PSI - NY Life Accident and Health Practice Exam 17-55 Questions with Answers Latest Update, Exams of Nursing

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PSI - NY Life Accident and Health Practice

Exam 17-55 Questions with Answers Latest

Update 2024

1. Which policy provision permits the policy owner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policy owner rejects the terms or costs? - ✓✓✓Free Look
2. When will a policy pay on a UCR basis? - ✓✓✓When particular benefits are not listed on a payment schedule
3. Which type of rider reimburses health and social service expenses incurred in a convalescent or nursing home facility? - ✓✓✓long term care rider
4. Which of the following is exempted from the incontestability provision in insurance policies? - ✓✓✓Fraudulent misstatements
5. What does first dollar coverage mean? - ✓✓✓As soon as covered medical expenses are incurred, the policy begins to pay
6. What is the waiver of premium provision? - ✓✓✓In a long term care contract, the premium is waived after the insured has been confined for a specific period of time

7. According to the Time Payment of Claims provision, the insurer must make the payment immediately after receiving proof of loss EXCEPT - ✓✓✓for claims involving periodic payments
8. Which is a disadvantage to a flexible premium annuity? - ✓✓✓the actual amount of the annuity benefit cannot be determined in advance
9. When a policy or certificate containing an accelerated benefit provision is applied for or delivered, the producer is responsible for providing that applicant a summary of coverage that includes all of the following EXCEPT - ✓✓✓a detailed and comprehensive summary of the accelerated benefit
10. Which one of the following represents an advantage of obtaining a policy loan versus a withdrawal? - ✓✓✓the loan is not taxed while a withdrawal is taxed for amounts above the contract cost basis
11. How does a no cancelable policy differ from a guaranteed renewable policy? - ✓✓✓with the non-cancelable policy the insurer may increase premiums only based on the terms of the policy
12. What does it mean if a health policy is conditionally renewable? - ✓✓✓Insurer may elect NOT to renew only under the conditions specified in the policy
13. When the suicide clause is inserted in a life insurance contract, death by suicide is not covered during the policy's initial: - ✓✓✓2 year period

14. What does coinsurance mean? - ✓✓✓The insurer and the insured share expenses over the deductible.
15. Which of the following must be given to the insurer within 20 days after occurrence or commencement of any loss covered by the policy, or as soon thereafter as is reasonably possible? - ✓✓✓Notice of claim
16. The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policy owner UNLESS which of the following is true? - ✓✓✓The policy owner has named an irrevocable beneficiary
17. Which of the following refers to how often a premium is paid? - ✓✓✓Mode
18. All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while - ✓✓✓Committing a misdemeanor
19. At which point are contractual death benefit settlement options determined and by whom are they determined? - ✓✓✓At the time the policy is purchased by the owner of the policy
20. All of the following are ownership rights EXCEPT - ✓✓✓Switching the policy from one insured to another

21. All of the following are TRUE regarding incomplete applications EXCEPT - ✓✓✓The incomplete application can be accepted with the missing information added later
22. A consumer report used to determine eligibility for insurance may include all of the following EXCEPT - ✓✓✓Medical underwriting exam
23. All of the following are required signatures on a life insurance application EXCEPT - ✓✓✓The minor in a juvenile policy
24. Why are insurance policies considered conditional contracts? - ✓✓✓Certain conditions need to be met to make the contract legally enforceable.
25. When does insurable interest come into play in a life insurance policy? - ✓✓✓when the applicant for the policy is not the insured
26. Which of the following occurs immediately after the application is submitted and the initial premium paid? - ✓✓✓the underwriting process begins
27. Obtaining consumer information reports under false pretenses are prosecutable by which of the following? - ✓✓✓Fair Credit Reporting Act
28. What is the purpose of Stranger-originated life insurance (STOLI)? - ✓✓✓the policy is originated primarily or solely for the purpose of resale

29. All of the following are classifications of risk EXCEPT - ✓✓✓non-nicotine
30. What specific new procedures does the USA Patriot Act require of insurance companies? - ✓✓✓Establish an anti-money laundering program
31. What procedure is used by an insurer to protect it in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application? - ✓✓✓The applicant and possibly the agent initial any changes made.
32. What is a MIB report? - ✓✓✓medical information on an applicant for assessing life or health insurance risk
33. How do warranties differ from representations? - ✓✓✓a warranty is guaranteed to be true; a representation is believed to be true to the best of one's knowledge.
34. If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT - ✓✓✓the treatment procedures that are covered by the policy.
35. Which of the following was specifically designed to address STOLI and IOLI practices? - ✓✓✓NCOIL Act

36. Why is rehabilitation considered worthy of federal help under workers' compensation? - ✓✓✓it reduces insurance losses and helps regain the worker's dignity
37. In a case where an individual's health is insured by both their own policy and their spouse's policy, which policy pays in the event of an illness? - ✓✓✓The individual's policy pays first, the spouse's policy pays the remaining up to coverage amount.
38. The group conversion option is allowed for all of the following EXCEPT - ✓✓✓during the annual benefits enrollment period.
39. What type of insurance should a company purchase if it wants to insure the life of its CEO? - ✓✓✓key person insurance
40. All of the following are tax qualified retirement plans EXCEPT - ✓✓✓Section 529 plan.
41. Why is relying solely on employer group life insurance generally considered inadequate for most individual's needs? - ✓✓✓It is financially insufficient to cover end of life expenses.
42. For an individual long-term care policy there is an annual dollar limit for tax deductions that are based on which of the following? - ✓✓✓age

43. When can the premiums of an individually owned health insurance policy be deducted from the individual's income tax? - ✓✓✓when the taxpayer's medical expenses exceed 7.5% of adjusted gross income during a taxable year
44. In noncontributory plans, which percentage of eligible members must participate? - ✓✓✓100%
45. Short term disability insurance generally only covers injuries due to which of the following? - ✓✓✓Non-occupational injuries
46. Managed care plans increase efficiency by all of the following means EXCEPT - ✓✓✓transferring the management of costs to the insured’s.
47. Under which situation must insurable interest exist between the applicant and insured at the time of application? - ✓✓✓When a third-party applicant names themselves beneficiary
48. Which of the following is characteristic of a nonqualified plan? - ✓✓✓plan does not meet federal guidelines for tax benefits
49. In a home healthcare benefit, all of the following are eligible expenses EXCEPT - ✓✓✓blood transfusions

50. All of the following are requirements to qualify for Social Security disability benefits EXCEPT when - ✓✓✓unable to work in occupation in which the worker was trained or educated
51. How long after being entitled to disability benefits will an individual be eligible to receive Medicare benefits? - ✓✓✓2 years
52. Which of the following amends the Social Security Act to make Medicare secondary to group health plans? - ✓✓✓TEFRA
53. Which of the following is TRUE of a point of service plan? - ✓✓✓A patient's care is coordinated by an in-network primary care physician.
54. A group conversion option may be used in all the following instances EXCEPT - ✓✓✓a life-changing event, such as marriage, divorce, or childbirth
55. Which problem was universal life insurance designed to address? - ✓✓✓low interest rates during periods of high inflation
56. Compared to basic hospital, medical and surgical policies, which type of insurance provides broader coverage, fewer gaps, higher individual benefits, and higher policy maximums? - ✓✓✓major medical insurance
57. Current assumption whole life policies are sensitive to which of the following? - ✓✓✓interest rates

58. Which is the major reason why long term care insurance is becoming increasingly important? - ✓✓✓As life expectancy increases, the chances of needing long term care also increase
59. Which of the following is defined as the dollar amount beyond which the insured no longer participates in payment of medical expenses? - ✓✓✓Stop Loss Limit
60. Which is the primary purpose of Health Reimbursement Accounts (HRAs)? - ✓✓✓To assist covered employees with the payment of medical expenses on a high deductible plan funded through pre-tax contributions.
61. States generally define a true "group" for insurance as requiring a minimum of how many participants? - ✓✓✓ 10
62. When should a buy-sell agreement include a provision for the buy-out of an owner's business interest in the event of a disability? - ✓✓✓When there is a buy- sell agreement funded with life insurance to buyout the interest of a deceased owner or partner.
63. Which type of life policy can be continued year after year without a required medical examination but rates are dependent on the insured's current age? - ✓✓✓renewable term

64. Which of the following is true about a decreasing term life policy? - ✓✓✓The face amount reaches zero at policy expiration.
65. Which of the following is TRUE of the limited pay whole life policy? - ✓✓✓Coverage continues after the policy is paid-up.
66. Which of the following is a characteristic of Preferred Provider Organizations (PPOs)? - ✓✓✓prearranged costs for services rendered
67. all of the following are characteristics of variable whole life EXCEPT - ✓✓✓there is no guaranteed minimum death benefit.
68. Which of the following policy types is considered double indemnity? - ✓✓✓accidental death
69. Which of the following lists the three common types of permanent individual life insurance? - ✓✓✓Variable Life, Whole Life, Universal Life
70. Which of the following is TRUE for a flexible premium annuity? - ✓✓✓The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount.
71. Which type of annuity covers two or more annuitants and provides monthly income only until the first annuitant dies? - ✓✓✓Joint Life Annuity

72. Which of the following coverage types pays monthly cash benefit following the elimination period for total disability due to accident or sickness? - ✓✓✓Disability income insurance
73. In which of the following does a covered employee agree to a reduction in compensation so the amount can be used to cover medical expenses? - ✓✓✓Flexible Spending Account (FSA)
74. Which of the following is covered by a dread disease policy? - ✓✓✓illnesses that do not occur frequently but incur significant costs when they do occur
75. Which insurance plans are commonly offered through the worksite (employer sponsored) EXCEPT? - ✓✓✓Medicare
76. Process 2103 (d-i) - ✓✓✓1. The Superintendent may issue a license to any person, firm or corporation who has complied with the requirements of the Insurance Code, authorizing the licensee to act as agent of any authorized insurer. Every individual applicant for a license under this section and every proposed sub- licensee must be 18 years of age or older at the time of issuance of such license. The person must submit to and pass a written examination required by the Superintendent.
77. Producer Definition (2101(k)) - ✓✓✓An insurance producer means an insurance agent, insurance broker, reinsurance intermediary, excess lines broker, or any other person required to be licensed under the insurance laws of this state to sell, solicit or negotiate insurance.

78. Who should be Licensed (2101(k) (1)) - ✓✓✓1. The term "insurance producer" does not include: An officer, director or employee of a licensed insurer, fraternal benefit society or health maintenance organization or of a licensed insurance producer, provided that the officer, director or employee does not receive any commission on policies written or sold to insure risks residing, located or to be performed in this state and: (a) The officer, director or employee's activities are executive, administrative, managerial, and clerical or a combination of these, and are only indirectly related to the sale, solicitation or negotiation of insurance; (b) the officer, director or employee's function relates to underwriting, loss control, Inspection or the processing, adjusting, investigating or settling of a claim on a contract of Insurance; or (c) the officer, director or employee is acting in the capacity of a special agent or agency supervisor assisting licensed insurance producers where the person's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation or negotiation of insurance.
79. Home State (2101(l)) - ✓✓✓Home state means the District of Columbia or any state or territory of the United States in which an insurance producer maintains his, her or its principal place of residence or principal place of business and is licensed to act as an insurance producer.
80. Negotiate (2101(m)) - ✓✓✓Negotiate or negotiation means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from licensed insurers, fraternal benefit societies or health maintenance organizations for purchasers.

81. Sell (2101(n)) - ✓✓✓Sell or sale means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of a licensed insurer, fraternal benefit society or health maintenance organization.
82. Solicit (2101(o)) - - ✓✓✓Solicit or solicitation means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular licensed insurer, fraternal benefit society or health maintenance organization.
83. Agent 2101(a) - ✓✓✓In this section, insurance agent means any authorized or acknowledged agent of an insurer, fraternal benefit society or health maintenance organization issued a certificate of authority pursuant to the public health law, and any sub-agent or other representative of such an agent, who acts as such in the solicitation of, negotiation for, or sale of, an insurance, health maintenance organization or annuity contract, other than as a licensed insurance broker.
84. Agent 2101(k) - ✓✓✓insurance producer means an insurance agent, insurance broker, reinsurance intermediary, excess lines broker, or any other person required to be licensed under the insurance laws of this state to sell, solicit or negotiate insurance.
85. The applicant must be at least 18 years of age at the time of license issuance.
86. An examination is required for each applicant, except where noted for applicants with a change in residency moving to New York (see code 2103 below).

87. Brokers 2101(c) - ✓✓✓a licensed insurance representative who does not represent a specific insurance company, but places business among various companies. Legally, the broker is usually regarded as a representative of the insured rather than the insuring company.
88. Brokers 2101(h) - ✓✓✓any licensed attorney at law of this state.
89. Consultants (2107) - ✓✓✓The Superintendent may issue an insurance consultant's license to any person, firm, association or corporation who or which has complied with the requirements of this chapter with respect to either: life insurance, meaning all of those kinds of insurance authorized. Any such license issued to a firm or association shall authorize only the members of such firm or association named in such license as sub-licensees to act individually as consultants there under, and any such license issued to a corporation shall authorize only the officers and directors thereof named in such license as sub- licensees to act individually as consultants there under.
90. Adjuster 2101(g) - ✓✓✓The Superintendent may, in his discretion require an applicant for a license under this section to present evidence, in such form as he prescribes, that such applicant has been employed, for a period which he deems reasonable, by an insurer, an independent adjuster or a public adjuster, in the performance of duties which in his opinion would provide the applicant with a satisfactory preliminary training for the duties and responsibilities which would evolve upon him as a licensee under this section. The term independent adjuster means any person, firm, association or corporation who for money, commission or any other thing of value, acts in this state on behalf of an insurer in the work of investigating and adjusting claims arising under insurance contracts issued by such insurer and who performs such duties required by such insurer as are incidental to such claims and also includes any person who for compensation or

anything of value investigates and adjusts claims on behalf of any independent adjuster.

91. Adjuster 2108 - ✓✓✓Adjusters will be licensed as either independent adjusters, or as public adjusters. The Superintendent may prescribe the types of independent adjusters' licenses according to the kind or kinds of insurance claims which the licensee is to be authorized to investigate and adjust. No adjuster may act on behalf of an insurer unless licensed as an independent adjuster, and no adjuster may act on behalf of an insured unless licensed as a public adjuster. A public adjuster works on behalf of the insured for a fee.
92. Nonresident 2101(d) - ✓✓✓In this section, non-resident insurance agent means an individual who is a non-resident of this state and who is licensed or authorized to act as an insurance agent in the state in which he resides, or in which he or the firm or association of which he is a member or employee, or the corporation, of which he is an officer, director, or employee maintains an office as an insurance agent.
93. Nonresident 2101(e) - ✓✓✓In this section, "non-resident insurance broker", means an individual who is a non-resident of this state and who is licensed or authorized to act as an insurance broker in the state in which he resides, or in which he, or the firm or association of which he is a member or employee, or the corporation, of which he is an officer, director or employee maintains an office as an insurance broker.
94. Nonresident 2103(g)(5) - ✓✓✓In the discretion of the Superintendent, no written insurance examination will be required of any individual seeking to be named as a licensee or sub-licensee who is a non-resident insurance agent.

95. Nonresident 2103(g)(11) - ✓✓✓No written insurance examination will be required of any individual who applies for an insurance agent license in this state who was previously licensed for the same line or lines of authority in another state, provided, however, that the applicant's home state grants non-resident licenses to residents of this state on the same basis. Such individual shall also not be required to complete any relicensing education. This exemption is only available if the person is currently licensed in that state or if the application is received within 90 days of the date of cancellation of the applicant's previous license and if the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state or the state's producer database records, maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries indicate that the producer is or was licensed in good standing for the line of authority requested. An individual or entity licensed in another state that moves to this state must make an application within 90 days of establishing legal residence to become a resident licensee. No relicensing education or examination will be required of that person to obtain any line of authority previously held in the prior state except where the Superintendent determines otherwise by regulation.
96. Nonresident 2136 - Reciprocity - ✓✓✓The Superintendent shall waive any requirements for a nonresident license applicant otherwise applicable under this chapter if: (a) the applicant has a current and valid license in his or her home state and is in good standing in his or her home state; (b) The applicant has submitted a completed application in the form prescribed by the Superintendent or submitted the application for licensure submitted to his or her home state; (c) The applicant has paid the fees required by this chapter; and

(d) The applicant's home state awards nonresident insurance producer licenses to residents of this state on the same basis as provided in this subsection.

97. Business Entities 2101(p) - ✓✓✓A business entity means a corporation, association, partnership, limited liability Company, limited liability partnership or other legal entity.
98. Business Entities 2103(e) - ✓✓✓Before any original insurance agent's license is issued to a business entity, there must be on file in the office of the Superintendent an application by the prospective licensee in such form or forms and supplements, and containing information the Superintendent prescribes and for each business entity, the sub-licensee or sub-licensees named in the application must be designated responsible for the business entity's compliance with the insurance laws, rules and regulations of this state.
99. Temporary License (2109; Rags. 9, 18, 29, Part 20.1) - ✓✓✓A temporary license may be issued in the case of death, service in armed forces or disability. The Superintendent may issue temporary insurance agents or insurance broker's license, or both, without requiring the applicant to pass a written insurance examination or to satisfy certain requirements except as to age in the following cases: (1) In the event of the death of a person who at the time of his death was a licensed accident and health insurance agent;
100. to the executor or administrator of the estate of such deceased agent or broker;

101. To a surviving next of kin of such deceased agent or broker, where no administrator of his estate has been appointed and no executor has qualified under his duly probated will;
102. To the surviving member or members of a firm or association, which at the time of the death of a member was such a licensed insurance agent or licensed insurance broker; or
103. to an officer or director of a corporation upon the death of the only officer or director who was qualified as a sub-licensee or to the executor or administrator of the estate of such deceased officer or director; (1) to any person who may be designated by a person licensed pursuant to this chapter as an insurance agent, or an insurance broker, or both, and who is absent because of service in any branch of the armed forces of the United States. (2) to the next of kin of a person who has become totally disabled and prevented from pursuing any of the duties of his or her occupation, and who at the commencement of his or her disability the license or licenses may be issued for a term not exceeding 90 days from the death of such additional term or terms of 90 days each, not exceeding in the aggregate 15 months.
104. The Superintendent may issue renewal licenses for an additional term or terms of 90 days each exceeding the aggregate period of 15 months when in his judgment it will best serve the interests of any person serving in the armed forces of the United States. No person holding a temporary license is permitted to solicit new business under the temporary license.

105. Renewal (2103(j); Reg. 5, Part 21.2) - ✓✓✓All individual insurance agent licenses must be renewed every two years. Individual licenses are issued with an expiration date determined by the date of birth:
106. The license of an agent born in an even numbered year will expire on the agent's birthday in an even numbered year.
107. The license of an agent born in an odd numbered year will expire on the agent's birthday in an odd numbered year
108. Adjuster licenses are not determined on a birth date renewal. Adjuster licenses expire on December 31st of even-numbered years.
109. Resident Licensees - ✓✓✓All licensed agents, brokers, consultants and public adjusters must complete continuing education (CE) requirements as a condition of renewing these licenses. Licensees must complete 15 credits of approved continuing education during each biennial licensing period.
110. After your license has been renewed the first time, continuing education (CE) will always be required upon subsequent renewal or relicensing applications. Credits must be accumulated during the renewal period, which begins with the effective date of the license and ends with the expiration date. CE must be completed before processing the renewal or relicensing application.
111. Assumed Names (2102(f)) - ✓✓✓Licensees must notify the Superintendent upon changing his, her or its legal name. Except for an individual licensee's own

legal name, no licensee may use any name, in conducting a business regulated by this article that has not been previously approved by the Superintendent.

112. Change of Address (All Addresses, including Email) - (2134; Reg. 5, Part 21.4; Reg. 6, Part 22.3; Reg. 7, Part 23.4) - ✓✓✓Licensees must inform the Superintendent by a means acceptable to the Superintendent of a change of business or residence address within 30 days of the change. This also includes e- mail addresses.
113. Reporting of Actions (2110(i) - ✓✓✓Licensees must report to the Superintendent any administrative action taken against the licensee in another jurisdiction or by another governmental agency in this state within 30 days of the final disposition of the matter. This report must include a copy of the order, consent to order or other relevant legal documents.
114. Cease and Desist Order (2405) - ✓✓✓Whenever the Superintendent has reason to believe that a person has committed or is committing a defined violation or has been engaged in or is engaging in any method of competition, or any act or practice, which could become a determined violation and that a proceeding thereon would be in the interest of the public, he shall serve upon that person a statement of the charges and notice of a hearing to be held at a time not less than 10 days after the date of service of the notice and at the place fixed in the notice. The person will be given an opportunity at the hearing to be heard personally or by counsel. Anyone violating a cease and desist order may be subjected to a fine of up to $5,000 for each violation.
115. Hearings - Notice and Process (2405, Financial Services 305) - ✓✓✓A statement of the charges and notice of a hearing to be held at a time not less than 10 days after the date of service of the notice and at the place fixed in the notice.

116. Suspension, Revocation, and Nonrenewal (2110) - ✓✓✓The Superintendent may refuse to renew, revoke, or may suspend, for a period the Superintendent determines, the license of any insurance producer, insurance consultant or adjuster, if, after notice and hearing, the Superintendent determines that the licensee or any sub-licensee has: (a) Violated any insurance laws, regulation, subpoena or order of the Superintendent of Insurance or of another state's Insurance Commissioner, or has violated any law in the course of his dealings in such capacity; (B) provided materially incorrect, materially misleading, materially incomplete or materially untrue information in the license application; (c) Obtained or attempted to obtain a license through misrepresentation or fraud; (d) has used fraudulent, coercive or dishonest practices, demonstrated incompetence, demonstrated untrustworthiness, or demonstrated financial irresponsibility in the conduct of business in this state or elsewhere; (e) Improperly withheld, misappropriated or converted any monies or properties received in the course of business in this state or elsewhere; (f) Intentionally misrepresented the terms of an actual or proposed insurance contract or application for insurance; (g) Has been convicted of a felony; (h) Admitted or been found to have committed any insurance unfair trade practice or fraud; (i) had an insurance producer license, or its equivalent, denied, suspended or revoked in any other state, province, district or territory;

(J) forged another's name to an application for insurance or to any document related to an insurance transaction; (k) Improperly used notes or any other reference material to complete an examination for an insurance license; (l) Knowingly accepted insurance business from an individual who is not licensed; (m) Failed to comply with an administrative or court order imposing a child support obligation; or (n) Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax.

117. Before revoking or suspending the license of any insurance producer or other licensee pursuant to the provisions of this article, the Superintendent will give notice to the licensee and to every sublicense and will hold, or cause to be held, a hearing not less than 10 days after giving notice. If an insurance producer's license or other licensee's license pursuant to the provisions of this article is revoked or suspended by the Superintendent, the Superintendent will give notice to the licensee.
118. No individual, corporation, firm or association whose license as an insurance producer or other licensee has been revoked, and no firm or association of which such individual is a member, will be entitled to obtain any license under the provisions of this chapter for a period of one year after such revocation, or, if such revocation be judicially reviewed, for one year after the final determination affirming the action of the Superintendent in revoking such license.

119. Before revoking the license of any non-resident insurance producer the Superintendent will give 10 days' notice in writing to the licensee of the action proposed to be taken.
120. The Superintendent retains the authority to enforce the provisions of and impose any penalty or remedy.
121. All licensees must report to the Superintendent any administrative action taken against the licensee in another jurisdiction or by another governmental agency in this state within 30 days of the final disposition of the matter.
122. Within 30 days of the initial pretrial hearing date, a licensee must report to the Superintendent any criminal prosecution of the licensee taken in any jurisdiction.
123. Penalties (2127): - ✓✓✓The Superintendent, in lieu of revoking or suspending the license of a licensee, may in any one proceeding by order, require the licensee to pay a penalty in a sum not exceeding $500 for each offense, and a penalty in a sum not exceeding $2,500 in the aggregate for all offenses.
124. Upon the failure of such a licensee to pay such penalty ordered within 20 days after the mailing of such order, postage prepaid, registered, and addressed to the last known place of business of such licensee, unless such order is stayed by an order of a court of competent jurisdiction, the Superintendent may revoke the license of such licensee or suspend the same for such period as he determines.

125. Superintendent's General Duties and Powers (2404, Financial Services 201, 202, 301) - ✓✓✓The Superintendent is empowered to:
126. Examine and investigate into the affairs of any person in order to determine whether the person has violated or is violating the insurance and regulations of this state. Responses to requests for information by the Superintendent should be made not less than 15 business days.
127. The Superintendent is authorized, after notice and hearing, to levy a civil penalty against such person in an amount not to exceed $500 per day for each day beyond the date specified by the Superintendent for response, but in no event will such penalty exceed $10,000.
128. In the event the Superintendent levies five separate civil penalties against any one person within five years for failure to comply with this section, the Superintendent is authorized, after notice and hearing, to levy an additional civil penalty against not to exceed $50,000.
129. The Superintendent is also authorized to levy additional civil penalties not to exceed $50,000, after notice and hearing, against such person for every five subsequent violations of this section within a five year period. Any licensee may surrender his or her license in lieu of payment of any civil penalty imposed by the Superintendent.
130. Certificate of Authority (1102) - ✓✓✓The certificate of authority is an insurer's license to transact insurance in this state as an authorized insurer.
131. Solvency (307) - ✓✓✓It is required that each insurer file annual financial statements for review by the Superintendent to determine the continued solvency of the insurer.

132. Unfair Claim Settlement Practices (2601; Reg. 64, Part 216.3-216.6) - ✓✓✓Unfair settlement practices include:
133. Knowingly misrepresenting to a claimant pertinent facts or policy provisions related to the coverage’s at issue. Failing to acknowledge within reasonable time, communications with respect to claims arising out of its policies.
134. Failing to adopt and implement reasonable standards of prompt investigation of claims arising out of an insurer's policies. Claims must be promptly investigated to determine liability.
135. Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims submitted in which liability has become reasonable clear.
136. Compelling policyholders to institute suit to recover amounts due under its policies by offering less than the amounts ultimately recovered in suit brought by them
137. Appointment of Agent - ✓✓✓The appointment must be made 15 days from the date an agency contract is executed, or the first application is submitted
138. Termination of Agent Appointment (2112(d); Rags. 9, 18, 29, Part 20.2) - ✓✓✓Every insurer, fraternal benefit society or health maintenance organization or insurance producer or the authorized representative of the insurer, fraternal benefit society, health maintenance organization or insurance producer doing business in this state must, upon termination of a certificate of appointment, file with the Superintendent within 30 days a statement, in such form as the Superintendent may prescribe, the facts relative to such termination for cause.