life ins exam flashcards chp 15

A licensed counselor MAY NOT perform which of the following duties?

Advertise business as an insurance counselor or consultant

Provide opinions concerning benefits, coverage, terms, and advantages and disadvantages of a policy or annuity

Audit or abstract insurance policies or annuities

Solicit business as an insurance producer

solicit bus as a producer

An agent offers their client free tickets to a sporting event in exchange for the purchase of an insurance policy. Assuming the tickets were not specified in the policy, the agent would be considered guilty of

rebating (give/promise anything of value that isn’t in policy)

What persons is required to hold a producer license?

person who negotiates ins contracts

selling/soliciting ins

The following areas are regulated by the Insurance Department EXCEPT

Insurer financial requirements.

Producer commission schedules.

Policyowner rights and disclosures.

Producer regulations and testing requirements.

Policyowner rights and disclosures.

Within how many days after the initial pretrial hearing date must an insurance producer report criminal prosecution of the producer to the Commissioner?

15 days

45 days

20 days

30 days

30

What is the maximum fine for submitting a false or fraudulent claim to the insurer?

$1,500

$500

$2,000

$1,000

1000

Which of the following is NOT required in a report to the Commissioner regarding an administrative action or criminal prosecution of a producer?

Copy of the order

Any relevant documentation

Complaint following hearing

Consent to order

Complaint following hearing

Which of the following would be required to be licensed as an insurance producer?

A person whose activities are limited to producing insurance advertisements

A salaried full-time employee who furnishes information for group insurance

A salaried employee who advertises and solicits insurance

An insurance company director who performs executive, administrative and managerial duties

A salaried employee who advertises and solicits insurance

What is the minimum civil fine per violation of the Insurance Code of this state?

$500

$5,000

$1,000

$2,000

1000

All of the following are penalties for submitting fraudulent claims to the insurer EXCEPT

Payment of restitution.

Fine.

Imprisonment.

Community service.

Community service.

If an insurance agent has made a misrepresentation or incomplete comparison of policies for the purpose of inducing a potential client to purchase an insurance policy, the agent may be assessed a fine of up to

$100

$2,000

$500

$1,000

2000

In this state, a temporary license may be issued for any of the following reasons EXCEPT

The death of a producer.

A producer's time in the military service.

A producer's retirement.

A producer's disability.

A producer's retirement.

If a licensee does not earn 24 hours of Continuing Education by the license review date, the license will be suspended for up to how many days?

60 days

120 days

90 days

30 days

90 days

penalties if violates cease/desist order

up to 10k each violation - not exceeding 50k

suspension/revocation

both

What best describes a misrepresentation?

Issuing sales material with exaggerated statements about policy benefits. any issuing/illustration/material that is misleading. includes oral statements

M, who is not licensed as an insurance agent, works part-time in her father's insurance agency. M may perform all of the following duties EXCEPT

Call prospects and collect expiration dates of their existing policies for her father.

Assist her father in completing applications for insurance.

Collect premium for in-force policies and explain coverages to clients that have existing policies written by her father.

Make appointments with clients and prospective clients to meet with her father.

Collect premium for in-force policies and explain coverages to clients that have existing policies written by her father.

A lender who conditions approval of a loan on the condition that the borrower purchase insurance from that lender may be guilty of
Coercion.

Unfair discrimination.

Misrepresentation.

Illegal inducement.

coersion - unfair trade practice

An insurer who violates the Insurance Code statutes on illegal inducement is guilty of a
Misdemeanor.

Class C violation.

Civil violation.

Felony.

misdemeanor

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Coercion

False advertising.

Twisting.

Rebating.

rebating

how many days to file notice of appointment

15 days

how long to reinstate lapsed license without having to do exam again

12 months

how long allowed for insurer to inform insured what constitutes satisfactory proof of loss

30 days

annual i rate for unpaid claims

12%

misrepresentation or inducement fine per violation

1000