8 Laws and Rules Pertinent to Insurance
EXAM Questions with 100% CORRECT
ANSWERS (Verified | Updated2025/2026
RATED A+
An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for which of
the following reasons? - CORRECT ANSWERS
Under an individual life insurance policy, an insured may assign a MAXIMUM of what percentage of
policy ownership? - CORRECT ANSWERS 100%
Under an individual life insurance policy, an insured may assign a maximum of 100% of policy
ownership.
An agent may legally share commissions only with - CORRECT ANSWERS another agent who is
licensed in the same line of insurance
An agent may legally share commissions only with another agent who is licensed in the same line of
insurance.
All of the following may charge fees for insurance advice EXCEPT - CORRECT ANSWERS Legal
reserve agents.
All of these may charge fees for insurance advice EXCEPT legal reserve agents.
An agent MUST give a prospective insured an Outline of Coverage when taking an application for a -
CORRECT ANSWERS Medicare Supplement policy.
An agent MUST give a prospective insured an Outline of Coverage when taking an application for a
Medicare Supplement policy.
Insurance company agent appointments remain in force for which of the following maximum periods of
time, if any? - CORRECT ANSWERS Until terminated or withdrawn.
, The correct answer is "Until terminated or withdrawn". Insurance company agent appointments remain
in force until terminated or withdrawn.
Which of the following circumstances would cause a Medicare Supplement policy to be cancelled? -
CORRECT ANSWERS The insured fails to pay the premium.
Failing to pay the premium would cause a Medicare Supplement policy to be cancelled.
An agent who tells a client that dividends are guaranteed may be guilty of - CORRECT ANSWERS
misrepresentation.
An agent who tells a client that dividends are guaranteed may be guilty of misrepresentation.
Group life policies MUST include all of the following provisions EXCEPT - CORRECT ANSWERS
Right to Loan Proceeds.
Group life policies MUST include all of the following provisions EXCEPT Right to Loan Proceeds.
Insurance agent licenses normally must be renewed every - CORRECT ANSWERS Insurance
agent licenses normally must be renewed every 2 years.
Which of the following statements is NOT CORRECT about the Commissioner of Insurance? - CORRECT
ANSWERS The governor appoints the Commissioner to a two-year term.
Under the Nonforfeiture Law, a cash surrender value payment may be deferred by the insurance
company for NO LONGER than how many months? - CORRECT ANSWERS 6 [Months]
A company shall reserve the right to defer payment of any cash surrender value for a period of six
months after demand for payment of the cash surrender value and surrender of the policy.
An agent who tells claimants that their rights may be impaired if they fail to complete a release form
within a given period of time could be guilty of - CORRECT ANSWERS coercion
In this situation, the agent may be guilty of coercion
EXAM Questions with 100% CORRECT
ANSWERS (Verified | Updated2025/2026
RATED A+
An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for which of
the following reasons? - CORRECT ANSWERS
Under an individual life insurance policy, an insured may assign a MAXIMUM of what percentage of
policy ownership? - CORRECT ANSWERS 100%
Under an individual life insurance policy, an insured may assign a maximum of 100% of policy
ownership.
An agent may legally share commissions only with - CORRECT ANSWERS another agent who is
licensed in the same line of insurance
An agent may legally share commissions only with another agent who is licensed in the same line of
insurance.
All of the following may charge fees for insurance advice EXCEPT - CORRECT ANSWERS Legal
reserve agents.
All of these may charge fees for insurance advice EXCEPT legal reserve agents.
An agent MUST give a prospective insured an Outline of Coverage when taking an application for a -
CORRECT ANSWERS Medicare Supplement policy.
An agent MUST give a prospective insured an Outline of Coverage when taking an application for a
Medicare Supplement policy.
Insurance company agent appointments remain in force for which of the following maximum periods of
time, if any? - CORRECT ANSWERS Until terminated or withdrawn.
, The correct answer is "Until terminated or withdrawn". Insurance company agent appointments remain
in force until terminated or withdrawn.
Which of the following circumstances would cause a Medicare Supplement policy to be cancelled? -
CORRECT ANSWERS The insured fails to pay the premium.
Failing to pay the premium would cause a Medicare Supplement policy to be cancelled.
An agent who tells a client that dividends are guaranteed may be guilty of - CORRECT ANSWERS
misrepresentation.
An agent who tells a client that dividends are guaranteed may be guilty of misrepresentation.
Group life policies MUST include all of the following provisions EXCEPT - CORRECT ANSWERS
Right to Loan Proceeds.
Group life policies MUST include all of the following provisions EXCEPT Right to Loan Proceeds.
Insurance agent licenses normally must be renewed every - CORRECT ANSWERS Insurance
agent licenses normally must be renewed every 2 years.
Which of the following statements is NOT CORRECT about the Commissioner of Insurance? - CORRECT
ANSWERS The governor appoints the Commissioner to a two-year term.
Under the Nonforfeiture Law, a cash surrender value payment may be deferred by the insurance
company for NO LONGER than how many months? - CORRECT ANSWERS 6 [Months]
A company shall reserve the right to defer payment of any cash surrender value for a period of six
months after demand for payment of the cash surrender value and surrender of the policy.
An agent who tells claimants that their rights may be impaired if they fail to complete a release form
within a given period of time could be guilty of - CORRECT ANSWERS coercion
In this situation, the agent may be guilty of coercion
