Chapter Sixteen Quiz Flashcards
Intentionally misrepresenting or concealing a material fact to induce an insurance company to make a contract is known as:
Fraud
Which of the following actions will not cause a discontinuance of an agents appointment with an insurer?
The agent does not meet his commission goals
All of the following are true about a Life and Disability Analyst:
- Does not receive compensation from an insurance company
- Must be licensed
- Advises persons other than insurance company regarding different aspect of the contract
A person that does not work on the behalf of the comapny for which they do business, but rather represents the prospect, insured, or client is called:
An insurance broker
Which of the following is not a typical characteristic of an errors and omissions (E&O) policy?
Policies have numerous exclusions to limit or avoid fraudulent claims
In insurance transactions, fiduciary responsibility means:
Handling insurer funds in a trust capacity
All of the following are true regarding rebates:
- Dividends are not considered to be rebates
- Rebating can be anything of monetary value given as an inducement to purchase insurance
- Special favors and services would be considered rebating
When can an insurer insert information into an application without first obtaining the consent of the applicant?
For administrative purposes only, as long as it is clear that the insurer made the note
An agent may continue operating under an expired license for a period of 60 days provided that the agent has:
Filed an application for renewal and paid the renewal fee on or before the expiration date
A life agent may use the name of corporation or association on any stationary or advertisement to identify the relationship in all the following:
- Placing business through _______
- Representing __________
- A stockholder of ________
What is the term for a sales campaign conducted through the mail?
Direct response
What is a foreign insurer?
An insurer with a home office in another state
