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/nonadmitted 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.
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/nonadmitted 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.
