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Exam (elaborations)

Louisiana Law Evaluation Test Questions And Solutions Graded

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LOUISIANA LAW EVALUATION TEST QUESTIONS AND SOLUTIONS GRADED

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LOUISIANA LAW EVALUATION TEST QUESTIONS AND
SOLUTIONS GRADED A+
✔✔What must nonresident producers hold? - ✔✔Home-state license

✔✔What requires producer disclosure to the insurer? - ✔✔Replacement of policies

✔✔Who can receive commissions? - ✔✔Licensed producers only

✔✔What happens to a producer acting without a license? - ✔✔Subject to administrative
action

✔✔When may a license be suspended without a hearing? - ✔✔For nonpayment of fines

✔✔How long must producer records be kept? - ✔✔At least 3 years

✔✔What does misrepresentation involve? - ✔✔False statements about a policy

✔✔What is twisting? - ✔✔Replacing a policy with misleading info

✔✔What is rebating? - ✔✔Offering inducements not in the policy

✔✔Which practice is illegal in Louisiana? - ✔✔Rebating

✔✔What does defamation involve? - ✔✔False statements about competitors

✔✔What does insurance fraud include? - ✔✔Filing false claims

✔✔What is considered unfair discrimination? - ✔✔Charging different rates without
actuarial basis

✔✔In whose best interest must a producer act? - ✔✔Client

✔✔What practice involves pressuring clients to buy insurance? - ✔✔Coercion

✔✔What does churning refer to? - ✔✔Replacing policies for commission

✔✔What penalties may result from unfair trade practices? - ✔✔License suspension

✔✔Which practice is allowed? - ✔✔Accurate policy comparison

✔✔To whom must fraudulent activities be reported? - ✔✔Commissioner

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