Insurance Code Flashcards
When an insurer endorses, rejects, declines, cancels, or surrenders the policy, unearned premium must be return to the insured with how long?
25 days
A life agent must maintain records regarding insurance transactions for how long?
Five years
Concealment entitles the injured party to rescind the contract under which conditions?
When the concealed facts are material whether intentional or unintentional.
Neglect to communicate that which a person knows and ought to communicate is:
Concealment
An implied warranty is:
Included in the policy but not specifically stated in it
If an insurer is approved to transact insurance in the state of California, it is considered to be:
An admitted insurer
Under normal circumstances, an agent may write insurance business for:
Admitted insurers
An exclusive agent may work for several insurance companies as long as those companies are admitted insurers. True or false?
False
A natural person employed by an agent/broker to aid in transacting insurance other than life and health insurance is an:
Insurance agent
Describe an insurance agent:
- Appointed by an insurer
- Transact other than life and health insurance.
- Receive commissions
- Transacts on behalf of the insurer
Transacting insurance includes:
- Solicitation
- Negotiation
- Execution of a contract of insurance
Which of the following names would the insurance commissioner NOT disapprove? A. bona fide natural name B. true corporate name C. True name D. Fictitious name
Bona fide natural name
What is true about insurance records kept by an agent or broker?
The commissioner may inspect any record at any time.
The commissioner may deny a license if the applicant has had a previous application denied or has previous license suspended or revoked for cause within how many years before filing of the application?
Five years
The commissioner may deny a license without a hearing, if the applicant has been convicted of a misdemeanor denounced by the insurance code.
True
A licensee misrepresents the Financial condition of an insurer. This is an example of:
Twisting
If a licensee violates any provision relating to twisting, concealment, or misrepresentation, he may be imprison for up to how many months?
12
A person who makes a fraudulent claim or assist in making a fraudulent claim is guilty of a criminal act and may be imprisoned for how many years?
Two, three, or five years
An agent may advertise that his insurance company is a member of a guaranteed association. True or false?
False
What is not an unfair trade practice?
Informing clients of the statue of limitations.
Insurance licensees must put their license number on which of the following?
A. Business cards
B. written quotations for insurance products.
C. Printed advertisements
all the above
A surplus lines broker places insurance with whom?
non-admitted insurers
It is a misdemeanor to transact for or advertise a non-admitted insurer unless licensed as what?
A surplus lines broker
