Personal Property
In the state of Michigan a person applying for an insurance producer license must fulfill the following criterion EXCEPT:
Submit a completed application indicating the type of license desired
Be at least 18 years of age
Complete a program of study registered with the Commissioner
Pay a nonrefundable application fee of $75
An insurance producer is able to receive licensing in a variety of area, but not:
Credit
Personal Property
Variable Life
Accident and Health or Sickness
For individuals practicing law in Michigan, an insurance adjuster license is not needed to adjust loss or damage under a policy of insurance. In which one of the following scenarios is a license also NOT needed?
Persons adjusting a loss or damage under a policy within his control
Paralegals working for a licensed attorney
Employees of savings and loan banks
Employees of an insurer
Question 4
After obtaining a written agreement from his or her client a licensed insurance counselor is able to perform which of the following acts?
Provide advice with respect to promised benefits, afforded coverage, terms, or advantages of a policy
Advertise himself as an insurance counselor
Audit policies of insurance
All of the above
What is the main function of a managing general agent or MGA?
Reissues binding insurance contracts
Negotiates insurance contracts with an insurer on behalf of a client
Negotiates and binds ceding reinsurance contracts on behalf of an insurer
How does an agent receive a limited license?
By indicating the desired line of insurance to the licensing board after passing all necessary exams
Signifying on his application that he is applying for a limited license
An business entity wishing to act as an insurance producer must first obtain a license by doing all of the following EXCEPT:
Completing the required three month review period
Which of the following is not true when the Commissioner contracts with nongovernmental entities to perform ministerial functions related to producer licensing?
The Commissioner must issue an insurance agency license to an affiliate of a lender
The Commissioner must issue an agent license to an individual who is an employee of the affiliate
The commissioner must provide notice to the Commissioner of the financial institutions bureau of any acquisition of an insurance agency
The Commissioner may issue a temporary insurance producer license for a period not to exceed 180 days without requiring an examination if the Commissioner considers it necessary in order to provide insurance services in all of the following cases EXCEPT:
Any other person in an extenuating circumstance where public interest will be best served by granting a temporary license
To the surviving spouse or adult child of an insurance producer who dies or becomes disabled in order to allow adequate time for the sale of the insurance business, to train another insurance producers, or to allow time for recovery
As long as education requirements for resident individual producers are met by the due date An insurance producer license must remain in effect unless which of the following takes place?
The license is suspended
Licensees must inform the Commissioner by any means acceptable to the Commissioner of a change of legal name or address within how many days of the change?
30 days
An insurer that terminates a contract with an insurance producer must notify the Commissioner
Providing misleading information on license application
Misappropriation of money
Failing to pay taxes
All of the above
With regard to assumed names, which of the following statements is the correct rule?
An insurance producer doing business under any name other than the producers legal name must notify the Commissioner prior to using the assumed name.
An applicant must have completed a program of study within what time frame of the receipt of the application?
4 months
2 years
1 year
6 months

The Commissioner may require a reinsurance intermediary-manager or a managing general agent to file a bond in an acceptable amount from an acceptable insurer for the protection of the reinsurer or insurer. What is the acceptable amount?
$15,000
$10,000
The Commissioner will serve a formal charge, including his findings and a cease and desist order to a person who has committed any of the following acts EXCEPT:
Violated a regulation
Engaged in methods of unfair competition
Committed a felony
An insurer selling automobile insurance may terminate an insurance producers license for which of the following reasons:
Failure to perform the provided contract terms
Malfeasance
All of the above
The Commissioner may impose any of the following penalties for violations of the rules EXCEPT:
Payment of a civil fine not to exceed $500 for each unknowing violation
Suspension or revocation of license
A refund of any overcharges
Payment of a civil fine up to 3,500 for willful violations
The person whose duties include personally superintending the duties of his office, evaluating and approving applications for licenses and promulgating rules and regulations necessary to further the purposes of the established statutory rules is known by what formal title?
Chief Officer
Secretary of Insurance
Commissioner
An authorized insurer must be issued by the Commissioner a certificate of authority in order to ____________ in Michigan.
Practice
provide insurance
transact insurance
An insurer must maintain unimpaired capital and surplus in an amount not less than ________.
$1,000,000
$5,000,000
$750,000
$7,000,000
Rates are subject to all of the following regulations EXCEPT:
If the insurer has not received notice of disapproval within 10 days, the rates are considered approved.
Insurance policy forms may not be issued to any person unless a copy of the form is filed with the insurance bureau and is approved by the Commissioner as conforming to which of the following rules?
Forms must obtain a readability score of 30 or more
Issuing a form without the approval of the Commissioner may result in a fine of $25 for each offense, not to exceed $500 total.
Failure to pay claims on a timely basis or to pay interest on late payments constitutes unfair claims settlement practices, unless what takes place?
The Commissioner issues an exemption for extenuating circumstances
The insured dies or no longer seeks payment of due claims
A court of law renders judgment and the person pays the insured all entitled benefits

If the insurer terminates the appointment, he must notify the Commissioner within __ days and mail a copy of the notification to the terminated producer within __ days.
45, 15
60, 30
30, 15
A person is forbidden from conducting insurance business without a license, unless the person is:
Acting only for a fraternal benefit society authorized to transact insurance in Michigan
Devoting less than 50% of his time to selling insurance
All of the above
All of the following acts fall under prohibited conduct EXCEPT:
A person maintaining or operating an office transacting insurance business, if they fail to comply to the state regulations
A solicitor failing to, in a timely manner, turn over all money owed
An agent selling insurance not by means of intimidation or threats

No insurer may pay a commission to a person who ______________________________.
is not licensed
is not employed by the insurer
is also insured by the insurer
is not, but is required, to be licensed
An agent may not accept payment of a premium for a Medicare supplemental policy in the form of __________________.
a check or money order made payable to the agent instead of the insurer
Which of the following is NOT a penalty the Commissioner may impose for unfair insurance trade practices?
A refund of any overcharges
Charge an insurance producer with criminal negligence
No insurance producer may make a statement which misrepresents the terms of a contract, including the _________ benefits and required premiums, or __________ intended to deceive.
insurance, a claim
required, a promise
necessary, a claim
promised, an estimate
To avoid deception what three criteria must advertisements meet?
Complete, clear, and truthful
No insurance producer may make any misrepresentation for the purpose of inducing a policyholder to ___________________________.
lapse on his current insurance
overpay on his current policy
lapse on his current insurance and take out another policy.
If, after investigation by an independent public accountant, the insurer is found to have misstated his financial condition, the board of directors and the Commissioner must be notified within how many business days?
10
7
30
5
No insurance producer may make an oral or written statement which is false or maliciously critical of the financial condition of any person, and which is calculated to injure. Included in this are advertisements which may not perform which of the following?
disparage competitors
disparage competitors policies
disparage competing methods of marketing business
all of the above
No insurance producer may unfairly discriminate between individuals of the same class, same hazard, and equal expectation of life with regards to what area?
rate charged for the policy
the amount of premium rates
underwriting standards
all of the above
The Commissioner may refuse to grant or renew a license if he determines that it is ________ that the business of the applicant will give rise to indirect rebating of commissions, meaning paying people in order to induce them to buy insurance policies.
possible
definite
probable
In order to assure compliance with insurance regulations the Commissioner may conduct examinations of:
Directors of insurers
Stock brokers
All of the above
Fraudulent insurance acts includes acts committed by any person knowingly and with an intent to ______.
injure, defraud, or deceive
Any person who commits a fraudulent insurance act is guilty of a felony and may be subject to what penalties?
Imprisonment not to exceed 4 years or a fine not to exceed $100,000
A fine not to exceed 25,000
Imprisonment not to exceed 5 years
Imprisonment not to exceed 4 years or a fine not to exceed $50,000, or both
Under what circumstance is an insurer NOT required to give a privacy notice to the insured?
If the insurer does not disclose any nonpublic personal financial information to any nonaffiliated third party and the insurer does not have a customer relationship with the consumer
If a notice has already been provided by an affiliated insurer
All of the above
Consumer credit reports with fraud alerts may not be used for credit or insurance applications without what other component?
Permission from the Commissioner
Consent of the consumer
In order to monitor all financial transactions, prohibit correspondent account with foreign shell banks, and report all suspicious activity to the government insurance companies must now use what mechanism?
Suspicious person report
Anti-money laundering program
What is the main function of a managing general agent or MGA?
Reissues binding insurance contracts
Negotiates insurance contracts with an insurer on behalf of a client
Negotiates and binds ceding reinsurance contracts on behalf of an insurer
How does an agent receive a limited license?
By indicating the desired line of insurance to the licensing board after passing all necessary exams
Signifying on his application that he is applying for a limited license
With regard to assumed names, which of the following statements is the correct rule?
An insurance producer doing business under any name other than the producers legal name must notify the Commissioner prior to using the assumed name.
An applicant must have completed a program of study within what time frame of the receipt of the application?
4 months
2 years
1 year
6 months
Failure to pay claims on a timely basis or to pay interest on late payments constitutes unfair claims settlement practices, unless what takes place?
The Commissioner issues an exemption for extenuating circumstances
The insured dies or no longer seeks payment of due claims
A court of law renders judgment and the person pays the insured all entitled benefits
Question 49
If the insurer terminates the appointment, he must notify the Commissioner within __ days and mail a copy of the notification to the terminated producer within __ days.
45, 15
60, 30
30, 15
The person whose duties include personally superintending the duties of his office, evaluating and approving applications for licenses and promulgating rules and regulations necessary to further the purposes of the established statutory rules is known by what formal title?
Chief Officer
Secretary of Insurance
Commissioner
Blanket disability insurance covers all of the following categories EXCEPT:
Students and teachers
Passengers on any carrier
The term preexisting condition may not ___________________.
be used in a way that implies coverage beyond the terms of the policy
be used in a policy being advertised
be used without an appropriate accompanying definition
If an outline of coverage is given to a prospective applicant for life insurance and that outline includes: a description of the benefits provided by the policy, a list of the exclusions and limitations, a statement that the outline is just a summary and the actual policy should also be read, and an explanation of the return policy then what necessary component is the outline missing?
Nothing, all components are present
A timeline of the policy
A credit report

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