chapter 8 law of Indiana // XCEL Solutions
A life insurance policy can be backdated before the application date for up to ?? 10 days 30 days 3 months 6 Months
"6 months "
which of the following is considered to be misrepresentation ? - replacing an existing policy with new one. - A producer guaranteeing a policy's dividends - Sharing commissions with other licensed agents - Representing a foreign insurer
"A producer guaranteeing a policy's dividends "
A(n) _______ insurance company is one formed in a country other than the united states ? - Foreign - Domestic - alien - mixed
"Alien"
The affordable care Act (ACA) provides coverage to dependents up to the age of ? --- 18 ----21 ---26 ---28
---"26 "
How many days is a temporary producer's license valid? 030 0 60 090 0 180
0 180
Under the Indiana Long-Term Care Partnership Program (LTCP), producers are required to have an additional_____ hours of education after they receive their license in order to sell policies under this program. 010 015 0 20 0 25
015
An individual life insurance policy sold in Indiana can be contested by the insurer only during the first____\ years of the contract. 02 03 04 05
02
A Medicare Supplement policy may be returned for a 100% premium refund within. ____days after policy delivery. 015 020 0 25 030
030
A producer must notify the Commissioner within _____ days of a felony conviction. 030 days 0 45 days 060 days O go days
030
An insurer that terminates a producer's appointment must notify the Commissioner within days of the date of termination. 010 020 030 O 40
030
According to Indiana law, how long is the right of return for a Long Term Care policy? O 10 days O 15 days 030 days O 45 days
030 days
In the event of employment termination, a person covered by a group policy also has the right to convert such coverage to an individual policy within___days without proving insurability. 0 15 030 031 0 45
031
Long-Term Care policies sold in Indiana may exclude coverage for pre-existing conditions for: 06 months O8 months 012 months O 18 months
06 months
What is the minimum Grace Period for an individual health policy that is paid monthly? 05 days O 10 days 0 15 days 0 30 days
10 days
How many days is a temporary producer's license valid? 030 0 60 090 0 180
180
A person insured under a health policy is required to give the insurance company a notice of claim within _____days after a covered loss. 10 days 20 days 30 days 40 days
20
Producers must complete______hours of continuing education every two years to keep their license active. 08 020 0 24 0 36
24 hours
In Indiana, what is the maximum percentage of controlled business a producer may write in a twelve-month period? 25% 30% 35% 40%
25%
In Indiana, what is the maximum percentage of controlled business a producer may produce over a twelve-month period? 0 10% 025% 0 50% 0 75%
25%
At the very least, an admitted insurance company shall be examined once every _ years. 02 03 04 05
3 years
ABC insurance company fails to pay death proceeds after satisfactory proof of loss was submitted. ABC must then begin paying interest on the death proceeds after__ days of receiving proof of loss ? - 10 DAY S -30 DAYS -40 DAYS D60 DAYS
30 DAYS -
A licensee must notify the Commissioner within_____days of an address change. --15 days ---30 days ---60 days --90 days
30 days
A producer must notify the insurance commissioner within____ days of an address change ? --- 15 days ---30 days ---45 days ---60 days
30 days
A newly licensed producer must complete 24 hours of continuing education every _ years. 02 03 04 05 answer 24
5 years
A life policy loan in Indiana cannot charge a fixed rate of interest higher than 7% 8% 9% 10%
8
A life policy loan in Indiana cannot charge a fixed rate of interest higher than: 7% 8g% 9g% 10%
8g%
Eligible employees must be added to group health coverage NO LATER than ____days after their first day of employment. 0 30 days 0 45.days 060' days 0 90 days
90 days
Under a small Group health plan, babies are covered : --- At birth --- 24 hours after birth ---10 days after birth --- 30 days after birth
AT BIRTH
What type of insurance company is domiciled in England, but conducts business in Indiana? --Foreign --Domestic --Alien • Transatlantic
Alien
J owns a business and offers a Group Life policy covering her employees. J decides to cancel the policy by letting it lapse on the renewal date. What action must be taken? OJ must cover the group with another policy at cancellation O All of the employees must be notified of the cancellation either by the insurance company or through J O The insurance company must replace the existing policy with one to J's liking O No obligation is required from either the insurance company nor J
All of the employees must be notified of the cancellation either by the insurance company or through J
An insure is NOT required to provide information on fraudulent claims if requested by ? - The Indiana department of insurance - The attorney general - The insures commissioner - An insured
An insured"
As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of? O Coercion O Defamation O Rebating O Misrepresentation
Coercion
Under the Protection and affordable care act (PPACA), consumer have access to health coverage that is ? Guaranteed available only Guaranteed renewable only Guaranteed available and renewable Guaranteed available only if insurable
Guaranteed available and renewable
Lite insurance coverage will frequently contain an Accelerated Benefits rider attached to the policy. What would be considered a "qualifying event" under these riders? O Seasonal unemployment O Short-term disability O Medical condition resulting in a significantly-shortened lifespan U Divorce
Medical condition resulting in a significantly-shortened lifespan
P is a producer who is licensed in Indiana , but a resident of Michigan. In Indiana, P is considered to be a(n)______ producer ? --- Nonresident ---Foreign ---Alien ---Reciprocal
Nonresident
In Indiana, the MAXIMUM fine that the Commissioner can impose on a producer or company who violates a cease and desist order is per violation. O $10,000 O $15,000 O $20,000 O $25,000
O $25,000
What is required for a Producer to be in compliance with Rule 13, Life Insurance Advertising? O A potential Applicant must be told that the Producer is currently licensed for any Life Insurance transaction O A potential Applicant must be told that Life Insurance is the exclusive subject of the sale O A Producer is required to notify potential Applicants that dividends are guaranteed O A Producer is required to have all sales materials approved by the Commissioner
O A potential Applicant must be told that Life Insurance is the exclusive subject of the sale
What is Indiana's definition of Life insurance replacement? O A transaction in which coverage on an existing policy is increased O A transaction in which group life coverage is converted to an individual policy O A transaction in which a new policy is bought and an old policy is terminated O A transaction in which a policyowner reinstates a lapsed policy
O A transaction in which a new policy is bought and an old policy is terminated
Which of the following is NOT a required provision in a group life policy? O Grace period O Incontestable Period O Conversion O Accidental Death and Dismemberment
O Accidental Death and Dismemberment
At what point may a producer sell insurance for an insurer? O After taking the licensing exam O After completing a prelicensing course O After being properly appointed by the insurer O After meeting the insurer's production requirements
O After being properly appointed by the insurer
Which of the following is an example of false advertising? O An insurer advertising in an insurance trade journal O An insurance company publishing misleading information about its policy's provisions O A producer spending more than $25 on marketing gilts for a client O Paid testimonials from celebrity endorsements
O An insurance company publishing misleading information about its policy's provisions
What does a certificate of authority allow? O A nonresident producer to conduct insurance business O An insurance company to exceed coverage limits that the Guaranty Fund covers O An insurance company to conduct insurance business in Indiana O A resident producer to sell insurance contracts
O An insurance company to conduct insurance business in Indiana
Which of the following is a requirement to attain a nonresident producer license in Indiana? O Maintain a specific sales quota in resident state O Own real estate in Indiana O Be licensed as a producer in the producer's state of domicile O Pass a special examination for nonresident producers
O Be licensed as a producer in the producer's state of domicile
What does the Indiana Life and Health Insurance Guaranty Association provide? O Enforcement for Indiana's insurance regulations O Claim payments of admitted, insolvent insurance companies O Underwriting services for high-risk insurance applicants O Establishment of underwriting guidelines for admitted insurers
O Claim payments of admitted, insolvent insurance companies
Jill is covered under two Group Health policies, one through her employer and one through her husband's employer. If Jill suffers a loss, which policy provision dictates the primary coverage? O Replacement O Time Payment of Claims O Notice of Claim O Coordination of Benefits
O Coordination of Benefits
What is the purpose of the Indiana Life and Health Insurance Guaranty Association? O Ensures that claims filed against insolvent insurance companies will be paid O Enforces Indiana's insurance regulations O Approves policy forms O Underwrites high-risk insurance applicants
O Ensures that claims filed against insolvent insurance companies will be paid
How often must the Commissioner examine each domestic insurance company? O Every year O Every 2 years O Every 3 years O Every 5 years
O Every 5 years
Which of the following employees may NOT be excluded from a group life plan? O Part-time employees O Seasonal workers O Full-time employees before the probationary period O Full-time employees after the probationary period
O Full-time employees after the probationary period
Which of the following is a requirement to be eligible for a group life policy in Indiana? O Group must be formed for a purpose other than obtaining insurance O Group must designate one of its members to be the named insured O Group must have been formed for obtaining insurance O Group must include at least five employers
O Group must be formed for a purpose other than obtaining insurance
Which of the following is a requirement to be eligible for a group life policy in Indiana? O Group must be formed for a purpose other than obtaining insurance O Group must designate one of its members to be the named insured O Group must have been formed for obtaining insurance O Group must include at least five employers
O Group must be formed for a purpose other than obtaining insurance
During the course of an insurance business transaction, who does the producer legally represent? O Producer O Insured O Insurance company O Beneficiary
O Insurance company
Maternity coverage is required in which type of policy? O Hospital indemnity policy O Medical Expense policy O Disability Income policy O Dread Disease policy
O Medical Expense policy
Lite insurance coverage will frequently contain an Accelerated Benefits rider attached to the policy. What would be considered a "qualifying event" under these riders? O Seasonal unemployment O Short-term disability O Medical condition resulting in a significantly-shortened lifespan U Divorce
O Medical condition resulting in a significantly-shortened lifespan
An Indiana resident insurance producer must perform which of the following actions to continue with their license? O Retake the state examination O Complete a pre-licensing course O Meet continuing education requirements O Maintain a sales quota
O Meet continuing education requirements
Which of the following provides funding for the Indiana Life and Health Insurance Guaranty Association? O NAIC O Department of Insurance O Revenue bonds O Member company assessments
O Member company assessments
T is covered by a group major medical policy with his employer. He leaves his employer and converts the coverage to an individual policy. All of these statements about the new policy are true EXCEPT: O New policy is issued without evidence of insurability O New policy pays the same benefits as the group policy O New policy covers pre-existing conditions if they were covered under the group policy O New policy coverage for dependents may continue
O New policy pays the same benefits as the group policy
During a life insurance sales transaction, which of the following forms must be completed by a producer if the customer has existing life insurance coverage that is being replaced? O Notice Regarding Replacement of Life Insurance or Annuity O Outline of Coverage O Comparative Information Form O Buyer's Guide
O Notice Regarding Replacement of Life Insurance or Annuity
In Indiana, which of the following MUST be delivered to a policyowner upon the sale of an individual life insurance policy? O Insurer's AM Best rating O The written sales proposal O Policy Summary and Buyer's Guide O Buyer's Guide only
O Policy Summary and Buyer's Guide
Marketing procedures for Long-term Care and Medicare Supplement policies should ensure that: O Policy comparisons are fair and accurate O Reduce the number of uninsured in the state O Assist qualified employers in the state in enrolling their employees in qualified health plans O Excessive insurance is sold to the public
O Policy comparisons are fair and accurate
According to Indiana law, which party is responsible for determining the appropriateness of a Long Term Policy presented to a potential Applicant? O Insurance Company O Applicant O Producer O Indiana Long Term Care Partnership Program
O Producer
Which of the following is NOT a reason for the Commissioner to revoke a producer's license? O Producer published malicious and false information toward another insurance company O Producer found guilty of twisting after a hearing O Producer offered a client a return of commission in exchange for a sale O Producer is insolvent
O Producer is insolvent
Which of the following actions by a producer would NOT result in a license suspension or revocation? O Producer misappropriates an insured's premium payment O Producer misrepresents the terms of an existing insurance contract O Producer represents a foreign insurance company O Producer demonstrates incompetency to transact business as an insurance producer
O Producer represents a foreign insurance company
Which of the following is NOT a valid reason for the Insurance Commissioner to suspend or revoke a producer's license? O Producer returns part of a commission to a client in exchange for a sale O Producer represents more than one insurance company O Producer engages in false advertising O Producer commingles premiums collected with a personal account
O Producer represents more than one insurance company
Which of the following actions by a producer would NOT result in a license suspension or revocation? O Producer demonstrates incompetency to transact business as an insurance producer O Producer represents more than one insurance company O Producer misrepresents the terms of an existing insurance contract O Producer misappropriates an insured's premium payment
O Producer represents more than one insurance company
Which of the following actions does the Insurance Commissioner NOT have the power to conduct? O Activate insurance companies' financial reserves O Promulgate rules and regulations O Liquidate a failing insurance company O Issue subpoenas and administer oaths
O Promulgate rules and regulations
Which of these correctly describes the purpose of the Indiana Comprehensive Health Insurance Plan? O Provides high-risk insurance coverage for people who are uninsurable O Provides high-risk insurance coverage for senior citizens O Provides insurance coverage for preferred-risk individuals at discounted rates O A subsidized health plan for low-income individuals
O Provides high-risk insurance coverage for people who are uninsurable
When an existing life insurance policy is terminated so that a new life insurance policy can be purchased, this transaction is referred to as: O Twisting O Replacement O Coercion O Rebating
O Replacement
Which of the following is NOT a required provision in group life policies? O Free look O Incontestible O Conversion O Right to Loan
O Right to Loan
Which of the following is NOT considered rebating? O Sharing commissions with a producer licensed in the same line of business O Returning premium to a client as an inducement for purchasing a policy Giving something of value to an insured in exchange for their business O Offering special dividends
O Sharing commissions with a producer licensed in the same line of business
Which of the following statements is correct about the Insurance Commissioner's authority to examine the business records of a producer? O The Commissioner has no authority to examine them O The Commissioner may examine them whenever it's deemed necessary O The Commissioner must examine them at least twice every five years O The Commissioner must examine them at least twice every three years
O The Commissioner may examine them whenever it's deemed necessary
Which of these statements regarding health coverage for physically handicapped dependents is FALSE? O The dependent must have been over ten years of age when the handicap was incurred O The dependent must have been covered under the insured's policy at the time the handicap was incurred O The dependent must rely chiefly on the policyowner for support and maintenance O The dependent must agree to periodic medical examinations at the request of the insurance company
O The dependent must have been over ten years of age when the handicap was incurred
Which of the following would be a valid reason for suspending or revoking an insurance producer's license? O The producer has been convicted of a misdemeanor within the past ten years O The producer unintentionally made a material misstatement on the license application O The producer has misappropriated money held in a fiduciary capacity © The producer has filed for personal bankruptcy within the last five years
O The producer has misappropriated money held in a fiduciary capacity
Which of the following is a requirement to attain a nonresident producer license in Indiana? O The producer must be at least 21 years of age O The producer's state of residence must have reciprocity with Indiana O The producer must be bonded in the producer's state of domicile O The producer must pass a special examination for nonresident producers
O The producer's state of residence must have reciprocity with Indiana
If an insurer offers health coverage to an employee, the insurer MUST inform the employer of all of the following information EXCEPT: O The provisions relating to renewability of coverage O The provisions relating to exclusions O The benefits and premiums available under all health insurance coverage for which the employer is qualified O The terms of the insurer's provider agreements
O The terms of the insurer's provider agreements
Why would the Commissioner examine the records of an insurance company? O To determine the solvency of the company O To set insurance rates for the company O To assist in underwriting O To assess the company's value
O To determine the solvency of the company
How long does an insurance company appointment remain in force? O1 year O 2 years 03 years O Until terminate
O Until terminate
S is a life insurance policyowner who enters into a written agreement to receive immediate cash in exchange for the sale and transfer of her life insurance policy. This agreement is referred to as a(n) 0 1035 Exchange O Viatical Settlement O Equity Cash Arrangement O Cash Conversion
O Viatical Settlement
Which of the following would be a valid reason for suspending or revoking an insurance producer's license? O Writing primarily controlled business O Not meeting a sales quota O Issuing a conditional receipt O Filed for bankruptcy
O Writing primarily controlled business
At minimum, Long Term Care policies in Indiana must contain O coverage for at least 24 consecutive months O a 30-day free look period O a 12 month exclusion for pre-existing conditions O coverage for pain and suffering
O a 30-day free look period
A domestic insurance company in Indiana MUST: O be organized under Indiana insurance laws O own real estate in Indiana O write insurance on risks located only in Indiana O honor the charter of the National Association of Insurance Commissioners (NAIC)
O be organized under Indiana insurance laws
An individual covered under a Group Life insurance policy is considered to be a(n): O annuitant O policyowner O certificate holder O contingent
O certificate holder
If an existing Accident and Health policy is being replaced with a new policy, the decision to replace should NOT be based on: O waiting periods O commissions to be paid O exclusions and limitations O underwriting requirements
O commissions to be paid
A disabled dependent's continued coverage under a family health plan would be discontinued if, O the disabled dependent lives in a medical-assisted facility O documentation of the disability is not provided to the insurer O the disabled dependent becomes employed O the disabled dependent reaches a certain age
O documentation of the disability is not provided to the insure
An example of an Unfair Claims Settlement Practice would be: O requesting a third-party arbitrator to resolve a disagreement O failing to effectuate prompt, fair, and equitable settlements of a claim O paying a claim promptly after receiving proof of loss O requiring the insured to give a statement under oath
O failing to effectuate prompt, fair, and equitable settlements of a claim
In Indiana, an insurer licensed to conduct business in Indiana, but domiciled in Texas, is called a(n) O non-admitted company O foreign company O domestic company O alien company
O foreign company
The Life and Health Insurance Guaranty Association is: O an entity that assists in underwriting large insurance policies O funded by admitted insurance companies through assessments O funded by the state government O administered by the Federal government
O funded by admitted insurance companies through assessments
A hearing must be held before a producer's license can be suspended or revoked. Prior to the hearing, the Insurance Commissioner is required to: O give oral notice to the producer O give written notice to the producer O give notice to the producer's insurance company O give notice to the producer's insurance company
O give written notice to the producer
A foreign insurance company doing business in Indiana: O is not subject to Indiana insurance laws O is a company that was formed under the laws of another state O is a company that was formed under the laws of another country O is only authorized to write business outside the United States
O is a company that was formed under the laws of another state
A producer's license may be denied, suspended, or revoked if the licensee: O engages in replacement of an existing policy O is found guilty of misrepresentation in obtaining the license O files for bankruptcy O does not meet a sales quota
O is found guilty of misrepresentation in obtaining the license
Defamation occurs when a producer makes a false statement intended to: O malign another insurer O replace an existing insurance policy with another O restrict fair trade O misrepresent the provisions of an insurance policy
O malign another insurer
A licensed business entity acting as an insurance producer MUST: O notify the Department of Insurance of any fictitious name used O report commissions to the Bureau of Insurance O complete continuing education requirements every 5 years O have been conducting business in Indiana for 3 years
O notify the Department of Insurance of any fictitious name used
Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent: O only if the child is incapable of employment and chiefly dependent on the policyowner O for up to an additional 10 years only O only if physically disabled O only if mentally disabled
O only if the child is incapable of employment and chiefly dependent on the policyowner
The____must provide an insured with proper disclosure concerning the replacement of a life insurance policy. O compliance officer O underwriter O Commissioner O producer
O producer
According to Indiana law, group life insurance conversion privileges must NOT: O allow the converted policy to exceed 75% of the original group life amount O allow a time period to convert group life coverage to an individual life policy O require a rate increase O require evidence of insurability
O require a rate increase
According to Indiana law, group life insurance conversion privileges must NOT: O allow the converted policy to exceed 75% of the original group life amount O allow a time period to convert group life coverage to an individual life policy O require a rate increase O require evidence of insurability
O require evidence of insurability
Life insurance replacement regulation protects the interests of O the policyowner O the producer O the insurer O the NAIC
O the policyowner
When a life insurance application is completed, a Policy Summary must be given to the applicant. The Policy Summary MUST include O the insurer's AM Best rating O the producer's address O cash value rate O the premium cost for basic coverage applied for
O the premium cost for basic coverage applied for
Under the ACA, consumers must have health insurance as of January 1, 2014 that contains Minimum Essential Coverage (MEC). Individuals who are exempt from this law include: O those who obtain employer-sponsored coverage O those who purchase in the individual markets O those who are self-insured O those who cannot afford or have religious objections
O those who cannot afford or have religious objections
Group Life policies in Indiana are required to contain a conversion privilege that allows for conversion: O with evidence of insurability O to an individual policy for a stated period of time O only if the premiums are paid by the employer O to an individual policy at anytime
O to an individual policy for a stated period of time
T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert: O to an individual policy, only by providing evidence of insurability O to an individual policy, only if the employer pays the premiums O to an individual policy upon employment termination O to an individual policy with a higher amount of coverage
O to an individual policy upon employment termination
B the producer sold an insurance contract to a client. B has engaged in: O an unfair competition practice O transacting insurance O underwriting insurance O meeting a sales quota
O transacting insurance
An example of an Unfair Claims Settlement Practice is: O making it mandatory that proof of loss be provided for each claim O requiring a time limit for submitting a claim O paying a claim in a timely matter O turning down a claim without providing the basis of denial
O turning down a claim without providing the basis of denial
A producer inducing an insured to lapse, forfeit, or surrender insurance through misrepresentation is committing the illegal act of: O boycotting O rebating O twisting O subrogation
O twisting
T is a producer who forgot to renew her license. She may reapply for a license without an examination: O within three years after no renewal O within one year after no renewal O within four years after no renewal O anytime
O within one year after no renewal
if a new Medicare supplement policy involves the replacement of existing coverage, it must be varied on a question located ? --- On a rider attached to the policy --- In the buyer's Guide ---On the application ---During the sales presentation
On the application
In order for a domestic, foreign, or alien insurance company to conduct business, it must be authorized by whom? O The National Association of Insurance Commissioners (NAIC) O The state where they are conducting business O The attorney general in the state where they are domiciled O Homeland Security
The state where they are conducting business
J is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? O Coercion O sliding O Twisting O Rebating
Twisting
A Long-Term Care policy sold in Indiana must provide benefits for a MINIMUM of: O g months U 12 months 015 months O 18 months
U 12 months
The Commissioner is appointed by the: --- Governor ---Attorney General ---State Senate ---NAIC
by Governor
Consumers who purchase Health insurance through a Marketplace/Exchange: O must take a physical examination to determine insurability O are insured for accidents only for the first 30 days O are insured only based on their previous health history O do not have their health history taken into account
do not have their health history taken into account
Insurance companies that are organized in countries outside the United States are referred to as: O domestic O alien O international O foreign
domestic
An example of rebating would be: O returning a portion of a premium as inducement to purchase insurance O reducing the premiums across the board for a specific risk class O a mutual insurance company paying dividends to its policyowners O using intimidation in order to restrain or monopolize the business of insurance
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The conversion provision in a group health insurance policy: O is an option for the insurer O is mandated by the NAIC O is mandated by state requirements O requires evidence of insurability
is mandated by the NAIC
P is a producer who is licensed in Indiana, but a resident of Michigan. In Indiana, P is considered to be a(n) _____producer. O nonresident O foreign O alien O reciprocal
nonresident
In Indiana , an insurer licensed to conduct business in Indiana, but domiciled in Texas, is called a(n) ? Foreign company o Non-admitted company domestic company alien company
o Non-admitted company
An existing life insurance policy is being replaced by a new one. A notice of replacement must be provided by the_____to be signed by the applicant. O beneficiary O insurer O producer O procto
producer
An example of an Unfair Claims Settlement Practice would be: ? O requesting a third-party arbitrator to resolve a disagreement O prompt, fair, and equitable settlement of a claim O misrepresenting insurance policy provisions affecting a loss O requiring the insured to give a statement under oath
prompt, fair, and equitable settlement of a claim
In order to terminate a producer's appointment, the insurer MUST ? --- send notice of the termination to the commissioner ---Receive the Governor's approval ---Send notice of the termination to the NAIC ---Request a hearing before the commissioner
send notice of the termination to the commissioner
A producer who makes misleading statements that lead to the termination of an existing insurance policy so that a new policy with another insurer can be taken out has committed: O coercion O rebating O defamation twisting
twisting
An example e of rebating would be ? Returning a portion of a premium as inducement to purchase insurance. reducing the premiums across the board for a spice risk class. A mutual insurance company paying dividends to its policyowners Using intimidation in order to restrain or monopolize the business of insurance
" retiming a portion of a premium as inducement to purchase insurance"
Is the insurance commissioner authorized? - To enforce state law relating to insurance - to pass state laws relating to insurance - To set insurance rate for foreign insurers. - To set sales quotas
" to enforce state law relating to insurance"
The Indiana children's health insurance program(CHIP) provides children of need with health benefits until the child reaches age ______ or becomes financially ineligible, whichever is earlier. A - 18 B- 19 C- 20 D-21
"19 "
Which Unfair Competition Practice involves a producer suggesting that an insurance policy is like a share of stock? --- Twisting ---Intimidation --- Misrepresentation --- Siding
--- Misrepresentation
How often must an insurance producer's license in Indiana be renewed ? - every year -every two years - every three years - every five years
Every two years
A business entity acting as an insurance producer MUST: O designate at least one licensed producer to be responsible for the entity's compliance with the insurance laws and rules O must provide a copy of its sales scripts to the Insurance Commissioner O have been located in Indiana for 5 years O maintain a minimum level of annual sales
O designate at least one licensed producer to be responsible for the entity's compliance with the insurance laws and rules
Insureds in the same risk classification are being charged different premiums by an insurance company. This insurer is committing the illegal act of ? Rebating Twisting Unfair discrimination Defamation
" Unfair discrimination "
1 - all of these statement concerning individual medical expense policies sold in Indiana are true, EXCEPT.. ? The Grace Period for health policies paid on a monthly basis is 10 days. a provision must be contained that explains the maximum incontestable period is two years. a provision must be contained that guarantees reinstatement The entire contract consist of the policy , Copy of the application, and any endorsements or amendments shall constitute the entire contract between the parties
" a provision must be contained that guarantees reinstatement "
A producer must complete______ hours of continuation education biennially to maintain the license ? -- 12 hours -- 18 hours -- 24 hours -- 36 hours
"24 hours "
insureds in the same risk classification are being charged different premiums by an insurance company. The insurer is committing the illegal act of ? - rebating - twisting -Unfair discrimination -definition
- unfair discrimination
According to Indiana's Mammography coverage statue, which of these benefit's are considered mandatory in every medical expense policy ? --- One baseline mammogram for woman between age 30-34 ---One mammogram every year for woman aged 35 and older ---One mammogram every year for woman aged 40 and older ---Two mammograms every year for those considered "women at risk"
-One mammogram every year for woman aged 40 and older
S takes out a health insurance policy which contains a provision that states that the producer does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this ? =-=-= --An Legal actions - insurance with other insurers - entire contract - reinstatement
Entire contract
What is Indiana's definition of Life Insurance replacement? O A transaction in which coverage on an existing policy is increased O transaction in which group life coverage is converted to an individual policy O A transaction in which a new policy is bought and an old policy is terminated O A transaction in which a policyowner reinstates a lapsed policy
O A transaction in which a new policy is bought and an old policy is terminated
An example of rebating would be: O Offering temporary insurance coverage O Splitting commissions with a policyholder O Reducing the premiums across the board for a specific risk class O A mutual insurance company paying dividends to its policyowners
O Splitting commissions with a policyholder
The Insurance Commissioner is authorized: O to enforce state laws relating to insurance O to pass state laws relating to insurance O to set insurance rates for foreign insurers O to set sales quotas
O to enforce state laws relating to insurance
Which of the following will happen if a licensed resident insurance producer moves to another state? O Producer will need to forfeit residual commissions in the home state O Producer's license shall terminate immediately O Producer automatically qualifies for a license in the new state O Producer remains a resident agent for another 12 months in the original state of licensure
Producer's license shall terminate immediately
In Indiana , which of the following is considered a unfair competition practice ? - replacement - Coercion - Aleatory - subrogation
"Coercion"
Which of these provisions is NOT required in individual life insurance policies sold in Indiana? O Free look O Grace period O Extended Term O Entire contract
O Extended Term
According to Indiana law, how long is the free look period for a Medicare supplement policy ? --10 days --20 days --30 days --40 days
30 days
All Long-Term Care policies purchased in Indiana MUST contain a free-look period of: O 10 days 0 15 days 020 days 030 days
30 days
Convincing a prospective insured to buy an insurance policy based on exaggerations is considered to be a form of. O rebating O intimidation O twisting O misrepresentation
misrepresentation
To continue health coverage for a new born , the policyowner must mortify the insurer of birth and provide the first premium payment within______ days of birth ? 10 days 15 days 30 days 31 days
"31 days "
According to Indiana law, group life insurance conversion privileges must NOT? ----- Allow a new policy to be issued -----allow a time period to convert group life coverage to an individual life policy ----allow a rate increase ---- require evidence of insurability
Require evidence of insurability ---
A(n) _______of authority permits an insurance company to transact business in Indiana. O award O stamp O document O certificate
O certificate
An insurer distributes public brochures that contain a false statement regarding a competitor's ability to pay claims. This act is considered an example of: ? O intimidation O defamation O coercion O unfair discrimination
O defamation
In the event of employment termination, a person covered by a group policy also has the right to convert such coverage to an individual policy within_____ days without proving insurability ? --- 15 days -- 30 days -- 31 Days -- 45 Days
"31 days "
Which of the following is a requirement to be eligible for a group health policy ? -- group must be formed for a purpose other than obtaining insurance -- group must designate one of its members to be the named insured --group must include at least ten individuals at the date of issue. -- group must include at least two employers.
"Group must be formed for a purpose other than obtaining insurance
All of these statements are true regarding a child qualifying for coverage under the Indiana children's heath insurance program , EXCEPT. - must be resident of Indiana to qualify. - Must be under 19 year of age to qualify - Family's income level must be greater than 150% of federal poverty level but less than 200% - Must have been born in the united states to quality.
"Must have been born in the united states to quality "
Which of the following is NOT an unfair claim settlement practice ? - Failing to acknowledge and act promptly with respect an insurance claim -- compelling an insured to initiate a lawsuit by offering less on an insurance claim -- Failing to accept or deny a claim within reasonable time after proof of loss is submitted -- Needing written documentation of claim details
"Needing written documentation of claim details"
when a life insurance application is completed, a policy summary must be given to the applicant. The policy summary MUST include ? - the insurer's AM best rating -- The producer's -- cash value rate -- the premium cost for basic coverage applied fo
"The premium cost for basic coverage applied for "
Which of the following is NOT required meet Minimum Essential Coverage(MEC) standards under the Affordable Care Act (ACA) ? -- Medicare -- Medicaid -- Worker's compensation -- Children's Health insurance program (CHIP)
"Work compensation "
What would be an accurate definition of "controlled business" ? - Insurance business that is written on the producer's own life, property, or interests - Insurance business obtained by an agent through coercion , intimidation , or boycotting -- Insurance business that is obtained through false advertising - insurance business that is obtained by replacing an existing policy through misrepresentation
"insurance business that is written on the producer's own life, property, or interests "
Kathy has a family Health insurance policy where any dependent children she has are removed from the policy once they have reached a certain age . The policy is known as ? Maturation Date coming of age Limiting age Expiration date
. "The limiting age"
To be classified as a small employer, and employer must employ: 0 1-10 employees 0 2-50 employees 0 1-25 employees 02-100 employees
0 2-50 employees
The free-look period for life insurance policies issued in Indiana is days. 0 10 014' 030 0 45
0 45
If a new life insurance policy is replacing an existing one, the insured is given the right to return for a full refund of at least ___ days after policy delivery. 0 10 0 20 0 30 0 40
020
A group life insurance policy can be converted to an individual whole life policy under which circumstance ? - Employment termination - Nonpayment of premiums - Policy reinstatement - Decrease in employer revenue
Employment termination"
Which of the following is a standard provision of the conversion privileges in a Group Life policy? Group Life coverage can only be converted if the employer pays for the individual policy • Group Life coverage can normally be converted to an individual policy within 6 months Group Life coverage can only be converted by providing evidence of insurability Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis
Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis
With whom may a producer share commissions with? O A licensed claims adjuster O A licensed producer with the same license type 0 An insurance company underwriter O Anyone the producer deems appropriate
O A licensed producer with the same license type
In a viatical settlement, how much does the policyowner receive for a life insurance policy? O Amount equal to the sum of all premiums paid O Amount equal to the death benefit O Amount greater than the death benefit O Amount less than the death benefit
O Amount less than the death benefit
An example of false advertising would be: O Paid testimonials from celebrity endorsements O An insurer exaggerating its dividends in a magazine advertisement O A producer spending more than $25 on marketing gifts for a client O An insurer advertising in an insurance trade journal
O An insurer exaggerating its dividends in a magazine advertisement
Which of the following permits an insurance company to transact business in Indiana? O Certificate of admission O Certificate of domestication O Certificate of authenticity O Certificate of authority
O Certificate of authority
An applicant for a resident insurance producer's license MUST meet which of the following requirements? O Have at least thirty college credits in insurance-related courses O Complete a pre-licensing examination O Submit a minimum of two insurance company appointments to the Insurance Commissioner O Be a resident of this state for a minimum of one year
O Complete a relicensing examination
Which of the following is NOT a situation that involves life insurance policy replacement? O Depleting cash value in an existing policy and applying for a new one O Converting a term policy to a permanent policy with the same insurer O Taking a reduced paid up option for a policy and applying for a new one O Terminating an existing policy and applying for one with better coverage
O Converting a term policy to a permanent policy with the same insurer
When does the Free-Look provision for Health insurance begins? O Date of sales appointment O Date the policy is delivered to the insured O Date the sales appointment was set O Date the policy was issued
O Date the policy is delivered to the insured
Why would the Insurance Commissioner issue a temporary license? O To allow a person who failed the state exam to conduct insurance business O To allow a nonresident producer to conduct business in Indiana O Date the policy is delivered to the insured O To allow a producer to sell for an unauthorized insurer
O Date the policy is delivered to the insured
What is required for Producers to sell Long Term Care (LTC) in Indiana? O Eight hours of post licensing education specifically devoted to LTC O Twelve hours of post licensing education specifically devoted to LTC O Chartered Long Term Care (CLTC) designation O Passing a separate examination specifically devoted to Long Term Care
O Eight hours of post licensing education specifically devoted to LTC
A group life insurance policy can be converted to an individual whole life policy under which circumstance? O Employment termination O Nonpayment of premiums O Policy reinstatement O Decrease in employer revenue
O Employment termination
All of these are powers of the Commissioner EXCEPT: O Hold hearings O Enforce insurance laws O Incarcerate a producer O Issue subpoenas
O Incarcerate a producer
Which of the following groups may NOT be insured by a group life insurance policy? O Employees O Supervisors O Administrators O Individuals who are related by blood
O Individuals who are related by blood
During the course of an insurance business transaction, who does the producer legally represent? O Producer O Insured O Insurance company O Beneficiary
O Insurance company
Which of the following statements is CORRECT about the Indiana Life and Health Insurance Guaranty Association? O It is governed by the National Association of Insurance Commissioners (NAIC) O It is an agency of the state government O It is a voluntary association of admitted Indiana insurance companies O It protects Indiana insurance policyowners in the event an insurance company becomes insolvent
O It protects Indiana insurance policyowners in the event an insurance company becomes insolvent
An applicant MUST receive an Outline of Coverage when an application is taken for a(n): O Endowment O Annuity O Medicare Supplement policy O Universal life policy
O Medicare Supplement policy
What must a producer sign when an existing life insurance policy is being reissued with a reduction in cash value? O Buyer's Summary • Policy Guide O Replacement Summary O Notice Regarding Replacement
O Notice Regarding Replacement
Who is responsible for determining if Long-Term Care coverage is appropriate to meeting an applicant's needs? O Commissioner O Applicant O Producer O Insurance Company
O Producer
The Insurance Commissioner may suspend, revoke, or refuse to renew a producer's license for which of the following reasons? O Producer files for bankruptcy O Producer engages in the replacement of an existing policy O Producer has used fraudulent, coercive, or dishonest practices O Producer does not meet a sales quota
O Producer has used fraudulent, coercive, or dishonest practices
Which of the following is NOT required in the Outline of Coverage for a health insurance policy? O Explanation of the policy's benefits O Listing of the policy's exclusions and limitations O Projection of the policy's future costs O Explanation of the policy's renewal and cancellation provisions
O Projection of the policy's future costs
Which of the following is NOT considered rebating? O Sharing commissions with a producer licensed in the same line of business O Returning premium to a client as an inducement for purchasing a policy O Giving something of value to an insured in exchange for their business O Offering special dividends
O Sharing commissions with a producer licensed in the same line of business
The coordination of benefits (COB) provision exists in order to: O avoid duplication of benefit payments O avoid excessive hospitalization O lower insurance premiums O maximize patient care
O avoid duplication of benefit payments
A domestic insurance company in Indiana MUST O own real estate in Indiana O write insurance on risks located only in Indiana O be incorporated and formed in Indiana O honor the charter of the National Association of Insurance Commissioners (NAIC
O be incorporated and formed in Indiana
A(n)_______ sells insurance advice for free ? O representative O adviser O counselor O consultant
O consultant
An example of an Unfair Claims Settlement Practice would be: O requesting a third-party arbitrator to resolve a disagreement O paying a claim promptly after receiving proof of loss O requiring the insured to give a statement under oath O denying an insured's claim without indicating the basis of denial
O denying an insured's claim without indicating the basis of denial
An example of an Unfair Claims Settlement Practice would be: O requesting a third-party arbitrator to resolve a disagreement O failing to effectuate prompt, fair, and equitable settlements of a claim O paying a claim promptly after receiving proof of loss O requiring the insured to give a statement under oath
O failing to effectuate prompt, fair, and equitable settlements of a claim
Under the Patient Protection and Affordable Care Act (PPACA), consumers have access to health coverage that is: O guaranteed available only O guaranteed renewable only O guaranteed available and renewable. Don't do this one O guaranteed available only if insurable
O guaranteed available and renewable. Don't do this one
If a producer commits an act of coercion or intimidation, how would the producer's insurance company be held responsible for this act? O If the insurer only suspends the producer, not terminate O If the insurer reduces the commission level of the producer O if the insurer approves of the act O If the insurer does not make a public announcement of the act
O if the insurer approves of the act
The Legal Action provision in Indiana stipulates that the: O insured must wait 60 days after submitting proof of loss to initiate a lawsuit and has up to 2 years to file O insured must wait 90 days after submitting proof of loss to initiate a lawsuit and has up to 2 years to file O insured must wait 60 days after submitting proof of loss to initiate a lawsuit and has up to 3 years to file O insured must wait 90 days after submitting proof of loss to initiate a lawsuit and has up to 3 years to file
O insured must wait 60 days after submitting proof of loss to initiate a lawsuit and has up to 3 years to file
T is an insurance license applicant who intends to primarily engage in insurance transactions on himself and his family. If the Insurance Department is made aware of this, Twill most likely O not be issued a license O be deemed untrustworthy O issued a license O be directed to apply for a surplus lines license
O not be issued a license
An example of rebating would be: O a mutual insurance company paying dividends to its policyowners O reducing the premiums across the board for a specific risk class O offering a client something of value not stated in the contract in exchange for their business O using intimidation in order to restrain or monopolize the business of insurance.
O offering a client something of value not stated in the contract in exchange for their business
An example of unfair discrimination would be: O declining an insurance application because of involvement in a hazardous occupation O offering the same terms of coverage to different policyowners in the same risk classification O offering different terms of coverage for different don't do this one policyowners having the same risk classification O issuing a policy at a substandard rate because of poor health
O offering different terms of coverage for different don't do this one policyowners having the same risk classification
XYZ Corp was issued a group Health policy for its employees. Under this plan a: O certificate must be issued to XYZ, and a policy must be issued to each employee O certificate must be issued to XYZ and each employee O policy must be issued to XYZ, and a certificate must be issued to each employee O policy must be issued to XYZ and each employee
O policy must be issued to XYZ, and a certificate must be issued to each employee
An individual who in any manner sells. solicits, or negotiates insurance on behalf of insurance companies for compensation is an insurance: ? O solicitor O adjuster O producer O representative
O producer
Health policies sold in Indiana are REQUIRED to begin medical coverage of a newborn beginning at: 0 31 days after birth O 14 days after birth O 24 hours after birth O the moment of birth
O the moment of birth
Life insurance replacement regulation protects the interests of: O the policyowner O the producer O the insurer O the NAIC
O the policyowner
Life insurance replacement regulation protects the interests of: O the policyowner O the producer.' O the insurer O the NAIC
O the policyowner
P's individual health policy is now in the Grace Period. P's coverage will remain in force if: O no claim is presented O the premium is paid O the insured proves insurability O the insured does not leave the state
O the premium is paid
An example of rebating would be: O a mutual insurance company paying dividends to its policyowners O reducing the premiums across the board for a specific risk class offering a client something of value not stated in the contract in exchange for their business O using intimidation in order to restrain or monopolize the business of insurance.
offering a client something of value not stated in the contract in exchange for their business
