The Connecticut Insurance Commissioner discovers that a licensed life settlement broker made a material misrepresentation in its license application. What action does Connecticut law authorize the commissioner to take?

The commissioner may suspend or revoke the license, or refuse to renew it, because of that misrepresentation

After a hearing, the commissioner determines that an insurer committed an unfair trade practice defined in Connecticut's insurance trade practices law. In ordering the insurer to cease and desist, what does the statute require the commissioner to do?

Make written findings, then issue the order and have it served

A Connecticut life policyholder makes a demand on the insurer for a copy of the application on which the policy was issued. The insurer does not provide it, and 35 days pass. The insured later dies, and the insurer resists the claim by pointing to a misstatement in the application. What is the effect of the insurer's failure?

The insurer is permanently barred from that defense, and the application is treated as true

A deferred annuity delivered in Connecticut gives the owner substantive participation in an equity indexed benefit, and the insurer takes the additional reduction the nonforfeiture statute permits when computing the minimum nonforfeiture interest rate. What caps the present value of that additional reduction at issue and at each redetermination date?

The market value of the contract's equity index benefit

After a hearing, the commissioner finds that a life and health producer committed an unfair or deceptive act in violation of section 38a-816 and that the producer knew or reasonably should have known the conduct was a violation. The producer has not violated any cease and desist order. What is the maximum monetary penalty the commissioner may order?

$25,000 per act, capped at $250,000 in total in any six-month period

A third-party administrator asks the commissioner to waive its surety bond and submits audited annual financial statements prepared on a consolidated basis. The required consolidating or combining worksheet must include all of the following EXCEPT

a forecast of each entity's net worth for the next fiscal year

A newly licensed producer expects to write $20,000 in premiums on policies for the producer, the producer's spouse and the producer's employer, and $150,000 in premiums on policies for the general public. Under Connecticut's rule on licenses used mainly to earn commissions on such personal and employer business, what follows?

It is conclusively presumed to be used principally for that purpose, since $150,000 does not exceed nine times $20,000

A fire and casualty insurer terminates a producer's appointment and, as Connecticut law requires, permits renewal of the policies that producer wrote. What commission must the insurer pay the terminated producer on those renewals?

The same amount paid on similar policies during the 12 months before the termination notice

An insurer is licensed in Connecticut to write life insurance and annuities but holds no Connecticut health insurance license. It plans to issue a deferred annuity whose long-term care benefit waives surrender charges. Under Connecticut law, may it issue the contract?

No, because the company must be licensed in Connecticut for both life and health insurance

Free Connecticut Life practice questions

10 questions · no signup
Nothing is saved.

Real questions with the answer, the reasoning and the source.

1.The Connecticut Insurance Commissioner discovers that a licensed life settlement broker made a material misrepresentation in its license application. What action does Connecticut law authorize the commissioner to take?
Answer: D. The commissioner may suspend or revoke the license, or refuse to renew it, because of that misrepresentation
Connecticut lists a material misrepresentation in a license application, or in other information given to the commissioner, as a ground on which the commissioner may deny an application or suspend, revoke or refuse to renew a life settlement license. The grounds are listed in the alternative, so a felony conviction, which is a separate ground, is not also required. Suspension and revocation are available during the license term rather than only at renewal, and the commissioner takes the action directly; a licensee aggrieved by it may appeal under chapter 54.
Source
Conn. Gen. Stat. Sec. 38a-465b(a)(1) (Denial, suspension or revocation of license)
Choose an answer to see the explanation.
2.After a hearing, the commissioner determines that an insurer committed an unfair trade practice defined in Connecticut's insurance trade practices law. In ordering the insurer to cease and desist, what does the statute require the commissioner to do?
Answer: B. Make written findings, then issue the order and have it served
When a hearing establishes that a person engaged in a defined unfair trade practice, the commissioner must put the findings in writing and then issue an order requiring the person to stop, served on the person charged. A court injunction sought through the attorney general is a route the law provides for practices that are not among the defined ones, and it is not a precondition to a cease and desist order. The order does not depend on the insurer's consent, and nothing in the provision calls for legislative review.
Source
Conn. Gen. Stat. Sec. 38a-817(b) (Hearings, subpoenas, violations, penalties, restitution orders, appeals)
Choose an answer to see the explanation.
3.A Connecticut life policyholder makes a demand on the insurer for a copy of the application on which the policy was issued. The insurer does not provide it, and 35 days pass. The insured later dies, and the insurer resists the claim by pointing to a misstatement in the application. What is the effect of the insurer's failure?
Answer: D. The insurer is permanently barred from that defense, and the application is treated as true
When a life insurer fails for thirty days after a demand to furnish a copy of the application, Connecticut law bars it forever from defending a suit on the policy on the basis of any error, fraud, misrepresentation or mistake in the application, and the application is then taken as true and correct so far as it affects a claim. Thirty-five days exceeds the thirty-day window. The bar covers fraud as well as innocent error, it is not limited to a contestable period, and subsection (b) prescribes the loss of the defense rather than a payment to the commissioner.
Source
Conn. Gen. Stat. Sec. 38a-437(b) (Copy of application to be furnished)
Choose an answer to see the explanation.
4.A deferred annuity delivered in Connecticut gives the owner substantive participation in an equity indexed benefit, and the insurer takes the additional reduction the nonforfeiture statute permits when computing the minimum nonforfeiture interest rate. What caps the present value of that additional reduction at issue and at each redetermination date?
Answer: C. The market value of the contract's equity index benefit
Sec. 38a-440(c)(4) lets a contract with substantive participation in an equity indexed benefit enlarge the 125-basis-point reduction used in setting the minimum nonforfeiture interest rate by up to an additional 100 basis points, and caps the present value of that added reduction, at issue and at each redetermination date, at the market value of the benefit. The commissioner may require a demonstration of that limit and may disallow or limit the reduction if no acceptable demonstration is made, so the insurer does not set the ceiling itself. The 87.5 percent figure is the statute's measure of net considerations under subsection (c)(2), not a cap on this reduction, and the statute does not tie the cap to cash surrender value.
Source
Conn. Gen. Stat. Sec. 38a-440(c)(4) (Minimum nonforfeiture benefits for annuity contract holders)
Choose an answer to see the explanation.
5.After a hearing, the commissioner finds that a life and health producer committed an unfair or deceptive act in violation of section 38a-816 and that the producer knew or reasonably should have known the conduct was a violation. The producer has not violated any cease and desist order. What is the maximum monetary penalty the commissioner may order?
Answer: B. $25,000 per act, capped at $250,000 in total in any six-month period
Under Sec. 38a-817(b)(1), the ordinary ceiling for a violation of section 38a-816 is $5,000 for each act, with an aggregate limit of $50,000. Where the person knew or reasonably should have known of the violation, the ceiling rises to $25,000 for each act, with an aggregate limit of $250,000 in any six-month period. The $5,000 and $50,000 figures apply only where that knowledge is absent, and the same section reserves a $50,000 per-act penalty for violating a cease and desist order, which did not happen here. The $1,000 and $10,000 figures are not the limits in the section as it now reads.
Source
Conn. Gen. Stat. Sec. 38a-817(b)(1) (Hearings; violations; penalties)
Choose an answer to see the explanation.
6.A third-party administrator asks the commissioner to waive its surety bond and submits audited annual financial statements prepared on a consolidated basis. The required consolidating or combining worksheet must include all of the following EXCEPT
Answer: B. a forecast of each entity's net worth for the next fiscal year
Under Sec. 38a-720j(a)(2), the commissioner may waive the surety bond if the applicant submits audited annual financial statements or reports for its two most recent fiscal years showing a positive net worth. Where those statements are consolidated, a columnar consolidating or combining worksheet must be filed with them, and it must carry the amounts from the consolidated report, each entity's amounts stated separately, and explanations of the consolidating and eliminating entries. A forecast of future net worth is not among the worksheet contents the statute lists.
Source
Conn. Gen. Stat. Sec. 38a-720j(a)(2) (Surety bond required. Audited annual financial statements in lieu of bond.)
Choose an answer to see the explanation.
7.A newly licensed producer expects to write $20,000 in premiums on policies for the producer, the producer's spouse and the producer's employer, and $150,000 in premiums on policies for the general public. Under Connecticut's rule on licenses used mainly to earn commissions on such personal and employer business, what follows?
Answer: A. It is conclusively presumed to be used principally for that purpose, since $150,000 does not exceed nine times $20,000
Sec. 38a-782(b) bars using a producer license mainly to earn commissions on business whose premium is paid by the producer, the producer's spouse, the producer's employer, or a corporation the producer controls. The measure is a multiple: if premiums written or intended for the general public do not exceed nine times the premiums on that personal and employer business, the license is conclusively presumed to be used principally for that purpose. Nine times $20,000 is $180,000, and $150,000 does not exceed it, so the presumption applies. A five-times multiplier is wrong, spouse and employer policies are expressly counted, and the provision contains no more-than-half test.
Source
Conn. Gen. Stat. Sec. 38a-782(b) (Conduct required of applicants and producers)
Choose an answer to see the explanation.
8.A fire and casualty insurer terminates a producer's appointment and, as Connecticut law requires, permits renewal of the policies that producer wrote. What commission must the insurer pay the terminated producer on those renewals?
Answer: B. The same amount paid on similar policies during the 12 months before the termination notice
Sec. 38a-709(c) requires an insurer renewing contracts under the section to pay the terminated producer the same amount it paid that producer on similar policies in the twelve months immediately before the termination notice. A halved amount has no basis in the section. Eighteen months is the length of the renewal period under subsection (a), not the look-back period for measuring the commission. The insurer may not substitute the schedule it uses for its current producers. By its own terms the section reaches fire and casualty business and does not apply to producer contracts for life or accident and health insurance.
Source
Conn. Gen. Stat. Sec. 38a-709(c) (Termination of producer's appointment and contract)
Choose an answer to see the explanation.
9.An insurer is licensed in Connecticut to write life insurance and annuities but holds no Connecticut health insurance license. It plans to issue a deferred annuity whose long-term care benefit waives surrender charges. Under Connecticut law, may it issue the contract?
Answer: D. No, because the company must be licensed in Connecticut for both life and health insurance
Connecticut allows a life insurance company doing business in the state to issue annuity contracts, or riders or endorsements to them, that provide long-term care benefits, including benefits that waive surrender charges or accelerate a specified portion of the annuity value. That authority is conditioned on the company being licensed in Connecticut for both life and health insurance. Because this insurer lacks a health license, it cannot issue the contract, whichever of those two forms the benefit takes. Annuities are expressly included in the authority, so a rule confining long-term care benefits to life policies misstates the law.
Source
Conn. Gen. Stat. Sec. 38a-458(b) (Life insurance policies and annuities providing long-term care benefits)
Choose an answer to see the explanation.
10.What minimum age must the commissioner find that an individual has reached before approving an application for a resident insurance producer license in Connecticut?
Answer: D. at least eighteen years of age
Before approving a resident producer application, the commissioner must find, among other things, that the applicant has reached at least eighteen years of age. An applicant younger than that falls short of the minimum, and the other ages offered are not the minimum Connecticut sets.
Source
Conn. Gen. Stat. Sec. 38a-702e(a) (Application for license, examination, waiver of examination requirement)
Choose an answer to see the explanation.

The other 254 questions are $29.

Lifetime access, the full timed simulator, drills on the areas that cost you marks, and a readiness score that tells you when to book. One payment, nothing recurring, nothing else to buy.

Take the free scored exam See what access includes

The scored exam is free, 20 questions in 30 minutes, and needs an account. These 10 do not.

1.The Connecticut Insurance Commissioner discovers that a licensed life settlement broker made a material misrepresentation in its license application. What action does Connecticut law authorize the commissioner to take?

2.After a hearing, the commissioner determines that an insurer committed an unfair trade practice defined in Connecticut's insurance trade practices law. In ordering the insurer to cease and desist, what does the statute require the commissioner to do?

6.A third-party administrator asks the commissioner to waive its surety bond and submits audited annual financial statements prepared on a consolidated basis. The required consolidating or combining worksheet must include all of the following EXCEPT

8.A fire and casualty insurer terminates a producer's appointment and, as Connecticut law requires, permits renewal of the policies that producer wrote. What commission must the insurer pay the terminated producer on those renewals?

9.An insurer is licensed in Connecticut to write life insurance and annuities but holds no Connecticut health insurance license. It plans to issue a deferred annuity whose long-term care benefit waives surrender charges. Under Connecticut law, may it issue the contract?

10.What minimum age must the commissioner find that an individual has reached before approving an application for a resident insurance producer license in Connecticut?

The other 254 questions are $29.