Chapter 8: lesson 3 laws and rules
Which of the following statements is correct about Indiana life and health insurance guaranty Association?
It protects Indiana insurance policy owners in the event and insurance company becomes insolvent
An applicant must receive an outline of coverage when an application is taken for a
Medicare supplement policy
Life insurance replacement Regulations protect the interests of
Policyowner
How many days is a temporary producers license valid question
180 days
Which of the following provides funding for the Indiana life and health insurance guaranty Association?
The member company assessments
Health policy sold in Indiana are required to begin medical coverage of a newborn beginning at
The moment of birth
How long does an insurance company appointment remain in force?
Until terminated
T is a producer who forgot to renew her license. She may reapply for a license without an examination
Within 1 year after no renewal
An example of an unfair claims settlement practice is
turning down a claim without providing the basis of denial
Which Of the following is considered to be Missrepresentation?
A provider guaranteeing a policy's dividends?
Which of the following is an example of false advertising?
And insurance company publishing misleading information about its policies provions
What does the Indiana life and health insurance guaranty association provide?
Claim payment of admitted insolvent insurance companies
How often must the commissioner Examine each domestic insurance company?
Every 5 years
Which of the following is a standard provision of the conversion privileges in a group life policy?
Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis
A person insured under a health policy is required to give the insurance company a notice of claim within——— days after a covered loss
20 days
A producers license may be denied suspended or revoked if the licensee
Is found guilty of misrepresentation in obtaining license
The conversion provision in a group health insurance policy
Is mandated by the state requirements
How many days is a temporary producer's license valid?
180 days
A long-term care policy sold in Indiana must provide benefits for a minimum
12 months
Indiana's long-term care partnership program requires a producer to have
15 hours of additional education after they receive their license
According to Indiana law how long Jan statements made by an applicant on a health insurance policy be contested?
2 years
An individual insurance policy so that Indiana can become tested by the insurer only during the first—— years of the contract
2 years
I newly licensed producer must complete 24 hours of continued education every—— years
2 years
The affordable care act provides health coverage to dependents up to the age of
26
A Medicare supplement policy maybe return for 100% premium refund within——— days After policy delivery
30 days
A producer must notify the commissioner within —— days of felony conviction
30 days
ABC insurance company fails to pay death proceeds after satisfactory proof of loss was submitted. ABC must begin paying interest on the death proceeds after——— days Of receiving proof of loss.
30 days
According to Indiana law how long is the free look. For a Medicare supplement policy?
30 days
According to indiana law, how long is the return for a long term care policy?
30 days
An insurer that terminated a producer's appointment must notify the commissioner within ——- days of the date of termination.
30 days
Free looks for a long term care policy is
30 days
A producer must notify the insurance commissioner within——- days Of an address change
30days
In the event the employment termination a person covered by group policy also has the right to convert such coverage to an individual policy within —— days without providing insurability
31
To continue health coverage for a newborn the policy owner must notify insurer of birth and provide first premium payment within—- days of birth
31
Long term care policies sold in Indiana May exclude coverage for pre-existing conditions for
6 months
A life insurance policy can be backdated before an application date for up to: how long?
6 months, in order to save on premiums
What is Indiana's definition of life insurance replacement?
A transaction in which a new policy has bought in an old policy is terminated
What is Indiana's definition of life insurance replacement?
A transaction in which a new policy is bought and old pause he is terminated
Indiana's 10 day free look. For life insurance policies begin on the
Date of delivery
Which of these provisions is not required In individual's life insurance policy sold in Indiana?
Extended term
Which of the following groups may not be insured by a group life insurance policy?
Individuals related by blood
Kathy has family health insurance policy where in independent child if she has a removed from the policy once they reached a certain age. This policy is known as:
Limiting age
According to Indiana law which party is responsible for determining the appropriateness of a long term policy presented to a potential applicant?
Producer
According to Indiana law, group life insurance conversion privileges must not
Require edvieence of insurability,,,,, but they must Allow the converted policy to exceed 75% Of the original group life amount, allow time to convert group live coverage to an individual life policy, and require a rate increase
In order to terminate a producers appointment the insurer must
Send notice of Termination to the commissioner
In medical expense health insurance policy What is considered to be the limiting age?
The age at which dependent children can be taken off an insurance policy
Which of the following is a requirement to obtain a nonresident producer license in Indiana?
The producer state of residence he must have reciprocity with indiana
The insurance commissioner is authorized
To enforce state laws relating to insurance
Life and Health Insurance Guaranty Association is
funded by admitted insurance companies through assessments
In the event the employment termination, a person covered by a group policy also has the right to convert such coverage to an individual policy within——- days Without providing insurability
31 days
With who made a producer share commissions with?
A licensed producer with the same license type
Which of the following is a requirement to be eligible for group life policy in Indiana?
Group must be formed for a purpose other then obtaining insurance
Under the patient protection and affordable care act(PPACA) consumers have access to health coverage that is
Guaranteed available in renewable
What is the purpose of the indiana life and health insurance guaranty association?
I I that claims filed against insolvent insurance companies will be paid assured
All of these are powers of commissioner except:
Incarcerate a producer
In Indiana resident insurance producer must perform which of the following actions to continue with their license?
Meet continuing education requirements
According to Indiana is mammogram coverage statute, which of these benefits are considered mandatory in every medical expense policy?
One mammogram every year for women age 40 and older
Which of the following is not required in an outline of coverage for health insurance policy?
Projection of policies future costs
Which of these correctly describes the purpose of the Indiana comprehensive health insurance plan?
Provides high-risk insurance coverage for people who are uninsurable
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 not include
Those who cannot afford or have religious objections
Insurance companies that are organized in countries outside of United States are referred to as
alien
What is rebating?
offering incentives to purchase a policy, Returning premium to a client as an inducement to purchasing a policy, giving something of value to an insured in exchange for their business, offering special dividends
In Indiana the maximum fine that the commissioner can impose on a producer or company who violates a cease and desist order —— per violation.
25000
Hearing must be held before a producer's license can be suspended or revoked. Prior to the hearing,the insurance commissioner is required to
Give written notice to the producer
Maternity Coverage is required in which type of policy?
Medical expense policy
Which No the following will happen if a license resident insurance producer moved to another state?
Producers license shall terminate immediately
Which of the following is NOT considered rebating?
Sharing commission with an agent licensed in the same line of business
The free look. For life insurance policy issued in Indiana is——— days?
10 days
What is the minimum grace period for an individual health policy that is paid monthly?
10 days
What is required of a producer to be in compliance with rule 13, life insurance advertising?
A potential applicant must be told that life Insurance is the exclusive subject of the sale
Which of these is an example of twisting?
A producer misrepresents a policy to induce A policy owner to surrender and existing policy
All of these statements concerning individual medical expense policies sold in Indiana are true except
A provion must be contained that guarantees reinstatement
Which of the following is not a required provision in a group life policy?
Accidental death and dismemberment
Which of the following actions does the insurance commissioner not have the power to conduct?
Activate insurance company financial reserves
The coordination of benefits (cob) provision exists in order to:
Avoid duplication of benefit payment
Consumers who purchased health insurance through the marketplace exchange
Do not have their health history taking into account
Disable dependence can continued coverage under a family health plan would be discontinued if
Documentation of the disability is not provided to the insurer
How often must an insurance producer's license in indiana be renewed?
Every 2 years
What would be an accurate definition of" controlled business"?
Insurance business that is written on the producers on life property or interests
During the course of an insurance business transaction, who does the producer legally represent?
Insurance company
The legal action provision in Indiana stipulates that the:
Insured must wait 60 days after submitting proof of loss to initiate a lawsuit and has up to 3 years to file.
Insureds in the same risk Classification Are being charge different premiums by an insurance company this ensure is committing the illegal
Unfair discrimination
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
Viatical settlement
Which of the following plans is not required to meet minimum essential coverage(MEC) standards under the affordable care act(ACA)
Worker's Compensation.... ( Medicare Medicaid and Child health insurance program (CHIP) is required to meet standards
A life policy loan in Indiana cannot charge a fixed rate of interest higher than
8%
An insurance company that has qualified and received a certification of authority from the Department of insurance to sell insurance in the state is considered to be——- insurer.
Admitted
At what point may a producer sell insurance for an insurer?
After being properly appointed by an insurer
Which of the following actions by producer would not result in a license suspension or revocation?
Producer represents a for an insurance company that's OK
Why would the commissioner exam in the records of an insurance company?
To determine the solvency of the company
Which of the following statements is correct about the license commissioners authority to exam in the business records of a producer?
The commissioner may examine them whenever it's deemed necessary
Why would the insurance commissioner issue a temporary license?
Two of our personal representative of a deceased producer to provide service to existing policy owners
In Indiana what is the maximum percentage of control business a producer may write in a 12 month period?
25%
If an existing accident and health policy is being replaced with a new policy the decision to replace should not be based on
Commissions to be paid
An applicant for a resident insurance producers license must meet which of the following requirements?
Complete a prelicensing examination
Which of these actions does not constitute Life insurance policy replacement?
Convert term coverage to a whole life policy
The commissioner is appointed by
governor
What type of insurance company is domiciled in England, but conducts business in Indiana?
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?
All of the employees must be notified of the cancellation either by the insurance company or through J
In a viatical settlement, how much does the policyowner receive for a life insurance policy?
Amount less than the death benefit
What does a certificate of authority allow?
An insurance company to conduct insurance business in indiana
And ensure distributes public Brochures that contain a false statement regarding a competitors ability to pay claims. This act is considered an example of
Defamation
What is required for producers to sell long-term care(LTC) in indiana
Eight hours of post licensing education
What must a producer sign when an existing life insurance policy is being re-issued with a reduction in cash value?
Notice regarding replacement
A licensed business entity acting as an insurance producer must:
Notify the department of insurance of any fictitious name used
When a life Insurance policy is completed, a policy summary must be given to the applicant. The policy
The Premium cost four basic coverage applied for
When a life insurance application is completed a policy summary might be given to the applicant. The policy summary must include: what?
Premium cost for basic coverage applied for
A business entity Acting as an insurance producer must
Designate at least one licensed producer to be responsible for the entities compliance with the insurance law and rules
The insurance commissioner may suspend revoke or refuse to renew A producers license for which of the following reasons?
Producer has used fraudulent,coercive, or Dishonest practices
