State Regulations Supplementations

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What is the minimum age to be licensed as an insurance producer?
A. 21
B. 25
C. 18
D. No minimum age, but the candidate must pass the licensing exam
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Terms in this set (20)
What is the minimum age to be licensed as an insurance producer?
A. 21
B. 25
C. 18
D. No minimum age, but the candidate must pass the licensing exam
C. 18
Exclusive agents do NOT have the responsibility for...
A. Licensing producers
B. soliciting applications for insurance
C. Delivering policies
D. collecting premiums
A. Licensing producers
To increase sales activity as a new agent, Norm offers 2 nights' stay at a nice hotel for the first 10 clients who purchase a homeowners, auto, and life insurance policy with his agnecy. Norm is guilty of?
A. False advertising
B. Rebating
C. Misrepresentation
D. Coercion
B. Rebating
All of the following are duties of insurance licensees EXCEPT
A. notify the Department of Insurance of a change of address
B. File any fictitious name the licensee uses for business purposes
C. Comply with continuing eduction requirements
D. File the list of agency appointments with the Department of Insurance
D.
In order to do business in a state, an insurer must have a certificate of
A. Approval
B. Agency
C. Admittance
D. Authority
D. Authority
The head of the department of insurance can suspend a producer's license for the following reasons EXCEPT
A. Making a false statement on a licensing application
B. Making conservation efforts regarding the replacement of policies
C. Misappropriating money belonging to policyowners
D. forging a name on an insurance application
B.
which of the following actions is NOT an unfair claims method?
A. Denying a claim without making a reasonable investigation
B. Denying a claim within a reasonable time after a proof of loss statement was completed
C. failing to explain why a claim was denied
D. attempting to settle claims on the basis of an application that was altered without notice to the insured
B.
Regarding the insurance business, which of the following is an example of a self-regulatory body
A. State senate
B. National Association of Insurance Commissioners (NAIC)
C. U.S. Court of Appeals
D. State Dept. of Insurance
B.
All of the following are considered to be unfair and deceptive trade practices EXCEPT
A. inflating the dividend amount when discussing the policy's advantages with potential policy owners
B. circulating a statement claiming that another insurer is in danger of going bankrupt
C. Issuing checks in full settlement of a claim that contain language releasing the insurer from liability
D. Rebating premiums
C.
The chief officer of the state insurance dept. is NOT responsible for
A. overseeing insurance companies' marketing practices
B. licensing and supervising agents and brokers
C. Enacting insurance laws
D. Issuing rules and regulations
C.
All of the following acts are prohibited EXCEPT A. providing a sales illustration that is based on a hypothetical dividend scale grater than the insurer's current scale B. replacing one policy with another C. advertising the policy by using such words as "all," "full," or "unlimited" to describe a benefit beyond the terms of the policy D. implying that by purchasing a policy the owner will be entitled to special advantages that would not be available to other consumersB.By examining an insurer's records, the head of the dept. of insurance assesses the insurer's A. profitability B. workforce morale C. Compliance with State laws D. adherence to NAIC regulationsC.Acts requiring a person to be licensed as a producer include all of the following EXCEPT A. soliciting insurance sales B. selling insurance policies C. negotiating insurance sales D. advertising insurance policiesD."An individual who negotiates insurance coverage for compensation on behalf of an insurer" best describes A. an appraiser B. a broker C. an adjuster D. an agentDWhich of the following statements regarding the payment of commissions is NOT correct? A. A producer may not charge additional fee not included in his commissions for soliciting and producing insurance or servicing existing policyholders B. a producer may not share commissions with unlicensed persons C. a producer may not share commissions with a licensed nonresident producer D. a producer may share commissions with another licensed producerC.Which of the following activities is NOT an example of misrepresentation? A. an insurer advertises a life insurance policy as a retirement savings plan B. an agent tells a prospect that the policy has achieved a certain level of dividends for the past 5 years C. an agent participates in twisting D. an agent tells a prospect that the insurer has a higher A.M. Best rating than is actually trueBIn order to sell insurance for an insurer, the producer must first A. be appointed by the Commissioner B. apply for a temporary license C. be appointed by that insurer D. take a training course sponsored by the insurerC.An example of unfair discrimination is BEST demonstrated by which of the following situations? A. an insurer refuses to issue an auto insurance policy to an applicant who has recently been convicted of careless and imprudent driving B. an insurer assigns a premium rating to an applicant because studies that suggest members of the applicant's race have a "shorter than average" life expectancy C. an insurer issues a homeowners policy to a person in a rural area, and the total premium is higher than a similar home in a suburban area D. an insurer assigns a higher life insurance premium to an applicant who weighs more than the standard weight for a person of that age and sexB.In most jurisdictions, all of the following would constitute unlawful acts of rebating EXCEPT A. paying a bonus to a licensed employee for referring the policy owner to the producer B. sharing a sales commission with a policyowner C. reducing the initial premium payable on an insurance policy D. sending a new policyowner on an expenses-paid tripAA producer's license may be revoked for all of the following reasons EXCEPT A. general incompetence B. soliciting controlled business (e.g., close family members) C. misrepresenting insurance policy provisions D. a fraudulent application for licenseB.