Insurance producers have fiduciary responsibilities obligating them to act in the best
interest of their customers and the insurance companies they represent. A producer's
fiduciary responsibilities to the insurer include - (correct answer)Complying with
marketing rules on behalf of the insurer - CORRECT ANSWER
In the life insurance policy suitability analysis, the producer must consider - (correct
answer)Duration of the need, the client's premium paying ability, and risk tolerance -
CORRECT ANSWER
A life insurance policy replacement may NOT be in the client's best interest due to -
(correct answer)NOT - No new suicide or cons testability period
NOT - Lower premiums for new coverage due to current attained age
NOT - Increased value of the existing policy due to unpaid loans being deducted
New surrender charges - CORRECT ANSWER
A client paid $75,000 to a producer for surplus lines fishing vessel coverage - (correct
answer)Breach of contract
A producer's assistant printed an automated policy summary from the agency's
computer system for a Businessowners policy and mailed it to the client - (correct
answer)NOT - The assistant should have put a copy of the summary on the producer's
desk for verification
NOT - Only the producer should have printed the automate policy summary
, Ensure that the office has procedures in place to address double-checking
generic/template documents against actual insurance company quotations and
or/inforce coverage - CORRECT ANSWER
NOT - Automated policy summaries should not be mailed to clients
A client requested flood insurance coverage from his agent - (correct answer)NOT -
Breach of contract
Breach of standard of care - CORRECT ANSWER
For more than 10 years a private aviation company worked with a particular producer to
purchase all of its insurance. - (correct answer)Breach of fiduciary duty - CORRECT
ANSWER
A producer wrote automobile coverage for a 40 year old who was married with 2
children. - (correct answer)Failure to provide adequate coverage
Prompt delivery of a new policy is very important for many reasons. Which of the
following one of those reasons? - (correct answer)The free-look period - CORRECT
ANSWER
A producer advised her client not to purchase the collision (or loss) damage waiver for a
rental car he needed while his own auto was in the shop. - (correct answer)Breach of
duty to advise
All of the following are steps a producer should take when an E&O claim if filed
EXCEPT - (correct answer)Provide agency records to the plaintiff's attorney -
CORRECT ANSWER
interest of their customers and the insurance companies they represent. A producer's
fiduciary responsibilities to the insurer include - (correct answer)Complying with
marketing rules on behalf of the insurer - CORRECT ANSWER
In the life insurance policy suitability analysis, the producer must consider - (correct
answer)Duration of the need, the client's premium paying ability, and risk tolerance -
CORRECT ANSWER
A life insurance policy replacement may NOT be in the client's best interest due to -
(correct answer)NOT - No new suicide or cons testability period
NOT - Lower premiums for new coverage due to current attained age
NOT - Increased value of the existing policy due to unpaid loans being deducted
New surrender charges - CORRECT ANSWER
A client paid $75,000 to a producer for surplus lines fishing vessel coverage - (correct
answer)Breach of contract
A producer's assistant printed an automated policy summary from the agency's
computer system for a Businessowners policy and mailed it to the client - (correct
answer)NOT - The assistant should have put a copy of the summary on the producer's
desk for verification
NOT - Only the producer should have printed the automate policy summary
, Ensure that the office has procedures in place to address double-checking
generic/template documents against actual insurance company quotations and
or/inforce coverage - CORRECT ANSWER
NOT - Automated policy summaries should not be mailed to clients
A client requested flood insurance coverage from his agent - (correct answer)NOT -
Breach of contract
Breach of standard of care - CORRECT ANSWER
For more than 10 years a private aviation company worked with a particular producer to
purchase all of its insurance. - (correct answer)Breach of fiduciary duty - CORRECT
ANSWER
A producer wrote automobile coverage for a 40 year old who was married with 2
children. - (correct answer)Failure to provide adequate coverage
Prompt delivery of a new policy is very important for many reasons. Which of the
following one of those reasons? - (correct answer)The free-look period - CORRECT
ANSWER
A producer advised her client not to purchase the collision (or loss) damage waiver for a
rental car he needed while his own auto was in the shop. - (correct answer)Breach of
duty to advise
All of the following are steps a producer should take when an E&O claim if filed
EXCEPT - (correct answer)Provide agency records to the plaintiff's attorney -
CORRECT ANSWER
