LIFE INSURANCE EXAM

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LIFE INSURANCE EXAM

QUESTIONS & ANSWERS/ A+

SCORE SOLUTION. | LATEST

UPDATED

Question 1: The Commissioner conducts an examination

of a domestic insurer and believes that the costs of examination places an unreasonable financial burden on the insurer. Which of the following will happen?

• The federal government will absorb the full cost
• The federal government will absorb part of the cost,

and the state government will absorb the rest of the cost

• The costs will be reduced to the amount that the

examinee can reasonable pat; the rest will be paid by the federal government

• The Commissioner's office may pay all or part of the

costs

CORRECT ANSWER : The Commissioner's office may

pay all or part of the costs

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Question 2: Forcing a client to buy insurance from a

particular lender as a condition of granting a loan is defined as

• Defamation
• Coercion
• Rebating
• Misleading advertising

CORRECT ANSWER : Coercion

Question 3: An agent who includes a statement or omits a

statement which, when taken in context of the whole presentation, may tend to mislead or deceive the persons addressed has committed

• Twisting
• Coercion
• Misrepresentation
• Defamation

CORRECT ANSWER: Misrepresentation

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Question 4: If a consumer requests additional information

concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

• 7 days
• 10 days
• 3 days
• 5 days

CORRECT ANSWER : 5 days

Question 5: After the original hearing and a final order is

issued, an aggrieved person may request a re-hearing within

• 30 days
• 40 days
• 15 days
• 20 days

CORRECT ANSWER : 20 days

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Question 6: Which of the following is an example of a

producer being involved in an unfair trade practice of rebating?

• Telling a client that his first premium will be waived if

he purchases the insurance policy today

• Inducing the insured to drop a policy in favor of

another one when it is not the insured's best interest

• Charging a client a higher premium for the same policy

as another client in the same insuring class

• Making deceptive statements about a competitor

CORRECT ANSWER : Telling a client that his first

premium will be waived if he purchases the insurance policy today

Question 7: Which type of misrepresentation persuades an

insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?

• False advertising
• Rebating
• Twisting