CODE AND ETHICS - MIKE RUSS PRACTICE TEST

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CODE AND ETHICS - MIKE RUSS PRACTICE TEST

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -48 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Concealment entitles the injured party to rescind the contract under which conditions?When the concealed facts are material and intentional.Concealment is not grounds for rescinding a contract.When the concealed facts are material and unintentional.When the concealed facts are material whether intentional or unintentional.

Answer:

When the concealed facts are material whether intentional or unintentional.Question 2: Acceptable methods of policy delivery include:

• Registered or certified mail.
• First-class mail with a signed written receipt

of delivery.

• Personal delivery with a signed, written

receipt of delivery.

• Other reasonable means determined by the commissioner.
• only

All of the choices

• and 3

1, 2, and 3

Answer:

All of the choices

Question 3: An insurer who issues individual or group life, annuity, or disability policies to a

physically or mentally impaired person:

May refuse to insure, continue to insure, limit the amount or kind of coverage available, and charge a higher premium May not refuse to insure, continue to insure, limit the amount or kind of coverage available, or charge a higher premium at any time May not refuse to insure, continue to insure, limit the amount or kind of coverage available, or charge a higher premium except where the refusal, limitation, or rate differential is based on sound actuarial principles or is related to actual and reasonably anticipated experience.Physically or mentally impaired persons are not covered under the california insurance Code

Answer:

May not refuse to insure, continue to insure, limit the amount or kind of coverage available, or charge a higher premium except where the refusal, limitation, or rate differential is based on sound actuarial principles or is related to actual and reasonably anticipated experience.

Question 4: Which of the following describes a pretext interview?

All of the choices.A person attempts to gather information by pretending to be someone he is not.A person attempts to gather information by misrepresenting the purpose of the interview.A person attempts to gather information by pretending to represent someone he does not represent.

Answer:

All of the choices Question 5: Regarding post sales contact: Agents should have post sales contact with their clients.An agent should never engage in post sales contact.Post sales contact is an unfair trade practice.Insurers are not allowed to engage in post sales contact.Submit

Answer:

Agents should have post sales contact with their clients.Question 6: Insurance licensees must put their license numbers on which of the following?Business cards Printed advertisements All the choices Written quotations for insurance products

Answer:

All the choices

Question 7: What is a public insurance adjuster?

A licensed individual who, for compensation, works on behalf of an insured in settling a claim for loss or damage under a policy covering real or personal property.A person who collects premiums from and who settles or adjusts claims on behalf of employers in connection with life or health insurance coverage or annuities.A licensed individual who, for compensation, works on behalf of any insurance company.An un-licensed position with the California Department of Insurance.Submit

Answer:

A licensed individual who, for compensation, works on behalf of an insured in settling a claim for loss or damage under a policy covering real or personal property.Question 8: Neglect to communicate that which a person knows and ought to communicate is: Concealment Twisting A false representation A false warranty

Answer:

Concealment Question 9: A fiduciary is: a person who is in a position of financial trust.a person that handles money for a bank or banking institution.another name for an insurance agent/broker always employed by a bank.

Answer:

a person who is in a position of financial trust.Question 10: The purpose of replacement rules regarding life insurance is: to protect the interests of the insurers against fraud to protect the rights of the insurance agent to collect commissions to protect the interests of life insurance purchasers by establishing standards of conduct to be observed in replacement transactions None of the choices

Answer:

to protect the interests of life insurance purchasers by establishing standards of conduct to be observed in replacement transactions

Question 11: The purpose of the Insurance Information and Privacy Protection Act (IPPA) is to establish standards for the collection, use, and disclosure of information gathered in connection with insurance transactions.True False

Answer:

True Question 12: An agent may advertise that his insurance company is a member of a Guarantee Association.True or False?

Answer:

False Question 13: The main parts to the privacy requirements of the Gramm-Leach-Bliley Act are: (1) the IPPA Rule, (2) HIPAA Rule, and (3) pretexting provisions.(1) the Financial Privacy Rule, (2) Safeguard Rule, and (3) pretexting provisions..(1) the California Financial Code, (2) Rule of 72, and (3) pretexting provisions.(1) the Safeguard Rule, (2) HIPAA Rule, and (3) pretexting provisions.

Answer:

(1) the Financial Privacy Rule, (2) Safeguard Rule, and (3) pretexting provisions..Question 14: A marketing technique that does not disclose that the purpose is to sell insurance

and that contact will be made later by an insurance agent is referred to as:

Concealment High pressure tactics Twisting Cold lead advertising

Answer:

Cold lead advertising Question 15: Who is allowed to do a pretext interview under special circumstances?An underwriter An attorney An insurance adjuster An insurance agent

Answer:

An insurance adjuster