Indiana Laws and Department Rules Common to All Lines of Insurance Questions and Answers Graded A+

Indiana Laws and Department Rules Common to All Lines of Insurance Questions and Answers Graded A+ Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance? A: Only written statements can be considered fraud B: Omissions of material fact on insurance application are fraud C: False statements about financial condition of an insurer are unlawful D: Statements made with the intent to deceive are unlawful A: Only written statements can be considered fraud According to Title 18, Sections 1033 & 1034 of the US Code, any oral or written statements by any person engaged in the business of insurance that are false or any omissions of material fact are considered unlawful insurance fraud. In which of the following situations is it legal to limit coverage based on marital status? A: Divorce within the last six months of applying for insurance B: It is never legal to limit coverage based on marital status C: Excessive number of divorces, as defined by the Insurance Code D: Legal separation during the application process B: It is never legal to limit coverage based on marital status Availability of insurance benefits or coverage may not be denied based on sex or marital status. Marital status may be considered for the purpose of defining persons eligible for dependent benefits. If you are found guilty of violating the Producer Licensing Law, you may be subject to any of the following penalties EXCEPT: A: The Commissioner may order you to male a monetary restitution B: The Commissioner may send you to jail for up to 1 year C: The Commissioner may fine you up to $10,000 D: The Commissioner may revoke your license B: The Commissioner may send you to jail for up to 1 year If a producer is found guilty of violating the Producer Licensing Law, he/she may be order to make monetary restitution or pay a civil fine between $50 and $10,000. The producer's license may also be revoked or suspended. The Commissioner, however, cannot send producers to jail; that would be up to a judge. All of the following may be exempt from the whole or part of the Indiana licensing examination EXCEPT: A: A resident producer in another state under certain conditions B: A person selling credit life and credit health insurance C: A candidate applying for surplus lines producer license D: A Chartered Life Underwriter apply for a Life license C: A candidate applying for surplus lines producer license Unless they are exempt under Indiana regulations, residents must pass a written examination when applying for an insurance producer, consultant or surplus line producer licenses. A CLU applying for a life insurance producer's license will only be required to take the Indiana law portion of the exam. What is the purpose of the Insurance Guaranty Association? A: To protect insurance companies against insurance fraud B: To provide double indemnity for the insured's loss C: To prevent unfair trade practices D: To protect policy owners against insurer insolvency D: To protect policy owners against insurer insolvency The