LIFE INSURANCE BUNDLED STUDY GUIDE
TESTED QUESTIONS AND 100 PERCENT
CORRECT
●● Forcing a client to buy insurance from a particular lender as a
condition of granting a loan is defined as
a. Defamation
b. Coercion
c. Rebating
D. Misleading advertising
Answer: b. Coercion
●● An agent who includes a statement or omits a statement which, when
taken in context of the whole presentation, may tend to mislead or
deceive the persons addressed has committed
a. Twisting
b. Coercion
c. Misrepresentation
d. Defamation
Answer: c. Misrepresentation
,●● If a consumer requests additional information concerning an
investigative consumer report, how long does the insurer or reporting
agency have to comply?
a. 7 days
b. 10 days
c. 3 days
d. 5 days
Answer: d. 5 days
●● After the original hearing and a final order is issued, an aggrieved
person may request a re-hearing within
a. 30 days
b. 40 days
c. 15 days
d. 20 days
Answer: 20 days
●● Which of the following is an example of a producer being involved
in an unfair trade practice of rebating?
a. Telling a client that his first premium will be waived if he purchases
the insurance policy today
b. Inducing the insured to drop a policy in favor of another one when it
is not the insured's best interest
,c. Charging a client a higher premium for the same policy as another
client in the same insuring class
d. Making deceptive statements about a competitor
Answer: a. Telling a client that his first premium will be waived if he
purchases the insurance policy today
●● Which type of misrepresentation persuades an insured, to his or her
detriment, to cancel, lapse, or switch policies from one to another?
a. False advertising
b. Rebating
c. Twisting
d. Switching
Answer: c. Twisting
●● An insurer can refuse, cancel or deny insurance coverage to a class
of risks based on which of the following?
a. Moral character
b. Physical condition or developmental disability
c. Sexual preference
d. None of the above
Answer: d. None of the above
, ●● If a person does not comply with an order issued within 2 weeks
after the Commissioner has given notice, for each day that the violation
continues, the Commissioner may issue a fine of up to
a. $3,000
b. $5,000
c. $1,500
d. $2,000
Answer: b. $5,000
●● Which of the following persons is NOT required to complete CE?
a. A property insurance intermediary with 40 years of continuous
licensure
b. Any licensee over 65 with more than 25 years of continuous licensure
c. A limited lines intermediary with 40 years of continuous licensure
d. A life insurance intermediary with 18 years of continuous licensure
Answer: c. A limited lines intermediary with 40 years of continuous
licensure
●● An intermediary must notify the Commissioner of a change of
residence address within how many days of the change?
a. 20
b. 30
c. 5
TESTED QUESTIONS AND 100 PERCENT
CORRECT
●● Forcing a client to buy insurance from a particular lender as a
condition of granting a loan is defined as
a. Defamation
b. Coercion
c. Rebating
D. Misleading advertising
Answer: b. Coercion
●● An agent who includes a statement or omits a statement which, when
taken in context of the whole presentation, may tend to mislead or
deceive the persons addressed has committed
a. Twisting
b. Coercion
c. Misrepresentation
d. Defamation
Answer: c. Misrepresentation
,●● If a consumer requests additional information concerning an
investigative consumer report, how long does the insurer or reporting
agency have to comply?
a. 7 days
b. 10 days
c. 3 days
d. 5 days
Answer: d. 5 days
●● After the original hearing and a final order is issued, an aggrieved
person may request a re-hearing within
a. 30 days
b. 40 days
c. 15 days
d. 20 days
Answer: 20 days
●● Which of the following is an example of a producer being involved
in an unfair trade practice of rebating?
a. Telling a client that his first premium will be waived if he purchases
the insurance policy today
b. Inducing the insured to drop a policy in favor of another one when it
is not the insured's best interest
,c. Charging a client a higher premium for the same policy as another
client in the same insuring class
d. Making deceptive statements about a competitor
Answer: a. Telling a client that his first premium will be waived if he
purchases the insurance policy today
●● Which type of misrepresentation persuades an insured, to his or her
detriment, to cancel, lapse, or switch policies from one to another?
a. False advertising
b. Rebating
c. Twisting
d. Switching
Answer: c. Twisting
●● An insurer can refuse, cancel or deny insurance coverage to a class
of risks based on which of the following?
a. Moral character
b. Physical condition or developmental disability
c. Sexual preference
d. None of the above
Answer: d. None of the above
, ●● If a person does not comply with an order issued within 2 weeks
after the Commissioner has given notice, for each day that the violation
continues, the Commissioner may issue a fine of up to
a. $3,000
b. $5,000
c. $1,500
d. $2,000
Answer: b. $5,000
●● Which of the following persons is NOT required to complete CE?
a. A property insurance intermediary with 40 years of continuous
licensure
b. Any licensee over 65 with more than 25 years of continuous licensure
c. A limited lines intermediary with 40 years of continuous licensure
d. A life insurance intermediary with 18 years of continuous licensure
Answer: c. A limited lines intermediary with 40 years of continuous
licensure
●● An intermediary must notify the Commissioner of a change of
residence address within how many days of the change?
a. 20
b. 30
c. 5
