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Ethics For Insurance Professionals Test

March 29, 2013 by Rhonda Ward

This is the final test for the Ethics for Insurance Professionals course. In order to receive credit, you must pass this test and submit your results along with your full name and license number.

Ethics Final Test

True or False: The term for a Commissioner of Insurance is four years.*
- True
- False
Which of these statements is correct?*
- A company domiciled in Arkansas is classified as Alien.
- A company domiciled in Louisiana is classified as Local.
- A company domiciled in Louisiana is classified as Domestic.
A Foreign classification means that an insurance company:*
- Is located in a state other than Louisiana.
- Is located in Louisiana, but in an unincorporated community.
- Is located in a country other than the United States.
True or False: A Producer is an individual or business entity entitled under the law of Louisiana to negotiate, sell or solicit insurance.*
- True
- False
Which of the following are exceptions to the license requirements?*
- Clerical employees of a producer who are not involved in sales, solicitations or negotiations.
- Employees of insurance companies who deal only with licensed producers.
- Both of the above.
True or False: Producers who are sixty five (65) years old and have at least fifteen (15) years experience are exempt from the continuing education requirements.*
- True
- False
Controlled Business is business written on producer, family members, employer or employees. This can only represent up to ____% of the commissions earned by the producer in a twelve (12) month period.*
- 15%
- 20%
- 25%
- 30%
True or False: A failure to pay child support is a violation of Louisiana insurance licensing laws.*
- True
- False
A producer’s license may be revoked for up to _____ years.*
- 1
- 2
- 5
- 10
Unfair Trade Practices include:*
- Making a false, misleading statement about dividends or sharing of moneys previously paid on similar policies.
- Misrepresenting the dividends or sharing of the moneys to be received on any policy.
- Misrepresenting policies as being shares of stock.
- All of the above.
True or False: Stocks or other instruments may be offered to entice clients to buy insurance.*
- True
- False
Insurance companies may not discriminate between persons of the same class because of:*
- Geographic location of the risk.
- Bankruptcy filing.
- Another insurance company refused to insure.
- All of the above.
It is illegal to commit any of the following acts with a frequency to indicate it as a general business practice.*
- Failing to affirm or deny coverage of a claim within a reasonable time after proof of loss statements have been completed.
- Advising insured to file suits to recover amounts due under an insurance policy by offering substantially less than the amounts that were recovered in actions brought by such insured.
- Making known to the insured a policy of appealing from arbitration awards in favor of insured for the purpose of compelling the insured to accept settlements for less than the amount awarded in arbitration.
- All of the above.
The penalty for an unknowing violation of an Unfair Trade Practice is:*
- Five hundred dollars ($500.00) for each violation up to Fifty thousand ($50,000.00) dollars total.
- One thousand dollars ($1000.00) for each violation up to One hundred thousand ($100,000.00) dollars total.
- Two thousand dollars ($2000.00) for each violation up to Two hundred thousand ($200,000.00) dollars total.
- Ten thousand dollars ($10,000.00) for each violation up to Five hundred thousand ($500,000.00) dollars total.
True or False: License suspension or revocation are possible, if the person knew or could have reasonably known they incurred an Unfair Trade Practice Penalties.*
- True
- False
True or False: Failing to acknowledge and act immediately upon communications with respect to claims arising under insurance polices is an Unfair Claim Settlement Practice.*
- True
- False
True or False: The Insurance Fraud Division has the authority to collect evidence, take sworn statements, issue subpoenas, arrest, and prosecute Insurance Code violators.*
- True
- False
Any person involved in the insurance business, including producers, insurance companies and adjusters who become aware of insurance fraud must file a Form Notice with the fraud division within _____ of the time that fraud is first suspected.*
- sixty (60) days
- thirty (30) days
- ten (10) business days
Background Checks conducted by the fraud division utilize the files of ______*
- the Federal Bureau of Investigation (FBI) and the local police department.
- the local and state police.
- the Federal Bureau of Investigation (FBI) and the National Crime identification Center (NCIC).
True or False: Federal law designates the DOI as the agency to set up procedures and establish rules to protect the consumer financial information with respect to insurance sales.*
- True
- False
Initial Privacy Policy Notices must be made:*
- No later than the time at which the customer relationship begins, and after any information is released to a third party.
- Within thirty (30) days of the time at which the customer relationship begins, and before any information is released to a third party.
- Within sixty (60) days of the time at which the customer relationship begins, and before any information is released to a third party.
- No later than the time at which the customer relationship begins, and before any information is released to a third party.
Annual Notices must contain:*
- The type of private information collected.
- The parties to which information is disclosed.
- The consumer’s right to opt out of any disclosure to nonaffiliated third parties.
- All of the above.
Name*
First Last
Email
License #*

Filed Under: Ethics for Insurance Professionals

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