Download NC Life Agent Exam: Practice Questions and Answers and more Exams Insurance law in PDF only on Docsity!
NC Life Agent Exam with verified solutions
What |!|is |!|the |!|mathematical |!|concept |!|of |!|probability |!|that |!|helps |!|insurers |!| estimate |!|the |!|statistical |!|likelihood |!|of |!|mortality |!|or |!|morbidity |!|losses |!|at |!|any |!| given |!|age? actuarial |!|principle underwriting |!|principle law |!|of |!|probability law |!|of |!|large |!|numbers |!|- |!|correct |!|answer |!| ✔ Law |!|of |!|large |!|numbers From |!|an |!|insurance |!|perspective, |!|all |!|the |!|following |!|statements |!|regarding |!|risk |!| and |!|loss |!|are |!|correct |!|EXCEPT: Risk |!|is |!|defined |!|as |!|the |!|chance |!|of |!|loss. The |!|state |!|of |!|being |!|subject |!|to |!|a |!|loss |!|is |!|called |!|loss |!|exposure. Only |!|speculative |!|risk |!|is |!|insurable. A |!|loss |!|is |!|defined |!|as |!|an |!|unplanned |!|reduction |!|in |!|economic |!|value. |!|- |!|correct |!| answer |!| ✔ Only |!|speculative |!|risk |!|is |!|insurable. All |!|of |!|the |!|following |!|are |!|elements |!|of |!|an |!|insurable |!|risk |!|EXCEPT: Any |!|losses |!|resulting |!|from |!|the |!|insured |!|peril |!|must |!|be |!|definable |!|as |!|to |!|time, |!| cause, |!|and |!|location. The |!|loss |!|must |!|be |!|measurable. The |!|insured |!|peril |!|must |!|be |!|outside |!|of |!|the |!|insured's |!|control. Losses |!|resulting |!|from |!|the |!|insured |!|peril |!|must |!|be |!|potentially |!|catastrophic. |!|- |!| correct |!|answer |!| ✔ Losses |!|resulting |!|from |!|the |!|insured |!|peril |!|must |!|be |!| potentially |!|catastrophic.
Which |!|of |!|the |!|following |!|is |!|an |!|insurable |!|risk? the |!|possibility |!|of |!|becoming |!|disabled |!|and |!|unable |!|to |!|earn |!|an |!|income the |!|possibility |!|of |!|losing |!|money |!|gambling |!|in |!|Las |!|Vegas the |!|possibility |!|of |!|losing |!|money |!|in |!|stock |!|investments the |!|possibility |!|of |!|one's |!|home |!|value |!|decreasing |!|due |!|to |!|a |!|drop |!|in |!|market |!| prices |!|- |!|correct |!|answer |!| ✔ the |!|possibility |!|of |!|becoming |!|disabled |!|and |!|unable |!| to |!|earn |!|an |!|income An |!|insurance |!|company |!|that |!|primarily |!|sells |!|life |!|insurance |!|policies |!|designed |!| for |!|burial |!|and |!|last |!|expense |!|purposes, |!|and |!|whose |!|agents |!|typically |!|collect |!| premiums |!|in |!|person, |!|is |!|known |!|as |!|a: risk |!|retention |!|group reinsurance |!|company fraternal |!|insurance |!|company home |!|service |!|insurance |!|company |!|- |!|correct |!|answer |!| ✔ home |!|service |!|insurance |!|company All |!|of |!|the |!|following |!|are |!|characteristics |!|of |!|a |!|mutual |!|insurance |!|company |!| EXCEPT: They |!|may |!|issue |!|policy |!|dividends. They |!|are |!|governed |!|by |!|a |!|board |!|of |!|directors. They |!|are |!|owned |!|by |!|stockholders. They |!|have |!|minimum |!|financial |!|capital |!|requirements |!|that |!|must |!|be |!|met |!| before |!|they |!|can |!|conduct |!|business. |!|- |!|correct |!|answer |!| ✔ They |!|are |!|owned |!|by |!| stockholders.
a |!|sales |!|agency |!|that |!|is |!|managed |!|by |!|a |!|general |!|agent |!|who |!|is |!|under |!|contract |!| with |!|an |!|insurance |!|company |!|to |!|employ |!|sales |!|agents |!|to |!|represent |!|that |!| company a |!|sales |!|arrangement |!|in |!|which |!|sales |!|are |!|made |!|directly |!|to |!|consumers |!| through |!|mass |!|media |!|channels |!|without |!|the |!|use |!|of |!|producers a |!|sales |!|office |!|that |!|is |!|managed |!|by |!|a |!|general |!|manager |!|who |!|is |!|an |!|insurance |!| company |!|employee an |!|independent |!|sales |!|office |!|that |!|is |!|managed |!|by |!|a |!|Personal |!|Producing |!| General |!|Agent |!|(PPGA) |!|- |!|correct |!|answer |!| ✔ an |!|independent |!|sales |!|office |!|that |!| is |!|managed |!|by |!|a |!|Personal |!|Producing |!|General |!|Agent |!|(PPGA) All |!|of |!|the |!|following |!|statements |!|regarding |!|the |!|career |!|agency |!|distribution |!| system |!|are |!|correct |!|EXCEPT: The |!|managerial |!|form |!|of |!|career |!|agency |!|system |!|uses |!|company |!|employees |!|as |!| the |!|agency |!|managers. There |!|are |!|two |!|types, |!|the |!|general |!|agency |!|system |!|and |!|the |!|managerial |!| system. It |!|uses |!|agents |!|who |!|primarily |!|if |!|not |!|exclusively |!|represent |!|one |!|insurer. Personal |!|producing |!|general |!|agents |!|(PPGAs) |!|are |!|commonly |!|hired |!|to |!|manage |!| career |!|agencies. |!|- |!|correct |!|answer |!| ✔ Personal |!|producing |!|general |!|agents |!| (PPGAs) |!|are |!|commonly |!|hired |!|to |!|manage |!|career |!|agencies. The |!|insurance |!|company |!|function |!|responsible |!|for |!|evaluating |!|the |!|insurable |!| risks |!|and |!|assigning |!|appropriate |!|premium |!|rates, |!|is |!|the: underwriting |!|division claims |!|division actuarial |!|division sales |!|division |!|- |!|correct |!|answer |!| ✔ underwriting |!|division
The |!|federal |!|Risk |!|Retention |!|Act |!|of |!| 1986 |!|contains |!|guidelines |!|for |!|which |!|of |!|the |!|following |!|entities? risk |!|retention |!|groups Fraternal |!|insurance |!|companies surplus |!|lines |!|insurance |!|companies reinsurance |!|companies |!|- |!|correct |!|answer |!| ✔ risk |!|retention |!|groups All |!|of |!|the |!|following |!|are |!|characteristics |!|of |!|a |!|stock |!|insurance |!|company |!| EXCEPT: They |!|may |!|issue |!|dividends. They |!|are |!|governed |!|by |!|a |!|board |!|of |!|directors. They |!|have |!|minimum |!|financial |!|capital |!|requirements |!|that |!|must |!|be |!|met |!| before |!|they |!|can |!|conduct |!|business. They |!|are |!|owned |!|by |!|policyowners. |!|- |!|correct |!|answer |!| ✔ They |!|are |!|owned |!|by |!| policyowners. Why |!|would |!|a |!|large |!|manufacturer |!|choose |!|to |!|self-insure |!|rather |!|than |!|buy |!|an |!| insurance |!|policy |!|from |!|an |!|insurance |!|company? so |!|they |!|can |!|pick |!|and |!|choose |!|which |!|losses |!|they |!|cover to |!|shelter |!|company |!|cash |!|from |!|federal |!|taxation to |!|save |!|insurance |!|premiums |!|by |!|paying |!|relatively |!|minor |!|losses |!|out |!|of |!| company |!|funds to |!|avoid |!|having |!|to |!|comply |!|with |!|state |!|insurance |!|laws |!|dealing |!|with |!| employee |!|benefits |!|- |!|correct |!|answer |!| ✔ to |!|save |!|insurance |!|premiums |!|by |!| paying |!|relatively |!|minor |!|losses |!|out |!|of |!|company |!|funds
In |!|its |!|fiduciary |!|responsibility |!|to |!|its |!|principal, |!|a |!|producer |!|is |!|required |!|to |!|do |!| all |!|the |!|following |!|EXCEPT: solicit |!|business |!|that |!|is |!|certain |!|to |!|be |!|profitable |!|to |!|the |!|insurer carry |!|out |!|authorized |!|activities |!|with |!|reasonable |!|care fully |!|disclose |!|to |!|the |!|insurer |!|all |!|pertinent |!|information |!|that |!|affects |!|the |!| placement |!|of |!|an |!|insurance |!|policy fully |!|account |!|for |!|premiums |!|and |!|submit |!|them |!|to |!|the |!|insurer |!|on |!|a |!|timely |!| basis |!|- |!|correct |!|answer |!| ✔ solicit |!|business |!|that |!|is |!|certain |!|to |!|be |!|profitable |!|to |!| the |!|insurer The |!|purpose |!|for |!|the |!|Buyer's |!|Guide, |!|which |!|must |!|be |!|given |!|to |!|every |!| insurance |!|prospect |!|in |!|the |!|first |!|meeting |!|with |!|a |!|producer, |!|is |!|to: provide |!|buyers |!|with |!|details |!|of |!|the |!|insurance |!|policy |!|they |!|are |!|considering |!|for |!|purchase explain |!|the |!|general |!|features, |!|benefits, |!|and |!|conditions |!|of |!|the |!|type |!|of |!| insurance |!|being |!|considered explain |!|the |!|step-by-step |!|process |!|involved |!|in |!|purchasing |!|the |!|recommended |!| product advise |!|the |!|buyer |!|to |!|consider |!|an |!|alternative |!|to |!|the |!|insurance |!|product |!|being |!|considered |!|- |!|correct |!|answer |!| ✔ explain |!|the |!|general |!|features, |!|benefits, |!|and |!| conditions |!|of |!|the |!|type |!|of |!|insurance |!|being |!|considered Medical |!|expense |!|insurance |!|policies |!|are |!|what |!|type |!|of |!|contract? indemnity |!|contract bilateral |!|contract commutative |!|contract
valued |!|contract |!|- |!|correct |!|answer |!| ✔ indemnity |!|contract Statements |!|that |!|are |!|guaranteed |!|to |!|be |!|true, |!|such |!|as |!|an |!|insurer's |!|promise |!|in |!|the |!|policy, |!|are |!|called: warranties representations petitions declarations |!|- |!|correct |!|answer |!| ✔ warranties Steven |!|is |!|filling |!|out |!|an |!|application |!|for |!|life |!|insurance. |!|The |!|application |!|asked |!| whether |!|he |!|had |!|ever |!|had |!|heart |!|problems. |!|Steven |!|intentionally |!|skips |!|this |!| question |!|even |!|though |!|he |!|had |!|heart |!|surgery |!|three |!|years |!|ago |!|because |!|he |!|is |!| afraid |!|his |!|application |!|will |!|be |!|denied. |!|What |!|is |!|the |!|term |!|for |!|Steven's |!|failure |!| to |!|give |!|his |!|entire |!|medical |!|history? waiver breach |!|of |!|contract concealment estoppel |!|- |!|correct |!|answer |!| ✔ concealment In |!|an |!|insurance |!|transaction, |!|what |!|does |!|the |!|applicant |!|give |!|as |!|consideration? the |!|promise |!|to |!|be |!|a |!|responsible |!|policyowner the |!|promise |!|to |!|follow |!|the |!|terms |!|of |!|the |!|insurance |!|contract the |!|initial |!|premium the |!|promise |!|to |!|pay |!|premiums |!|during |!|the |!|entire |!|policy |!|period |!|- |!|correct |!| answer |!| ✔ the |!|initial |!|premium
both |!|the |!|insurance |!|company |!|and |!|the |!|policyowner only |!|the |!|beneficiary |!|- |!|correct |!|answer |!| ✔ only |!|the |!|insurance |!|company An |!|applicant |!|for |!|a |!|$500,000 |!|whole |!|life |!|insurance |!|policy |!|pays |!|the |!|initial |!| premium |!|along |!|with |!|his |!|application. |!|In |!|this |!|case, |!|what |!|has |!|the |!|applicant |!| done? accepted |!|a |!|counteroffer |!|from |!|the |!|insurer accepted |!|an |!|offer |!|from |!|the |!|insurer made |!|a |!|counteroffer |!|to |!|the |!|insurer made |!|an |!|offer |!|to |!|the |!|insurer |!|- |!|correct |!|answer |!| ✔ made |!|an |!|offer |!|to |!|the |!| insurer If |!|the |!|parties |!|disagree |!|over |!|the |!|terms |!|of |!|an |!|insurance |!|contract, |!|courts |!|will |!| typically |!|interpret |!|anything |!|unclear |!|in |!|the |!|contract |!|in |!|favor |!|of |!|which |!|party? insurance |!|company policyowner agent beneficiary |!|- |!|correct |!|answer |!| ✔ policyowner Deliberately |!|withholding |!|material |!|facts |!|when |!|applying |!|for |!|insurance |!|is |!| called: concealment waiver collusion twisting |!|- |!|correct |!|answer |!| ✔ concealment
Ambiguities |!|in |!|an |!|insurance |!|contract |!|are |!|most |!|often |!|interpreted |!|in |!|favor |!|of |!|the |!|policyowner |!|because |!|insurance |!|contracts |!|are: aleatory conditional unilateral contracts |!|of |!|adhesion |!|- |!|correct |!|answer |!| ✔ contracts |!|of |!|adhesion If |!|an |!|applicant |!|for |!|an |!|insurance |!|policy |!|submits |!|an |!|application |!|without |!|the |!| first |!|premium, |!|which |!|of |!|the |!|following |!|is |!|correct? The |!|applicant |!|has |!|invited |!|the |!|insurer |!|to |!|make |!|an |!|offer. The |!|insurer |!|has |!|made |!|an |!|offer |!|to |!|the |!|applicant. The |!|applicant |!|has |!|made |!|an |!|offer |!|to |!|the |!|insurer. The |!|insurer |!|may |!|not |!|make |!|a |!|counteroffer |!|to |!|the |!|applicant. |!|- |!|correct |!| answer |!| ✔ The |!|applicant |!|has |!|invited |!|the |!|insurer |!|to |!|make |!|an |!|offer. Which |!|of |!|the |!|following |!|statements |!|about |!|utmost |!|good |!|faith |!|in |!|insurance |!| contracts |!|is |!|correct? Only |!|the |!|insurer |!|must |!|act |!|in |!|utmost |!|good |!|faith. Both |!|the |!|insured |!|and |!|insurer |!|must |!|act |!|in |!|utmost |!|good |!|faith. Only |!|the |!|insured |!|and |!|the |!|beneficiary |!|must |!|act |!|in |!|utmost |!|good |!|faith. Only |!|the |!|insured |!|must |!|act |!|in |!|utmost |!|good |!|faith. |!|- |!|correct |!|answer |!| ✔ Both |!| the |!|insured |!|and |!|insurer |!|must |!|act |!|in |!|utmost |!|good |!|faith. Which |!|of |!|the |!|following |!|contract |!|characteristics |!|is |!|unique |!|to |!|insurance |!| contracts |!|but |!|NOT |!|all |!|contracts? legal |!|purpose
a |!|disability |!|income |!|insurance |!|policy a |!|life |!|insurance |!|policy an |!|automobile |!|policy a |!|medical |!|expense |!|insurance |!|policy |!|- |!|correct |!|answer |!| ✔ a |!|life |!|insurance |!| policy What |!|is |!|the |!|term |!|for |!|voluntarily |!|giving |!|up |!|a |!|known |!|right? voidable conditional estoppel waiver |!|- |!|correct |!|answer |!| ✔ waiver Smith |!|and |!|Thomas |!|are |!|licensed |!|producers. |!|Smith |!|knows |!|that |!|Thomas |!|is |!| embezzling |!|money |!|from |!|clients. |!|However, |!|Smith |!|does |!|not |!|notify |!|the |!| Commissioner |!|in |!|order |!|to |!|protect |!|his |!|friend. |!|What |!|is |!|the |!|result? Smith |!|will |!|not |!|be |!|punished |!|because |!|he |!|does |!|not |!|have |!|a |!|fiduciary |!|duty |!|to |!| report |!|the |!|crime. Smith's |!|license |!|will |!|be |!|suspended |!|for |!|up |!|to |!|two |!|years. Smith's |!|license |!|may |!|be |!|revoked. Smith |!|can |!|be |!|sanctioned |!|but |!|not |!|disciplined. |!|- |!|correct |!|answer |!| ✔ Smith's |!| license |!|may |!|be |!|revoked. Emily |!|solicits |!|policies |!|and |!|accepts |!|premiums |!|from |!|the |!|public |!|but |!|is |!|not |!| licensed |!|as |!|an |!|agent. |!|She |!|then |!|turns |!|over |!|the |!|applications |!|and |!|premiums |!| to |!|her |!|husband, |!|who |!|is |!|licensed. |!|Which |!|statement |!|is |!|correct? Emily |!|has |!|committed |!|a |!|felony.
Emily |!|is |!|not |!|required |!|to |!|be |!|licensed |!|to |!|solicit |!|policies |!|and |!|accept |!| premiums. Emily |!|has |!|committed |!|a |!|Class |!| 1 |!|misdemeanor. Emily |!|has |!|not |!|committed |!|any |!|type |!|of |!|unlawful |!|act. |!|- |!|correct |!|answer |!| ✔ Emily |!|has |!|committed |!|a |!|Class |!| 1 |!|misdemeanor. Best |!|Insurance |!|Company |!|is |!|incorporated |!|in |!|Canada |!|and |!|just |!|applied |!|for |!|a |!| license |!|to |!|transact |!|insurance |!|in |!|North |!|Carolina. |!|Which |!|type |!|of |!|insurer |!|is |!| Best |!|Insurance |!|Company |!|considered |!|in |!|North |!|Carolina? alien domestic foreign limited |!|- |!|correct |!|answer |!| ✔ alien Emil, |!|an |!|agent |!|licensed |!|in |!|North |!|Carolina, |!|moves |!|to |!|a |!|new |!|home |!|on |!|April |!|
- |!|He |!|is |!|required |!|to |!|notify |!|the |!|North |!|Carolina |!|Department |!|of |!|Insurance |!|by |!|what |!|date? October |!| 31 May |!| 10 May |!| 7 May |!| 30 |!|- |!|correct |!|answer |!| ✔ May |!| 10 Abby |!|lives |!|in |!|Maryland, |!|where |!|she |!|is |!|licensed |!|as |!|an |!|insurance |!|agent. |!|She |!| wants |!|to |!|apply |!|for |!|a |!|nonresident |!|license |!|in |!|North |!|Carolina. |!|Which |!|of |!|the |!| following |!|conditions |!|must |!|she |!|satisfy? She |!|must |!|move |!|to |!|North |!|Carolina. She |!|must |!|show |!|her |!|license |!|to |!|be |!|in |!|good |!|standing |!|in |!|Maryland.
60 |!|- |!|correct |!|answer |!| ✔ 90 Anthony |!|becomes |!|an |!|agent |!|for |!|Acme |!|Insurance |!|Company. |!|Acme |!|must |!|file |!|a |!|notice |!|of |!|appointment |!|with |!|the |!|Commissioner |!|within |!|how |!|many |!|days? 15 10 31 30 |!|- |!|correct |!|answer |!| ✔ 15 To |!|qualify |!|for |!|an |!|insurance |!|agent's |!|license, |!|a |!|person |!|must |!|have |!|all |!|of |!|the |!| following |!|EXCEPT: licensing |!|fee 18 |!|years |!|of |!|age good |!|reputation |!|and |!|character college |!|degree |!|- |!|correct |!|answer |!| ✔ college |!|degree The |!|Commissioner |!|of |!|Insurance |!|cannot |!|suspend |!|or |!|revoke |!|an |!|agent's |!| license |!|for |!|which |!|of |!|the |!|following |!|reasons? accepting |!|insurance |!|from |!|an |!|unlicensed |!|individual forging |!|an |!|individual's |!|name |!|on |!|an |!|insurance |!|application failing |!|to |!|meet |!|projected |!|sales |!|goals having |!|an |!|agent's |!|license |!|denied |!|or |!|suspended |!|in |!|another |!|state |!|- |!|correct |!| answer |!| ✔ failing |!|to |!|meet |!|projected |!|sales |!|goals
Larry, |!|Brian, |!|Susan, |!|and |!|Jennifer |!|just |!|started |!|working |!|for |!|AllPro |!|Insurance |!| Company |!|in |!|North |!|Carolina. |!|Based |!|on |!|their |!|job |!|descriptions |!|below, |!|which |!| of |!|them |!|is |!|NOT |!|acting |!|as |!|a |!|producer? Susan, |!|who |!|collects |!|insurance |!|premiums |!|for |!|AllPro Brian, |!|who |!|is |!|a |!|vice |!|president |!|in |!|AllPro's |!|human |!|resources |!|department |!|and |!|does |!|not |!|receive |!|commissions Larry, |!|who |!|receives |!|insurance |!|applications |!|from |!|the |!|public Jennifer, |!|who |!|solicits |!|insurance |!|policies |!|for |!|AllPro |!|and |!|receives |!|commissions |!|- |!|correct |!|answer |!| ✔ Brian, |!|who |!|is |!|a |!|vice |!|president |!|in |!|AllPro's |!|human |!| resources |!|department |!|and |!|does |!|not |!|receive |!|commissions Which |!|remedy |!|does |!|the |!|Commissioner |!|have |!|if |!|a |!|person |!|has |!|violated |!|the |!| Insurance |!|Information |!|and |!|Privacy |!|Protection |!|Act? fine |!|of |!|up |!|to |!|$20, criminal |!|sanctions cease |!|and |!|desist |!|order license |!|termination |!|- |!|correct |!|answer |!| ✔ cease |!|and |!|desist |!|order When |!|collecting |!|personal |!|financial |!|or |!|health |!|information, |!|an |!|insurance |!| company |!|is |!|required |!|to |!|do |!|all |!|of |!|the |!|following |!|EXCEPT provide |!|methods |!|for |!|individuals |!|to |!|prevent |!|disclosure |!|of |!|the |!|information. provide |!|individuals |!|with |!|copies |!|of |!|documents |!|disclosed |!|to |!|other |!|parties. notify |!|individuals |!|about |!|the |!|company's |!|privacy |!|practices. describe |!|conditions |!|under |!|which |!|the |!|company |!|may |!|disclose |!|the |!|information |!|to |!|other |!|parties. |!|- |!|correct |!|answer |!| ✔ provide |!|individuals |!|with |!|copies |!|of |!| documents |!|disclosed |!|to |!|other |!|parties.
before |!|disclosing |!|information |!|in |!|response |!|to |!|an |!|administrative |!|order |!|- |!| correct |!|answer |!| ✔ before |!|disclosing |!|information |!|to |!|third |!|parties |!|for |!| telemarketing |!|and |!|sales |!|purposes When |!|comparing |!|her |!|insurance |!|company's |!|policies |!|to |!|those |!|of |!|Zenith |!| Insurance, |!|Melanie |!|makes |!|a |!|misleading |!|statement |!|to |!|convince |!|an |!|insurance |!|prospect |!|to |!|terminate |!|a |!|policy |!|with |!|Zenith |!|and |!|buy |!|one |!|from |!|Melanie's |!| company. |!|What |!|activity |!|has |!|Melanie |!|engaged |!|in? twisting unfair |!|discrimination defamation rebating |!|- |!|correct |!|answer |!| ✔ twisting Which |!|of |!|the |!|following |!|is |!|NOT |!|an |!|unfair |!|claims |!|settlement |!|practice |!|if |!| committed |!|by |!|an |!|insurance |!|company |!|in |!|North |!|Carolina? failing |!|to |!|promptly |!|acknowledge |!|communications |!|about |!|claims offering |!|to |!|settle |!|claims |!|for |!|less |!|than |!|due |!|to |!|encourage |!|litigation raising |!|policy |!|defenses |!|to |!|reduce |!|a |!|claim failing |!|to |!|promptly |!|settle |!|a |!|claim |!|for |!|which |!|liability |!|is |!|uncertain |!|- |!|correct |!| answer |!| ✔ failing |!|to |!|promptly |!|settle |!|a |!|claim |!|for |!|which |!|liability |!|is |!|uncertain When |!|meeting |!|with |!|a |!|prospect |!|to |!|discuss |!|life |!|insurance, |!|Agent |!|Tyler |!|makes |!|disparaging |!|comments |!|about |!|the |!|financial |!|stability |!|and |!|reputation |!|of |!|a |!| competitor |!|to |!|dissuade |!|the |!|prospect |!|from |!|purchasing |!|its |!|policies. |!|Which |!| unfair |!|trade |!|practice |!|has |!|Agent |!|Tyler |!|committed? coercion rebating
unfair |!|discrimination defamation |!|- |!|correct |!|answer |!| ✔ defamation Agent |!|Johns |!|started |!|offering |!|potential |!|clients |!|courtside |!|tickets |!|to |!|a |!| professional |!|basketball |!|game |!|in |!|exchange |!|for |!|purchasing |!|a |!|life |!|insurance |!| policy. |!|Which |!|ethical |!|sales |!|practice |!|has |!|Agent |!|Johns |!|violated? rebating controlled |!|business churning replacement |!|- |!|correct |!|answer |!| ✔ rebating Which |!|of |!|the |!|following |!|is |!|NOT |!|true |!|about |!|fraternal |!|benefit |!|societies? They |!|exist |!|for |!|profit |!|solely |!|for |!|the |!|benefit |!|of |!|their |!|members. They |!|operate |!|on |!|a |!|lodge |!|system. They |!|have |!|no |!|capital |!|stock. They |!|have |!|a |!|representative |!|form |!|of |!|government |!|- |!|correct |!|answer |!| ✔ They |!| exist |!|for |!|profit |!|solely |!|for |!|the |!|benefit |!|of |!|their |!|members. Which |!|statement |!|regarding |!|the |!|licensing |!|of |!|fraternal |!|benefit |!|society |!|agents |!| is |!|TRUE? They |!|are |!|not |!|required |!|to |!|be |!|licensed |!|as |!|agents. They |!|must |!|be |!|licensed |!|as |!|agents |!|but |!|are |!|not |!|required |!|to |!|take |!|the |!|licensing |!|exam. They |!|must |!|be |!|licensed |!|as |!|special |!|agents |!|only. They |!|must |!|comply |!|with |!|the |!|same |!|licensing |!|requirements |!|that |!|apply |!|to |!| resident |!|and |!|nonresident |!|agents. |!|- |!|correct |!|answer |!| ✔ They |!|must |!|comply |!|
