Insurance 3

An agent does NOT need to notify the Bureau of Insurance of a

• name change

• change in financial status

• felony conviction

• change of address

An agent may be personally liable if he or she engages in acts

• that are an unfair practice

• detrimental to the industry

• that are not part of the agency or agent contract

• that are derogatory concerning a competitor

Which of the following would prevent a person from obtaining a Virginia resident agent license?

• Residing in Virginia less than five years

• Being under the age of 25

• Not graduating from high school

• Residing in a state outside of Virginia

Once a child is born and covered under an accident and health insurance plan, any reduction in benefits on the newborn is

• prohibited only under high-deductible plans

• allowed under specific conditions

• strictly prohibited

• allowed in any situation

An action by an agent that would NOT likely result in license suspension or revocation is:

• Following all state regulations and ethical guidelines.

• Committing fraud in a real estate transaction.

• Misrepresenting material facts to a client.

• Failing to disclose a conflict of interest.

An agent MUST notify the Bureau of Insurance for

• not reaching a sales quota

• sharing commissions with another licensee

• conducting business under an assumed name

• a change in marital status

Once an insured notifies an insurer of a claim, what must the insurer do?

• Send out a claim form

• Investigate the claim

• Pay the claim

• Conduct a physical examination

If an agent replaces a client's existing life insurance policy with a new one, which of these actions is advisable?

• Pay for new policy's premium by borrowing 100% of the existing policy's cash value

• Wait until the new policy is issued and delivered before surrendering existing policy

• Notify the existing insurer after the new policy is issued

• Surrender the existing life insurance policy immediately upon submitting the application

If dividend option choices are offered on a whole life insurance policy, the policy MUST

• contain a statement that dividends are NOT guaranteed

• be treated as a variable insurance product

• have an extended free-look period of 60 days

• contain a statement that dividends ARE guaranteed

Which of these is NOT an Unfair Claims Settlement Practice?

• Refusing to pay claims without conducting a reasonable investigation

• Failing to acknowledge and act promptly with respect to insurance claims

• Compelling insureds to initiate a lawsuit by offering less on insurance claims

• Offering to settle a claim by arbitration