TELEPERFORMANCE PRE TEST QUESTIONS AND ANSWERS WITH COMPLETE SOLUTION

TELEPERFORMANCE PRE TEST QUESTIONS AND ANSWERS WITH COMPLETE SOLUTION A commission for selling insurance may not be paid to a person other than a licensed insurance: A) Broker. B) Consultant. C) Advisor. D) Producer. Ans- D) Producer. Insured risk classification may be based upon which one of the following criteria? A) Creed or national origin. B) Race or color. C) Age or health. D) Religion. Ans- C) Age or health. A producer may not be compensated for controlled business unless aggregate premiums from other insurance for the past____months exceed premiums from controlled business. A) 12. B) 24. C) 36. D) 18. Ans- A) 12. A lapsed license may not be used to transact insurance business, unless: A) The consumer does not object. B) The insurer grants permission. C) The business is conducted out of state. D) Reinstated. Ans- D) Reinstated. Controlled business means insurance issued on all of the following, except: A) One's own property. B) A neighbor's property. C) The property of relatives by blood. D) The property of relatives by marriage. Ans- B) A neighbor's property. All of the following are reasons why the Commission may disapprove, or withdraw approval of, any form, except: A) It fails to provide the insurers name and domicile. B) It violates state law. C) It fails to provide the producer's name, address, or business address, if for a basic policy or application. D) It is unfair, encourages misinterpretation, is not in the public interest, or contains provisions that endanger the insurer financially. Ans- C) It fails to provide the producer's name, address, or business address, if for a basic policy or application. Who is responsible for organizing, administering, and carrying out the general duties and broad powers of the Utah Insurance Department? A) The State Attorney General. B) The Commissioner. C) The Governor. D) The State Treasurer. Ans- B) The Commissioner. At least what percentage of the continuing education requirements for a producer or consultant must be classroom instruction? A) 30. B) 25. C) 50. D) 40. Ans- C) 50. An insurance contract is valid even if purchased from a(n)_______ person. A) Non-degreed licensed. B) Nonresident licensed. C) Unlicensed. D) Resident licensed. Ans- C) Unlicensed. A producer of consultant must biennially complete at least ____ hours of continuing education to renew a license. A) 24. B) 40. C) 30. D) 36. Ans- A) 24. To act as an insurance producer in Utah, a person or entity must obtain a(n)______ license. A) Producer. B) Adjuster. C) Consultant. D) Nonresident. Ans- A) Producer. An insurance contract entered into in violation of state insurance laws is unenforceable by, but enforceable against, the: A) Producer. B) Insurer. C) Agency. D) Insured. Ans- B) Insurer. Which one of the following is permitted? A) Assuring the payment of future dividends or refunds of unused premiums. B) Entering into an agreement with the purpose of committing an act of boycott, coercion, or intimidation, which would result in restraint or monopoly in the insurance business or contract replacement. C) Offering any rebate or discount not specified in the policy. D) Giving a promotional gift if the recipient is not required to perform any part of an application process. Ans- B) Entering into an agreement with the purpose of committing an act of boycott, coercion, or intimidation, which would result in restraint or monopoly in the insurance business or contract replacement. An insurer or a producer may pay commissions to an insurance agency or to persons who do not sell insurance in Utah if the payment is: A) For variable contracts. B) For a new sale to a formerly licensed person. C) Not a prohibited inducement or rebate. D) Not more than $500. Ans- C) Not a prohibited inducement or rebate. An insurance policy entered into in violation of state insurance laws is voidable by the ______ who entered into the transaction without knowing it was illegal. A) Policyholder. B) Agency. C) Insurer. D) Producer. Ans- A) Policyholder. Each insurer must notify the Commissioner within ____ days after terminating the appointment of any agent or organization. A) 30. B) 15. C) 10. D) 20. Ans- A) 30. Which of the following regarding insurance fraud regulation is false? A) The Commissioner may suspend or revoke a person's license for committing insurance fraud. B) Suspected insurance fraud must be reported in writing to the Commissioner. C) An insurer is absolutely liable for any and all their employee's fraud. D) It is fraudulent to fail to forward a premium to an insurer. Ans- C) An insurer is absolutely liable for any and all their employee's fraud. Which one of the following is considered to be an unfair claim settlement practice in Utah? A) Trying, in good faith, to settle a claim for which liability has become reasonably clear. B) Paying a claim without investigation. C) Paying a claim for covered medical treatment after pre authorization has been given. D) Compensating agents based on the insurer's savings that result from denying a claim. Ans- D) Compensating agents based on the insurer's savings that result from denying a claim.