Licensing Requirements Flashcards

An agent's life insurance license lapses due to non-renewal. How long does most states allow for reinstatement without retaking the full licensing exam?

Answer: 2 years

Most states allow a 2-year window to reinstate a lapsed license without requiring the agent to retake the full licensing examination.

Which of the following activities generally requires a separate Variable Life license in addition to a basic life insurance license?

Answer: Selling variable annuities

Variable annuities and variable life products involve securities, requiring agents to hold both a life insurance license and a securities (variable products) license.

A licensed agent moves from Texas to California and wants to continue selling life insurance. What must the agent do?

Answer: Apply for a California resident license within 90 days

When an agent relocates their primary residence to a new state, they must apply for a resident license in the new state, typically within 90 days.

Which entity is primarily responsible for investigating complaints against licensed insurance agents?

Answer: The state Department of Insurance

The state Department of Insurance has jurisdiction over licensed agents operating within its state and investigates consumer complaints against them.

An agent who sells insurance without a valid license is subject to which of the following consequences?

Answer: Criminal charges and civil penalties

Selling insurance without a valid license is illegal and can result in criminal charges, civil penalties, and disgorgement of commissions earned.

Under the NAIC Producer Licensing Model Act, which of the following is a required disclosure when applying for a life insurance license?

Answer: Any felony convictions and certain misdemeanor convictions

License applicants must disclose criminal history, including felony convictions and certain misdemeanors, as this bears on trustworthiness to hold a license.

A life insurance agent wants to be appointed by a second insurer while already appointed by the first. What is generally required?

Answer: Simply file a new appointment with the state for the second insurer

Agents may hold multiple appointments simultaneously; each insurer files a separate appointment with the state, and no consent from existing appointers is required.