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Life and Health Insurance Producer Exam

Conduct (IA): practice questions

Our Life & Health Insurance bank has 7 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Iowa

Under Iowa Code 522B.11(7), when does an Iowa producer owe duties beyond those set in Sandbulte v. Farm Bureau Mutual?

  1. Whenever the producer has served the same client for more than five years
  2. Whenever the policy sold has a face amount over $500,000
  3. When paid for advice apart from commissions as a held-out specialist
  4. Whenever the producer holds any professional designation
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C. When paid for advice apart from commissions as a held-out specialist — Iowa Code 522B.11(7)(a).

Question 2 · Iowa

An Iowa insurer wants to pilot a value-added service for which it lacks documented objective criteria. What must it do so the service is not an illegal rebate?

  1. Get written consent from every affected policyholder before launch
  2. Nothing, since value-added services can never count as rebates
  3. Notify the commissioner; proceed if no objection in 21 days
  4. File it as a rate change and wait 90 days for the commissioner's approval
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C. Notify the commissioner; proceed if no objection in 21 days — Iowa Code 507B.4(3)(i)(2)(d)(v).

Question 3 · Iowa

Under Iowa's unfair trade practice rules, twisting is inducing someone to lapse, surrender or convert a policy to buy another when the action does what?

  1. Results in a higher commission for the replacing producer
  2. Operates to the overall detriment of the individual's interests
  3. Occurs within two years after the original policy was issued
  4. Involves policies issued by two different insurers
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B. Operates to the overall detriment of the individual's interests — Iowa Admin. Code r. 191-15.2 (definition of "twisting"); r. 191-15.7.

Question 4 · Iowa

Under Iowa Code 507B.4, circulating a false or maliciously critical statement about a competitor's financial condition, calculated to injure it, is called what?

  1. Defamation
  2. Misrepresentation
  3. Twisting
  4. Boycott
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A. Defamation — Iowa Code 507B.4(3)(c).

Question 5 · Iowa

May an Iowa producer solicit or accept being named beneficiary of a customer's life insurance policy?

  1. Yes, if the customer signs a notarized consent form first
  2. Yes, provided the death benefit is under $10,000
  3. Only if the insurer's compliance officer approves in writing
  4. Only if the customer is in the producer's immediate family
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D. Only if the customer is in the producer's immediate family — Iowa Admin. Code r. 191-15.8(5)(b)(3).

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