Life Insurance/ annuities 2-14 Exam
with Complete Solutions
Which of the following individuals MUST be licensed as an agent? - ANS-A person who
places insurance on behalf of anyone seeking insurance.
Which of the following statements regarding a nonresident insurance agent is
CORRECT? - ANS-The agent must hold a similar license in their state of residence
State insurance laws specifically allow the Commissioner(or Director) to issue a
temporary license to which of the following individuals? - ANS-A surviving spouse of a
deceased agent
A person is required to be AT LEAST how old before he or she is licensed as an agent
in most states? - ANS-18
Insurance agents must notify the Commissioner(or Director) of a change of home
address within a MAXIMUM of how many days? - ANS-30
An agent's license can be suspended or revoked by... - ANS-Writing primarily controlled
business
Which of the following activities will NOT result in the suspension of an agent's license. -
ANS-Working for an foreign insurer.
All of the following will result in the suspension of an agent's license EXCEPT.... - ANS-
Acting with fiduciary responsibility
Which of the following acts is an agent NOT authorized to do on behalf of an insurer? -
ANS-Authorize claim payments
According to state insurance law, while transacting insurance business, agents act as
representative of... - ANS-The insurer
An insurance broker is a representative of... - ANS-Insured
T is an agent and when hired, is reminded that he has a responsibility to handle clients'
funds in an honest and ethical manner. This responsibility is referred to as... - ANS-
Fiduciary responsibility
, Circulation of any oral or written statement or any pamphlet, circular, article, or literature
that is false or maliciously critical of or derogatory to the financial condition of an insurer
is known as - ANS-Defamation
Which of the following unfair trade practices involves an agent who makes malicious
statements about another person's financial condition - ANS-Defamation
Defamation is BEST described as publishing or circulating which of the following types
of information? - ANS-Brochures falsely criticizing the financial condition of an insurance
company
An example of rebating would be... - ANS-Offering a client something of value not
stated in the contract in exchange for their business
Which action by an insurance agent is considered rebating? - ANS-Splitting
commissions with a policyholder who has purchased additional coverage
Which of the following is an example of rebating? - ANS-Returning a portion of a
premium as inducement to purchase insurance
Insurance companies that are organized in countries outside the United States are
referred to as... - ANS-Alien
An insurance company incorporated under the laws of the state in which its home office
is located is called a(n)_____ company - ANS-Domestic
If an insurance company is organized under the laws of New Jersey and licensed to do
business here, it is considered which of the following in Texas? - ANS-A foreign
company
An insurance company that is incorporated in New Hampshire and does business in
Florida is defined in Florida as... - ANS-A foreign insurer
A foreign insurance company is one that is incorporated... - ANS-Under the laws of
another state
In order for domestic, foreign, or alien insurance company to conduct business, it must
be authorized by whom? - ANS-The state where they are conducting business
A certificate of authority does which of the following? - ANS-Permits an insurance
company to transact business in that state
Before approving an application for a business entity acting as an agent, the
Commissioner(or Director) must find that the business entity has... - ANS-Designate an
agent to be responsible for compliance with insurance laws
with Complete Solutions
Which of the following individuals MUST be licensed as an agent? - ANS-A person who
places insurance on behalf of anyone seeking insurance.
Which of the following statements regarding a nonresident insurance agent is
CORRECT? - ANS-The agent must hold a similar license in their state of residence
State insurance laws specifically allow the Commissioner(or Director) to issue a
temporary license to which of the following individuals? - ANS-A surviving spouse of a
deceased agent
A person is required to be AT LEAST how old before he or she is licensed as an agent
in most states? - ANS-18
Insurance agents must notify the Commissioner(or Director) of a change of home
address within a MAXIMUM of how many days? - ANS-30
An agent's license can be suspended or revoked by... - ANS-Writing primarily controlled
business
Which of the following activities will NOT result in the suspension of an agent's license. -
ANS-Working for an foreign insurer.
All of the following will result in the suspension of an agent's license EXCEPT.... - ANS-
Acting with fiduciary responsibility
Which of the following acts is an agent NOT authorized to do on behalf of an insurer? -
ANS-Authorize claim payments
According to state insurance law, while transacting insurance business, agents act as
representative of... - ANS-The insurer
An insurance broker is a representative of... - ANS-Insured
T is an agent and when hired, is reminded that he has a responsibility to handle clients'
funds in an honest and ethical manner. This responsibility is referred to as... - ANS-
Fiduciary responsibility
, Circulation of any oral or written statement or any pamphlet, circular, article, or literature
that is false or maliciously critical of or derogatory to the financial condition of an insurer
is known as - ANS-Defamation
Which of the following unfair trade practices involves an agent who makes malicious
statements about another person's financial condition - ANS-Defamation
Defamation is BEST described as publishing or circulating which of the following types
of information? - ANS-Brochures falsely criticizing the financial condition of an insurance
company
An example of rebating would be... - ANS-Offering a client something of value not
stated in the contract in exchange for their business
Which action by an insurance agent is considered rebating? - ANS-Splitting
commissions with a policyholder who has purchased additional coverage
Which of the following is an example of rebating? - ANS-Returning a portion of a
premium as inducement to purchase insurance
Insurance companies that are organized in countries outside the United States are
referred to as... - ANS-Alien
An insurance company incorporated under the laws of the state in which its home office
is located is called a(n)_____ company - ANS-Domestic
If an insurance company is organized under the laws of New Jersey and licensed to do
business here, it is considered which of the following in Texas? - ANS-A foreign
company
An insurance company that is incorporated in New Hampshire and does business in
Florida is defined in Florida as... - ANS-A foreign insurer
A foreign insurance company is one that is incorporated... - ANS-Under the laws of
another state
In order for domestic, foreign, or alien insurance company to conduct business, it must
be authorized by whom? - ANS-The state where they are conducting business
A certificate of authority does which of the following? - ANS-Permits an insurance
company to transact business in that state
Before approving an application for a business entity acting as an agent, the
Commissioner(or Director) must find that the business entity has... - ANS-Designate an
agent to be responsible for compliance with insurance laws
