arizona laws and rules pertinant to insurance

Which of the following is considered to be a prosthodontic dental procedure?

Bridgework

If a producer surrenders their license, how long must the wait to re-apply for the same license?

One year

In regards to the Affordable Care Act (ACA), which of these is NOT a role of a health insurance exchange?

Contact the employer if an employee stops coverage under a plan offered in exchange

Which of the following does NOT involve a life settlement transaction?

Converting term life insurance to whole life insurance

Under which circumstance may an insurer discontinue a small employer group medical plan?

Insurer discontinues offering the plan to all employers

A loss of minimum essential coverage usually counts as a qualifying event that triggers what?

a special enrollment period

A(n) ________ insurer operates in the U.S but is headquartered outside the U.S.

alien

A(n) ______ insurer restricts the exposures it writes to those of its owners

captive

Mentally or physically handicapped dependent children MUST be covered under an individual health insurance policy

until they become self supportive

If a life insurance applicant is shown future premiums are to be paid out of non-guaranteed values, the illustration used in the sales presentation MUST

disclose that premium payments may be resumed depending on actual results

An annuity contract may be returned for a full refund during the

free look period

In Arizona, false advertising is an example of

misrepresentation

In Arizona, the Human Immunodeficiency Virus (HIV) consent form

must disclose who will be receiving a copy of the test results

The ACA (Affordable Care Act) must ensure a sufficient choice of ________ in the marketplace:

providers

An example of rebating would be

splitting the commission with the buyer on a sale of insurance

A group health certificate for coverage issued in Arizona MUST contain a(n)

summary of policy features and benefits

Security laws passed by Congress are enforced by which Federal agency?

Security and Exchange Commission

Which of the following entities does NOT establish regulations for variable insurance products?

State attorney general

Arizona allows a maximum of how many attempts in a 12-month period, before having to wait one year before attempting the exam again?

4 attempts

A policyowner decides to surrender the cash value of a whole life insurance policy. The insurer has up to ____ month(s) to delay this payment.

6

A policyowner decides to surrender the cash value of a whole life insurance policy. The inurer has up to ____ month(s) to delay this payment

6

According to the telemarketing sales rules, what is the earliest time of day that telemarketing calls may be received?

8am

Telemarketing calls may ONLY be received between the hours of

8am and 9pm

Which of the following actions is considered to be an unfair trade practice?

A producer who sells insurance to an individual by means of threat

After an annuity has been in force for ___ year(s), it becomes incontestable.

2

What year was the Mental Health Parity and Addiction Equity Act established?

2008

A licensee whose name or address changes must notify the Department of Insurance within ____ days.

30

If an insured legally adopts a baby within ____ month(s) of birth, the maternity coverage for the child's birth is covered.

12

The maximum prison sentence given under federal law for unfair and deceptive insurance practices is

15 years

Greg had recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an individual policy?

31 days

Which of these may individuals may NOT obtain a temporary producer license?

An employee of a retired licensed producer

When does a family accident and health policy's coverage for a newborn child begin?

At the moment of birth

Which of the following actions would be considered a felony in the State of Arizona?

Attempting to defraud an insurer

Who manages the premiums collected from a group's members for a reciprocal insurer?

Attorney in fact

An insurer markets its products by soliciting customers by mass media advertising and mail WITHOUT using the services of a producer. Which of these marketing systems does the insurer utilize?

Direct Response

Which statement best defines what a Policy Title means on an insurance policy?

Every policy must have a title on the face and on the back of the policy, briefly describing the policy

Most Medicare Supplement information used by an insurer must be approved by the State. Which of the following types of information does NOT require State approval?

Government publications

According to the Affordable Care Act (ACA),insurers can no longer deny health coverage due to pre-existing conditions unless that plan is a(n)

Grandfathered Plan

Which of the following causes of disability is NOT covered under Arizona workers compensation laws?

Intentional, self-inflicted injuries that occur at the worksite

Which of the following is an example of defamation?

Making a statement that is false or maliciously critical of the financial condition of an insurer

Which of the following actions may result in a producer's license being suspended?

Misappropriation of premiums

Which of the following may be considered an act of misrepresentation?

Misleading or failing to adequately disclose the title and true nature of a policy offered to a client

Which of these actions is considered unfair to be an Unfair Claims Settlement Practice?

Misrepresenting pertinent policy provisions relating to coverage after a loss

Which of the following is NOT a valid reason for an insurer to contest a life insurance policy during the policy's first two years of existence?

Misstatement of a age

If a Medicare Supplement ploicy is cancelled by the insurer, which of these circumstances does NOT require prior approval by the Arizona Department of Insurance?

Nonpayment of premium

Which of these is NOT an Unfair Claims Settlement Practice?

Offering to settle a claim by arbitration

Which of the following is a requirement for an individual to receive an insurance license in Arizona?

Passing the appropriate examination

If an existing Medicare Supplement policy is being replaced by a new policy, who is required to sign the notice of replacement?

Producer and applicant

Under Federal Law, which of the following actions may result in a producer becoming imprisoned

Producer embezzling funds from an insurer

If a producer replaces a client's existing life insurance policy with a new one, which of these is advisable?

Wait until the new policy is issued and delivered before surrendering existing policy

A trade association group is seeking coverage for group medical benefits. The members of this association

are probably in the same industry

A(n) _________ company is licensed by the Department of Insurance to conduct insurance business in Arizona

authorized

To protect information systems, producers, brokers, and insurance companies must implement and maintain a(n):

cybersecurity policy

What will Medicare charge if someone doesn't enroll in certain Medicare programs or plans when they're first eligible?

late enrollment penalty

Autopsies may be requested by an accident and health insurer

only if prohibited by state law

The ______ is responsible for determining the appropriateness of a Medicare Supplement policy for an applicant.

producer

A group Medicare Supplement policy was terminated and not replaced by the insurer. In this situation, the insurer MUST

provide an offer of conversion to individual coverage

Rick provides a notice of claim to his health insurer. If he does not receive a claim form within 15 days, he may comply with proof of loss provision by

submitting written proof of loss

How long must a producer maintain customer records for an insurance transaction?

three years

A life insurance policy can usually be contested by the insurer only during the firs ___ years of the contract.

two

A license or applicant who is ordered into active military service may request that the license or application be placed on inactive status by sending the department a:

written statement

Enrollees in a staff model HMO normally have which of the following pharmacy options available?

In-house Pharmacy

The application is part of the annuity contract according to the

Entire Contract Clause

An insured MUST wait _____ days to bring legal action against an insurer after written proof of loss has been received by the insurer.

60

A health insurance claim may be contested due to statements made on the applications for up to ____ year(s) after issuance of the policy.

2

An individual is seeking coverage for nursing home (custodial) care that does NOT require any previous period of hospitalization. Which program offers these specifications?

AHCCCS

If dividend option choices are offered on a whole life insurance policy, the policy MUST

contains a statement that dividends are NOT guaranteed

According to the federal fraud and false statements regulation, what is required for a prohibited person to transact insurance business in this state?

Written consent from the state insurance regulatory agency

A prepaid dental plan has an agreement in place with a network of dentists which

accepts an established amount as payment in full for the dental services rendered

A television advertisement features a health insurance product that is endorsed by a specific group. In this advertisement,

any control by the insurer over this group must be disclosed

The purpose of the 'No-loss No-gain' provision is to avoid duplication of _______ and _______ when an individual is covered under multiple group health insurance plans:

benefit payments and overinsurance

The refusal of doing business with an individual or business is called a(n)

boycott

The Genetic Information Nondiscrimination Act 2008 bars all of the following EXCEPT

prohibits the use of genetic information in health insurance, unless the applicant signs a waiver

A long-term care policyowner is replacing existing coverage with a new policy. Replacement regulations require a(n) ______ notice be signed by the applicant and retained by the replacing insurer.

replacement

In order for a health plan to be an "accountable health plan", who has the power to approve it?

the director