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1. The Commissioner may take disciplinary action against a licensee for any of the following reasons EXCEPT:
A) Violating any insurance law
B) Committing unfair trade practices
C) Being convicted of a summary offense
D) Making untrue statements in the license application
2. A producer's fiduciary responsibility includes which of the following activities?
A) Providing needed insurance to prospective insureds through any sources that are available.
B) Recording the receipt and remitting of premiums due to an Insurer.
C) Guaranteeing payment to insureds for losses covered by policies that the producer sold.
D) Property remunerating persons who furnish leads on prospects.
3. A violation of the annuity suitability laws may be determined by
A) an independent agency.
B) the consumer's accountant
C) the insurer that issued the annuity.
D) a hearing before the Insurance Commissioner.
4. The applicant must face the possibility of losing something of value in the event of the insured's death. This principle is known as
A) adverse selection.
B) insurable interest.
C) Indemnification.
D) viatical settlement.
5. The clause in a life insurance policy protecting its proceeds from the beneficiary's creditors is referred to as the
A) credit shelter trust clause.
B) lien exclusion clause.
C) creditor life clause.
D) spendthrift trust clause.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: D |
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