California Life Insurance Exam Questions with complete solutions

Who must be notified of a producer's change of address? - ANSWER-The Department of Insurance (Commissioner/Director/Superintendent) When can the commissioner or director examine insurers? - ANSWER-Whenever deemed necessary, but at least once every few years Who may share in the commission from the sale of a life insurance policy? - ANSWER-Only producers properly licensed for the type of insurance transaction What type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another? - ANSWER-Twisting To whom may a certificate of authority be issued? - ANSWER-To an insurer authorized to transact business in this state Who is considered a nonresident agent? - ANSWER-An agent who resides and is licensed in another state, but who is authorized to transact insurance in this state If a producer makes maliciously critical statements about another insurer, what is this illegal practice called? - ANSWER-Defamation What is the purpose of a cease and desist order? - ANSWER-To prevent a producer or insurer from further violating laws for transacting insurance If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer? - ANSWER-Authorized or admitted What type of licensee represents the insurance company? - ANSWER-The agent