| Frage | Antworten |
| You cannot lose your license for submitting business to a ____ company | "non-admitted" company (such as a surplus lines insurer). |
| With your _____ Hawaii producer's license, you can sell in Hawaii only (you would need a ______ license to sell in other states). | "resident" "nonresident" |
| All insurers (except for surplus lines and reinsurance carriers) need a ___________ from the Hawaii Insurance Commissioner in order to sell here (regardless of reciprocal agreements between states). | certificate of authority |
| It is not an unfair claims practice to require an insured to provide this before paying a claim. | Proof of Loss |
| returning part of your commission to a client as an inducement to buy and is an unfair trade practice. | Rebating |
| Commingling of a client's funds with your own is a breach of ____ | fiduciary duty |
| A producer acts in a fiduciary or “trustee” capacity when | handling premiums |
| The misappropriation of customer funds is known as | embezzlement |
| The Commissioner's job is to administer insurance laws to | protect the public |
| Insurance may not be referred to as a security (stock) or an investment or a retirement plan. The purpose of insurance is | Protection |
| when a producer gives a client false information in connection with a new application, It is considered | misrepresentation |
| If the Commissioner suspects a producer of using unfair or deceptive practices, he may ask the producer to | appear and show cause why their license should not be revoked. |
| being falsely or maliciously critical of the financial condition of any insurance company or producer | Defamation |
| The Commissioner must hold a hearing within ____ days of a request from any person aggrieved by the Commissioner’s actions. | 30 days |
| Stating that a producer has knowledge he or she really doesn’t have is | false advertising |
| Producers may pay referral fees (not commissions) to unlicensed “referrors” for leads as long as the person who referred the business | had no involvement with the sale, solicitation or negotiation. |
| The stated premium must include all EXCEPT: service fees, service charges commissions general excise tax | general excise tax |
| Producers must keep insurance records by “class” of insurance for | at least 5 years |
| A producer who illegally writes a policy with an unauthorized insurer who refuses to pay a covered claim is liable to the insured for | the full amount (100%) of the claim |
| All authorized insurers must join a | state guaranty association |
| You do not need a license to sell this type of insurance | pre-paid legal insurance. |
| You cannot get a license to principally Insurance to yourself, your family members or employees. . If the total amount of premiums exceeds the total amount on all other business, a violation has occurred (50/50 rule). | Controlled business |
| is the refusal of a financial institution to approve a loan unless the client agrees to insurance from them (unfair trade practice). | Coercion |
| All returned premiums received by producers from insurers who decline to write a new application must be returned to the applicant within ____ | 30 Days |
| It is an unfair trade practice to make projections of future dividends to policyholders that buy nonparticipating policies (only ______ participating policies pay dividends and they are never guaranteed). | Mutual |
| who has the power to examine and investigate every "person" engaged in the business of insurance in this state (a "person" could be an individual producer, a business entity producer or agency, or an insurance company). | The Commissioner |
| The maximum fines for unknowingly violating the rules concerning unfair trade practices are _____ per violation, not to exceed a total fine of ____ | $1,000 $10,000 |
| Failure of the insurer to send out required claim forms to be completed as proof of loss is an __ | unfair claims settlement practice. |
| When the Commissioner revokes a license, who must be notified | both the licensee and the NAIC (National Association Of Insurance Commissioners) |
| Insurers or producers must notify the Commissioner of a new appointment within ____ of the time their first application is submitted. | 15 days |
| A producer may have how many appointments, and represent how many principals/insurers | Unlimited |
| An agency employee may not make a “binder” of coverage unless they are | licensed as a producer |
| Selling insurance Producers represent | the insurers not the insured |
| you must be at least 18, live in this state, pay non- refundable fees and pass the appropriate licensing examination in order to obtain | Producer's license |
| A producer's license must be renewed how often subject to satisfying the Hawaii continuing education (CE) requirements. | every 2 years |
| Licensees must notify the Commissioner, in writing, of any change of address within ____ | 30 days |
| No producer may represent an insurer unless that insurer | Appoints them |
| Domestic insurers (domiciled in Hawaii) must be audited (examined) by the Commissioner at least once ___ | Every 3 years |
| No person may pay a commission to an producer and no person may accept a commission unless | properly licensed for that “class” of insurance. |
| Failure to respond within ____ days to claims communications is considered to be an unfair claims settlement practice. | 15 working days |
| any type of inducement to buy or renew insurance, which is not specified in the policy | Rebating |
| When denying a claim, the insurer must show the claimant which ____ | section of the policy they are basing their denial upon |
| Producers may hold a resident license in how many states? | ONE! but can get 49 nonresident licenses |
| The purpose of the state guaranty association is to protect the customers of | insolvent insurers |
| Types of insurers that may be formed in this state include ___, ___, and ___ insurers | stock, mutual and reciprocal insurers |
| Type of insurers may apportion (distribute) their dividends based upon their “divisible” surplus. | Mutual |
| The spouse of a deceased or disabled producer may obtain a temporary license from the Commissioner for up to______ months, without exam. | 6 months |
| The Commissioner may not order this although the public prosecutor may seek criminal penalties for certain violations, upto a year | Jail time |
| a “contract whereby one party agrees to indemnify another”. | Insurance |
| A producer cannot modify an insurance ________ | Contract or Policy |
| If, during either of the last 2 years, a producer’s premiums on controlled business exceeded 50% of his total premiums, he is violation of the | controlled insurance law |
| Producers must keep their own records relating to continuing education for | 4 years |
| Charging different rates for individuals of the same “class” is | unfair discrimination |
| A producer’s license belongs to and must be returned upon expiration or termination | the state |
| A producer who guarantees that a mutual insurer will pay a dividend is guilty of | misrepresentation |
| A mutual insurer cannot state that their policies are similar to | shares of stock |
| A producer who misappropriates money belonging to a customer may be guilty of | embezzlement |
| Granting special favors as an inducement to a sale is known as | rebating |
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