Life Insurance: The Insurance Marketplace questions
with verified answers
Ans✓✓✓
"Discontinuance" is a term used to describe the termination of what
type of insurance? Ans✓✓✓ Group.
A banker is ready to close on a customer's loan. The bank is prepared to
offer the loan but only if the customer purchases a life insurance policy
from the bank in the amount of the loan. This is an example of
Ans✓✓✓ Coercion.
A deceptive act or practice committed by a person with the intent to
secure an unfair advantage or unlawful gain is known as Ans✓✓✓
Fraud
A dependent who is covered under a group medical policy files multiple
claims for a single loss, thereby committing fraud. To what extent can
the insurer deny benefits? Ans✓✓✓ Only for that person who
committed the fraud
A licensed insurance agent overhears a conversation that leads him to
believe a person is committing fraud.
,If the agent makes a written report to a law enforcement agency and
the person is investigated, but it turns out that it was an erroneous
accusation, what charge will the agent face? Ans✓✓✓ No charges; the
Insurance Code gives the agent legal immunity.
Because every agent has a responsibility to combat fraud, the state
grants immunity from lawsuits for an agent's "good faith" report of
suspected fraud. (CIC 1877.5)
A licensee is NOT required to comply with continuing education
requirements in the state of California if which conditions are met?
Ans✓✓✓ The licensee has been in good standing for 30 continuous
years, and is at least 70 years old.
A life agent may use the name of corporation or association on any
stationery or advertisement to identify the relationship in all of the
following ways EXCEPT Ans✓✓✓ "Contracted by _______________"
A man has HIV and was hospitalized for several weeks. His insurance
company has delayed paying his claim for 120 days, saying that he is
not covered due to a pre-existing condition exclusion in his policy.
The insurance company is guilty of which of the following? Ans✓✓✓
Unfair claims settlement practice
,Delaying payment in regard to hospital, medical, or surgical claims for
persons with AIDS or HIV, for more than 60 days after filing a claim for
the purpose of attempting to invoke a pre-existing condition exclusion
is an unfair claims settlement practice.
A natural person that is employed to aid an insurance agent or
insurance broker in the transacting of insurance business other than life
insurance transactions is called Ans✓✓✓ An insurance solicitor.
A new insurance must be treated as a replacement if a new insurer sells
a policy to a group which discontinued its group medical insurance
within how many days? Ans✓✓✓ 60
A person applying for an insurance license in California was previously
found guilty in a trial in which he entered a plea of "nolo contedere."
What does "nolo contendere" mean? Ans✓✓✓ No contest
In California, even if a person pleads no contest, or "nolo contedere," to
charges, if the person is found guilty, they will be considered convicted.
A producer who fails to segregate premium monies from his own
personal funds is guilty of Ans✓✓✓ Commingling.
Accident and health agents may transact all of the following types of
insurance EXCEPT Ans✓✓✓ Endowments.
, Only life-only agents are authorized to transact insurance that includes
benefits from endowments.
According to California Insurance Code, all licensees must prominently
display their individual license numbers on all of the following EXCEPT
Ans✓✓✓ Motor club advertisements.
The individual license number is not required to be distributed over
phone transaction, only on printed, published items. Motor club
advertisements are exempt from this regulation.
According to California Insurance Code, the term "shall" describes what
kind of actions? Ans✓✓✓ Mandatory
According to Insurance Code, it is an unfair or deceptive act in the
business of insurance for an insurer to advertise insurance that it does
not market.
Such action is a violation of the code and will result in a fine up to
Ans✓✓✓ $10,000
According to the California Insurance Code, every applicant must notify
the Commissioner in writing of any change of address Ans✓✓✓
Immediately.
with verified answers
Ans✓✓✓
"Discontinuance" is a term used to describe the termination of what
type of insurance? Ans✓✓✓ Group.
A banker is ready to close on a customer's loan. The bank is prepared to
offer the loan but only if the customer purchases a life insurance policy
from the bank in the amount of the loan. This is an example of
Ans✓✓✓ Coercion.
A deceptive act or practice committed by a person with the intent to
secure an unfair advantage or unlawful gain is known as Ans✓✓✓
Fraud
A dependent who is covered under a group medical policy files multiple
claims for a single loss, thereby committing fraud. To what extent can
the insurer deny benefits? Ans✓✓✓ Only for that person who
committed the fraud
A licensed insurance agent overhears a conversation that leads him to
believe a person is committing fraud.
,If the agent makes a written report to a law enforcement agency and
the person is investigated, but it turns out that it was an erroneous
accusation, what charge will the agent face? Ans✓✓✓ No charges; the
Insurance Code gives the agent legal immunity.
Because every agent has a responsibility to combat fraud, the state
grants immunity from lawsuits for an agent's "good faith" report of
suspected fraud. (CIC 1877.5)
A licensee is NOT required to comply with continuing education
requirements in the state of California if which conditions are met?
Ans✓✓✓ The licensee has been in good standing for 30 continuous
years, and is at least 70 years old.
A life agent may use the name of corporation or association on any
stationery or advertisement to identify the relationship in all of the
following ways EXCEPT Ans✓✓✓ "Contracted by _______________"
A man has HIV and was hospitalized for several weeks. His insurance
company has delayed paying his claim for 120 days, saying that he is
not covered due to a pre-existing condition exclusion in his policy.
The insurance company is guilty of which of the following? Ans✓✓✓
Unfair claims settlement practice
,Delaying payment in regard to hospital, medical, or surgical claims for
persons with AIDS or HIV, for more than 60 days after filing a claim for
the purpose of attempting to invoke a pre-existing condition exclusion
is an unfair claims settlement practice.
A natural person that is employed to aid an insurance agent or
insurance broker in the transacting of insurance business other than life
insurance transactions is called Ans✓✓✓ An insurance solicitor.
A new insurance must be treated as a replacement if a new insurer sells
a policy to a group which discontinued its group medical insurance
within how many days? Ans✓✓✓ 60
A person applying for an insurance license in California was previously
found guilty in a trial in which he entered a plea of "nolo contedere."
What does "nolo contendere" mean? Ans✓✓✓ No contest
In California, even if a person pleads no contest, or "nolo contedere," to
charges, if the person is found guilty, they will be considered convicted.
A producer who fails to segregate premium monies from his own
personal funds is guilty of Ans✓✓✓ Commingling.
Accident and health agents may transact all of the following types of
insurance EXCEPT Ans✓✓✓ Endowments.
, Only life-only agents are authorized to transact insurance that includes
benefits from endowments.
According to California Insurance Code, all licensees must prominently
display their individual license numbers on all of the following EXCEPT
Ans✓✓✓ Motor club advertisements.
The individual license number is not required to be distributed over
phone transaction, only on printed, published items. Motor club
advertisements are exempt from this regulation.
According to California Insurance Code, the term "shall" describes what
kind of actions? Ans✓✓✓ Mandatory
According to Insurance Code, it is an unfair or deceptive act in the
business of insurance for an insurer to advertise insurance that it does
not market.
Such action is a violation of the code and will result in a fine up to
Ans✓✓✓ $10,000
According to the California Insurance Code, every applicant must notify
the Commissioner in writing of any change of address Ans✓✓✓
Immediately.
