Frank wants to insure his life -wanting to increase his retirement savings, Saul invests

Which of the following situations presents a situation of pure risk? -knowing that his family is depending on him, Frank wants to insure his life -wanting to increase his retirement savings, Saul invests his life savings in the stock market -Ralph takes a second mortgage on his house and uses the proceeds to gamble -wanting better job security, Ron cashes in his life insurance to start his own business Correct Answer knowing that his family is depending on him, Frank wants to insure his own life Only pure risk is insurable. Pure risk may only result in a loss, unlike speculative risk which may result in a gain. Agent Jill received a letter from the Department of insurance asking her to submit verification of having completed the continued education requirements for the previous licensing period. Three weeks later, the department sent another letter. Which penalty may the Department impose if Jill has still not responded to their request a month later? Correct Answer a fine up to $100 per day per violation A producer has 30 days to respond to a written inquiry from the Department Jim's policy expired due to nonpayment of premium. His agent sends him a statement the following month without notice of the lapse. If Jim pays the premium and later suffers a loss for which he files a claim, what will prevent the insurer from denying the claim? -estoppels -utmost good faith -reasonable expectations -waiver Correct Answer estoppel BBC insurers filed premium rates for its new line of variable products on January 15. Within how many days must the commissioner approve or disapprove the rates? Correct Answer30 days All rate filings are subject to a 30-day waiting period before they become effective. The commissioner of insurance can examine the business accounts, transactions, and records of insurers and producers as often as necessary, but must do so at least once in how many years? Correct Answer5 years