PROPERTY: KY LAW
Terms in this set (15)
Question 1 of 15
Which of the following is an example of a producer being involved in an unfair trade practice of rebating?
AInducing the insured to drop a policy in favor of another one when it's not in the insured's best interest
BCharging a client a higher premium for the same policy as another client in the same insuring class
CMaking deceptive statements about a competitor
DTelling a client that his first premium will be waived if he purchased the insurance policy today
Question 2 of 15
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?
CA legal advertising strategy
Question 3 of 15
An insurance application cannot ask about which of the following information about an applicant?
Question 4 of 15
An applicant for an agent license in Kentucky must be at least
A16 years old.
B18 years old.
C21 years old.
D25 years old.
Question 5 of 15
In order for an insurer to legally transact insurance, it must obtain which of the following?
AAuthorization of Power
BCertificate of Authority
CPower of Authority
Question 6 of 15
Agents must keep records of all insurance transactions for at least
Chapter: Kentucky Law
Question 7 of 15
Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of
Question 8 of 15
All of the following can be licensed as an agent EXCEPT:
Question 9 of 15
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of
Question 10 of 15
All of the following events will terminate an agent's certificate of appointment EXCEPT
AA new Commissioner or Director is put into office.
BAn agent's license expires and is not renewed.
CA termination issued by the appointing insurer.
DAn agent's license is suspended or revoked by the Department of Insurance.
Question 11 of 15
Which of the following persons would not need to be licensed by the Executive Director?
DService representative of an insurer
Question 12 of 15
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
ALegal, provided that the other insurers are paid royalties for the usage of their names
BIllegal under any circumstances
CLegal, provided that the information can be verified
DIllegal until endorsed by the Guaranty Association
Question 13 of 15
When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?
Question 14 of 15
For which of the following violations is revocation of an agent's license required by law?
CUsing license to place business solely on an agent's own property.
DAll of the above.
Question 15 of 15
When an insurance agency published an advertising brochure, it emphasized the company's financial stability and sound business practices. In reality, its financial health is terrible, and the company will soon have to file for bankruptcy. Which of the following terms best describes the advertisement?
CFalse financial statement
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