CLA Combo Marketplace 1 Quiz 2

  1. A PRODUCER MAY ASK ABOUT ALL OF THE FOLLOWING TO DETERMINE IF AN APPLICANT QUALIFIES FOR INSURANCE EXCEPT:
    - C QUESTIONS MAY INCLUDE DOSAGES AND FREQUENCY OF MEDICATION, INVOLVEMENT IN HAZARDOUS ACTIVITIES, AND SPECIFICS REGARDING EMPLOYMENT DUTIES, BUT NOT RELIGIOUS BELIEFS.
  2. Which of the following is not a source of information an underwriter may use to find information about an applicant?
    D-Credit reports are not used.
  3. What is the definition of a life agent?
    B-A life agent is any person authorized by and on behalf of a life, disability, or life and disability insurer to transact life, disability, or life and disability insurance.
  4. Which of the following describes someone who offers to advise any person insured under a life or disability insurance contract?
    C- A life and disability insurance analyst is a person who offers to advise any person insured under a life or disability insurance contract.
  5. Which of the following is not an action of transacting insurance?
    A-Receiving money for transacting insurance is not part of the definition of transacting insurance; the other 3 are. Of course, you must be licensed in order to legally transact insurance."
  6. What is the penalty for transacting insurance without a valid insurance license?
    C-Any person who transacts insurance without a valid license is guilty of a misdemeanor, punishable by a fine not exceeding fifty thousand dollars ($50,000) or by imprisonment in a county jail for a period not exceeding one year, or by both fine and imprisonment.
  7. Which of the following is NOT true regarding an agent and broker?
    D-Brokers cannot legally bind insurance and the coverage for that insurance will not be in effect until the company accepts the business.
  8. Which of the following is the best statement about brokers selling insurance?
    B-It could be unethical for a broker to accept both a fee from the client and a commission from the insurer.
  9. Which of the following is the best statement about selling without an appointment?
    A-A licensed agent may offer a proposal for insurance to a client on behalf of an insurer for which the agent is not specifically appointed.
  10. If an insurer issues a policy, within how many days must it file a notice of appointment with the Commissioner?
    C-If the insurer issues a policy, the insurer must forward to the Commissioner a notice of appointment of the agent as the insurer`s agent not more than 14 days after the agent submitted the insurance application.
  11. Which of the following is not a difference in authority between an agent and a solicitor?
    D-A solicitor cannot process claims.
  12. Which of the following is NOT covered under errors and omissions?
    C-E & O coverage includes the sale of insurance and employee benefit plans, along with the advice and administrative activities associated with the agent`s or agency`s plan.
  13. The following acts are unlawful and are misdemeanors in California except when performed by a surplus line broker, EXCEPT:
    D-This is the definition of an agent.
  14. Which of the following is not an exception to the free insurance prohibition?
    A-This is not an exception to the free insurance prohibition.
  15. It is against the law for an insurance licensee to offer ________ to anyone as an incentive to acquire some other type of business.
    C-It is against the law for an insurance licensee to offer free insurance to anyone as an incentive to acquire some other type of business.
  16. The following are valid reasons for the Commissioner to deny the use of a name EXCEPT:
    B-This would be a valid reason to use the name.
  17. Any time there is a change in a licensees residence address, principal business address, and/or mailing address, the licensee must notify the Commissioner in writing:
    A-Any time there is a change in a licensees residence address, principal business address, and/or mailing address, the licensee must notify the Commissioner in writing immediately.
  18. During the transaction of insurance, the following must be included EXCEPT:
    D-An applicant`s sexual preference should not be listed.
  19. All of the following are duties of a co-partnership EXCEPT:
    C-It is not necessary to return the old license with signatures of the original members to the Commissioner.
  20. l the following are true regarding denial of a license without a hearing except:
    A-misdemeanor has to be insurance related.
  21. All the following are entitled to a hearing concerning a license denial except:
    C-if insurance related no hearing.
  22. When a person gets their life license, without a company appointment their license is considered
    B-must be appointed with a company.
  23. A company has how many days to send an appointment for a new licensed agent to department of insurance?
    C-To make the relationship legal the company must submit a notice of appointment to the Commissioner within 14 days.
  24. All of the following are true concerning a life analyst except:
    B-May not be an employee of an insurance company.
  25. All of the following are incorrect, except:
    D. Brokers represent the buyer in property and casualty insurance in the purchase of insurance.
  26. Agents represent insurers in which of the following:
    D. Agents are licensed as “Producers”, when taking an application they are considered “field underwriters”, and agents solicit insurance for the insurer.
  27. Agency law does not encompass which of the following?
    B. Its knowledge of the agent that is knowledge of the principal.
  28. Insurers that deal directly with insureds without the use of agents through various forms of print, visual and aural media are considered to be:
    C. Direct response/direct mail is a system that does not use an agent. Another term that can be used on the test would be mass marketing.
  29. Life Settlement Brokers represent:
    B. A life settlement brokers helps an existing insured find a buyer for their life insurance policy.
  30. An agent’s appointment with an insurer will be discontinued if all of the following circumstances exist, except:
    C. An agent can have an unlimited number of appointments
  31. What type of policy will protect an agent against liability for failure to use due care and skill?
    C. Professional liability for nonmedical professionals is known as Errors and Omissions which is the type of professional liability an agent would purchase.
  32. Upon termination of all appointments or cancellation of the bond required if acting as a broker your permanent license:
    D. All of the statements are true.
  33. Which of the following would be incorrect regarding illustrations?
    D. All of these statements are true in regards to illustrations.
  34. Which of the following is correct concerning illustrations?
    D. Basic illustrations contain both guaranteed and nonguaranteed elements, supplemental illustrations contain nonguaranteed elements, and current and discipline apply to the nonguaranteed elements of a contract. Only the disclosure notice statement was correct.
Author
jdebenning
ID
61656
Card Set
CLA Combo Marketplace 1 Quiz 2
Description
Marketplace 1 Quiz 2
Updated