CT LICENSING EXAM QUESTIONS & ANSWERS
True or False: The Commissioner of Insurance has the power to issue, renew, revoke
and suspend licenses? - Answers - True
Types of Insurance: Stock - Answers - company which is owned by its stockholders or
shareholders; they share in profits and losses of the company
Types of Insurance: Mutual - Answers - company which is owned by its policyholders;
they share in profits and have the right to vote on company elections
Types of Insurance: Reciprocal - Answers - company in which members share in each
others losses and are managed by the attorney-in-fact, which is responsible for
company business. (usually found with municipalities which is a political unit, such as a
city, town, or village, incorporated for local self=government)
Types of Insurance: Lloyds Association - Answers - a group of individuals who insure
unique interest with their own money
Types of Insurance: Residual Marketing System - Answers - state funded insurance;
Federal Government provides coverage for flood, war, nuclear and crops, not normally
available from private insurers
Code Regulating Agents: Misrepresentation - Answers - an agent may not
misrepresent, or falsely advertise terms, benefits or financial responsibilities they may
not offer
Code Regulating Agents: Rebating - Answers - giving or offering a benefit to an
applicant in return for the applicants purchasing of a policy. (cash, gifts, securities,
commissions)
Code Regulating Agents: Twisting - Answers - a form of misrepresenting where an
agent convinces an applicant to cancel their existing policy and state a new one with the
agent, and it does not benefit the applicant
Code Regulating Agents: Unfair Discrimination - Answers - insurer cannot give higher
or lower rates to 1 of 2 identical individuals. Insurers cannot accept bribes from a client
in return for lower premiums
Code Regulating Agents: Fiduciary - Answers - a person who has a special
relationship of trust to another person (agent & policyholder). An agent has a duty to
clients regarding the handling of premiums
True or False: The Commissioner of Insurance has the power to issue, renew, revoke
and suspend licenses? - Answers - True
Types of Insurance: Stock - Answers - company which is owned by its stockholders or
shareholders; they share in profits and losses of the company
Types of Insurance: Mutual - Answers - company which is owned by its policyholders;
they share in profits and have the right to vote on company elections
Types of Insurance: Reciprocal - Answers - company in which members share in each
others losses and are managed by the attorney-in-fact, which is responsible for
company business. (usually found with municipalities which is a political unit, such as a
city, town, or village, incorporated for local self=government)
Types of Insurance: Lloyds Association - Answers - a group of individuals who insure
unique interest with their own money
Types of Insurance: Residual Marketing System - Answers - state funded insurance;
Federal Government provides coverage for flood, war, nuclear and crops, not normally
available from private insurers
Code Regulating Agents: Misrepresentation - Answers - an agent may not
misrepresent, or falsely advertise terms, benefits or financial responsibilities they may
not offer
Code Regulating Agents: Rebating - Answers - giving or offering a benefit to an
applicant in return for the applicants purchasing of a policy. (cash, gifts, securities,
commissions)
Code Regulating Agents: Twisting - Answers - a form of misrepresenting where an
agent convinces an applicant to cancel their existing policy and state a new one with the
agent, and it does not benefit the applicant
Code Regulating Agents: Unfair Discrimination - Answers - insurer cannot give higher
or lower rates to 1 of 2 identical individuals. Insurers cannot accept bribes from a client
in return for lower premiums
Code Regulating Agents: Fiduciary - Answers - a person who has a special
relationship of trust to another person (agent & policyholder). An agent has a duty to
clients regarding the handling of premiums
