Which of the following does NOT fit the definition of an administrator? Administrators collect premiums, adjust or settle claims, administer trusts and self-insurance programs.
Someone whose activities are limited to the sale of insurance would not be considered
an administrator.
How many days does a non resident producer have to file a change of address when the agent moves to Nevada from another state?
How many days does a nonresident producer have to file a change of address when the agent moves to Nevada from another state? A nonresident producer that moves from 1 state to another must file a change of address
within 30 days
of this change.
Which of the following criminal activities would be sufficient violation to warrant rejection revocation or suspension of an insurance producer’s license?
Which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producer’s license?
Misrepresentation
.
Which of the following terms describes making false statements about the financial condition of any insurer that are?
Defamation
is making statement which are false as to the financial condition of any insurer and which are calculated to injury any person engaged in the business of insurance.
Which of the following is an example of an agent’s fiduciary responsibilities?
Which of the following is an example of a producer’s fiduciary duty?
The trust that a client places in the producer in regard to handling premiums
. – An agent acts in a fiduciary capacity, based upon trust and confidence, when handling the financial affairs of their customers, including the handling of premiums.
Which of the following must an insurer obtain in order to transact insurance within a given state?
Certificate of authority
. All insurers (domestic, foreign, or alien) must obtain a certificate of authority before transacting insurance within a given state.
What is not a requirement if you want to transfer your insurance licenses to the state of Florida from another state?
A transfer of license may exempt you from a pre-licensing prerequisite and/or state examination if you completed it previously in your home state and/or your prior home state was a
reciprocal state
. Agents are defined as Property, Casualty, Life including Variable Annuity and Health.
What is an example of rebating?
An example of rebating is
when the prospective insurance buyer receives a refund of all or part of the commission for the insurance sale
. Rebates can be made in the form of cash, gifts, services, payment of premiums, employment, or almost any other thing of value.
What is the difference between an unfair claim practice and an unfair trade practice?
These unfair trade practices also serve to define
those practices that may be harmful or deceptive to consumers
. Unfair claims settlement practices acts, as legislated by the states, protect consumers from some of the more egregious claims settlement and delay practices.
What are the unfair practices in insurance?
An unfair claims practice is what
happens when an insurer tries to delay, avoid, or reduce the size of a claim that is due to be paid out to an insured party
. Insurers that do this are trying to reduce costs or delay payments to insured parties, and are often engaging in practices that are illegal.
Which of the following is correct regarding credit life insurance quizlet?
The correct answer is:
Endowment contracts
endow only upon the insured’s death. Credit life insurance is issued on the life of the person who has the debt (debtor) and the creditor owns and is the beneficiary of the policy. You just studied 14 terms!
Which of the following correctly describes controlled business?
Which of the following correctly describes controlled business? … Controlled business includes selling insurance to oneself, his or her spouse, employer, and/or own business.
Any time controlled business is greater than 50% of the total premiums collected by the producer, a violation has occurred
.
Which of these is considered a mandatory provision?
Which of these is considered a mandatory provision? “
Payment of Claims
“. Payment of Claims is considered a mandatory provision and directs where the claim benefits will go. The others are considered optional provisions.
What are the three primary areas of disclosure?
Angela covers the final three primary areas of disclosures for public companies:
significant judgments, contract balances, and cost to obtain or fulfill a contract
.
What are the 5 fiduciary duties?
Specifically, fiduciary duties may include the duties of
care, confidentiality, loyalty, obedience, and accounting
. 5.
Is an agent a fiduciary?
The relationship between a real estate agent and a client is called a fiduciary relationship. Fiduciary means faithful servant, and an agent is
a fiduciary of the client
.
