LIFE INSURANCE EXAM EXAM QUESTIONS

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LIFE INSURANCE EXAM EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: foreign insurer

Answer:

licensed to conduct business in states and dist of columbia or other US territories other than the one it is inc

Question 2: notice to applicant

Answer:

informs applicant a report will b ordered concerning past credit report history and any other life and health insurance for which they have aplied

Question 3: financial services modernization

Answer:

also know as Graham-Leach-Bliley Act (GLBA)

Question 4: insurable risk

Answer:

must be an econimic hardship must suffer significant loss to your own self

Question 5: privacy

Answer:

disclosure authorization, penalties

Question 6: hazard

Answer:

fsctor that gives rise to peril

Question 7: insurance

Answer:

content that indemnifies another against loss, damage, liab arising from unknown event

Question 8: consumer rights

Answer:

persons may dispute info they feel is inaccurate or imcomplete and may require reporting agency to correct or delete info.

Question 9: investigate consumer report

Answer:

includes info re persons character, personal habits, and mode of living obtsined thru investigation ie: interviews with assoc , friends person must be informed to obtain info

Question 10: duties of ins commissioner

Answer:

issues certificate of authority,examirs boks docs, of insurer broker oragent

Question 11: physical hazard

Answer:

arises from material, structural, or operational features ie: unsanitary conditions slippery floors

Question 12: franchise marketing

Answer:

provides cov to employees of small firms or to members of assoc receive indiv policies that vary according to indiv needs. employers can offer employees insur at a lower prem, poss ddeducted from their payck

Question 13: indep ins agent

Answer:

owns the expiration of the policies he sells, meaning he may place the business with another insurer upon renewal if it is in the best interest of the client

Question 14: disclosure authorization

Answer:

producers respons to explain to applicant various resources from which insurer will obtain info regarding that applicants insurability

Question 15: insurable risk

Answer:

large #s of homogenous units in order for pooling & insurance mechanismsof insurance to function

Question 16: indep ins agent

Answer:

sells ins products of several companies and work for themselves or other agents

Question 17: federal regulation

Answer:

applies to idiv or companies whose activities affect interstate commerce, oversee areas not cov by state regulation of the industry Question 18: dept of insurance monitors financial stmnts,reserves, accting, investments etc to prevent...

Answer:

insurance co solvency

Question 19: morale hazard

Answer:

arises out of human negligence ie: dont wear seatbelt

Question 20: agency system/insurance is made available to the public thru a number of distribution systems

Answer:

indep ins agent, exclusive or captive agents,general agent of managing general agents, direct writing companies

Question 21: privacy

Answer:

protect the public frominaccurate or misused info

Question 22: direct writing company

Answer:

usually pays salaries to employees whos job is to sell company's insuranceroducts

Question 23: risk

Answer:

uncertainty of financial loss when one or more outcome is possible. must be element of doubt and uncertainity

Question 24: violators of fair reporting act

Answer:

$5000 fine, pay damages suffered by consumer, attny fees punitive damages, imprisonment for one yr for obtaining info under false pretenses

Question 25: MGA

Answer:

compensated by comissions earned on business sold by herself as well as an overriding commission on commiss produced by other agents managed by the general agent

Question 26: consumer report

Answer:

contains a persons credit info, character reputation , habits used or collected to determine whether a person is elegible for credit, insurance, employment or other purposes

Question 27: general agents or managing general agents

Answer:

hire supervise train other career agents within a certain geograph area Question 28: financial holding co has minimal financial standards for financial privacy

Answer:

ensure security and confidentiality of customer srecords and info, protect against threats or hazards to security of records and protect against unauth use of records that could damage consumer