Alexander may committed a violation of the insurance code when he:

a. Assigned some of his commissions to an out-of-state insurance agency not active in Arkansas

b. Paid a deferred commission to a formerly licensed producer who is now retired

c. Procured insurance for his client from an insurer with whom he was not appointed

d. Paid a referral fee to an unlicensed solicitor for each life insurance appointment arranged

Answer: d. Paid a referral fee to an unlicensed solicitor for each life insurance appointment arranged

Arkansas State Law

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In insurance,

In insurance, A) contracts made by the agent are considered to be contracts of the producer B) contracts made by the principal are considered to be contracts of the agent C) the insurer is the principal and the producer is the agent D) the producer is the principal and the insurer is the agent Answer: the insurer is the principal and the producer is the agent

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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Which of the following is true regarding a market value adjusted annuity?
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