1000 Flashcards Life Insurance Licensing Exam
Define an "insurance producer." An insurance producer is any individual or business entity licensed to
sell, solicit, or negotiate insurance contracts on behalf of insurers or
insureds.
An agent sells policies in a state without a license No. This is illegal unless the agent obtains a nonresident license in the
but has a license in another state. Is this allowed? state where business is conducted.
What is a nonresident producer license? A license issued to an individual or entity already licensed in their home
state, allowing them to conduct insurance business in another state.
A ______ license allows limited-time authority for an Temporary license.
unlicensed person after a producer's death or
disability.
What is a business entity producer? A corporation, partnership, or other legal entity licensed to act as an
insurance producer through licensed individuals.
Page 1
,1000 Flashcards Life Insurance Licensing Exam
Can a business entity sell insurance without No. The entity must always operate through properly licensed and
appointing licensed individuals? appointed individuals.
What is a special broker in insurance regulation A licensed individual authorized to place insurance when standard
terms? producer channels are not available, often under special conditions.
Define "insurance adviser." A licensed person who provides insurance advice for a fee, without
selling or binding insurance contracts.
Public insurance adjusters represent insurers in False. They represent insureds, not insurers, in negotiating claim
claims handling. settlements.
What is a public insurance adjuster? A licensed individual who negotiates insurance claims on behalf of
policyholders for compensation.
What is a reinsurance intermediary? A licensed entity or person who negotiates reinsurance contracts
between insurers and reinsurers.
Page 2
,1000 Flashcards Life Insurance Licensing Exam
A person brokers policy buyouts for terminally ill Life settlement broker license, required for facilitating life insurance
clients. What license applies? policy transfers for compensation.
Define "life settlement." The sale of an existing life insurance policy to a third party for value
greater than surrender value but less than death benefit.
Portable Electronics Insurance is typically a ______ Limited lines license.
line license.
What is a limited lines license? A restricted license allowing sale of specific types of insurance, such as
credit, travel, or portable electronics insurance.
What happens if a producer fails to renew license The license becomes inactive, and the producer must meet
before expiration? reinstatement requirements, often including fees and continuing
education.
What is license reinstatement? The process of restoring a lapsed license after meeting state
requirements such as fees, CE, and penalties.
What is license renewal? The periodic process of maintaining an active license by completing
continuing education and paying renewal fees before expiration.
Does changing your address automatically update No. Producers must formally report address changes to the state
your license record? insurance department within required timelines.
Page 3
, 1000 Flashcards Life Insurance Licensing Exam
What is "reporting of actions" requirement? Licensees must report administrative, civil, or criminal actions taken
against them in any jurisdiction.
A fictitious business name used by a producer is Assumed name (DBA - Doing Business As).
called a ______ name.
What must be done before using an assumed It must be filed and approved with the insurance department to ensure
name? transparency and prevent consumer deception.
What are Continuing Education (CE) Mandatory training hours required periodically to maintain an active
requirements? insurance license.
A producer fails CE requirements. What happens? License may be suspended, non-renewed, or require additional
penalties to reinstate.
Page 4
Define an "insurance producer." An insurance producer is any individual or business entity licensed to
sell, solicit, or negotiate insurance contracts on behalf of insurers or
insureds.
An agent sells policies in a state without a license No. This is illegal unless the agent obtains a nonresident license in the
but has a license in another state. Is this allowed? state where business is conducted.
What is a nonresident producer license? A license issued to an individual or entity already licensed in their home
state, allowing them to conduct insurance business in another state.
A ______ license allows limited-time authority for an Temporary license.
unlicensed person after a producer's death or
disability.
What is a business entity producer? A corporation, partnership, or other legal entity licensed to act as an
insurance producer through licensed individuals.
Page 1
,1000 Flashcards Life Insurance Licensing Exam
Can a business entity sell insurance without No. The entity must always operate through properly licensed and
appointing licensed individuals? appointed individuals.
What is a special broker in insurance regulation A licensed individual authorized to place insurance when standard
terms? producer channels are not available, often under special conditions.
Define "insurance adviser." A licensed person who provides insurance advice for a fee, without
selling or binding insurance contracts.
Public insurance adjusters represent insurers in False. They represent insureds, not insurers, in negotiating claim
claims handling. settlements.
What is a public insurance adjuster? A licensed individual who negotiates insurance claims on behalf of
policyholders for compensation.
What is a reinsurance intermediary? A licensed entity or person who negotiates reinsurance contracts
between insurers and reinsurers.
Page 2
,1000 Flashcards Life Insurance Licensing Exam
A person brokers policy buyouts for terminally ill Life settlement broker license, required for facilitating life insurance
clients. What license applies? policy transfers for compensation.
Define "life settlement." The sale of an existing life insurance policy to a third party for value
greater than surrender value but less than death benefit.
Portable Electronics Insurance is typically a ______ Limited lines license.
line license.
What is a limited lines license? A restricted license allowing sale of specific types of insurance, such as
credit, travel, or portable electronics insurance.
What happens if a producer fails to renew license The license becomes inactive, and the producer must meet
before expiration? reinstatement requirements, often including fees and continuing
education.
What is license reinstatement? The process of restoring a lapsed license after meeting state
requirements such as fees, CE, and penalties.
What is license renewal? The periodic process of maintaining an active license by completing
continuing education and paying renewal fees before expiration.
Does changing your address automatically update No. Producers must formally report address changes to the state
your license record? insurance department within required timelines.
Page 3
, 1000 Flashcards Life Insurance Licensing Exam
What is "reporting of actions" requirement? Licensees must report administrative, civil, or criminal actions taken
against them in any jurisdiction.
A fictitious business name used by a producer is Assumed name (DBA - Doing Business As).
called a ______ name.
What must be done before using an assumed It must be filed and approved with the insurance department to ensure
name? transparency and prevent consumer deception.
What are Continuing Education (CE) Mandatory training hours required periodically to maintain an active
requirements? insurance license.
A producer fails CE requirements. What happens? License may be suspended, non-renewed, or require additional
penalties to reinstate.
Page 4
