to errors and omissions liability contracts?
And analyst receives compensation from his client, and agent receives compensation from the insurance company
Which of the following is a primary difference between a life and disability analyst and a life agent?
An agent promptly forwarding premiums to the insurance company
Which of the following is an example of an agent fiduciary responsibilities?
Life only broker
Which of the following is authorized to transact insurance on human lives
Life broker
Which of the following is not a license in the state of California?
Employment with an insurance company
Which of the following is not a required licensing qualification for a life and disability insurance analysis in the state?
Employment with an insurance company
Which of the following is not a required licensing qualification for a life and disability insurance analyst in the state?
Underwriting the contract
Which of the following is not a responsibility Of an insurance agent?
Policies have numerous exclusions to limit or avoid fraudulent claims
Which of the following is not a typical characteristic Errors and omissions policy?
Life and disability analyst
Which of the following is not permitted to charge a fee for any services provided unless he/she has signed, written agreement with the party being charged, including a statement of the charge or basis on which charges will be made?
The seller must be ill
Which of the following is not true of life settlements?
Admitted
Which of the following is the closest term to an authorized insurer shower
It is illegal
Which of the following is true regarding free insurance issued in the state?
Independent agent
Which of the following persons represent several insurance companies but owns the records of the policy sold?
Errors and omissions
Which of the following provisions requires an insurer to document all correspondence with an insured
A sign in an insurers office
Which of the following would not be considered a form of direct response marketing?
Financial elder abuse statute
Which state law was an acted in California to protect persons age 65 or older from insurance agent dishonesty?
