Utah Life Insurance Test Exam |107
Questions with Solutions
Minimum Age to receive a license - -18
- Continuing Education Hours - -24 Hours every 2 years (3 Hours must be in
ethics)
- Insurer must respond to claimant communications within how many days?
- -15 days
- Commissioner Powers and duties include: - -Imposing penalties, including
fines, suspensions, and revocations.
All insurance forms (riders, policies, applications, endorsements, and
contracts) must be filed and approved by the Commissioner.
- Gramm-Leach-Bliley Act (GLBA) - -Consumer - An individual about whom a
company collects information is a consumer.
Customer - A customer is a consumer that has developed an ongoing
relationship with a financial institution.
- Privacy Notices must explain: - -What info the company gathers about the
customer.
Where that info is shared
How the company safeguards that info
- Fair Credit Reporting Act - -Responsible for the opt-out opportunity, but
the privacy notice must inform the customer of this right under the GLBA.
- Insurance Consultants - -To become licensed as an insurance consultant, a
producer must have been licensed and actively transacted inurance for at
least three of the four years immediately preceding the application for a
consultants license.
- License Requirements - -18 years old at least.
- Appointments - -All producers must be appointed by at least one insurer.
- Misrepresentation - -It is illegal to make any written or oral statement,
sales presentation, or comparison that; misrepresents the dividends,
benefits, advantages, conditions, or terms of any policy.
Example: uses a name of any insurance policy that misrepresents its true
nature.
, - False Advertising - -It is illegal for any producer to formulate or use an
advertisement or statement that is untrue, deceptive, or misleading
regarding any insurance company or persons associated with that company.
- Defamation - -Making any statement, written or oral, that is false or
maliciously critical of the financial condition of an insurance company or a
producer representing that company is illegal.
- Rebating - -Offering valuable consideration, other than that which is
offered in the contract as an inducement to purchase a policy is illegal.
- Coercion - -Forcing a person to buy insurance through a particular
company or producer.
- Unfair Discrimination - -It is illegal to unfairly discriminate between
individuals of the same class and equal life expectancy in the rates,
dividends, benefits, or terms of any life or life annuity contract. Unfairly
discriminate between neighborhoods within a municipality and of essentially
the same hazard. Use sexual orientation in the underwriting process or in the
determination of insurability.
- A producer cannot share commissions with: - -Someone that is not a life
insurance agent. Monies may not be commingled with the producer's
personal funds.
- Insurance Fraud: - -Anyone who knowingly misappropriates insurance
premiums, makes any material false statement of an insurance application,
or makes a false insurance claim commits insurance fraud.
- McCarran Ferguson Act - -The fed govt had the right to regulate the
business of insurance but only to the extent that such business is not
regulated by state law (which most are) They did this with the intent of not
having to regulate them against the provisions of the fed antitrust laws.
- Notice to Applicant - -Notifies the applicant that a report will be ordered
concerning their past credit history and any other life or health insurance for
which they have previously applied.
- Consumer Reports - -Information on a person's credit, character,
reputation, or habits.
- Third-Party Ownership - -Businesses that own policies on key employees.
- Medical Information Bureau - -Reports issued by the MIB are another
source of information which may aid the underwriter in determining whether
or not to accept a risk. This is a non-profit trade association that maintains
Questions with Solutions
Minimum Age to receive a license - -18
- Continuing Education Hours - -24 Hours every 2 years (3 Hours must be in
ethics)
- Insurer must respond to claimant communications within how many days?
- -15 days
- Commissioner Powers and duties include: - -Imposing penalties, including
fines, suspensions, and revocations.
All insurance forms (riders, policies, applications, endorsements, and
contracts) must be filed and approved by the Commissioner.
- Gramm-Leach-Bliley Act (GLBA) - -Consumer - An individual about whom a
company collects information is a consumer.
Customer - A customer is a consumer that has developed an ongoing
relationship with a financial institution.
- Privacy Notices must explain: - -What info the company gathers about the
customer.
Where that info is shared
How the company safeguards that info
- Fair Credit Reporting Act - -Responsible for the opt-out opportunity, but
the privacy notice must inform the customer of this right under the GLBA.
- Insurance Consultants - -To become licensed as an insurance consultant, a
producer must have been licensed and actively transacted inurance for at
least three of the four years immediately preceding the application for a
consultants license.
- License Requirements - -18 years old at least.
- Appointments - -All producers must be appointed by at least one insurer.
- Misrepresentation - -It is illegal to make any written or oral statement,
sales presentation, or comparison that; misrepresents the dividends,
benefits, advantages, conditions, or terms of any policy.
Example: uses a name of any insurance policy that misrepresents its true
nature.
, - False Advertising - -It is illegal for any producer to formulate or use an
advertisement or statement that is untrue, deceptive, or misleading
regarding any insurance company or persons associated with that company.
- Defamation - -Making any statement, written or oral, that is false or
maliciously critical of the financial condition of an insurance company or a
producer representing that company is illegal.
- Rebating - -Offering valuable consideration, other than that which is
offered in the contract as an inducement to purchase a policy is illegal.
- Coercion - -Forcing a person to buy insurance through a particular
company or producer.
- Unfair Discrimination - -It is illegal to unfairly discriminate between
individuals of the same class and equal life expectancy in the rates,
dividends, benefits, or terms of any life or life annuity contract. Unfairly
discriminate between neighborhoods within a municipality and of essentially
the same hazard. Use sexual orientation in the underwriting process or in the
determination of insurability.
- A producer cannot share commissions with: - -Someone that is not a life
insurance agent. Monies may not be commingled with the producer's
personal funds.
- Insurance Fraud: - -Anyone who knowingly misappropriates insurance
premiums, makes any material false statement of an insurance application,
or makes a false insurance claim commits insurance fraud.
- McCarran Ferguson Act - -The fed govt had the right to regulate the
business of insurance but only to the extent that such business is not
regulated by state law (which most are) They did this with the intent of not
having to regulate them against the provisions of the fed antitrust laws.
- Notice to Applicant - -Notifies the applicant that a report will be ordered
concerning their past credit history and any other life or health insurance for
which they have previously applied.
- Consumer Reports - -Information on a person's credit, character,
reputation, or habits.
- Third-Party Ownership - -Businesses that own policies on key employees.
- Medical Information Bureau - -Reports issued by the MIB are another
source of information which may aid the underwriter in determining whether
or not to accept a risk. This is a non-profit trade association that maintains
