Laws & Regulations [Health]

Question 1

What type of licensee represents the insured?

Answer 1

broker

Question 2

An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?

Answer 2

Rebating

Question 3

What is the purpose of insurance guaranty associations?

Answer 3

To protect policy owners, insureds and beneficiaries from financial losses caused by insolvent insurers

Question 4

Who must be notified of a producers change of address?

Answer 4

The Department of Insurance (Commissioner/Director/Superintendent)

Question 5

Who can usually be granted a temporary license?

Answer 5

Producer’s spouse or designee in case the licensed producer dies or becomes disabled

Question 6

Who is an insurance agent?

Answer 6

A person authorized to sell, solicit and negotiate insurance contracts

Question 7

For what reason can a temporary license be issued?

Answer 7

For continuation of business in case the licensed producer dies or becomes disabled

Question 8

Who is responsible for the costs associated with the examination of insurers?

Answer 8

The insurer being examined

Question 9

What is the purpose of a cease and desist order?

Answer 9

To prevent a producer or insurer from further violating laws for transacting insurance

Question 10

What are agents/producers required to do in order to renew their license?

Answer 10

Complete continuing education hours and pay a renewal fee

Question 11

If a producer makes maliciously critical statements about another insurer, what is this illegal practice called?

Answer 11

Defamation

Question 12

Who is considered a nonresident agent?

Answer 12

An agent who resides and is licensed in another state, but who is authorized to transact insurance in this state

Question 13

Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?

Answer 13

Twisting

Question 14

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?

Answer 14

misrepresentation

Question 15

If the Commissioner/Superintendent finds a licensee engaging in an unfair method of competition or an unfair practice, what order will be issued?

Answer 15

Cease and desist order

Question 16

Who many share in the commission from the sale of a life insurance policy?

Answer 16

Only producers property licensed for the type of insurance transaction

Question 17

What type of licensee represents the insurance company?

Answer 17

The agent

Question 18

if you have a name or address change how long do you have to notify the department of insurance to change it?

Answer 18

30 days

Question 19

what type of insurer is formed under the laws of another state?

Answer 19

foreign

Question 20

A temporary license in this state is valid for a maximum of

Answer 20

180 days

Question 21

What are the pre-license education requirements?

Answer 21

20 hours of pre-license education per line of insurance with 7.5 in classroom and 12.5 self-study

Question 22

What are the producer continuing education requirements?

Answer 22

24 hours of continuing education every two years

Question 23

what are the penalties for not being properly licensed?

Answer 23

Class A Misdemeanor ($1000 and/or up to 1 year in jail) 1&1
Class 4 Felony ($5000 and/or up to 5 years in jail)
5&5