Insurance MCQ

When an applicant for a producer's license has a principal place of residence or business location in Pennsylvania, for licensing purposes the State of Pennsylvania is known as the territory district state registry home state Answer: home state

For Pennsylvania Insurance Code violations, the Commissioner may assess a(n) prison sentence administrative penalty insurer appointment termination monetary award for pain and suffering Answer: administrative penalty

A life insurance illustration showing future premiums being paid out of nonguaranteed values must disclose that These policy premiums will vanish The policy guarantees payment of these premiums The policyowner forfeits the option of paying these premiums from other The policyowner may need to resume premium payments depending on actual results Answer: The policyowner may need to resume premium payments depending on actual results

In Pennsylvania, an insurance producer license can be denied for failure to pay each of the following. EXCEPT? State income tax Property tax Child support License fee Answer: Property tax

A Temporary license may be issued without state examination to all of the following EXCEPT Producer's spouse Executor of Producer's estate Employee of the Producer A prospective Producer who is currently enrolled in a pre-licensing insurance class Answer: A prospective Producer who is currently enrolled in a pre-licensing insurance class

Every Pennsylvania insurer, upon receiving notification of a claim, must acknowledge receipt of the notice within 10 days 15 days 30 days 45 days Answer: 10 days

Commissions may be shared by a licensed Producer and family member licensed and appointed Producers a licensed Producer and prospective prospect a Producer and non-licensed employee Answer: licensed and appointed Producers

Which of the following is a violation of Pennsylvania insurance law? Failure to pay insurer appointment fees Offering insurance contracts through unlicensed entities Charging policy fees Failing to notify the Commissioner of any administrative action taken against the licensee within 10 days of the final disposition of the matter Answer: Offering insurance contracts through unlicensed entities

What is required before an insurance producer can act as a representative of an insurer? Producer needs to be certified by that insurer Producer needs to establish a sales quota Producer needs to be appointed by that insurer Producer needs to be gainfully employed by that insurer Answer: Producer needs to be appointed by that insurer

Which prohibited act involves a producer spending a client's insurance premiums for his/her own personal use? Rebating Misrepresentation Embezzlement Defamation Answer: Embezzlement

During the first two years a life insurance policy is in force, the insurer may contest a policy for all of the following reasons EXCEPT Misstatement of age in the application Material misrepresentation in the application Fraud in the purchase of the policy Material concealment in the purchase of a policy Answer: Misstatement of age in the application

All of these are considered a form of advertising EXCEPT an insurer's billboard an insurer's A.M. Best rating a formal sales presentation by the producer an insurer's direct mailing to a target audience Answer: an insurer's A.M. Best rating

The Commissioner is responsible for all of the following EXCEPT Issue cease and desist orders Conduct hearings Regulate premium rates Recommending insurers Answer: Recommending insurers

In Pennsylvania, completion of continuing education is required upon license renewal for which of the following? 1) Attorney -at-law 2) Full time active duty military 3) Licensed individuals qualified in major lines of insurance 4) Non Resident producers Answer: Licensed individuals qualified in major lines of insurance

A life insurance policy becomes incontestable after it has been in force for 30 days 6 months 2 years 3 years Answer: 2 years

Which of the following is required to maintain a Producer's license in Pennsylvania? 1) Company officer or director, whose activities are clerical or administrative 2) A salaried full-time employee, who does not sell or solicit insurance 3) Home office underwriter 4) Field underwriter, who solicits insurance and earns a commission Answer: Field underwriter, who solicits insurance and earns a commission

A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered is called Nonforfeiture Replacement Reinvestment Rollover Answer: Replacement

Which of the following constitutes grounds for suspending a Pennsylvania producer's license? Summary Action conviction Felony conviction Failure to comply with underwriting guidelines Failure to maintain insurance transaction records for at least 10 years Answer: Felony conviction

The Pennsylvania Insurance Department is responsible for each of the following EXCEPT Insurers Producers Shareholders Approval of forms Answer: Shareholders

What is the required action to be taken by a Pennsylvania licensee before operating under an assumed business name? Notify Commissioner Notify Governor Notify the insurer where employed Obtain a permit Answer: Notify Commissioner