Free New Hampshire Life & Health practice questions

Answer: D. Hold them in the trust account and remit them to the client within 15 days

Ins 4301.06 makes the producer a fiduciary for return premiums. The producer must keep the return premium in the trust account until it is remitted to the client, and remittance must occur no later than 15 days from the date the carrier determines the return premium. A 30-day period is longer than the rule allows. Moving the money to an operating account breaks the requirement to keep it in the trust account, and the rule sends the money to the client rather than to the producer's commission. If the return premium cannot be delivered to the insured, the rule requires the funds to be returned to the insurer.

Answer: C. A nominal flat amount paid whether or not the customer buys a policy

RSA 406-C:12(I) lets an unlicensed employee of a financial institution refer a party to a licensed person only if the referral compensation stays at or below a nominal amount and is not based on or related to whether the party buys insurance. A small flat payment owed regardless of the outcome meets both conditions. A percentage of premium, a bonus triggered by a sale, and a share of the producer's commission are each tied to the customer's purchase, and disclosing the arrangement does not change that.

Answer: B. Within 15 days of the agency contract's execution or the first application

RSA 402-J:14(II) requires the appointing insurer to file a notice of appointment, in a format the commissioner approves, within 15 days after the agency contract is executed or the first insurance application is submitted. The period is measured from the contract or the first application, not from the date the producer's license was issued, not from the end of a month of sales, and not from any action by the commissioner, and the period is 15 days rather than 10 or 30.

Answer: A. The Grafton County superior court, where the producer is entitled to a trial de novo

RSA 417:11 sends appeals from the commissioner's orders or decisions under RSA 417:10 to the supreme court under RSA 541, but it carves out fines: a party aggrieved by a fine appeals to the superior court in the county of residence if a New Hampshire resident, or to the Merrimack county superior court if a nonresident, and receives a trial de novo there. A resident of Grafton County therefore goes to that county's superior court. The supreme court route covers other orders, Merrimack County is the venue only for nonresidents, and the statute does provide court review.

Answer: D. Ask the applicant why it was filled, and it may request documents verifying the answer

RSA 417:4(VIII)(h) covers life coverage, annuity contracts and disability coverage. It makes it an unfair practice to refuse to insure, refuse to continue to insure, or limit coverage because the applicant who is the proposed insured filled an opioid antagonist prescription that is not relevant to the applicant's own health but is meant to protect someone else. For any such prescription the insurer must ask the applicant the reason for it, and it may request documentation verifying the response before deciding. Declining on an assumption of the applicant's own use skips the required inquiry, and the subparagraph calls for neither a referral to the Commissioner nor an application from the relative.

Answer: C. A felony, because the offender is a person other than a natural person

RSA 402-J:3(II) grades unlicensed producer activity by who commits it. A natural person who acts as a producer without a license commits a class A misdemeanor, while any other person, such as a corporation, commits a felony. The class A misdemeanor grade is tied to natural persons, so it does not reach the corporation. The statute makes the conduct a crime, so an administrative fine alone is not the classification it assigns, and the paragraph contains no class B misdemeanor grade and no fraud condition.

Answer: A. Within 15 days following the effective date of the termination

RSA 402-J:15(I) requires an insurer that terminates a producer relationship for a reason listed in RSA 402-J:12 to notify the Commissioner within 15 days after the termination takes effect, using a format the Commissioner prescribes. The 30-day figure belongs to a different step in the same section: it is the window the producer has to file written comments after receiving a copy of the notification. A 5-working-day deadline and a deadline tied to the renewal date do not appear in the section's notification requirement.

Answer: D. That the annuity is not a deposit and is not federally insured by the FDIC

RSA 406-C:8(I) requires all advertising, promotional material and solicitation by a financial institution to carry a prominent disclosure that a purchase of insurance is not a deposit and is not insured by the FDIC or any other federal agency, along with a statement that it is not guaranteed by the institution or an affiliate unless such a guarantee exists. Claiming FDIC coverage reverses the required disclosure, and describing the annuity as a bank deposit contradicts it. The disclosure must appear in the advertising itself, so deferring it to the point of sale does not satisfy the section.

Answer: C. No, the exemption does not allow ending it on age alone until age 80

RSA 417:4(VIII)(e) makes it an unfair practice to refuse to insure solely because of age, but it excepts life, accident and health insurance from that part of the rule. The same subparagraph then limits the exception: it does not allow a mortgage life policy or certificate to cease, cancel or terminate solely because of the mortgagor's age until the mortgagor reaches 80. A mortgagor of 75 is below that age, so termination on age alone is not permitted. The life exception is therefore not unlimited, the subparagraph names 80 rather than 70, and age may be considered in life, accident and health insurance because of the exception.

Answer: C. Only if the creditor pays the premium or other charge in full

RSA 417:4(XVI)(f) bars an insurer from automatically writing insurance on a debtor on the principle that coverage applies unless the debtor specifically rejects it. The paragraph makes one exception: where the creditor pays the premium, or any other identifiable charge, in full. Telling the borrower about the charge, giving the borrower a period in which to reject, or capping the coverage at the loan balance does not satisfy the exception, because the paragraph names only payment in full by the creditor.