Insurance MCQs Paper | AccountingMCQs.com

Which of the following is not a requirement for obtaining a producerâ€™s license in most states?

Have not committed any act that is grounds for denial or suspension of an insurance license
Be at least 19 years of ageDetailed Answer
Pay the required fees
Complete any required prelicensing course

Which of the following people would be required in most states to obtain an insurance license?

Rachel, a salaried employee of a large department store chain, who counsels her employer on insurance-related matters
Ross, who works in an advertising agency, supervising the advertising business of a major insurer
Phoebe, who works as an underwriter for a small insurer
Chandler, who sells insurance to businesses onlyDetailed Answer

A person licensed as an insurance producer in another state who moves to this state has how long after establishing legal residence to become a resident licensee without taking prelicensing education or an examination?

30 days
60 days
90 daysDetailed Answer
120 days

Which of the following individuals is least likely to be granted a temporary license?

Georgia, whose insurance producer-husband passed away unexpectedly, leaving her with a business to either learn or sell
Kim, who wants to try selling insurance on a temporary basis before investing the time and money into being licensedDetailed Answer
Dave, an employee of a business entity, when the individual designated as the licensee in the business entity is disabled in an auto accident and unable to return to work for several months
Lee, whose insurance producer-fiancÃ©e was recalled to active duty by the Navy and appointed Lee her designee

Business written on the producerâ€™s own life or interests is known as

Controlled businessDetailed Answer
Personal business
Conflicted business
Producer business

Which of the following is considered an unfair claims practice?

Splitting a commission with a prospect
Failing to affirm or deny coverage within a reasonable time after receiving proof of lossDetailed Answer
Convincing a policyowner to lapse or surrender an existing policy in order to sell another policy
Making any oral or written statement that is false, maliciously critical, or calculated to injure a competing producer

An organization that establishes model laws that are often adopted by states with only slight differences is the

National Association of Insurance Companies
National Association of Independent Commissioners
National Association of Insurance Consultants
National Association of Insurance CommissionersDetailed Answer

Ralph is a producer for Hoosier Insurance Company. His contract states that he is allowed to put the companyâ€™s logo on his business cards and the door to his office. This is an example of

Express authorityDetailed Answer
Implied authority
Lingering implied authority
Apparent authority

Tom has always made a practice of having his policyholders mail their premium checks directly to him, and forwarding them on to the insurer, so that he is aware of anyone missing a payment and can contact policyowners directly if that should happen. His contract does not allow this, but the insurer is aware of the practice and has not asked him to stop. This practice is an example of

Express authority
Implied authority
Lingering implied authority
Apparent authorityDetailed Answer

Gina accepts the initial premium when she sells an insurance policy and sends it to the company with the application. Nothing in her contract mentions handling of initial premiums. This is an example of

Express authority
Implied authorityDetailed Answer
Lingering implied authority
Apparent authority

Result

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Insurance Paper 11