Hawaii Life Insurance Exam with Correct Answers

Define defamation - It is an illegal practice to make any public statement or advertisement that contains false information or unsubstantiated criticisms about an insurance company intended to harm or malign. An individual received a quote from an insurance company that is a different rate from individuals in the same risk class. The insurance company may be accused of - Unfair Discrimination Which of these is not a required group life policy provision? -Free-Look -Grace period -Conversion -Right to Loan Proceeds - Right to Loan Proceeds Why would the Commissioner examine the records of an insurance company? - To determine the solvency of the company Life insurance death benefits up to ______ are guaranteed by the Hawaii Life and Health Guaranty Association. - $300,000 A brochure that includes an untrue statement regarding a competitor's ability to pay claims is an example of which of the following Unfair Trade Practices? - Defamation What is rebating? - It means to offer a prospective client something of value that is not specified in a contract to induce the purchase of an insurance policy An example of unfair claims settlement practice is -Turning down a claim without providing a basis of denial -Requiring a time limit for submitting a claim - Turning down a claim without providing a basis of denial A mutual insurance company and a stock insurance company have one main difference between them. What is the major contrast? - Stock company is owned by its shareholders. Mutual company is owned by its policy holders. A life policy loan in Hawaii cannot change a fixed rate of interest higher than - 8%