Free Kansas Life practice questions

Answer: A. No liability or cause of action arises against the board member for that action

K.S.A. 40-3017 grants immunity: no liability and no cause of action of any kind arises against member insurers and their agents or employees, the association and its agents or employees, members of the board of directors, or the Commissioner and the Commissioner's representatives, for any action or omission in performing their powers and duties under the act. Because the board member acted within those duties, the section bars the claim outright; it sets no dollar threshold, no payment from an association account, and no Commissioner approval step that would let the suit proceed.

Answer: B. Notice to the named beneficiary at the last known address that interest runs from receipt of due proof of death, at a stated rate

Once interest becomes owed, K.S.A. 40-447(c) requires the insurer to tell the named beneficiary, at the beneficiary's last known address, that interest will be paid from the date due proof of death was received, and the notice must specify the rate. The notice goes to the beneficiary, so a notice to the Commissioner does not satisfy the section. Under subsection (a), interest is computed from the date the insurer received due proof of death, not from the date of death and not from the end of the 10-day period, and the notice must state the rate rather than leave it open.

Answer: A. All full-time employees who have completed 90 days of service with the employer

K.S.A. 40-433(1)(a) requires that the employees eligible under an employer group life policy be all of the employer's employees, or all members of one or more classes defined by conditions that pertain to their employment. Full-time status and length of service are employment conditions, so a class of all full-time employees with 90 days of service qualifies. Choosing workers one at a time is individual selection, not a class. A class drawn by where the worker lives or by whether a spouse applies is defined by something other than the worker's employment.

Answer: C. Serve a statement of charges and hold a hearing under the Kansas administrative procedure act

K.S.A. 40-2406(a) applies when the Commissioner has reason to believe a person has engaged or is engaging in an unfair method of competition or an unfair or deceptive act, whether or not K.S.A. 40-2404 defines it, and a proceeding would be in the public interest. The Commissioner must then issue and serve a statement of the charges and conduct a hearing under the Kansas administrative procedure act. The hearing comes before any finding, so immediate revocation is wrong. The power is not limited to practices defined in K.S.A. 40-2404, and the section does not call for a criminal referral.

Answer: B. Prompt a person to sell a life policy under a viatical settlement contract

K.S.A. 40-5002(a) defines advertising, for the viatical settlements act, by its purpose: creating interest in, or inducing a person to, sell a life insurance policy under a viatical settlement contract. The definition reaches written, electronic and printed material, recorded telephone messages, and radio, television, internet and similar media, so it is not limited to print. A communication urging someone to buy a new policy, or one recruiting brokers, does not have the purpose the definition names.

Answer: C. He does not qualify while the suspension lasts, because he must hold a current resident license in good standing at home

One condition for a Kansas nonresident agent license is that the applicant currently holds a resident license in good standing in the applicant's home state. Marcus's home state is Nebraska, and a suspended Nebraska license is not a current license in good standing, so he does not meet that condition while the suspension lasts. Nonresident licenses in other states do not satisfy it, because the condition looks to the resident license in the home state. Reciprocity by Nebraska is a separate condition in the same list; it does not replace the home-state license. Passing a Kansas examination is not one of the conditions the nonresident section sets, so it cannot cure the missing home-state license.

Answer: A. Three accounts

K.S.A. 40-3005(a) defines an account as any of the three accounts created under K.S.A. 40-3006, which lists a health account, a life insurance account and an annuity account that excludes unallocated annuities. Two is the number of assessment classes (class A and class B) under K.S.A. 40-3009, not the number of accounts. There is no fourth account, and the accounts are organized by line of coverage rather than by member insurer.

Answer: D. The Kansas Commissioner of Insurance

Kan. Stat. Ann. Sec. 40-104 gives the Commissioner of Insurance supervision over the organization or reorganization of Kansas-organized insurers and over the sale of their stock, bonds and other evidences of interest or indebtedness. Its final sentence extends that supervision to sales made in Kansas of such securities by companies organized under the laws of another state or country. That sentence is why the answer is not limited to domestic companies and does not rest with the home-state regulator alone. The section gives this supervision to the Commissioner, not to the Secretary of State.

Answer: D. 60% of the original face amount

Under K.S.A. 40-3016(a), unless the Commissioner allows a longer period, a member insurer may at its option carry a certificate of contribution as an asset on a declining schedule: 100% in the calendar year of issuance, 80% in the first calendar year after, 60% in the second, 40% in the third and 20% in the fourth. A certificate issued in 2026 is in its second calendar year after issuance in 2028, so 60% applies. The 100% figure belongs to 2026, 80% to 2027 and 40% to 2029.

Answer: C. For up to 180 days, without a written examination

The Commissioner may issue a temporary insurance agent license for no more than 180 days without requiring the applicant to pass a written examination, and the surviving spouse of a licensed agent who dies, needing time to sell the agent's insurance business, is one of the persons who may receive it. A 90-day period and a one-year period do not match this provision, and the provision dispenses with the examination rather than requiring it.