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Life and Health Insurance Producer Exam

Conduct (KY): practice questions

Our Life & Health Insurance bank has 6 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 · Kentucky

An agent circulates a flyer falsely claiming a competing insurer is close to insolvency, to win its clients. What has the agent committed?

  1. Unfair discrimination
  2. Defamation
  3. Rebating
  4. Controlled business
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B. Defamation — KRS 304.12-060.

Question 2 · Kentucky

An agent compares two life policies with untrue statements to persuade a client to surrender an existing policy. Which provision does this violate?

  1. KRS 304.12-235, which sets the time limits for paying claims under any policy
  2. KRS 304.9-390, which requires agents to keep a public place of business
  3. KRS 304.12-030(4), which bans misleading comparisons to induce a lapse or surrender
  4. KRS 304.12-150, which protects a borrower's free choice of agent and insurer
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C. KRS 304.12-030(4), which bans misleading comparisons to induce a lapse or surrender — KRS 304.12-030(4).

Question 3 · Kentucky

With whom may a Kentucky agent share a commission earned on a life insurance sale?

  1. Any person who referred the client, if the client agrees in writing
  2. Only the agent's spouse or other close family members who live in Kentucky
  3. Only someone licensed under Subtitle 9 for the kind of insurance involved
  4. Anyone, provided the agent reports the payment on the next renewal
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C. Only someone licensed under Subtitle 9 for the kind of insurance involved — KRS 304.9-421.

Question 4 · Kentucky

Under Kentucky's gift rules, which may an agent offer while marketing a policy?

  1. Any gift of any value if it is given only after the policy has been issued
  2. Gift cards worth up to $500 to each applicant who completes and signs an application for coverage
  3. Cash gifts up to $100 per person, as long as they are reported to the insurer
  4. Non-cash gifts costing no more than $250 a year, not tied to buying or renewing
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D. Non-cash gifts costing no more than $250 a year, not tied to buying or renewing — KRS 304.12-092(1)(a)1.

Question 5 · Kentucky

How must an agent hold premiums collected from insureds that are owed to an insurer?

  1. In an escrow account held by the commissioner until the policy free look ends
  2. In a fiduciary capacity, never misappropriated, converted or illegally withheld
  3. In the agent's own operating account, as long as the money reaches the insurer within one year
  4. As the agent's property until the policy is issued, then forwarded less commission
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B. In a fiduciary capacity, never misappropriated, converted or illegally withheld — KRS 304.9-400.

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