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Kansas/Missouri State Insurance Laws > Insurance Laws > Flashcards

Insurance Laws Flashcards

1
Q

The Commissioner of Insurance has the power to do all of the following, except:

a. Enforce insurance laws
b. Issue producer licenses
c. Make insurance laws
d. Issue certificates of authority to producers

A

c. Make insurance laws

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2
Q 
The Commissioner of Insurance must examine the financial condition of each producer
or insurer at least once:
a. Every year
b. Every 2 years
c. Every 5 years
d. Every 10 years
A

c. Every 5 years

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3
Q

Which of the following penalties can the Commissioner impose for committing an unfair
method of competition or an unfair trade practice?
a. A fine not more than $200 per violation in any 6-month period
b. A cease and desist order
c. A fine not to exceed an aggregate of $100,000 in any 6-month period
d. Imprisonment for up to 5 years in prison

A

b. A cease and desist order

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4
Q

The Commissioner may issue a temporary license for up to ____ days.

a. 60
b. 90
c. 180
d. 365

A

c. 180

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5
Q

Producer

A

An individual or business entity required to be licensed under Kansas law in order to sell,
solicit, or negotiate insurance. The term producer also includes broker unless otherwise specified.

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6
Q

Resident Producer

A

An individual or business entity that is licensed to act as an insurance agent and
maintains a principal place of residence or business in Kansas.

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7
Q

Nonresident Producer

A

An individual or business entity doing business in Kansas, but who is a resident
of another state and licensed in that state in good standing. The producer must make application and the
home state must award nonresident producer licenses to Kansas residents on the same basis.

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8
Q

Temporary License

A

The Commissioner may issue a temporary insurance producer license for a period not exceeding 180

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9
Q

Producers may not transact insurance business in Kansas, unless:

a. There is a certification from at least 1 insurer
b. There is reciprocity
c. The Commissioner is notified within 90 days of the appointment
d. The licensee has an endorsement by another producer

A

a. There is a certification from at least 1 insurer

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10
Q

License Renewal

A

A producer license in good standing (not revoked, suspended, denied renewal,
or otherwise under disciplinary action) renews biennially (every 2 years) so long as completion of
continuing education requirements is reported to the Commissioner by the producer’s renewal date.

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11
Q

Continuing Education (CE)

A

Producers must complete a certain number of continuing education courses
biennially in the line(s) for which they are licensed. The requirements for each line are:

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12
Q

All of the following CE requirements are correct, except:

a. 12 hours for property, casualty, or personal lines
b. Continuing education courses are required every 4 years
c. 12 hours for life and/or health
d. 4 hours for title

A

b. Continuing education courses are required every 4 years

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13
Q

After a producer has a change of residence, they must:

a. Notify the Department within 20 days
b. Notify the Department within 30 days
c. Notify the Department within 60 days
d. Notify the Department within 90 days

A

b. Notify the Department within 30 days

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14
Q

The Commissioner has the authority to suspend the license of all of the following,
except:
a. A licensee who does not pay required child support
b. A licensee who was convicted of a misdemeanor not relating to insurance
c. A licensee who forgot to pay state income tax
d. A licensee who unknowingly accepts business from an unlicensed producer

A

d. A licensee who unknowingly accepts business from an unlicensed producer

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15
Q

Which of the following scenarios is NOT considered an example of rebating?

a. Giving the insured tickets to the Super Bowl
b. Offering any rebate of premium
c. Offering special favor in dividends or other benefits
d. Accepting the applicant’s premium for a policy

A

d. Accepting the applicant’s premium for a policy

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16
Q

Under Kansas law, which of the following rate discrimination practices is allowed?

a. Between a blind person and a sighted person
b. Based solely on the insured’s age in auto liability policies
c. Based on actuarial data
d. Based solely on geographic location

A

c. Based on actuarial data

17
Q

Rebating

A

Offering any rebate of premiums payable, any special favor in dividends or other benefits, or
any valuable consideration or inducement not specified in the policy.

18
Q

False Advertising

A

Publishing or disseminating any untrue, deceptive, or misleading statement about
how a person or entity conducts business.

19
Q

Defamation

A

Making any false or maliciously critical statement regarding the financial condition of any
person, with the intent to injure that person.

20
Q

Boycott, Coercion, Intimidation

A

Entering into an agreement to take action resulting in an unreasonable
restraint of, or monopoly in, the business of insurance.

21
Q

Twisting

A

Misrepresenting information to a consumer in order to compel them to lapse, forfeit,
exchange, or surrender an existing insurance policy.

22
Q

Unfair Discrimination

A 
Permitting individuals of the same rating class to be charged different premiums
or rates, including classifications based on race, creed, national origin, or religion. Unless based on
sound actuarial principals, insurers cannot refuse to insure, refuse to renew, limit the amount or type of
coverage available, or charge a different rate for the same coverage solely because:
23
Q 
Claims paid by the Kansas Insurance Guaranty Association when an insurer is insolvent
come from which of the following?
a. Federal Guaranty Association Fund
b. State Guaranty Fund
c. Premiums collected from insureds
d. Assessments from member companies
A

d. Assessments from member companies

24
Q

It is illegal for an agent to submit a claim for the insured without notifying the insured
that the agent did which of the following?
a. Called the claim representative
b. Notified the police
c. Altered the application
d. Provided a proof of loss

A

c. Altered the application

25
Q

If an insured’s home in Kansas is damaged by fire, within how many days must the
insurance company provide the insured with the proper forms and instructions to
complete a proof of loss?
a. 5
b. 10
c. 15
d. 20

A

b. 10

26
Q

Marine/inland marine insurance issued in Kansas will cover which of the following?

a. Pipelines
b. Building improvements
c. Money and securities in a bank
d. Storage of merchandise

A

a. Pipelines

27
Q

Kansas FAIR Plan policies are effective for:

a. 2 years
b. 1 year
c. 9 months
d. 6 months

A

b. 1 year

28
Q

According to the Kansas automobile Injury Reparations Act, PIP coverage must provide
which of the following benefits?
a. Minimum disability benefits up to $1,500 per month
b. Minimum coverage for medical benefits is $5,000
c. Substitution benefits are required with coverage up to $25 per day
d. Survivors’ benefits cover lost income up to $1,000/month

A

c. Substitution benefits are required with coverage up to $25 per day

29
Q

The minimum required auto insurance limits of liability in Kansas are:

a. 25/50/25
b. 30/60/15
c. 50/100/20
d. 100/300/50

A

a. 25/50/25

30
Q

In Kansas, which of the following is correct about UM/UIM coverage?

a. The minimum Uninsured Motorists coverage limits are 50/100
b. The minimum Underinsured Motorists coverage limits are 100/300
c. UM and UIM are required coverages
d. The insured may reject the coverage in writing

A

c. UM and UIM are required coverages

31
Q

An automobile policy issued in Kansas may be cancelled after it has been in force for 60
days if the insured was guilty of which of the following in the past 3 years?
a. 2 moving violations in the past 3 years
b. Making false statements on the vehicle registration
c. Being a passenger in a car while intoxicated
d. Leaving the scene of an accident without stopping to report

A

d. Leaving the scene of an accident without stopping to report

32
Q

In Kansas, rates used for personal lines become effective:

a. As soon as they are filed
b. 10 days after filing, if not disapproved
c. 15 days after filing, if not disapproved
d. 30 days after filing, if not disapproved

A

d. 30 days after filing, if not disapproved

Kansas/Missouri State Insurance Laws (1 decks)

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