AD Banker Chapter 14- Kansas Life and Health Laws

Which of the following is not a reason for which the Commissioner may conduct a hearing? A A person fails to respond to an inquiry by the Commissioner B The Commissioner has reason to believe that a person is engaging in an unfair trade practice C A person fails to file a report with the Commissioner D A producer inadvertently submitted the incorrect application form to the insurer

A producer inadvertently submitted the incorrect application form to the insurer

According to Kansas law, a viatical settlement broker is: A The owner of a life insurance policy who enters into a viatical settlement contract B A representative of the viator in negotiating viatical settlement contracts C A representative of the viatical settlement provider in negotiating viatical settlement contracts D A person, other than a viator, who enters into a viatical settlement contract or obtains financing for the purchase of a viatical settlement

A representative of the viator in negotiating viatical settlement contracts

In Kansas, which of the following is correct regarding a temporary license? A A temporary license may be issued to the surviving spouse of a disabled or deceased producer B A temporary license may be issued up to 180 days after successfully completing the licensing examination C A temporary license may not be renewed D The duration of a temporary license may not exceed 80 days

A temporary license may be issued to the surviving spouse of a disabled or deceased producer

Under Kansas law, which of the following rate discrimination practices is allowed? A Based on actuarial data B Between a blind person and a sighted person C Based solely on geographic location D Based solely on the insured's age in auto liability policies

Based on actuarial data Geographic location is an allowable factor when based on sound underwriting and actuarial data, but using geographic location as the sole determining factor is prohibited. In auto policies, Kansas law prohibits discrimination on the basis of age alone.

Which of the following scenarios is NOT considered an example of rebating? A Offering any rebate of premium B Offering special favor in dividends or other benefits C Accepting the applicant's premium for a policy D Giving the insured tickets to the Super Bowl

Accepting the applicant's premium for a policy

A producer who makes a derogatory statement about a competing insurer's financial statement is guilty of: A Intimidation B Twisting C Coercion D Defamation

Defamation

In Kansas, the accelerated benefit provision becomes effective for losses due to accidents on which of the following dates? A Effective date of the policy or rider B 30 days after the effective date of the policy or rider C 90 days after the effective date of the policy or rider D Anniversary date

Effective date of the policy or rider

The Kansas Commissioner of Insurance is: A Elected every 4 years through public nomination B Appointed by the president of the NAIC C Appointed by the state Senate and confirmed by the governor D Appointed by the governor and confirmed by the state Senate

Elected every 4 years through public nomination

The Commissioner of Insurance must examine the financial condition of each producer or insurer at least once: A Every 10 years B Every year C Every 2 years D Every 5 years

Every 5 years

In Kansas, Producer J is attempting to place excess lines insurance. To do so, J must have a(n) A Designation as the insurer's excess lines representative B Excess lines license C Surplus lines certificate D Appointment from the Commissioner

Excess lines license

In Kansas, insurers that are formed under the laws of Minnesota are ________ companies. A Foreign B Domestic C Authorized D Alien

Foreign

After a producer has a change of residence, they must: A Notify the Department of Insurance within 90 days B Notify the Department of Insurance within 20 days C Notify the Department of Insurance within 60 days D Notify the Department of Insurance within 30 days

Notify the Department of Insurance within 30 days

The Kansas Life and Health Insurance Guaranty Association is supervised by: A A governing committee B The NAIC C The Commissioner D Every insurer transacting life and health insurance in Kansas

The Commissioner

In Kansas, which of the following is exempt from licensing examination requirements? A Life producer B Title producer C Pre-need producer D Travel producer

Travel producer

Encouraging a client to lapse one policy to take out another while the producer inflates the benefits of the policy is known as: A Coercion B Twisting C Defamation D Intimidation

Twisting

How many credit hours of continuing education must a producer with a life and health or property and casualty license complete every renewal period? A 30 hours, with at least 3 hours in ethics and no more than 3 hours in agency management B 12 hours, with 1 hour in ethics and no more than 3 hours in agency management C 12 hours, with at least 3 hours in ethics and 18 hours in-line D 24 hours, with at least 3 hours in ethics and 18 hours in-line

12 hours, with 1 hour in ethics and no more than 3 hours in agency management

A terminated employee in Kansas is entitled to continue coverage under their group health insurance policy for a period of: A 6 months B 18 months C 1 month D 12 months

18 months

When an insurance policy in Kansas is going to be replaced, the insured must receive from the producer all of the following, except: A Notice of replacement signed by both the producer and the applicant B A guarantee of insurability C A copy of each sales proposal D A list of all existing policies to be replaced

A guarantee of insurability A producer cannot guarantee insurability for any policy.

To protect beneficiaries from creditors, a life insurance policy issued in Kansas must be free from which of the following? A Any of the insured's creditors B Claims of the insurer C Policy loan payments D Property taxes only

Any of the insured's creditors

An insured in Kansas is covered under a group health plan through their job and has secondary coverage as a dependent under their spouse's group plan. Which of the following benefits would the secondary plan pay once the primary plan has paid its benefits? A Nothing, as there is primary coverage B Premiums paid during the period of hospitalization C Copayment required under the primary plan D 5% of the total benefits paid under the primary plan

Copayment required under the primary plan

In Kansas, all of the following must first be obtained by a viatical settlement provider when entering into a new viatical settlement contract, except: A Copy of the viator's most recent federal tax return B Viator's consent to the viatical settlement contract C The insured's consent to the release of medical records D Statement from a physician stating that the viator is of sound mind and under no constraint or undue influence to enter into a viatical settlement contract

Copy of the viator's most recent federal tax return

When advertising health insurance policies in Kansas, insurers must: A Never use statistics B Obtain confirmation of testimonials used more than 3 years after they were originally given C Have a 6-month gap between enrollment periods D Use words like "only" or "merely" to describe restrictions or exclusions

Have a 6-month gap between enrollment periods Advertisements of health insurance policies may use enrollment periods as the usual way of marketing health insurance, and the periods must be separated by at least 6 months. Confirmation of testimonials must be obtained if the testimonial is used more than 1 year after it was originally given. Statistics may be used if they are cited, and using words like "only" and "merely" to describe restrictions or exclusions is prohibited.

Which of the following is not a part of the standard provisions for group life insurance issued in Kansas? A The spouse of a deceased employee has the right to conversion B If a policy becomes a claim by death, no evidence is required to pay the claim C Reinstatement of a lapsed life policy is 3 years D 31-day grace period for late premiums

If a policy becomes a claim by death, no evidence is required to pay the claim A death certificate is required before the benefit will be paid

In Kansas, payments under any blanket sickness and accident policy would not be payable to which of the following? A Insured's estate B Insured C Insured's minor beneficiary D Insured's beneficiary

Insured's minor beneficiary

Before the Commissioner will approve the application for an insurance license, an applicant must: A Pay a refundable licensing fee B Obtain employment with an insurance company C Pass an exam for both property and life classes of insurance D Pay a nonrefundable application fee

Pay a nonrefundable application fee

Which of the following is guaranteed under a long-term care policy issued in Kansas? A Replacement B Renewability C Inflation protection D Level premium

Renewability

All of the following are correct regarding examinations by the Commissioner, except: A The Commissioner may not suspend an insurer's certificate of authority if an examination reveals that the insurer's solvency is impaired B The Commissioner must examine each producer before issuing a certificate of authority C The Commissioner may examine any insurer or producer if the Commissioner suspects that such insurer or producer has violated the Insurance Code D The Commissioner may accept an examination report from a foreign insurer's home state in lieu of conducting an examination

The Commissioner may not suspend an insurer's certificate of authority if an examination reveals that the insurer's solvency is impaired The Commissioner may, after a hearing, suspend an insurer's certificate of authority if an examination reveals that the insurer's solvency is impaired.

What is the correct order of escalating consequences if a producer fails to maintain CE requirements? A The producer's license is suspended, then revoked B The producer's license is revoked, then confiscated C The producer's license is suspended, then terminated D The producer's license is suspended, then deemed expired

The producer's license is suspended, then deemed expired

When the receipt for the initial premium of an individual life policy is written in Kansas, all of the following are correct, except: A The receipt may limit coverage by specifying the amount and type of temporary coverage B The receipt may not exclude coverage for suicide C The receipt may void the coverage if the application contains a material misrepresentation or was fraudulently completed D The receipt may void coverage if a check or draft for the premium is not honored when presented

The receipt may not exclude coverage for suicide