Insurance Regulation (LAW)

Question 1

To stop or discontinue

Answer 1

Cease and desist

Question 2

Forceful act or threat aimed to influence a person to act against hos or her will

Answer 2

Coercion

Question 3

Payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium

Answer 3

Commission

Question 4

The head of the state Department of Insurance and Financial Services (DIFS)

Answer 4

Commissioner

Question 5

Revealed info to help someone make an intelligent and educated decision

Answer 5

Disclosure

Question 6

An offer that attempts to influence the other party

Answer 6

Inducement

Question 7

Restoration to the original condition or repayment

Answer 7

Restitution

Question 8

A formal written law enacted by legislature; insurance statutes can be found in the state Insurance code

Answer 8

Statute

Question 9

An order for someone to appear as a witness or submit testimony or evidence

Answer 9

Subpoena

Question 10

Insurance not available from authorized insurers; placed with nonadmitted insurers who specialize in offering insurance to the high risk market

Answer 10

Surplus line

Question 11

Means a Corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity

Answer 11

Business Entity

Question 12

An insurance counselor is a person licensed to perform the following duties:

Answer 12

1. Audit or abstract insurance policies or annuities;
2. Provide advice, counsel, or opinions concerning benefits, coverage, terms and advantages and disadvantages of a policy or annuity; and
3. Advertise and solicit business as a insurance counselor

Question 13

When can a Temporary license be issued and for how long?

Answer 13

For 180 days or 6 months and issued to:
1. A surviving widows spouse of a deceased producer
2. Produced mentally or physically disabled
3. In the army in active service

Question 14

If any person is found guilty of misrepresenting terms of a policy or inducing a policyholder to lapse, forfeit, surrender, or replace insurance will be found guilty of a
__________, and will be fined up to $2,000 for each violation, or at the discretion of the court, be i.prisoned in a county jail.

Answer 14

Misdemeanor

Question 15

Insurance law that states it’s illegal to issue, publish, or circulate any illustration or sales material that is false, misleading, or deceptive as to policy terms or benefits, the payments of dividends; etc.

Answer 15

Misrepresentation

Question 16

Any untrue, deceptive, or misleading statements that apply to the business of insurance or anyone who conducts it.

Answer 16

False Advertising

Question 17

Statements that are intended to deceive public officials or the general public about the financial condition of an insurer.

Answer 17

False Financial Statements

Question 18

Defined as any inducement offered to the insured in the sale of insurance products that is not specified on the policy.

Answer 18

Rebating

Question 19

It is u lawful to pay, offer or accept any of the following as an inducement to bu insurance:

Answer 19

*Any special favor or advantage in dividends or benefits
*Any stocks, bonds, securities, or accrued dividends or profits; or
*Anything of value not specified in the insurance contract

Question 20

Occurs when an oral or written statement is made that is intended to injure a person engaged in the insurance business.

Answer 20

Defamation

Question 21

No ________ may be made on the basis of an individual’s marital status, race, national origin, gender identity, sexual orientation, creed, or ancestry unless the distinction is made for a business purpose or required by law.

Answer 21

Discrimination

Question 22

Age to apply for license

Answer 22

18 years of age

Question 23

Prelicensing education requirement for a single line license

Answer 23

20 hours prelicensing class

Question 24

Prelicensing education requirement for combined licenses

Answer 24

40 hours

Question 25

File certificate of completion of the prelicensing education

Answer 25

12 months

Question 26

Continuing education required every 2 years

Answer 26

24 hours

Question 27

Continuing education required in Ethics

Answer 27

3 hours

Question 28

of days for insurer to file notice of producer appointment

Answer 28

15 days

Question 29

of days to notify commissioner of appointment termination

Answer 29

30 days

Question 30

Length of temporary license

Answer 30

180 days

Question 31

of days you have to reinstate lapsed license without having to take written examination

Answer 31

180 days or 6 months

Question 32

of days you have to report changes of name or address

Answer 32

30 days

Question 33

of days you have to report administrative action or criminal prosecution

Answer 33

30 days

Question 34

Maximum allowed value of articles of merchandise a producer may gi e to applicant or insured without violating unfair trade practice of rebating.

Answer 34

$5 (life)
$10 (property & casualty)