2025 Idaho Life Producer Exam _
State Portion, with Questions ,
Answers and Rationale
What is included under the term insurance transaction? ------- Correct Ans ---------- Solicitation,
negotiating prior to execution of a contract, execution of a contract, and the transaction of any
matter that arise as a result of the contract, as well as the actual process of insuring.
What is the difference between domestic , foreign, and alien insurance companies? ------- Correct
Ans ---------- A domestic insurer is incorporated in this state. A foreign insurer is incorporated in
another state. An alien insurer is incorporated outside of the United States.
What is the difference between and authorized/admitted and unauthorized/nonadmitted insurer? -
------ Correct Ans ---------- An admitted or authorized insurer is qualified and received a
Certificate of Authority from the Department of Insurance to transact insurance in the state. A
non admitted or non authorized insurer is an insurance company that has no applied for, or has
been denied a certificate of authority and may not transact insurance.
How is the Director of Insurance selected for office, and how long is the term? ------- Correct
Ans ---------- The Director is appointment by the Governor for a 4-year term.
What are the board powers and duties of the Director or Insurance? ------- Correct Ans ----------
Regulate the affairs of the Insurance Department, prescribe forms and procedures, Ain in
interpretation of laws.
How often does the Director of Insurance examine books and records of domestic insurers in this
state? ------- Correct Ans ---------- In Idaho as often as deemed necessary, but at least every 5
years.
, What are the applicable penalties for violating the Insurance Code in this State? ------- Correct
Ans ---------- In Idaho: License suspension, renovation or denial, monetary fines, and/or
imprisonment.
What qualifications must a candidate for a producer license meet in this state? ------- Correct Ans
---------- An applicant must be 18 years old, file an application with the Department and submit
fingerprints, pay a license fee, pass an examination. In addition, the application must not have
committed any act that would be grounds for license denial, suspension or revocation.
Who is exempt from the licensing requirements in Idaho? ------- Correct Ans ---------- Officers,
directors, or employees of an insurer or of an insurance producer who do not receive commission
on policies written or sold, and whose duties are of strictly clerical, administrative and
managerial nature are exempt from licensing requirements.
What the continuing education requirements for Idaho? ------- Correct Ans ---------- All licensees,
except for limited lines and temporary licenses, must complete 245 hours of CE credits every 2
years, with at least 3 of those hours in ethics.
How long does a producer have to notify the Director Of Insurance about a change of address? --
----- Correct Ans ---------- 30 Days after the change
Upon what grounds can the Director revoke or suspend a producer license? ------- Correct Ans ---
------- Attempting to obtain a license through fraud or misrepresentation, violating any insurance
law or regulations.
What is the minimum age for a person to apply for an insurance contract? ------- Correct Ans ----
------ Any minor at least 15 years of age may purchase a contract of insurance or annuities upon
his own life, body, health, property, liabilities or other interests, or on the person of another in
whom the minor has an insurable interest.
What constitutes rebating? ------- Correct Ans ---------- Rebating includes premiums payable on
the policy, special favors or services, advantages in dividends or benefits, stocks, bonds,
securities, and their profits (and similar inducements)
State Portion, with Questions ,
Answers and Rationale
What is included under the term insurance transaction? ------- Correct Ans ---------- Solicitation,
negotiating prior to execution of a contract, execution of a contract, and the transaction of any
matter that arise as a result of the contract, as well as the actual process of insuring.
What is the difference between domestic , foreign, and alien insurance companies? ------- Correct
Ans ---------- A domestic insurer is incorporated in this state. A foreign insurer is incorporated in
another state. An alien insurer is incorporated outside of the United States.
What is the difference between and authorized/admitted and unauthorized/nonadmitted insurer? -
------ Correct Ans ---------- An admitted or authorized insurer is qualified and received a
Certificate of Authority from the Department of Insurance to transact insurance in the state. A
non admitted or non authorized insurer is an insurance company that has no applied for, or has
been denied a certificate of authority and may not transact insurance.
How is the Director of Insurance selected for office, and how long is the term? ------- Correct
Ans ---------- The Director is appointment by the Governor for a 4-year term.
What are the board powers and duties of the Director or Insurance? ------- Correct Ans ----------
Regulate the affairs of the Insurance Department, prescribe forms and procedures, Ain in
interpretation of laws.
How often does the Director of Insurance examine books and records of domestic insurers in this
state? ------- Correct Ans ---------- In Idaho as often as deemed necessary, but at least every 5
years.
, What are the applicable penalties for violating the Insurance Code in this State? ------- Correct
Ans ---------- In Idaho: License suspension, renovation or denial, monetary fines, and/or
imprisonment.
What qualifications must a candidate for a producer license meet in this state? ------- Correct Ans
---------- An applicant must be 18 years old, file an application with the Department and submit
fingerprints, pay a license fee, pass an examination. In addition, the application must not have
committed any act that would be grounds for license denial, suspension or revocation.
Who is exempt from the licensing requirements in Idaho? ------- Correct Ans ---------- Officers,
directors, or employees of an insurer or of an insurance producer who do not receive commission
on policies written or sold, and whose duties are of strictly clerical, administrative and
managerial nature are exempt from licensing requirements.
What the continuing education requirements for Idaho? ------- Correct Ans ---------- All licensees,
except for limited lines and temporary licenses, must complete 245 hours of CE credits every 2
years, with at least 3 of those hours in ethics.
How long does a producer have to notify the Director Of Insurance about a change of address? --
----- Correct Ans ---------- 30 Days after the change
Upon what grounds can the Director revoke or suspend a producer license? ------- Correct Ans ---
------- Attempting to obtain a license through fraud or misrepresentation, violating any insurance
law or regulations.
What is the minimum age for a person to apply for an insurance contract? ------- Correct Ans ----
------ Any minor at least 15 years of age may purchase a contract of insurance or annuities upon
his own life, body, health, property, liabilities or other interests, or on the person of another in
whom the minor has an insurable interest.
What constitutes rebating? ------- Correct Ans ---------- Rebating includes premiums payable on
the policy, special favors or services, advantages in dividends or benefits, stocks, bonds,
securities, and their profits (and similar inducements)
