Chapter 34 - State Laws & Regulations Flashcards
1
Q
The biennial continuing education requirements include how many hours of ethics? A. 1 B. 2 C. 5 D. 6
A
a. 1
2
Q
The Kansas Bureau of Insurance is administered by the:
A. The Governor.
B. Commissioner of Insurance.
A
b. Commissioner of Insurance.
3
Q
The Kansas Life and Health Guaranty Association will pay a life policy death benefit claim up to a maximum of? A. $100,000 B. $200,000 C. $300,000 D. $400,000
A
c. $300,000
4
Q
If an Insurer desires to terminate a producer’s appointment letter, it may do so:
A. only after giving notice and affording the producer the opportunity for a hearing.
B. without prior notice to the producer.
A
b. without prior notice to the producer.
5
Q
A Kansas insurer has repeatedly violated Kansas insurance laws. The Commissioner has the power to do which of the following with the state premium tax? A. Waive the tax. B. Quadruple the tax. C. Triple the tax. D. Double the tax.
A
d. Double the tax.
6
Q
Which of the following must have an appointment?
A. Temporary producer
B. Insurance Commissioner
A
a. Temporary producer
7
Q
A Viatical involves the sale of: A. death benefits. B. dividends. C. commissions. D. cash value accounts.
A
a. death benefits.
8
Q
If an Insured requests information regarding the reason for an adverse underwriting decision, the reason must be provided within: A. 14 days. B. 21 days. C. 28 days. D. 31 days.
A
b. 21 days.
9
Q
After notifying the Existing Insurer of a possible replacement, the Replacing Insurer must wait how long prior to delivering the policy if no extended Free Look period is provided? A. 20 days. B. 30 days. C. 45 days. D. 60 days.
A
a. 20 days.
10
Q
The Kansas Life and Health Guaranty Association may appropriately send an assessment to: A. Insurers. B. Agents. C. The Commissioner. D. Insureds.
A
a. Insurers.
11
Q
An Insurer must keep copies of all replacement materials for: A. 1 year. B. 2 years. C. 3 years. D. 4 years.
A
c. 3 years.
12
Q
A producer’s license may be revoked for each of the following reasons EXCEPT:
A. Failing to pay child support.
B. Failing to put premiums in the fiduciary account.
C. Failing to meet company sales quotas.
D. Failing to pay state income tax.
A
c. Failing to meet company sales quotas.
13
Q
Knowingly making a false and maliciously critical statement calculated to injure any person in relation to an insurance transaction is: A. Boycotting. B. Misrepresentation. C. Defamation. D. Twisting.
A
c. Defamation.
14
Q
A Replacing Producer must give a copy of the Replacement Notice to the:
A. Existing Insurer.
B. Replacing Insurer.
A
b. Replacing Insurer.
15
Q
If an Insured requests the funds under an accelerated death benefit, the Insurer must send written notice that:
A. the accelerated death benefit may only be exercised by beneficiaries after the Insured’s death.
B. the Insured should obtain income tax advice.
A
b. the Insured should obtain income tax advice.
16
Q
If an advertisement uses a paid endorsement by a famous person:
A. the amount of compensation paid to the famous person must be donated to charity.
B. the amount of compensation paid to the famous person must be stated in the advertisement.
C. the ad must disclose that the person is compensated.
D. this is illegal in Kansas.
A
c. the ad must disclose that the person is compensated.
17
Q
Temporary Producer licenses last for: A. 30 days. B. 60 days. C. 90 days. D. 180 days.
A
d. 180 days.
18
Q
Each of the following may receive a Temporary Producer license EXCEPT:
A. any employee of an entity licensed as an insurance agent.
B. any Kansas resident.
C. an agent’s surviving spouse.
D. the designee of an agent who is entering active military duty.
A
b. any Kansas resident.
19
Q
Which of the following may subpoena witness and require them testify at a hearing? A. The Insurance Company. B. The producer. C. The Commissioner. D. Any consumer.
A
c. The Commissioner.
20
Q
Defamation involves a false statement regarding the financial condition of: A. the State Guaranty Association. B. the Commissioner. C. an Insurer. D. a person.
A
d. a person.
21
Q
It is legal to have different insurance premium rates based on which of the following? A. religion B. age C. race D. Medicaid eligibility
A
b. age
22
Q
Kansas follows which system regarding approval of new policy forms?
A. No filing is required if the forms are NAIC approved.
B. No filing is required if the forms are approved for use in any other state.
C. File and Use.
D. File and Wait.
A
c. File and Use.
23
Q
A producer’s appointment may be revoked by the:
A. Both the Insurer and the Insurance Commissioner.
B. Insurer only.
C. Only a court after notice and hearing.
D. Insurance Commissioner only.
A
b. Insurer only.
24
Q
The Kansas Life Insurance Replacement Rules apply to each of the following EXCEPT: A. Whole life policies. B. Term life policies. C. Group life policies. D. Universal life policies.
A
c. Group life policies.
25
```
If a group of producers refuse to deal with a particular applicant or insurance company, this is an example of:
A. Misrepresentation.
B. Defamation.
C. Twisting.
D. Boycotting.
```
d. Boycotting.
26
Quincy is a licensed producer who has intentionally violated state insurance laws. Quincy:
A. may have his license temporarily suspended pending a hearing.
B. may have his office account forfeited to the Commissioner.
C. may have his license revoked on an emergency basis without a hearing.
D. may be penalized up to $5,000 by the Commissioner.
d. may be penalized up to $5,000 by the Commissioner.
27
The Commissioner must investigate Insurers:
A. on a biannual basis (twice a year).
B. every 5 years.
C. on a biennial basis (every two years).
D. on an annual basis.
b. every 5 years.
28
The Commissioner may suspend an agent's license for an activity:
A. regardless of whether the agent knew or should have know that the activity violated state law.
B. only if the agent knew or should have known that the activity violated state law.
b. only if the agent knew or should have known that the activity violated state law.
29
The Commissioner has the authority to:
A. Disregard those state statutes which are not in the best interest of the public.
B. Revoke an agent's appointment.
C. Adopt rules and regulations.
D. Start an insurance company if a need is shown within the state.
c. Adopt rules and regulations.
30
```
An Insurer operated on a non-profit basis solely for the benefit of its members is:
A. Admitted
B. Domestic
C. Foreign
D. Fraternal
```
d. Fraternal
31
All fees and taxes received by the Commissioner must be:
A. given to the State Treasurer.
B. deposited directly to the Commissioner's discretionary account.
a. given to the State Treasurer.
32
```
The amount of the state premium tax is:
A. 1%
B. 2%
C. 3%
D. 4%
```
b. 2%
33
```
The biennial CEC continuing education report must be filed with the commissioner by which date?
A. The agent's biennial due date.
B. January 1.
C. December 31.
D. The agent's birth date.
```
a. The agent's biennial due date.
34
```
An employer MAY use a group life policy in Kansas to cover each of the following EXCEPT:
A. retired employees
B. board of directors.
C. officers.
D. former employees.
```
b. board of directors.
35
```
The following must pass the licensing examination and complete Continuing Education requirements EXCEPT:
A. Health Producers.
B. Property Producers.
C. Temporary Producers.
D. Life Producers.
```
c. Temporary Producers.
36
```
The Kansas Life and Health Guaranty Association may assess a charge against Insurers equal to what percent of premiums?
A. 2%
B. 3%
C. 4%
D. 8%
```
a. 2%
37
```
A producer's license may be revoked by the:
A. Insurer.
B. Governor.
C. Insurance company.
D. Insurance Commissioner.
```
d. Insurance Commissioner.
38
```
An agent who holds only a single line license must complete how many hours of continuing education?
A. 10 hours.
B. 12 hours.
C. 18 hours.
D. 24 hours.
```
b. 12 hours.
39
When marketing an annuity product in Kansas, the Producer must:
A. disclose to the applicant any other insurance companies providing similar products.
B. determine that the annuity is suitable for the consumer.
b. determine that the annuity is suitable for the consumer.
40
A business entity may obtain a producer license only if:
A. The entity designates a producer to be responsible for the firm's operations.
B. The business represents 5 or more different insurance companies.
a. The entity designates a producer to be responsible for the firm's operations.
41
```
An insurer must give how much notice to the producer prior to revoking the producer's appointment?
A. None
B. 10 days
C. 20 days
D. 30 days
```
a. None
42
```
Upon receiving notice from its producer that a policy is being replaced, the Replacing Company must notify the Existing Company within:
A. 3 days.
B. 10 days.
C. 20 days.
D. 30 days.
```
a. 3 days.
43
```
A Kansas employer wanting to establish a group employee life policy must have at least:
A. 1 employee.
B. 2 employees.
C. 3 employees.
D. 4 employees.
```
c. 3 employees.
44
```
It is the obligation of the Replacing Producer to deliver a copy of the Replacement Notice to the Replacing Insurer. How long does the Replacing Insurer have to notify the Existing Insurer?
A. 24 hours.
B. 3 days.
C. 5 days.
D. 7 days.
```
b. 3 days.
45
The Kansas Life and Health Guaranty Association covers claims of:
A. Group life policies.
B. Individual life policies.
b. Individual life policies.
46
With a group credit life policy:
A. benefits are paid when the creditor dies.
B. all debtors must owe the same creditor.
C. the debtor is always the beneficiary.
D. the debtor is the owner of the policy.
b. all debtors must owe the same creditor.
47
The policy replacement rules apply to:
A. neither group or individual life policies.
B. group life policies only.
C. individual life policies only.
D. both group and individual life policies.
c. individual life policies only.
48
```
An Insurer promises to give company stock to an applicant if the applicant will purchase the company's insurance. This is an example of illegal:
A. Rebating
B. Misrepresentation
C. Twisting
D. Defamation
```
a. Rebating
49
```
Which license(s) are required for an agent to be involved in a viatical settlement in Kansas?
A. Both life and securities
B. Life only
C. Securities only
D. Only a Viatical license
```
a. Both life and securities
50
If the Commissioner asks to see a producer's office records, the producer must:
A. obtain the insureds to sign a "privacy release" before releasing the records.
B. make the records available for examination promptly upon request.
C. deny the request if the Commissioner has reviewed the records within the last 5 years.
D. obtain the insurance company's authorization to release the records.
b. make the records available for examination promptly upon request.
51
A Producer must obtain an appointment from:
A. The Insurance Commission.
B. An authorized insurance company.
b. An authorized insurance company.
52
To reveal information regarding an individual's nonpublic personal financial information, an agent:
A. may have the individual's oral or written consent.
B. must have the individual's written consent.
C. must have the person's written consent plus approval from the Commissioner.
D. must have the person's oral or written consent plus approval from the Commissioner.
b. must have the individual's written consent.
53
```
A person needs an agent's license to be a:
A. Underwriter.
B. Adjuster.
C. Commissioner of Insurance.
D. Temporary producer.
```
d. Temporary producer.
54
```
After appointing an agent, the insurer must notify the Commissioner within:
A. 15 days.
B. 20 days.
C. 30 days.
D. 45 days.
```
c. 30 days.
55
```
An Insurer that is nonadmitted lacks:
A. a certificate of authority.
B. financial standing.
C. qualified underwriters.
D. agents.
```
a. a certificate of authority.
56
```
An insurance company charges different premiums to persons of approximately the same rate and hazard classification. This practice is illegal:
A. Discrimination
B. Twisting
C. Boycotting
D. Commingling
```
a. Discrimination
57
```
An agent who holds more than one category of licenses must complete how many hour of continuing education?
A. 12
B. 18
C. 24
D. 36
```
a. 12
58
Which of the following would qualify an individual for an accelerated death benefit?
A. A change in careers.
B. Confinement to a medical institution.
C. The sale of a business.
D. The birth of a child.
b. Confinement to a medical institution.
59
Which person does not need a producer's license?
A. A Health agent.
B. The Commissioner of Insurance.
b. The Commissioner of Insurance.
60
```
An agent must report any felony conviction to the Commission within:
A. 15 days of the final disposition.
B. 20 days of the final disposition.
C. 30 days of the final disposition.
D. 90 days of the final disposition.
```
c. 30 days of the final disposition.
61
The Guaranty Association has authority to:
A. suspend a producer's license after the opportunity for a hearing.
B. determine whether the provisions of a policy are fair to consumers.
C. guarantee that Insureds will pay premiums.
D. issue assessments to solvent insurers to pay claims of insolvent insurers.
d. issue assessments to solvent insurers to pay claims of insolvent insurers.
62
Who is always the beneficiary under a group credit life policy?
A. the debtor
B. the creditor
b. the creditor
63
Each of the following is a "legal" form of rebating EXCEPT:
A. a producer pays the first month's premium for the Insured.
B. reducing premiums in return for the Insured paying premiums directly to the Insurer.
C. a mutual insurer pays bonuses dividends to policy holders.
D. adjusting the premiums on a group policy based on the year's losses.
a. a producer pays the first month's premium for the Insured.
64
```
The Kansas Life and Health Guaranty Association will pay an annuity claim up to a maximum of?
A. $100,000
B. $200,000
C. $300,000
D. $400,000
```
a. $100,000
65
The Guaranty Association is most likely to pay the claim filed by:
A. an agent who did not receive a commission due to the insolvency of an Insurer.
B. a resident policyholder.
C. a nonresident policyholder.
D. an Insurer.
b. a resident policyholder.
66
An association may obtain group life insurance for its members if:
A. it has at least 25 association members.
B. it was formed primarily for the purpose of obtaining insurance.
a. it has at least 25 association members.
67
```
The maximum amount of group credit life insurance in Kansas is:
A. $100,000.
B. $200,000.
C. $300,000.
D. $400,000.
```
a. $100,000.
68
The Insurance Commissioner is:
A. elected.
B. appointed by a judicial panel.
a. elected.
69
```
Which of the following may obtain a producer license without taking the licensing examination?
A. Personal Lines Producer
B. Life Producer
C. Health Producer
D. Temporary Producer
```
d. Temporary Producer
70
Molly has contacted a producer about purchasing an annuity. Before selling the annuity, the producer must determine each of the following EXCEPT:
A. Molly’s age.
B. Molly’s hobbies and interests.
C. Molly’s tax status.
D. the suitability of the recommended annuity.
b. Molly’s hobbies and interests.
71
To be a Resident Producer a person must:
A. have been a Kansas resident for at least 5 years.
B. be at least 18 years old.
b. be at least 18 years old.
72
```
Which of the following will LEAST LIKELY obtain a business entity license?
A. partnership
B. corporation
C. limited liability company (LLC)
D. sole proprietorship
```
d. sole proprietorship
73
```
An agent must report any change of address to the Commission within:
A. 10 days.
B. 30 days.
C. 45 days.
D. 60 days.
```
b. 30 days.
