AD Banker Chapter 15
The Commissioner shall examine the affairs, transactions, accounts, records, documents, and assets of each authorized insurer at least once: A Every 5 years B Annually C And only once when a Certificate of Authority is granted D Every 4 years
A Every 5 years
The Life-Disability Insurance Guaranty Association pays covered life insurance death benefit and cash value claims on one life of up to: A $100,000 B $500,000 C $600,000 D $300,000
B $500,000
In general, a health policy may not exclude coverage for a preexisting condition for more than: A 2 years B 63 days C 12 months D 6 months
C 12 months
Which of the following statements describes the Commissioner's ability to levy penalties? A Licensed business entities may not be held responsible for the illegal actions of a producer B Fines must be paid within 15 days C If the Commissioner suspends a producer's license, the term of the suspension must be at least one year D The Commissioner may revoke a producer's license for obtaining a loan from a client who is not a financial institution or a relative
D The Commissioner may revoke a producer's license for obtaining a loan from a client who is not a financial institution or a relative
The Insurance Commissioner may take all of the following actions, except: A Investigate potential violations any provision of insurance code B Make reasonable rules and regulations to enforce the insurance code C Prosecute an action in any court of competent jurisdiction D Amend the insurance code as needed
D Amend the insurance code as needed
All of the following statements regarding license renewal are true, except: A The license fee for a producer's license is $55 B Licensees have 2 years to request a reinstatement C After 60 days following one's license expiration date, a licensee may request reinstatement for a limited period of time D A producer's license is not terminated until 60 days after the license expiration date
B Licensees have 2 years to request a reinstatement
All of the following actions are prohibited as they relate to the marketing and sale of Medicare Supplements, except: A Attained age rating B Pre-existing condition exclusions C Cold-lead advertising D High-pressure tactics
B Pre-existing condition exclusions
All of the following factors must be taken into account in recommending the purchase or exchange of an annuity, except: A Other insurance or annuities owned B The incontestability provision C Customer's investment objectives D Customer's tax status
B The incontestability provision
All of the following statements regarding the treatment of Chemical Dependency by health plans in Washington are correct, except: A HMOs may apply a waiting period or pre-existing condition limitation B HMOs must cover medically necessary detoxification as an emergency medical condition C HMOs often exclude chemical dependency D Cost sharing amounts for chemical dependency services may not be more than for other medical and surgical services
C HMOs often exclude chemical dependency
How many hours of approved continuing education must resident producers complete per renewal period? A 24 hours per year B 24 hours plus 3 hours of ethics C 20 hours per line D 24 hours including 3 hours of ethics
D 24 hours including 3 hours of ethics
In order to be able to sell, solicit, or negotiate LTC insurance after successfully completing his/her initial LTC coverage education, at least _____ hours of continuing education must be completed every 24 months. A 6 B 2 C 3 D 4
D 4
Under what conditions, if any, may an individual that is not licensed to sell a particular line of insurance be compensated for the sale of such insurance? A Only when the compensation is a fee and not a commission B There are no such circumstances C If the compensation is a deferred commission and the individual had been licensed at time of sale D It is possible the producer has a license to sell a related line of insurance Good Job!
C If the compensation is a deferred commission and the individual had been licensed at time of sale
All of the following are required to get a nonresident producer license in Washington, except: A Holding the comparable license in the home state in good standing B Holding a resident license in a state that grants reciprocity to Washington licensees C Passing the licensing exam D Paying the required fee
C Passing the licensing exam
Which of the following statements regarding long-term care insurance is correct? A The minimum benefit period is 24 months B Association group plans are available to small groups of 2-50 members C Qualified LTC policies offer deductible premiums and tax-free benefits D Lump sum, accelerated death benefits offered by life policies are considered LTCI plans
C Qualified LTC policies offer deductible premiums and tax-free benefits
Using a misleading policy comparison to induce an insured to convert any insurance is known as: A Misrepresentation B False information and advertising C Twisting D Defamation
C Twisting
Which one of the following regarding the Life-Disability Insurance Guaranty Association and the Washington Insurance Guaranty Association is false? A The Life-Disability Insurance Guaranty Association and the Washington Insurance Guaranty Association assesses each member insurer an amount equal to the proportion of its net direct written premiums in the previous year to total net direct written premiums in the previous year for all member insurers B A policyowner must be given, upon request, a summary document describing the Life-Disability Insurance Guaranty Association and the Washington Insurance Guaranty Association's general purposes and current limitations C The purpose of the Life-Disability Insurance Guaranty Association and the Washington Insurance Guaranty Association is to pay covered claims under certain policies when an insurer cannot pay due to the insurer's insolvency to avoid claimants' financial losses D A licensee may make use the Life-Disability Insurance Guaranty Association and the Washington Insurance Guaranty Association's existence to sell, solicit, or induce the purchase of any form of insurance
D A licensee may make use the Life-Disability Insurance Guaranty Association and the Washington Insurance Guaranty Association's existence to sell, solicit, or induce the purchase of any form of insurance
All of the following are unfair claims settlement practices, except: A Taking up to 30 days to investigate a claim B Refusing to pay claims without an investigation C Paying claims without stating the coverage under which the payment is made D Failing to adopt reasonable standards for paying claim
A Taking up to 30 days to investigate a claim
The Life-Disability Insurance Guaranty Association pays covered life insurance death benefit and cash value claims on one life of up to: A $100,000 B $600,000 C $500,000 D $300,000
C $500,000
Which of the following statements regarding a producer's license is true? A A producer may never act as an adjuster B Individuals do not need a license to sell baggage insurance C Producers may sell insurance for up to 180 days with a temporary license D A producer must hold a license in the line of authority he or she intends to sell
D A producer must hold a license in the line of authority he or she intends to sell
Which of the following organizations requires a Certificate of Authority in Washington State? A An entity selling emergency expense reimbursement B An entity acting as a surplus lines broker C An entity offering travel and automobile related services D An entity selling Medicare Supplements
D An entity selling Medicare Supplements
The duties of a producer during the process of selling and placing a life insurance policy include all of the following, except: A Avoiding the sale of replacement policies B Leave the consumer a copy of any written sales presentation if a replacement is involved C Provide a signed statement as to whether a replacement is involved D Giving the applicant a Notice Regarding Replacement at the time of application
A Avoiding the sale of replacement policies
Which of the following statements regarding the handling of premiums is correct? A Premium account records must be maintained for 5 years B All premiums must be directed toward the insurer or a producer C Premium account funds may not be withdrawn unless they are being transferred to an insurer or a policy owner D It is a felony to violate the separate account requirement
A Premium account records must be maintained for 5 years B
An illustration used to sell a life policy must: A Show the policy's generic name, product name, and form number B Use an illustration that is lapse-supported C Show only the guaranteed elements D Be used during the sale of all policies
A Show the policy's generic name, product name, and form number `
The free-look period for a life insurance policy is: A 15 days B 10 days C 30 days D It depends on whether the purchaser received a policy summary
B 10 days
The free-look period for a life insurance policy is: A It depends on whether the purchaser received a policy summary B 10 days C 30 days D 15 days
B 10 days
Every order by the Commissioner of Insurance suspending any license shall specify the period during which suspension will be effective but in no event exceed how many months? A 18 B 12 C 24 D 36
B 12
In general, a health policy may not exclude coverage for a preexisting condition for more than: A 6 months B 12 months C 2 years D 63 days
B 12 months
Premiums paid to reinstate a health policy cannot be applied to premiums more than days past due. A 30 B 60 C 90 D 45
B 60
An HMO plan must offer the option of covering any child under the age of: A 22 B 19 C 26 D 25
C 26
Coverage for the newly born child must be no less than the coverage of the child's mother for no less than _____ week(s). A 1 B 4 C 3 D 2
C 3
A Medicare Supplement must have a free-look period of: A 10 days B 63 days C 30 days D 180 days
C 30 days
How much Long-Term Care training must producers have before they can solicit or sell LTC insurance? A 3 hours B 4 hours C 8 hours D 20 hours
C 8 hours
Which of the following is NOT an acceptable type of group life insurance plan? A A debtor group to insure repayment of the indebtedness B A labor union group policy covering members C A group formed to purchase life insurance D An employer group plan
C A group formed to purchase life insurance
hich of following disclosure standards must be followed during the sale of a life insurance policy? A An insurer need only provide a Buyer's Guide or Policy Summary if a purchaser requests it B Producers are always required to present a Policy Summary at the time of application C Before making any sales presentation, producers must inform prospective buyers that they are acting as life insurance producers D A producer must identify herself as a financial planner if she sells life insurance
C Before making any sales presentation, producers must inform prospective buyers that they are acting as life insurance producers
Under the Health care False Claims Act, making a fraudulent claim against a health care policy is punishable: A In civil court with a civil fine B As a criminal misdemeanor C Only as an administrative matter D As a felony
D As a felony
Conducting the business of insurance without required or proper licensure is a(n): A Misdemeanor B Unfair trade practice C Civil infraction D Class B felony
D Class B felony
All of the following are required in a certificate of insurance provided to an individual insured under a group life insurance policy, except: A Time for exercising conversion right B Right to convert coverage to an individual policy upon termination of group coverage C Amount of coverage provided D Evidence of beneficiary insurability
D Evidence of beneficiary insurability
Which of the following statements regarding long-term care insurance is correct? A The minimum benefit period is 24 months B Association group plans are available to small groups of 2-50 members C Lump sum, accelerated death benefits offered by life policies are considered LTCI plans D Qualified LTC policies offer deductible premiums and tax-free benefits
D Qualified LTC policies offer deductible premiums and tax-free benefits