Laws And Rules-12

Question 1

Commissioner

Answer 1

Primary duty of the insurance commissioner is to see that laws are properly executed and enforced

Question 2

Examination of books and records

Answer 2

The commissioner may examine the business affairs, records, documents, and computer files of any producer to determine the producers financial condition and whether the producer is abiding by insurance laws

Question 3

Cease and desist order

Answer 3

When the commissioner believes a producer or entity has broken an insurance law the commissioner has the authority to issue one at a hearing

Question 4

Producer

Answer 4

Individual appointed by an insurance company that represents the company and presents policies on its behalf

Question 5

Continuing education

Answer 5

Producers must complete 24 hours of this every 2 years in order to renew their licenses

Question 6

Address change

Answer 6

Licensees must report a change of address to the insurance department within 30 days

Question 7

Personal liability

Answer 7

Producer of an insurer can be personally liable for committing acts which are prohibited in the agency contract

Question 8

Assumed names

Answer 8

A producer must report to the commissioner if he/she will be conducting business under an assumed name

Question 9

Fiduciary responsibility

Answer 9

Producers have this for all funds collected from clients

Question 10

Controlled business

Answer 10

Can be defined as policies written on people that the licensed producer has direct influence over

Question 11

Solvency

Answer 11

A life insurance company is financially impaired if it does not have the minimum reserves( net value) plus 50% company capital on hand

Question 12

Rates

Answer 12

Insurance companies are required by law to charge premium rates that are not excessive, inadequate, or unfairly discriminatory

Question 13

Policy forms

Answer 13

It is illegal to use policy forms until they have been submitted to and formally approved by the commissioner

Question 14

Commissions and fees

Answer 14

Insurers may pay commissions to producers

Question 15

Shared commissions

Answer 15

A producer may share a commission with another producer when the other producer is licensed in the same line of business

Question 16

Representations

Answer 16

If the application is made part of the policy, the policy shall contain a provision

Question 17

Misrepresentation

Answer 17

An illegal practice to mislead or misrepresent any fact about an insurance policy

Question 18

False advertising

Answer 18

An illegal practice to falsely advertise insurance products or services in any way

Question 19

Defamation

Answer 19

An illegal practice to make any public statement or advertisement that contains false info

Question 20

False financial statements

Answer 20

Is illegal to publish any false financial statement regarding a person or entity

Question 21

Twisting

Answer 21

Involves the deceptive act of inducing a policyowner to lapse forfeit or surrender a life insurance policy for the purpose of replacing it with another policy with a different company

Question 22

Rebating

Answer 22

Is illegal to offer a premium rebate or a special advantage of any kind to consumers as an inducement to purchase a contract of insurance

Question 23

Illegal inducement

Answer 23

An illegal practice to offer anything of value, other than as explicitly stated in the policy, as an inducement to purchase a contract of insurance

Question 24

Exemption from creditors

Answer 24

Proceeds from a life insurance policy are protected from any claims by a creditor of the insured as long there is a beneficiary

Question 25

Entire contract

Answer 25

Provision that the policy and the application shall constitute the entire contract between the parties

Question 26

Backdating

Answer 26

Policies cannot be backdated more than 6 months from the date of issue

Question 27

Incontestability

Answer 27

Provision that the policy terms shall be incontestable after it has been in force for a period of two years from its date of issue

Question 28

Federal estate tax

Answer 28

A tax cost typically associated with death is the federal estate tax

Question 29

Definition of small employer

Answer 29

Defined as one that employs between 2-50 employees

Question 30

Group health certificates

Answer 30

Group health certificate must contain a summary of policy features and benefits

Question 31

Postnatal care

Answer 31

Must be delivered within 48 hours of discharge