Idaho Life Producer Exam State Portion
Questions and Correct Answers
What is included under the term insurance transaction?
Solicitation, negotiating prior to execution of a contract, execution of a contract,
and the transaction of any matter that arise as a result of the contract, as well as
the actual process of insuring.
What is the difference between domestic , foreign, and alien insurance
companies?
A domestic insurer is incorporated in this state. A foreign insurer is incorporated in
another state. An alien insurer is incorporated outside of the United States.
What is the difference between and authorized/admitted and
unauthorized/non-admitted insurer?
An admitted or authorized insurer is qualified and received a Certificate of
Authority from the Department of Insurance to transact insurance in the state. A
non admitted or non authorized insurer is an insurance company that has no
applied for, or has been denied a certificate of authority and may not transact
insurance.
,How is the Director of Insurance selected for office, and how long is the term?
The Director is appointment by the Governor for a 4-year term.
What are the board powers and duties of the Director or Insurance?
Regulate the affairs of the Insurance Department, prescribe forms and procedures,
Ain in interpretation of laws.
How often does the Director of Insurance examine books and records of
domestic insurers in this state?
In Idaho as often as deemed necessary, but at least every 5 years.
What are the applicable penalties for violating the Insurance Code in this State?
In Idaho: License suspension, renovation or denial, monetary fines, and/or
imprisonment.
What qualifications must a candidate for a producer license meet in this state?
An applicant must be 18 years old, file an application with the Department and
submit fingerprints, pay a license fee, pass an examination. In addition, the
application must not have committed any act that would be grounds for license
denial, suspension or revocation.
Who is exempt from the licensing requirements in Idaho?
Officers, directors, or employees of an insurer or of an insurance producer who do
not receive commission on policies written or sold, and whose duties are of
strictly clerical, administrative and managerial nature are exempt from licensing
requirements.
, What the continuing education requirements for Idaho?
All licensees, except for limited lines and temporary licenses, must complete 245
hours of CE credits every 2 years, with at least 3 of those hours in ethics.
How long does a producer have to notify the Director Of Insurance about a
change of address?
30 Days after the change
Upon what grounds can the Director revoke or suspend a producer license?
Attempting to obtain a license through fraud or misrepresentation, violating any
insurance law or regulations.
What is the minimum age for a person to apply for an insurance contract?
Any minor at least 15 years of age may purchase a contract of insurance or
annuities upon his own life, body, health, property, liabilities or other interests, or
on the person of another in whom the minor has an insurable interest.
What constitutes rebating?
Rebating Includes Premiums Payable On The Policy, Special Favors Or Services,
Advantages In Dividends Or Benefits, Stocks, Bonds, Securities, And Their Profits
(And Similar Inducements)
What Is The Purpose Of The Fair Credit Reporting Act?
Questions and Correct Answers
What is included under the term insurance transaction?
Solicitation, negotiating prior to execution of a contract, execution of a contract,
and the transaction of any matter that arise as a result of the contract, as well as
the actual process of insuring.
What is the difference between domestic , foreign, and alien insurance
companies?
A domestic insurer is incorporated in this state. A foreign insurer is incorporated in
another state. An alien insurer is incorporated outside of the United States.
What is the difference between and authorized/admitted and
unauthorized/non-admitted insurer?
An admitted or authorized insurer is qualified and received a Certificate of
Authority from the Department of Insurance to transact insurance in the state. A
non admitted or non authorized insurer is an insurance company that has no
applied for, or has been denied a certificate of authority and may not transact
insurance.
,How is the Director of Insurance selected for office, and how long is the term?
The Director is appointment by the Governor for a 4-year term.
What are the board powers and duties of the Director or Insurance?
Regulate the affairs of the Insurance Department, prescribe forms and procedures,
Ain in interpretation of laws.
How often does the Director of Insurance examine books and records of
domestic insurers in this state?
In Idaho as often as deemed necessary, but at least every 5 years.
What are the applicable penalties for violating the Insurance Code in this State?
In Idaho: License suspension, renovation or denial, monetary fines, and/or
imprisonment.
What qualifications must a candidate for a producer license meet in this state?
An applicant must be 18 years old, file an application with the Department and
submit fingerprints, pay a license fee, pass an examination. In addition, the
application must not have committed any act that would be grounds for license
denial, suspension or revocation.
Who is exempt from the licensing requirements in Idaho?
Officers, directors, or employees of an insurer or of an insurance producer who do
not receive commission on policies written or sold, and whose duties are of
strictly clerical, administrative and managerial nature are exempt from licensing
requirements.
, What the continuing education requirements for Idaho?
All licensees, except for limited lines and temporary licenses, must complete 245
hours of CE credits every 2 years, with at least 3 of those hours in ethics.
How long does a producer have to notify the Director Of Insurance about a
change of address?
30 Days after the change
Upon what grounds can the Director revoke or suspend a producer license?
Attempting to obtain a license through fraud or misrepresentation, violating any
insurance law or regulations.
What is the minimum age for a person to apply for an insurance contract?
Any minor at least 15 years of age may purchase a contract of insurance or
annuities upon his own life, body, health, property, liabilities or other interests, or
on the person of another in whom the minor has an insurable interest.
What constitutes rebating?
Rebating Includes Premiums Payable On The Policy, Special Favors Or Services,
Advantages In Dividends Or Benefits, Stocks, Bonds, Securities, And Their Profits
(And Similar Inducements)
What Is The Purpose Of The Fair Credit Reporting Act?
