Which of the following persons is required to hold a producer license?
A person who negotiates insurance contracts
. Persons who perform clerical tasks that are not related to soliciting or negotiating insurance contracts are not required to be licensed.
What is the purpose of requiring licenses for persons who transact insurance?
Insurance professionals must be properly licensed for a specific line of authority in order to transact insurance. 1. The purpose of licensing is
to ensure that a producer meets educational and ethical standards required to fulfill producer’s responsibilities to the insurer and to the public
.
Which of the following would be required to become licensed as an insurance producer?
Explanation: As per the question, in order to be a licensed insurance producer one requires ‘
a salaried employee who could advertise and solicit insurance
‘ as people would then only could get to know about the variety of insurance plans that are being offered by him.
Which of the following is a requirement to attain a nonresident producer license in Indiana?
which of the following is a requirement to obtain a nonresident producer license on indiana?
the producer’s state of residence must have reciprocity with indiana
.
Which of the following documents must be provided to the policyowner?
Which of the following documents must be provided to the policyowner or applicant during policy replacement?
Notice Regarding Replacement
. During policy replacement, the replacing producer must present to the applicant a Notice Regarding Replacement that is signed by both the applicant and the producer.
What are the two components of a universal policy?
Universal life insurance has two components:
death benefit coverage and an accumulating cash value
. When you pay your monthly premium, it’s split between the two parts of your policy, with a portion going to each.
Which is an example of an unfair claims settlement practice?
Typical Example of Unfair Claims Practice
The insurance company delays payment
, rendering the business owner unable to repair any of the damage. The insurance company continues using delay tactics to avoiding making a payment.
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.
Who can perform a pretext interview?
No insurance institution, agent or insurance-support organization shall use or authorize the use of pretext interviews to obtain information in connection with an insurance transaction; provided, however, that a pretext interview may be undertaken to obtain
information from a person or institution that does not have a
…
Which is the price of insurance for each exposure unit?
Rate making (aka insurance pricing, also spelled ratemaking), is the determination of what rates, or premiums, to charge for insurance.
A rate
is the price per unit of insurance for each exposure unit, which is a unit of liability or property with similar characteristics.
Which of the following licenses is required for a surplus lines producer?
To obtain a surplus lines license, a person must be
licensed as a property and casualty producer
. Surplus lines producers may only charge fees to originating brokers that have been approved by the Commissioner.
What states have reciprocity for insurance license?
| Alaska Iowa North Carolina | California Maine Oklahoma | Colorado Michigan Pennsylvania | Connecticut Minnesota South Dakota | Delaware Mississippi Utah |
|---|
How much does it cost to become a licensed insurance agent?
Prices for the exam vary by state but typically run
between $40-$150
. Once the test is completed the next step is to apply for your insurance license. Each state has its own license application process. Generally, there is an application fee ranging from $30-$200 and a background check that could run around $30.
What is a Nonforfeiture value?
Nonforfeiture Values — in whole life insurance policies,
benefits that accrue to the insured when the policy lapses from nonpayment of premium
. These benefits are usually either an amount of paid-up term life insurance or a cash surrender value.
What is another name for substandard risk classification?
The substandard risk classification is also called
impaired risk or table-rated life insurance
. The substandard risk class refers to people who have significant health impairments. These individuals may have to pay an extra fee or “table rating” depending on the risks they pose to the issuing life insurance company.
What is a synonym for a minimum deposit plan?
What is a synonym for a “minimum deposit plan?”
Financial Plan
.
