Life, Health Mi INSURANCE WEB CE Test
questions with solved solutions
To which of the following may the Commissioner not issue a limited lines
producer's license without examination? - ANSWER>>a person who sells
prearranged funeral insurance
If an insurance producer pays a commission to a person for selling an insurance
contract in Indiana and that person does not have a license to transact insurance,
what is this prohibited practice called? - ANSWER>>sharing commissions with
unlicensed person
An agent meets with a prospect and learns that he already owns a life insurance
policy. He is interested in replacing it with a new policy. Which must the agent
do? - ANSWER>>give the applicant the 'Notice Regarding Replacement
The Commissioner has determined after a complaint hearing that a person has
violated an insurance law. What action may the Commissioner take? -
ANSWER>>issue a cease and desist order
Acme Insurance and Apogee Insurance agree to offer different premium rates for
persons of equal risk within a particular class. They also agree to limit benefits
paid to insureds within this class if the insureds live in certain counties of Indiana.
What are Acme and Apogee engaging in? - ANSWER>>unfair and prohibited
business practices
insurance fraud
Larry, Brian, Susan, and Jennifer just started working for AllPro Insurance
Company in Indiana. Based on their job descriptions below, which of them is NOT
acting as a producer? - ANSWER>>Brian, who is a vice president in AllPro's human
resources department and does not receive commissions
, What describes an insurance company that is not licensed to conduct insurance
business in Indiana, but is licensed in another state? - ANSWER>>nonadmitted
insurance company
How long must a consultant retain the signed agreement outlining the services he
or she provided? - ANSWER>>two years
Genevieve wants to renew her Indiana insurance producer's license. Which of the
following is not a condition for renewal? - ANSWER>>report of insurance sales
made in the last two years
What kind of misrepresentation on an insurance application gives the insurer
reason to terminate a policy? - ANSWER>>material fact
Which condition must exist for a risk to be considered insurable? - ANSWER>>The
loss must be ascertainable.
Robin falls while snow skiing and breaks a leg. She decides to never again attempt
this activity. What method is she using to manage this risk of falling? -
ANSWER>>risk avoidance
Misrepresentation of which of the following would be considered an unfair
method of competition in the insurance business? - ANSWER>>all of the above
When the Commissioner finds that there has been an unfair claim settlement
practice, the Commissioner will respond to the complaining party and provide the
insurer with a copy of the complaint within how many days? - ANSWER>>10
business days
John buys a $1 million life insurance policy. He dies two years later and the
insurer pays the $1 million benefit. Even though the premiums never came close
questions with solved solutions
To which of the following may the Commissioner not issue a limited lines
producer's license without examination? - ANSWER>>a person who sells
prearranged funeral insurance
If an insurance producer pays a commission to a person for selling an insurance
contract in Indiana and that person does not have a license to transact insurance,
what is this prohibited practice called? - ANSWER>>sharing commissions with
unlicensed person
An agent meets with a prospect and learns that he already owns a life insurance
policy. He is interested in replacing it with a new policy. Which must the agent
do? - ANSWER>>give the applicant the 'Notice Regarding Replacement
The Commissioner has determined after a complaint hearing that a person has
violated an insurance law. What action may the Commissioner take? -
ANSWER>>issue a cease and desist order
Acme Insurance and Apogee Insurance agree to offer different premium rates for
persons of equal risk within a particular class. They also agree to limit benefits
paid to insureds within this class if the insureds live in certain counties of Indiana.
What are Acme and Apogee engaging in? - ANSWER>>unfair and prohibited
business practices
insurance fraud
Larry, Brian, Susan, and Jennifer just started working for AllPro Insurance
Company in Indiana. Based on their job descriptions below, which of them is NOT
acting as a producer? - ANSWER>>Brian, who is a vice president in AllPro's human
resources department and does not receive commissions
, What describes an insurance company that is not licensed to conduct insurance
business in Indiana, but is licensed in another state? - ANSWER>>nonadmitted
insurance company
How long must a consultant retain the signed agreement outlining the services he
or she provided? - ANSWER>>two years
Genevieve wants to renew her Indiana insurance producer's license. Which of the
following is not a condition for renewal? - ANSWER>>report of insurance sales
made in the last two years
What kind of misrepresentation on an insurance application gives the insurer
reason to terminate a policy? - ANSWER>>material fact
Which condition must exist for a risk to be considered insurable? - ANSWER>>The
loss must be ascertainable.
Robin falls while snow skiing and breaks a leg. She decides to never again attempt
this activity. What method is she using to manage this risk of falling? -
ANSWER>>risk avoidance
Misrepresentation of which of the following would be considered an unfair
method of competition in the insurance business? - ANSWER>>all of the above
When the Commissioner finds that there has been an unfair claim settlement
practice, the Commissioner will respond to the complaining party and provide the
insurer with a copy of the complaint within how many days? - ANSWER>>10
business days
John buys a $1 million life insurance policy. He dies two years later and the
insurer pays the $1 million benefit. Even though the premiums never came close
