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Life and Health Insurance Producer Exam

Conduct (VT): practice questions

Our Life & Health Insurance bank has 9 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 · Vermont

What is the maximum Vermont administrative penalty for each willful violation of the Insurance Trade Practices Act?

  1. $250,000
  2. $10,000
  3. $5,000
  4. $1,000
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B. $10,000 — 8 V.S.A. § 4726(b).

Question 2 · Vermont

A Vermont producer charges a client a fee directly for advice on insurance. What is required to avoid an unfair practice?

  1. Nothing; fees for advice are unregulated
  2. A prior written fee agreement with the client
  3. Approval of the fee by the producer's appointing insurer
  4. A verbal disclosure at the first meeting
Show the answer

B. A prior written fee agreement with the client — 8 V.S.A. § 4724(14).

Question 3 · Vermont

A Vermont producer sets an appointment to discuss Medicare products. What is needed before other products can be pitched at that meeting?

  1. A consumer request, with the products named in writing 48 hours ahead
  2. The insurer's advance approval of the meeting agenda
  3. Nothing; any product may be discussed
  4. Verbal consent from the consumer at the start of the meeting itself
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A. A consumer request, with the products named in writing 48 hours ahead — 8 V.S.A. § 4804(a)(8)(A)(ii).

Question 4 · Vermont

A producer misrepresents a policy to get a client to let an existing policy lapse and buy a new one. Under 8 V.S.A. § 4724, this is:

  1. Coercion and intimidation
  2. Rebating
  3. Twisting
  4. Defamation
Show the answer

C. Twisting — 8 V.S.A. § 4724(1)(F).

Question 5 · Vermont

Under Vermont's Insurance Trade Practices Act, how must a producer treat premiums and return premiums received?

  1. As a fiduciary, paying them on time to whoever is owed
  2. As commission income once the free-look period ends
  3. As the producer's own funds until the policy is issued
  4. As a loan to the agency, repaid within 90 days
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A. As a fiduciary, paying them on time to whoever is owed — 8 V.S.A. § 4724(12).

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