Maryland Laws and Rules Ch. 12
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ABC Insurance Agency is entering each applicant who purchases
insurance through their agency into a drawing to win a free trip. This is an
unlawful insurance practice known as...
a. illegal inducement
b. false advertising
c. concealment
d. fraud - ✔✔illegal inducement
A producer does NOT have a fiduciary responsibility to...
a. insurers
,b. insureds
c. applicants
d. the Guaranty Association - ✔✔the Guaranty Association
Which of the following is NOT considered to be an act of fraud?
a. collecting a premium for insurance that is not provided
b. collecting a charge for insurance that is less than the charge applicable to that
insurance
c. misappropriate or unreasonably withhold premiums or returned premiums
d. willfully collecting a premium that exceeds the amount of the actual premium -
✔✔collecting a charge for insurance that is less than the charge applicable to
that insurance
The act of using misrepresentation to induce an insured person to terminate an
existing policy and purchase a new policy is referred to as
, a. twisting
b. subrogation
c. a life settlement
d. coercion - ✔✔twisting
The standard grace period for a life insurance policy sold in Maryland is
a. 15 days
b. 30 days
c. 45 days
d. 60 days - ✔✔30 days
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