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Life Insurance Exam Study > Section 11 > Flashcards

Section 11 Flashcards

1
Q

Insurance crimes which affect interstate commerce are prosecuted by the…

A

US attorney general

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2
Q

An ensurer wishing to conduct business in Arizona must obtain a

A

Certificate of authority

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3
Q

Per consumer, who has been recently denied insurance, credit, or employment based on an unfavorable consumer report, must be advised as such. What statute does this originate from?

A

Fair credit reporting act

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4
Q

If replacement was involved in the sale of a life insurance policy, a producer must provide a replacement notice no later than the

A

Application date

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5
Q

Which statement best defines what a policy title means on an insurance policy?

A

Every policy must have a title on the face and on the back of the policy, briefly describing the policy.

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6
Q

Which of the following actions may result in a producers license being suspended?

A

Misappropriation of premiums

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7
Q

An annuity contract may be returned for a full refund during the

A

Free look period

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8
Q

A licensee or applicant who is ordered into active military service may request that the license or application be placed on inactive status by sending the department a

A

Written statement

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9
Q

The genetic information, non-discrimination act of 2008 bars, all of the following, except

A

Prohibits the use of genetic information in health insurance, unless the applicant signs a waiver

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10
Q

If dividend option choices are offered, and a whole life insurance policy, the policy must

A

Contain a statement that dividends are not guaranteed

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11
Q

A _____ insurer restricts the exposures, it writes to those of its owners.

A

Captive

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12
Q

A policy owner decides to surrender the cash value of a whole life insurance policy. The insurer has up to _____ months to delay this payment

A

6

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13
Q

A licensee, whose name or address changes must notify the department of insurance within _____ days.

A

30 days

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14
Q

What is the best way to define life insurance replacement?

A

A transaction in which a new life insurance policy is purchased, and an existing life insurance policy is surrendered

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15
Q

What year was the mental health parody and addiction equity act established?

A

2008

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16
Q

The application is part of the annuity contract according to the

A

Entire contract clause

17
Q

A life insurance applicant is tested for HIV. The applicant must be informed that the testing

A

Helps determine the insurability of the applicant

18
Q

A statement must be signed by the _____ for any illustrations used in the sale of a life insurance policy.
Producer
Director
Beneficiary
Governor

A

Producer

19
Q

Greg had recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an individual policy?
14 days
21 days
30 days
31 days

A

31 days

20
Q

To protect the information systems, producers, brokers, and insurance companies must implement and maintain a(n)
Cloud-based storage policy
Cybersecurity policy
Information superhighway policy
Biometrics recognition security policy

A

Cybersecurity policy

21
Q

Which of the following may be considered an act of misrepresentation?

A

Misleading or failing to adequately disclose the title and true nature of a policy offered to a client.

22
Q

Which of the following is not a valid reason for an insurer to contest a life insurance policy during the policy’s first two years of existence?
Misstatement of age
Fraud
Material misrepresentation
Material concealment

A

Misstatement of age

23
Q

Which entity is responsible for regulating claims settlement practices of insurers?
BBB
State insurance departments
NAIC
Attorney general

A

State insurance departments

24
Q

Telemarketing calls may ONLY be received between the hours of:
7am-8pm
8am-9pm
9am-10pm
10am-8pm

A

8am-9pm

25
Q

Who manages the premiums collected from a group’s members for a reciprocal insurer?
Reciprocal administrator
Producer
Attorney in fact
Notary

A

Attorney in fact

26
Q

Which of these is NOT an Unfair Claims Settlement Practice?
-Refusing to pay claims without conducting a reasonable investigation
-Compelling insureds to initiate a lawsuit by offering less on insurance claims
-offering to settle a claim by arbitration
-Failing to acknowledge and act promptly with respect to insurance claims

A

Settling a claim by arbitration

27
Q

The maximum prison sentence given under federal law for unfair and deceptive insurance practices is
-15 years
-10 years
-5 years
-1 year

A

15 years

28
Q

In Arizona, false advertising is an example of:
Twisting
Misrepresentation
Concealment
Coercion

A

Misrepresentation

29
Q

After an annuity has been in force for _____ year(s), it becomes incontestable.

A

2 years

30
Q

Which of the following entities does NOT establish regulations for variable insurance products?
-state securities authorities
-securities and exchange commission (SEC)
-dept of insurance
-state attorney general

A

State attorney general

31
Q

An insurer markets its products by soliciting customers by mass media advertising and mail without using the service of a producer. Which of these marketing systems does the insure utilize?
Focus based
Primary
Vertical
Direct response

A

Direct response

32
Q

If a producer surrenders their license, how long must they wait to re-apply for the same license?
90 days
6 months
1 year
2 years

A

1 year

33
Q

In Arizona, the HIV consent form:
-Must direct all positive test results to the Director
-must be signed by the beneficiary
-must disclose who will be receiving a copy of the test results
-must describe the types of tests to be implemented

A

must disclose who will be receiving a copy of the test results

34
Q

Which of the following actions is considered to be an unfair trade practice?
-a producer who converts group coverage to an individual policy
-a producer who sells insurance to an individual by means of threat
-a producer who sells an insurance policy to a family member
-a producer who sells insurance in a state where they are considered a non resident

A

a producer who sells insurance to an individual by means of threat

Life Insurance Exam Study (11 decks)

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