KY law

Question 1

policy loan max interest rate

Answer 1

8%

Question 2

Free Look

Answer 2

min 10 days, then full refund of premium

Question 3

rebate

Answer 3

illegal; includes an offering something other than what is stated in a policy in order to get them to purchase the policy (i.e., paying them $50 in return of a purchased policy)

Question 4

address/name change of insurer/producer

Answer 4

give notice to commissioner within 30 days of change

Question 5

continuing education

Answer 5

24 hours every 2 years

• 3 must be ethics
• must be completed by last day of birth month

Question 6

controlled business

Answer 6

policies written on ppl that the licensed producer has direct influence over; includes family, friends, or companies producer has stock
-you CANNOT obtain a license for the sole purpose of the above

Question 7

fraternal business socieities

Answer 7

exist solely for the benefits of its members and not for profit

Question 8

soliciting

Answer 8

any effort to influence a person to buy insurance from you

Question 9

negotiating

Answer 9

communicating with client in regards to a need for different types of insurance products

Question 10

effectuating

Answer 10

actually putting insurance products into effect

Question 11

insurance activities

Answer 11

performed by agents, brokerage, or consultants with a license

Question 12

captive agent

Answer 12

one specific company

Question 13

independent agent

Answer 13

represent many different companies

Question 14

the broker

Answer 14

places insurance through a company without an agency contract; represent the INSURED

Question 15

insurance consultant

Answer 15

licensed producer who gives insurance advice for a fee, either to insured or insurer

Question 16

solicitor

Answer 16

employed by license agent to solicit insurance and other duties as the agent authorizes; can only do 1 agent at at ime

Question 17

defamation

Answer 17

making false statements about any person in the business of insurance

Question 18

misrepresentation

Answer 18

making false statements about anyone or anything in the business of insurance, including making a false statement about a policy in order to have the insured cancel said policy

Question 19

twisting

Answer 19

making false statements in order to get a consumer to cancel a policy, but then purchase another one, similar to misrepresentation

Question 20

boycott

Answer 20

unfair trade practice where one person refuses to do business with another until they agree on certain conditions

Question 21

policy reinstatement

Answer 21

policy can be reinstated at any time within 3 years of the date the premium defaulted so as long as all fees are paid up, they did not withdrawal cash value, or cash value is used up