Life Insurance Flashcards ionicons-v5-c

All of the following are regulated areas of the insurance industry EXCEPT

Commissions

The Director conducts an examination of domestic insurers every

5 years

It is considered to be an unfair trade settlement practice if an insurer fails to acknowledge communications with respect to an insurance claim withina. 15 days of receiptb. 30 days of receiptc. 60 days of receiptd. 90days of reciept

15 days of receipt

An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insured by 10% over the next two years. What term best describes this act?

Fraud

Under the Fair Credit Reporting Act, if the consumer challenges the correctness of the information contained in his/her report, the reporting agency must

Respond to the consumer's complaint

all else being equal, which of the following will NOT be considered unfair discrimination?

Discriminating in benefits and coverages based on the insured habits and lifestyle i.e. Smoking

If a consumer requests additional information concerning in Investigative Consumer Report, how long does the insurer or reporting agent have to comply?A) 10 DaysB) 3 DaysC) 5 DaysD) 7 Days

5 days

Which of the following criminal activities would be sufficient violation to warrant rejection, revocation or suspension? a. forgery b. speeding in an automobilec. trespassing through a neighbors yardd. public drunkenness

forgery

A banker is ready to close on a customers loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example ofa. defamationb.twistingc. coerciond. loading

coercion

illegal

Which of the following is an example of a producer being involved in an unfair trade practice of rebating?a. inducing the insured to drop a policy in favor of another one when it's not in the insured's best interestb. charging a client a higher premium for the same policy as another client in the same insuring class d. telling a client that his first premium will be waived if he purchased the insurance policy today

telling a client that his first premium will be waived if he purchased the insurance policy today

10 years

A producer who omits a statement which may mislead or deceive the persons addressed has committeda. coercionb. misrepresentationc. defamationd. twisting

misrepresentation

policy benefits on the basis of the life expediencies

whenever it appears that any person is violating an insurance law of Nebraska or any rule or regulation made by the Director, what may the Director issue?a. stop-action orderb. cease and desist order c. suspension of power decreed. revocation of authority

cease and desist order