Life Insurance Exam: Questions &
Answers
The Commissioner conducts an examination of a domestic insurer and
believes that the costs of examination places an unreasonable financial
burden on the insurer. Which of the following will happen?
a. The federal government will absorb the full cost
b. The federal government will absorb part of the cost, and the state
government will absorb the rest of the cost
c. The costs will be reduced to the amount that the examinee can
reasonable pat; the rest will be paid by the federal government
d. The Commissioner's office may pay all or part of the costs
(Ans- d. The Commissioner's office may pay all or part of the costs
Forcing a client to buy insurance from a particular lender as a condition of
granting a loan is defined as
a. Defamation
b. Coercion
c. Rebating
D. Misleading advertising
(Ans- b. Coercion
An agent who includes a statement or omits a statement which, when taken
in context of the whole presentation, may tend to mislead or deceive the
persons addressed has committed
a. Twisting
b. Coercion
c. Misrepresentation
d. Defamation
(Ans- c. Misrepresentation
,If a consumer requests additional information concerning an investigative
consumer report, how long does the insurer or reporting agency have to
comply?
a. 7 days
b. 10 days
c. 3 days
d. 5 days
(Ans- d. 5 days
After the original hearing and a final order is issued, an aggrieved person
may request a re-hearing within
a. 30 days
b. 40 days
c. 15 days
d. 20 days
(Ans- 20 days
Which of the following is an example of a producer being involved in an
unfair trade practice of rebating?
a. Telling a client that his first premium will be waived if he purchases the
insurance policy today
b. Inducing the insured to drop a policy in favor of another one when it is
not the insured's best interest
c. Charging a client a higher premium for the same policy as another client
in the same insuring class
d. Making deceptive statements about a competitor
(Ans- a. Telling a client that his first premium will be waived if he purchases
the insurance policy today
Which type of misrepresentation persuades an insured, to his or her
detriment, to cancel, lapse, or switch policies from one to another?
a. False advertising
b. Rebating
c. Twisting
d. Switching (Ans- c. Twisting
,An insurer can refuse, cancel or deny insurance coverage to a class of
risks based on which of the following?
a. Moral character
b. Physical condition or developmental disability
c. Sexual preference
d. None of the above
(Ans- d. None of the above
If a person does not comply with an order issued within 2 weeks after the
Commissioner has given notice, for each day that the violation continues,
the Commissioner may issue a fine of up to
a. $3,000
b. $5,000
c. $1,500
d. $2,000
(Ans- b. $5,000
Which of the following persons is NOT required to complete CE?
a. A property insurance intermediary with 40 years of continuous licensure
b. Any licensee over 65 with more than 25 years of continuous licensure
c. A limited lines intermediary with 40 years of continuous licensure
d. A life insurance intermediary with 18 years of continuous licensure
(Ans- c. A limited lines intermediary with 40 years of continuous licensure
An intermediary must notify the Commissioner of a change of residence
address within how many days of the change?
a. 20
b. 30
c. 5
d. 10
(Ans- b. 30
, A claim is not considered overdue if NOT paid within how many days after
the insurer receives written notice?
a. 30 days
b. 60 days
c. 90 days
d. 180 days
(Ans- a. 30 days
In comparison to consumer reports, which of the following describes a
unique characteristic of investigative consumer reports?
a. The customer has no knowledge of this action
b. The customer's associates, friends, and neighbors provide the report's
data
c. They provide additional information from an outside source about a
particular risk
d. They provide information about a customer's character and reputation
(Ans- b. The customer's associates, friends, and neighbors provide the
report's data
When the appointment of an individual agent is terminated, the insurer
must notify the Office of the Commissioner with appropriate forms within
how many days after the termination date?
a. 20
b. 30
c. 10
d. 15
(Ans- b. 30
All of the following are considered unfair trade practices in the business of
insurance EXCEPT
a. Rebating
b. Defamation
c. Sharing commissions
d. Boycott
(Ans- c. Sharing commissions
Answers
The Commissioner conducts an examination of a domestic insurer and
believes that the costs of examination places an unreasonable financial
burden on the insurer. Which of the following will happen?
a. The federal government will absorb the full cost
b. The federal government will absorb part of the cost, and the state
government will absorb the rest of the cost
c. The costs will be reduced to the amount that the examinee can
reasonable pat; the rest will be paid by the federal government
d. The Commissioner's office may pay all or part of the costs
(Ans- d. The Commissioner's office may pay all or part of the costs
Forcing a client to buy insurance from a particular lender as a condition of
granting a loan is defined as
a. Defamation
b. Coercion
c. Rebating
D. Misleading advertising
(Ans- b. Coercion
An agent who includes a statement or omits a statement which, when taken
in context of the whole presentation, may tend to mislead or deceive the
persons addressed has committed
a. Twisting
b. Coercion
c. Misrepresentation
d. Defamation
(Ans- c. Misrepresentation
,If a consumer requests additional information concerning an investigative
consumer report, how long does the insurer or reporting agency have to
comply?
a. 7 days
b. 10 days
c. 3 days
d. 5 days
(Ans- d. 5 days
After the original hearing and a final order is issued, an aggrieved person
may request a re-hearing within
a. 30 days
b. 40 days
c. 15 days
d. 20 days
(Ans- 20 days
Which of the following is an example of a producer being involved in an
unfair trade practice of rebating?
a. Telling a client that his first premium will be waived if he purchases the
insurance policy today
b. Inducing the insured to drop a policy in favor of another one when it is
not the insured's best interest
c. Charging a client a higher premium for the same policy as another client
in the same insuring class
d. Making deceptive statements about a competitor
(Ans- a. Telling a client that his first premium will be waived if he purchases
the insurance policy today
Which type of misrepresentation persuades an insured, to his or her
detriment, to cancel, lapse, or switch policies from one to another?
a. False advertising
b. Rebating
c. Twisting
d. Switching (Ans- c. Twisting
,An insurer can refuse, cancel or deny insurance coverage to a class of
risks based on which of the following?
a. Moral character
b. Physical condition or developmental disability
c. Sexual preference
d. None of the above
(Ans- d. None of the above
If a person does not comply with an order issued within 2 weeks after the
Commissioner has given notice, for each day that the violation continues,
the Commissioner may issue a fine of up to
a. $3,000
b. $5,000
c. $1,500
d. $2,000
(Ans- b. $5,000
Which of the following persons is NOT required to complete CE?
a. A property insurance intermediary with 40 years of continuous licensure
b. Any licensee over 65 with more than 25 years of continuous licensure
c. A limited lines intermediary with 40 years of continuous licensure
d. A life insurance intermediary with 18 years of continuous licensure
(Ans- c. A limited lines intermediary with 40 years of continuous licensure
An intermediary must notify the Commissioner of a change of residence
address within how many days of the change?
a. 20
b. 30
c. 5
d. 10
(Ans- b. 30
, A claim is not considered overdue if NOT paid within how many days after
the insurer receives written notice?
a. 30 days
b. 60 days
c. 90 days
d. 180 days
(Ans- a. 30 days
In comparison to consumer reports, which of the following describes a
unique characteristic of investigative consumer reports?
a. The customer has no knowledge of this action
b. The customer's associates, friends, and neighbors provide the report's
data
c. They provide additional information from an outside source about a
particular risk
d. They provide information about a customer's character and reputation
(Ans- b. The customer's associates, friends, and neighbors provide the
report's data
When the appointment of an individual agent is terminated, the insurer
must notify the Office of the Commissioner with appropriate forms within
how many days after the termination date?
a. 20
b. 30
c. 10
d. 15
(Ans- b. 30
All of the following are considered unfair trade practices in the business of
insurance EXCEPT
a. Rebating
b. Defamation
c. Sharing commissions
d. Boycott
(Ans- c. Sharing commissions
