XCEL Chapter 11 Chapter Exam

XCEL Chapter 11 Chapter Exam 1. Maria the insurance producer completes a sale by collecting the required signatures on the application and obtaining the initial premium. Afterwards, she deposited the check into a personal checking account. Maria committed what crime? ️ Fraud 2. Making a statement that is false and maliciously critical of the financial condition of the insurer is known as: ️ Defamation 3. Which of the following statements is true about an insurer's right to screen applicants for HIV? ️ An insurer can require a blood test for HIV 4. What information is found in a life insurance buyers guide? ️ How to compare life insurance policy rates, how to compare life insurance policy requirements, how to determine how much life insurance to purchase. 5. The commissioner MUST give a MINIMUM of how many days' notice of a disciplinary hearing? ️ 10 days 6. An insurer may pay a commission in which of the following scenarios? ️ To a licensed producer who is appointed with the insurer 7. Which of the following is permitted in an advertisement for an insurance policy? ️ The insurer's name 8. A foreign insurance company is defined as one that is: ️ Formed under the laws of a state other than Arkansas 9. An example of replacement is: ️ Canceling a term life policy to buy a whole life policy 10. If dividends are illustrated, the advertisement must state that the dividends are: ️ Not guaranteed 11. A life insurance policy becomes incontestable after it has been in force for: ️ 2 years 12. During hearing proceedings, if a person files a waiver of immunity or privilege, and the testimony is produced before court or jury, the person loses their__________. ️ Immunity 13. Which of the following basics is a producer's fiduciary responsibility? ️ Collecting premiums and paying them to the insurance company 14. How long must the commissioner maintain a complete record for every licensee in Arkansas for? ️ As long as He/She deems necessary. 15. The following are considered deceptive and unfair practices and are prohibited: ️ Referring to an insurance premium as an investment, deposit, or savings; making any misrepresentation or false, deceptive, or misleading statement; indicating that cash or loan values are death benefits payable in addition to the insurance policy's face amount. 16. A producer's license CANNOT be revoked without: ️ A hearing given to the producer 17. An Arkansas temporary producer license may be issued for a period not to exceed? ️ 180 days 18. According to Arkansas law, commissions may be paid to? ️ Licensed and duly appointed producers 19. An insurance producer agrees to pay the first monthly premium for an insurance applicant. This is called a(n)? ️ Rebate 20. The commissioner must examine the financial affairs of each admitted insurer operating in Arkansas at least once every how many years? ️ 5 years 21. What are examples of acts of fraud? ️ Collecting a premium for insurance that is not provided; misappropriate or unreasonably withhold premiums or returned premiums; willfully collecting a premium that exceeds the amount of the actual premium. 22. No one is allowed to act as a producer for any insurance company in Arkansas that: ️ Is unauthorized to do business in Arkansas An insurance producer must notify the commissioner within how many days of conviction of a crime? ️30 days When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions? ️Provide the applicant with a copy of the sales proposal; submit to the producers insurance company a copy of the signed notice regarding replacement; provide the applicant with a notice regarding replacement. The beneficiary of any life insurance policy or annuity contract is protected from the___________of the insured. ️Creditors An insurance producer is best defined as ️a person who has a contract with an insurance company to represent it A licensed producer must report any administrative action taken against a licensee in another jurisdiction or by another agency department in Arkansas within how many days of the final disposition? ️30 days A producer may begin to solicit insurance ONLY when ️appointed by an insurer