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Insurance Regulations > Primerica Regulations > Flashcards

Primerica Regulations Flashcards

1
Q

How long does any person receiving written notification of the Commissioner’s order have to respond and request a hearing?

A. 30 days
B. 60 days
C. 90 days
D. 120 days

A

C. 90 days

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2
Q

Within how many days of receipt of proof of death must the insurer pay the death benefit to the beneficiary to avoid paying an interest penalty?

A. 15 days
B. 30 days
C. 60 days
D. 90 days

A

D. 90 days

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3
Q

After approval by the National Association of Insurance Commissioners (NAIC), the current Buyer’s Guide cannot be used for longer than…

A. 3 months
B. 6 months
C. 12 months
D. 18 months

A

B. 6 months

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4
Q

Which of the following statements is correct regarding the separate account for collected premiums established and maintained by a producer?

A. Personal funds may be commingled with premium funds
B. Separate accounts are not allowed
C. The account must include producer’s commissions
D. The account may be interest bearing

A

D. The account may be interest bearing

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5
Q

Which of the following is issued by the state Department of Insurance to show that the insurer has the power to write insurance contracts in that state?

A. Certificate of Insurance
B. Binder
C. License
D. Certificate of Authority

A

D. Certificate of Authority

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6
Q

An insurer publishes intimidating brochures that portray the insurer’s competition as financially and professionally unstable. Which of the following best describes this act?

A. Legal, provided that the information can be verified
B. Illegal until endorsed by the Guaranty Association
C. Legal, provided that the other insurers are paid royalties for the usage of their names
D. Illegal under any circumstances

A

D. Illegal under any circumstances

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7
Q

A temporary license in this state is valid for…

A. 30 days
B. 60 days
C. 120 days
D. 180 days

A

D. 180 days

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8
Q

How often must an authorized insurer be examined?

A. Every 2 years
B. Every 3 years
C. Every 5 years
D. Every 7 years

A

C. Every 5 years

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9
Q

Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured’s best interest are guilty of…

A. Misrepresentation
B. Rebating
C. Twisting
D. Defamation

A

C. Twisting

Twisting is a misrepresentation that persuades an insured or a policy owner, to his or her detriment, to cancel, lapse, or switch policies.

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10
Q

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered…

A. A required disclosure
B. A legal representation of the Association
C. An unfair trade practice
D. A misrepresentation

A

C. An unfair trade practice

It is an unfair trade practice to make any statement that an insurer’s policies are guaranteed by the existence of the Insurance Guaranty Association. Though it is illegal to advertise, the statement is still true and would not be considered misrepresentation.

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11
Q

Life insurance policies that have been in force for 3 years must provide for a maximum policy loan interest rate of what annual percentage?

A. 9%
B. 10%
C. 8%
D. 12%

A

C. 8%

There must be a provision that after 3 full years, premiums have been paid, the insurer will advance at any time, at a fixed interest rate not exceeding 6% per year or variable rate not more than 8% per year.

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12
Q

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must…

A. Respond to the consumer’s complaint
B. Defend the report if the agency feels it is accurate
C. Change the report
D. Send an actual certified copy of the entire report to the consumer

A

A. Respond to the consumer’s complaint

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13
Q

Within how many days after receiving proof of death are group life insurers required to pay the policy proceeds to the beneficiary?

A. 10 days
B. 15 days
C. 30 days
D. 60 days

A

C. 30 days

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14
Q

An insurer is on the verge of bankruptcy and can no longer pay the claims to its insureds. Which of the following will make sure that the insureds receive their money?

A. Federal Insurer’s Reserve
B. Commissioner’s Fund
C. The Life and Disability Insurance Guaranty Association
D. NAIC

A

C. The Life and Disability Insurance Guaranty Association

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15
Q

The term “conservation effort” deals with…

A. Charging the lowest possible premium for the highest possible benefit
B. Discouraging agents from terminating their appointments
C. Discouraging policyholders from dropping existing policies
D. Writing the least amount of policy provisions as possible in a given policy

A

C. Discouraging policyholders from dropping existing policies

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16
Q

Which of the following qualifications is required for producers who want to sell annuities in this state?

A. An annuities license and continuing education hours related to annuities every 2 years.
B. A life insurance license only
C. An annuities license
D. A life insurance license and a 4-hour training course.

A

D. A life insurance license and a 4-hour training course.

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17
Q

The purpose of insurance regulation is to…

A. Make insurance companies pay taxes
B. Promote public welfare
C. Make insurance statutes uniform between states
D. Keep agents honest

A

B. Promote public welfare

18
Q

All of the following situations would be considered rebating EXCEPT…

A. An agent provides a prospective policy owner with a monthly cash payment of $20 for 6 consecutive months.
B. An agent invites a prospective insured to a baseball game and pays $75 for admission for both of them.
C. An agent gives out as a raffle prize to a prospective policy owner a new blender with a market retail value of $300
D. An agent offers a prospective insured a $150 dollar voucher for a restaurant

A

B. An agent invites a prospective insured to a baseball game and pays $75 for admission for both of them.

Limit of $100 per person over a 12 month period. If incentives exceed the $100 maximum, the insurer is guilty of rebating.

19
Q

A business entity that wants to transact insurance business in this state must have at least how many affiliated individual licensees?

A. 1
B. 3
C. 4
D. 5

A

A. 1

20
Q

In Washington, the state’s continuing education requirement…

A. Cannot be extended or waived under any circumstances
B. Applies to life, annuity, accident, and health licensees only
C. Consists of completing 24 hours of coursework every 2 years
D. Must be completed by all licensed resident and non-resident agents

A

C. Consists of completing 24 hours of coursework every 2 years

21
Q

How often must an authorized insurer be examined?

A. Every 3 years
B. Every 5 years
C. Every 7 years
D. Every 2 years

A

B. Every 5 years

22
Q

An insurer must pay interest on death benefits payable under the terms of a life insurance policy…

A. Insuring the life of any person who was a non-resident of this state at the time of death.
B. Insuring the life of any person who was a resident of this state at the time of death.
C. To any insured party upon written request for all term life insurance policies
D. Insuring the life of any person who was a resident of this state within 3 years of their death

A

B. Insuring the life of any person who was a resident of this state at the time of death.

23
Q

The Federal Fair Credit Reporting Act…

A. Regulates consumer reports
B Protects customer privacy
C. Regulates telemarketing
D. Prevents money laundeering

A

A. Regulates consumer reports

24
Q

Which of the following is a required annuity suitability training for producers who want to sell annuities?

A. 5 hours of continuing education every licensing period
B. There is no specific annuity-related requirement
C. A one-time 4-hour course
D. A 2-hour course every year

A

C. A one-time 4-hour course

25
Q

A legally acceptable attempt by an existing insurer to persuade their client to continue an existing life insurance policy in force when a written communication is received from a replacing insurer is called…

A. Conservation
B. Disclosure
C. Replacement
D. Retention

A

A. Conservation

26
Q

The Commissioner of Insurance does NOT have the authority to …

A. Approve rates
B. Approve policy forms
C. Withdraw rate approvals
D. Set rates

A

D. Set rates

27
Q

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce …

A. under any circumstances
B. unless they have served an appropriate prison sentence
C. without receiving written consent from a Federal judge
D. without receiving written consent from an insurance regulatory authority

A

D. without receiving written consent from an insurance regulatory authority

28
Q

Which of the following acts is NOT considered to constitute an act of transacting insurance?

A. Filing forms with the department
B. Solicitation of an insurance contract
C. Execution of an insurance contract
D. Contract negotiations

A

A. Filing forms with the department

29
Q

The Washington Insurance Code regulation regarding policy replacement applies to which of the following types of transactions?

A. credit life insurance
B. replacement of policies by the same insurer
C. group life insurance
D. immediate annuity contract

A

D. immediate annuity contract

30
Q

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

A. 3 days
B. 5 days
C. 10 days
D. 14 days

A

A. 3 days

31
Q

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

A. 10 days
B. 3 days
C. 5 days
D. 7 days

A

C. 5 days

32
Q

Group life insurance policies delivered in this state must contain all of the following provisions EXCEPT …

A. Incontestability period of 2 years
B. A copy of the application is considered part of the policy
C. Statements of the applicant are considered warranties
D. A grace period of 31 days

A

C. Statements of the applicant are considered warranties

33
Q

A producer is selling a client a Variable Life INsurance policy and as an inducement shows the client a projection based upon shares or dividends paid on a similar policy. This is…

A. Twisting
B. Defamation
C. Unacceptable business practice
D. Misrepresentation

A

D. Misrepresentation

34
Q

Once a producer’s appointment is filed, within how many days will the Commissioner verify the appointment for eligible producers?

A. 3 days
B. 10 days
C. 15 days
D. 30 days

A

C. 15 days

35
Q

If a licensee whose license has been temporarily suspended demands a hearing, the commissioner must hold the hearing demanded as according to all the following statements EXCEPT …

A. Within 30 days of the effective date of a temporary license suspension issued after such a demand
B. Unless postponed by mutual consent
C. Within 30 days of the license effective date
D. Within 30 days after receipt of the demand

A

C. Within 30 days of the license effective date

36
Q

All of the following violations may result in an agent’s imprisonment EXCEPT …

A. Engaging in the business of insurance after being convicted of breach of trust
B. Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction
C. Embezzling funds from the insurer
D. Knowingly obtaining information about a consumer under false pretenses

A

B. Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction

37
Q

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

A. Stating that the insurance policy is a share of stock
B. Exaggerating the benefits provided in the policy
C. Stating that the competitors will arbitrarily increase their premiums each year
D. Making comparisons between different policies

A

D. Making comparisons between different policies

38
Q

Which of the following is correct regarding the premium funds received by a producer in the fiduciary capacity?

A. Funds may be commingled with the producer’s own funds for a short period of time
B. Funds must be kept in an interest-bearing account
C. Funds must be kept together with all other business funds
D. Funds may be kept in a separate account

A

D. Funds may be kept in a separate account

39
Q

Which of the following includes information regarding a person’s credit, character, reputation, and habits?

A. consumer history
B. Insurability report
C. Agent’s report
D. Consumer report

A

D. Consumer report

40
Q

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

A. Unfair Trade Practices Law
B. The Guaranty Association
C. Consumer Privacy Act
D. The Fair Credit Reporting Act

A

D. The Fair Credit Reporting Act

41
Q

If the benefits from a life insurance policy are not paid to the beneficiary within 90 days, what is the minimum interest rate the insurer will have to pay on the 91st day?

A. 3%
B. 5%
C. 8%
D. 11%

A

D. 11%

42
Q

Every order by the Commissioner suspending any insurance license must specify the period during which the suspension will be effective and may not last longer than …

A. 18 months
B. 2 years
C. 6 months
D. 12 months

A

D. 12 months

Insurance Regulations (1 decks)

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