Idaho State Life Insurance Exam Questions and Answers (Graded A+)

Twisting - ANSWER-A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it's to the insured's disadvantage. Credit Life Policy - ANSWER-Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured. Can a Producer pay a client's premium? - ANSWER-This is legal only if the Producer collects reasonable interest from the client. Required notice for a Director to revoke a Producer's license - ANSWER-20 days Notification of address change - ANSWER-Producer must notify within 30 days. Director may fine anyone transacting insurance without a license how much? - ANSWER-Up to $15,000 Who can an Idaho Producer share commission with? - ANSWER-Another producer with the same license. Within how many days of signing can a policy owner rescind on a life settlement? - ANSWER-20 days An Insurer terminating an assignment must notify the Director of Insurance within how many days? - ANSWER-30 days Insurance company issues an appointment, notification to Director of Insurance within how many days? - ANSWER-15 days A creditor's group policy cannot exceed? - ANSWER-$150,000 What Producer does not have to pass the Idaho insurance licensing exam? - ANSWER-Limited Lines Producers What type of certification must a Third Party Administrator (TPA) have? - ANSWER-Registration How long is the term of an appoinment? - ANSWER-Until the license is terminated. W