Life Insurance Exam Questions And Answers Study Guide

Larger - For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become (Choose from the following options)1. Older. 2. More active. 3. Larger. 4. Smaller. Consideration - An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? (Choose from the following options)1. Consideration2. Good faith3. Representation4. Adhesion Misrepresentation - An agent is selling a client a Variable Life Insurance policy and as an inducement shows the client a projection based upon shares or dividends paid on a similar policy. This is (Choose from the following options)1. Defamation.2. Unacceptable business practice.3. Misrepresentation.4. Twisting. Apparent - Which of the following types of agent authority is also called "perceived authority"? (Choose from the following options)1. Implied2. Fiduciary3. Apparent4. Express $5,000 - 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 (Choose from the following options)1. $3,000.2. $5,000.3. $1,500.4. $2,000. Insurer's records may be maintained electronically - Which of the following is true regarding state regulations for record maintenance? (Choose from the following options)1. Insurer's records must be maintained both electronically and in paper form.2. Insurer's records may be maintained electronically.3. Insurer's records must be maintained as hard copies of original records.4. Any records except for checks may be maintained electronically. Intermediary - A person who assists another in soliciting, negotiating, or placing insurance or annuities on behalf of an insurer or a person seeking insurance or annuities is called a(n) (Choose from the following options)1. Mediator.2. Representative.3. Middleman.4. Intermediary. Promptly forwarding premiums to the insurance company - Pertaining to insurance, which of the following is an example of a producer's fiduciary responsibility? (Choose from the following options)1. Helping insureds to file claims2. Performing reviews of insured's coverage3. Offering additional coverage to insureds4. Promptly forwarding premiums to the insurance company $100,000 - The Commissioner may require a surplus lines agent or broker to supply a bond of up to (Choose from the following options)1. $500,000.2. $100,000.3. $200,000.4. $300,000. An appointment by the Governor - How is the Commissioner of Insurance placed in office? (Choose from the following options)1. By NAIC nomination2. Through a bid process3. An election at the same time that other state officials are selected4. An appointment by the Governor Agent - Which of the following is an intermediary who acts on behalf of the insurer that they represent? (Choose from the following options)1. Managing general agent2. Managing general representative3. Agent4. Broker - Which of the following is a licensee able to place insurance with unauthorized insurers? (Choose from the following options)1. Surplus lines agent2. Reinsurance intermediary3. Reinsurance broker4. Managing general agent - Untrue statements on the application unintentionally made by insureds that, if discovered, would alter the underwriting decision of the insurance company, are called (Choose from the following options)1. Fraudulent statements.2. Warranties.3. Common errors.4. Material misrepresentations. Moral hazard - An individual's tendency to be dishonest would be indicative of a (Choose from the following options)1. Pure hazard.2. Physical hazard.3. Moral hazard.4. Morale hazard. Commissioner - Insurers must report or list all appointments and all terminations of appointments to what authority? (Choose from the following options)1. Department of Insurance2. Federal Insurance Regulation Board3. NAIC4. Commissioner 60 days - An insurance policy is considered a "new policy" if it has been in effect for what maximum time period? (Choose from the following options)1. 10 days2. 30 days3. 60 days4. 90 days The insured will need a written consent of the insurer. - An insured wants to transfer his personal insurance policy to a friend. Under what conditions would this be possible? (Choose from the following options)1. The insured can transfer the policy to his friend and then notify the insurer of the change.2. The insured will need a written consent of the insurer.3. It is impossible to transfer a policy.4. The insured would have to surrender his policy to the insurer, and his friend could then ask to buy it. 60 days - A policy may be issued for a term longer than one year or for an indefinite term as long as there is a clause in the policy providing for cancellation by giving how much notice prior to the anniversary date? (Choose from the following options)1. 60 days2. 90 days3. 100 days4. 30 days The change must be reported to the Department. - If a licensee wants to transact insurance under a different name than that listed on his or her producer's license, which of the following must occur? (Choose from the following options)1. The change must be reported to the Federal Producer's Directory.2. The licensee must obtain a new license.3. It is illegal to transact insurance under any name other than the one listed on the license.4. The change must be reported to the Department. 18 - What is the minimum age to apply for an insurance license in Wisconsin? Ancestry - If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's Agent's contract with the principal - What documentation grants express authority to an agent? Reduction - Installing deadbolt locks on the doors of a home is an example of which method of handling risk? 1. Only written statements can be considered fraud. - Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance? 4. Replacing insurance policies for the purpose of making commissions is legal. - Which of the following statements is INCORRECT? 10 days after the notice was delivered to the policyholder - The insurer decided to cancel an insurance policy prior to its expiration due to nonpayment of premium. When can cancellation take place? Alien Insurer - When transacting business in this state an insurer formed under the laws of another country is known as a/an Rebating. - An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of 50 - According to the rule of readability of insurance policies in this state, what is a required minimum score on the Flesch reading ease test for Medicare supplement policies? Insureds cannot be randomly selected. - Which statement regarding insurable risks is NOT correct? The Commissioner of Insurance - Which of the following entities is appointed to oversee the business of insurance and to ensure that the insurance laws of Wisconsin are enforced? 5 days - If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? 2 years - An insurance agent must complete a new set of continuing education requirements every The Commissioner's office may pay all or part of the costs. - 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? 2. Captive agent. - An insurance producer who by contract is bound to write insurance for only one company is classified as a/an 2. False advertising. - Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as 4. Twisting. - A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases an insurance policy from the bank in the amount of the loan. This is an example of 4. All insurance policies issued in this state - The rule relating to insurance policy readability applies to which of the following? 3. Life insurance - Which of the following is not a limited line of insurance? 4. Earn commissions. - All of the following are purposes of insurance EXCEPT to 2. Ambiguities are interpreted in favor of the insured - Which of the following best describes the aleatory nature of an insurance contract? 30 days to pay claim - In this state, insurers must pay a claim within how many days of receiving proof of loss? The customer's associates, friends, and neighbors provide the report's data. - In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports? The trust that a client places in the producer in regard to handling premiums. - Which of the following is an example of a producer's fiduciary duty? 25 - An agent is presumed to have exceeded the occasional exchange of business if the agent places more than how many insurance risks per calendar year with all insurers? 4. The person must have at least completed secondary education. - In terms of parties to a contract, which of the following does NOT describe a competent party? Respond to the consumer's complaint. - Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must 5 years - When the Commissioner revokes an intermediary's license for any reason other than nonpayment of fees, the intermediary may NOT apply for a new license for how many years?