Michigan Credit Insurance Producer Exam
Questions With Correct Answers
licensing |(insurance |regulation) |- |CORRECT |ANSWER✔✔-a |license |or |charter |authorizes |an |
insurer |the |right |to |conduct |business |as |an |admitted |insurer |and |specifies |the |lines |of |
insurance |which |the |insurer |is |authorized |to |transact
Producer |Licenses( |types |of |licenses) |- |CORRECT |ANSWER✔✔-a |licensed |person |who |as |the |
authority |to |transact |insurance |business |sell |solicit |or |negotiate |insurance |contracts
resident |license( |types |of |licenses) |- |CORRECT |ANSWER✔✔-issued |to |a |resident |who |satisfies |
the |states |requirements
non |resident |license(types |of |licenses) |- |CORRECT |ANSWER✔✔-issued |to |producer |who |wishes
|to |sell |insurance |outside |of |the |state |in |which |they |reside
change |of |name |and |address |(maintenance |and |duration) |- |CORRECT |ANSWER✔✔-producer |
must |notify |the |insurance |bureau |of |any |changes |of |___ |within |30 |days |of |the |change
reporting |of |actions |(maintenance |and |duration) |- |CORRECT |ANSWER✔✔-all |agents |are |
required |to |__ |within |30 |days |of |occurrence |any |judgements |or |disciplinary |action |by |the |
insurance |regulatory |agency |of |any |other |state |or |territory |of |the |united |states
cease |and |desist |order |( |disciplinary |actions) |- |CORRECT |ANSWER✔✔-requires |that |a |person |
refrain |from |the |unfair |method |of |competition |or |deceptive |act |violation's |punishable |by |a |
fine |of |10k/violation
,suspension |revocation |refusal |to |issue |or |renew |(disciplinary |actions) |- |CORRECT |ANSWER✔✔-
require |written |notification |from |the |commissioner |a |hearing |must |be |held |within |15 |days |of |
receipt |of |the |notification
penalties |and |fines |(disciplinary |actions) |- |CORRECT |ANSWER✔✔-violations |of |the |producer |
licensing |laws |include |a |fine |of |300/unintentional |violation |the |max |fine |for |willful |violations |is
|1500/violation |the |total |max |fine |is |limited |to |10k
company |regulation |(state |and |federal |regulation) |- |CORRECT |ANSWER✔✔-__ |by |the |
commissioner |of |insurance |as |it |pertains |to |licensing |solvency |rates |unfair |claims |settlements |
ect
certificate |of |authority(state |and |federal |regulation) |- |CORRECT |ANSWER✔✔-the |charter |or |
license |authorizing |an |insurer |the |right |to |conduct |business |as |an |admitted |insurer |and |
specifies |the |lines |of |insurance |which |the |insurer |is |authorized |to |transact
rates(state |and |federal |regulation) |- |CORRECT |ANSWER✔✔-the |premium |__ |charged |to |the |
debtor |cannot |exceed |the |premium |rates |filed |with |the |commissioner
forms |and |exceptions(state |and |federal |regulation) |- |CORRECT |ANSWER✔✔-anyone |involved |in
|transacting |insurance |must |be |licensed |except |for |employees |of |the |home |office |who |not |
require |licensing |provided |they |are |salaried |individuals |who |do |not |share |in |commissions
producer |appointment(state |and |federal |regulation) |- |CORRECT |ANSWER✔✔-a |producer |
cannot |act |as |an |agent |without |an |appointment |from |an |admitted |insurer. |to |appoint |a |
producer |as |an |agent |the |insurer |will |file |a |notice |of |____ |with |the |commissioner |for |the |lines |
of |insurance |held |by |the |producer
termination |of |appointment(state |and |federal |regulation) |- |CORRECT |ANSWER✔✔-requires |the
|insurer |to |notify |the |commissioner |within |30 |days |following |the |effective |date |of |the |
cancellation |of |appointment; |within |15 |days |of |the |notification |to |the |commissioner |the |agent
|must |be |notified |on |the |cancellation |of |appointment |by |the |insurer
, acting |without |a |license |( |producer |regulation) |- |CORRECT |ANSWER✔✔-a |person |may |not |sell |
solicit |or |negotiate |insurance |in |the |state |of |Michigan |for |any |line |of |insurance |unless |licensed |
for |that |qualifications; |exceptions |include |administrative |employees |working |for |an |agent |a |
home |office |employee |ect
prohibited |conduct( |producer |regulation) |- |CORRECT |ANSWER✔✔-in |transacting |credit |life |
transactions |insurers |shall |not |refuse |to |insure |refuse |to |continue |to |insure |or |limit |the |
amount |of |insurance |avail |to |an |individual |because |the |person |is |age |of |70 |( |does |not |apply |to
|disability |benefits)
commissions( |producer |regulation) |- |CORRECT |ANSWER✔✔-an |agent |may |only |share |in |__ |
with |another |agent |licensed |in |the |same |lines |of |insurance
fiduciary |capacity( |producer |regulation) |- |CORRECT |ANSWER✔✔-a |person |in |a |position |of |
financial |trust |an |agent |has |fiduciary |responsibility |to |all |persons |involved |in |the |transactions |
of |insurance |including |the |prospect |client |insurance |company
Misrepresentation |(unfair |insurance |trade |practices) |- |CORRECT |ANSWER✔✔-the |illegal |act |of |
lying |about |benefits |advantages |or |provisions |of |why |any |insurance |policy |or |to |lie |about |the |
financial |condition |of |any |insurance |company; |punishable |by |a |max |fine |of |1000 |violation |or |
imprisonment
twisting |(unfair |insurance |trade |practices) |- |CORRECT |ANSWER✔✔-the |act |of |dropping |existing
|coverage |due |to |some |illegal |or |unethical |persuasion |for |the |purpose |of |purchasing |new |
insurance |a |misdemeanor |punishable |by |license |revocation |up |to |1 |year |a |max |fine |of
|1k/violation |and |imprisonment
defamation |(unfair |insurance |trade |practices) |- |CORRECT |ANSWER✔✔-the |illegal |act |of |making
|false |malicious |or |derogatory |statements |regarding |an |insurer |or |any |person |engaged |in |the |
business |of |insurance
Questions With Correct Answers
licensing |(insurance |regulation) |- |CORRECT |ANSWER✔✔-a |license |or |charter |authorizes |an |
insurer |the |right |to |conduct |business |as |an |admitted |insurer |and |specifies |the |lines |of |
insurance |which |the |insurer |is |authorized |to |transact
Producer |Licenses( |types |of |licenses) |- |CORRECT |ANSWER✔✔-a |licensed |person |who |as |the |
authority |to |transact |insurance |business |sell |solicit |or |negotiate |insurance |contracts
resident |license( |types |of |licenses) |- |CORRECT |ANSWER✔✔-issued |to |a |resident |who |satisfies |
the |states |requirements
non |resident |license(types |of |licenses) |- |CORRECT |ANSWER✔✔-issued |to |producer |who |wishes
|to |sell |insurance |outside |of |the |state |in |which |they |reside
change |of |name |and |address |(maintenance |and |duration) |- |CORRECT |ANSWER✔✔-producer |
must |notify |the |insurance |bureau |of |any |changes |of |___ |within |30 |days |of |the |change
reporting |of |actions |(maintenance |and |duration) |- |CORRECT |ANSWER✔✔-all |agents |are |
required |to |__ |within |30 |days |of |occurrence |any |judgements |or |disciplinary |action |by |the |
insurance |regulatory |agency |of |any |other |state |or |territory |of |the |united |states
cease |and |desist |order |( |disciplinary |actions) |- |CORRECT |ANSWER✔✔-requires |that |a |person |
refrain |from |the |unfair |method |of |competition |or |deceptive |act |violation's |punishable |by |a |
fine |of |10k/violation
,suspension |revocation |refusal |to |issue |or |renew |(disciplinary |actions) |- |CORRECT |ANSWER✔✔-
require |written |notification |from |the |commissioner |a |hearing |must |be |held |within |15 |days |of |
receipt |of |the |notification
penalties |and |fines |(disciplinary |actions) |- |CORRECT |ANSWER✔✔-violations |of |the |producer |
licensing |laws |include |a |fine |of |300/unintentional |violation |the |max |fine |for |willful |violations |is
|1500/violation |the |total |max |fine |is |limited |to |10k
company |regulation |(state |and |federal |regulation) |- |CORRECT |ANSWER✔✔-__ |by |the |
commissioner |of |insurance |as |it |pertains |to |licensing |solvency |rates |unfair |claims |settlements |
ect
certificate |of |authority(state |and |federal |regulation) |- |CORRECT |ANSWER✔✔-the |charter |or |
license |authorizing |an |insurer |the |right |to |conduct |business |as |an |admitted |insurer |and |
specifies |the |lines |of |insurance |which |the |insurer |is |authorized |to |transact
rates(state |and |federal |regulation) |- |CORRECT |ANSWER✔✔-the |premium |__ |charged |to |the |
debtor |cannot |exceed |the |premium |rates |filed |with |the |commissioner
forms |and |exceptions(state |and |federal |regulation) |- |CORRECT |ANSWER✔✔-anyone |involved |in
|transacting |insurance |must |be |licensed |except |for |employees |of |the |home |office |who |not |
require |licensing |provided |they |are |salaried |individuals |who |do |not |share |in |commissions
producer |appointment(state |and |federal |regulation) |- |CORRECT |ANSWER✔✔-a |producer |
cannot |act |as |an |agent |without |an |appointment |from |an |admitted |insurer. |to |appoint |a |
producer |as |an |agent |the |insurer |will |file |a |notice |of |____ |with |the |commissioner |for |the |lines |
of |insurance |held |by |the |producer
termination |of |appointment(state |and |federal |regulation) |- |CORRECT |ANSWER✔✔-requires |the
|insurer |to |notify |the |commissioner |within |30 |days |following |the |effective |date |of |the |
cancellation |of |appointment; |within |15 |days |of |the |notification |to |the |commissioner |the |agent
|must |be |notified |on |the |cancellation |of |appointment |by |the |insurer
, acting |without |a |license |( |producer |regulation) |- |CORRECT |ANSWER✔✔-a |person |may |not |sell |
solicit |or |negotiate |insurance |in |the |state |of |Michigan |for |any |line |of |insurance |unless |licensed |
for |that |qualifications; |exceptions |include |administrative |employees |working |for |an |agent |a |
home |office |employee |ect
prohibited |conduct( |producer |regulation) |- |CORRECT |ANSWER✔✔-in |transacting |credit |life |
transactions |insurers |shall |not |refuse |to |insure |refuse |to |continue |to |insure |or |limit |the |
amount |of |insurance |avail |to |an |individual |because |the |person |is |age |of |70 |( |does |not |apply |to
|disability |benefits)
commissions( |producer |regulation) |- |CORRECT |ANSWER✔✔-an |agent |may |only |share |in |__ |
with |another |agent |licensed |in |the |same |lines |of |insurance
fiduciary |capacity( |producer |regulation) |- |CORRECT |ANSWER✔✔-a |person |in |a |position |of |
financial |trust |an |agent |has |fiduciary |responsibility |to |all |persons |involved |in |the |transactions |
of |insurance |including |the |prospect |client |insurance |company
Misrepresentation |(unfair |insurance |trade |practices) |- |CORRECT |ANSWER✔✔-the |illegal |act |of |
lying |about |benefits |advantages |or |provisions |of |why |any |insurance |policy |or |to |lie |about |the |
financial |condition |of |any |insurance |company; |punishable |by |a |max |fine |of |1000 |violation |or |
imprisonment
twisting |(unfair |insurance |trade |practices) |- |CORRECT |ANSWER✔✔-the |act |of |dropping |existing
|coverage |due |to |some |illegal |or |unethical |persuasion |for |the |purpose |of |purchasing |new |
insurance |a |misdemeanor |punishable |by |license |revocation |up |to |1 |year |a |max |fine |of
|1k/violation |and |imprisonment
defamation |(unfair |insurance |trade |practices) |- |CORRECT |ANSWER✔✔-the |illegal |act |of |making
|false |malicious |or |derogatory |statements |regarding |an |insurer |or |any |person |engaged |in |the |
business |of |insurance
