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27 Cards in this Set
- Front
- Back
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What is required for an organization to qualify as a Fraternal Benefit Society?
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1. ritualistic work
2. a lodge system 3. a representative form of government (ALL OF THE ABOVE) |
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All of the following are true concerning code and ethics except:
a. avoid talking bad about the competition b. be truthful and inaccurate when you explain services c. use simple language d. review and update files |
b. be truthful and inaccurate when you explain services.
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________ company is an UNincorporated company that consists of Subscribers managed by an attorney.
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Receprocal insurance
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When a company/organization/group of affiliated organizations form a SUBSIDIARY for the purpose of having the subsidiary PROVIDE all or part of the insurance for the Parent company/ies, this subsidiary is known as a ___________________
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A CAPTIVE insurer
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True or False:
Marketing division handles selling products and the expenses of the company |
False
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True or False:
A licensee can give up their license with a 90 day notice |
False
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True or False:
Making sure your accounting is done proper in the same account, so you know what is your money and what is the company's, are all fiduciary duties. |
False
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"Paid in capital" applies to all companies except ___________
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Foreign mutual companies
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True or False:
Nonadmitted insurers cannot write in California |
False
They CAN write in Ca only if a surplus lines broker is used. |
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Which of the following would require a Certificate of Registration to act as an Administrator in connect with premium collection and claim settlements for life, health, or annuity coverages?
a. A life agent b. A union c. A creditor on behalf of its debtors d. None of the above |
d. None of the above
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All the following are true concerning ethics with senior citizens except:
a. do not oversell b. no pretext interviews c. must give an additional 30 days more for a free look period than people who are not senior citizens. d. use simple language |
c. must give an additional 30 days more for a free look period than people who are not senior citizens.
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life only agents writing long-term care are required to complete an _________ course before submitting their first application
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8hr
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All of the following are examples of a pretext interview except:
a. gathering information for underwriting b. refuses to identify themselves c. pretends to be someone they are not d. misrepresents the purpose of the interview |
a. gathering information for underwriting
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All the following are true concerning ALTERING disability income policies applications except:
a. never by an agent b. never c. only by insured d. only by insurer with written consent |
b. never
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True or False:
The code is the complete guide to ethical behavior |
False
The code is the guide for ethical behavior, but it IS NOT complete. |
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What entity has been actively involved in helping insurance remain under the jurisdiction of state government, by bring uniformity through model laws for the insurance agency?
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N.A.I.C.
the National Association of Insurance Commissioners |
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Which one of the following is not a principal part of the Gramm-Leach-Bliley Act?
a. safeguard rule b. financial privacy rule c. do not call provisions d. pretexting provisions |
c. do not call provisions
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The purpose of insurance regulation is to protect the public by all of the following except:
a. none of these statements are false b. make sure rates are adequate, reasonable, and equitable c. prevent fraud and insurer insolvency d. interpreting policy provisions |
d. interpreting policy provisions
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Conservation applies to:
a. rehabilitation to return the insurer to financial stability b. any insurer with a certificate of authority c. it refers to taking over and managing the affairs of a financially troubled insurer d. all of the above |
d. all of the above
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True or False:
The executive branch is headed by the insurance commissioner which enacts the laws. |
False
The executive branch INTERPRETS laws, not enact them. |
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If someone has a Life Agent Combo and a Property/Casualty license, then how many CE hours would be required in the current license term?
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24 hours
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A Property and Casualty Agent is required to continue their education by completing:
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a total of 24 hours per license term, of continuing education courses.
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All of the following are not considered an administrator except:
a. Someone contracted by an insurance company b. an employer acting on behalf of their employees c. a life agent d. a life company |
a. someone contracted by an insurance company
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All of the following are true concerning penalties of unfair trade practices except:
a. commissioner can take action against the agent b. purpose is to regulate trade practices c. must be intentional d. $5000 fine |
c. must be intentional
unfair trade practices can also be unintentional, and still result in penalty. |
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True or False:
A life agent needs 48 hours of continuing education credits for the first and second licensing periods. |
False
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An individual who handles premium payments in a trust capacity is considered to be:
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Fiduciary
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When the insurer reinsurance a contract, they are referred to as the:
a. primary insurer b. ceding insurer c. both of these terms d. neither of these terms |
c. both of these terms
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