Michigan Life, Accident, and Health Questions And Answers Rated A+ New Update Assured Satisfaction

The Commissioner of Insurance is appointed by the Governor for a term of - Answer-4 years All of the following are examples of insurance transactions except: A. soliciting applications for insurance B. delivering policies C. licensing of producers D. collecting premiums - Answer-Correct answer: C - licensing of producers A temporary license issued to close the affairs of a deceased producer may be issued for up to _____ days at the discretion of the Commissioner - Answer-180 days Continuing Education (CE) ______ hours of CE every two years ______ hours must be in Ethics ______ day grace period to complete CE - Answer-24 total hours every two years 3 hours in ethics 90 day grace period Michigan Life and Health Insurance Guaranty Association - Answer-Protects policy holders against failure insolvent insurers Controlled business - Answer-It is permitted provided it does not exceed 15% of the premiums written in a 12-month period To motivate a buyer to sign an application for insurance, a producer promises a gift equal to 50% of the commission. This is an example of __________. - Answer-RebatingDefamation - Answer-A written statement that is false and derogatory that is designed to injure someone's reputation. The maximum fine for knowingly violating a cease and desist order is $________ and __________________. - Answer-$10,000 and possible license revocation Insurance counselor - Answer-Provides advice concerning an insurance policy and charges a fee for that advice. An applicant who has been denied an insurance license has _____ days to request a hearing to protest the denial. - Answer-30 days True / False A producer may share commissions with another licensed producer - Answer-True True / False A producer may not share commissions with a licensed nonresident producer - Answer-False If, after a hearing, the Commissioner believes a producer knowingly violated insurance licensing laws, the Commissioner can: - Answer-Fine the producer a max of $2,500 per violation A producer has a fiduciary responsibility to all of the following: - Answer-- Insured on cancelled policies - Insurer, for premiums due - Prospective purchaser of insurance, when the application is rejected. Why can't a producer barter or trade an insurance contract for goods and services? - Answer-The insurance product is not the producer's to barter; it belongs to the insured. How often must the Commissioner examine the books, records, and documents of domestic insurers? - Answer-At least once every 5 yearsA producer has _____ days to respond to charges of violating insurance laws. - Answer-30 days. If a producer is convicted of routinely misrepresenting benefits in insurance policies, he may be fined up to $_______ for all violations. - Answer-$25,000