Chapter 8 - Mississippi Laws & Rules Pertinent to Insurance

Long-Term Care policies sold in Mississippi may exclude coverage for pre-existing conditions for

6 months

Acme Insurance Company conducts business in Mississippi and was incorporated in Mississippi. This company is considered to be a(n)

domestic insurer

A hearing must be held before a producer's license can be suspended or revoked. Prior to the hearing, the Commissioner of Insurance is required to

give written notice to the producer

The Life and Health Insurance Guaranty Association

is funded by insurance companies through assessments

During the course of an insurance transaction, if a producer makes a false or incomplete statement, he/she could be found guilty of

misrepresentation

An insurance producer is guilty of twisting if the producer

misrepresents a policy to induce a policyowner to surrender an existing policy

The pre-existing condition clause in a long-term care policy MUST be waived when the

new policy replaces existing coverage with the same insurer

An example of rebating would be

offering a client something of value not stated in the contract in exchange for their business

Life insurance replacement regulation is designed to protect the interests of the

policyowner

An insurance company appoints a(n)_________ to transact insurance.

producer

A producer has returned part of his commission to the insured as an inducement to purchase the insurance. This illegal action is called

rebating

Health policies sold in Mississippi are REQUIRED to begin medical coverage of a newborn beginning at

the moment of birth

T is a producer who forgot to renew her license. She may reapply for a license without an examination

within one year after no renwal

A Long-Term Care policy sold in Mississippi must provide benefits for a MINIMUM of

12 months

Long Term Care policies in Mississippi must contain all of the following, EXCEPT a

guarantee of issue at age 65

J is a producer who is recommending that an insured surrender an existing life insurance policy and purchase a new one. Which provision would this producer be subject to?

Replacement

The Commission of Insurance MUST give ___ days notice before holding a hearing regarding a producer's unfair practice.

10 days

ABC Insurance Company is replacing an existing life policy from XYZ Insurance Company. ABC Insurance Company must provide which of the following documents to XYZ Insurance company?

A policy summary

Which of the following actions must be taken by an insurance company that wishes to conduct business in Mississippi?

Acquire a certificate of authority

What is a responsibility of the Commissioner of Insurance?

Administering insurance laws

Who would be given an exemption from licensing requirements in Mississippi?

An employee of a licensed producer who only answers the phone and schedules appointments

An example of Life insurance policy replacement would be which of the following?

Cash surrender an existing life policy and purchasing a new life policy

Which of the following BEST defines unfair discrimination?

Charging different rates for individuals in the same risk class

How does the Commissioner of Insurance attain office?

Elected by the people of Mississippi to a 4-year term

How often must an insurance producer's license be renewed?

Every 2 years

With whom may a producer share commissions with?

Licensed producer

Long-Term Care policies sold in Mississippi are required to contain cost disclosure information in bold print. Where does the law require this information?

Outline of coverage- cover page

An insurance company must do which of the following to terminate a producer's appointment?

Send notice of the termination to the Commissioner of Insurance

Which of the following would be a valid reason for suspending or revoking an insurance license?

The producer misappropriated money held in a fiduciary capacity

At what point does the Life and Health Insurance Guaranty Association become involved with an insurer's affairs?

When the insurer becomes insolvent

Replacement is involved in all of the following situations, EXCEPT when

a Term policy is converted to a permanent plan with the same insurance company

In Mississippi, an insurance company formed under the laws of Mexico is called a(n):

alien company

What is the requirement for maintaining an individual Mississippi producer license?

Completing 24 hours of continuing education every 2 years

B is a producer who primarily writes insurance business on his family. Which of the following is B engaged in?

Controlled business

A producer is suggesting replacement if a prospective insured is given all of the following advice, EXCEPT:

Convert your Term insurance to Whole Life

A producers must notify the Commissioner of Insurance within ___ days of an address change.

30 days

All Long-Term Care policies in Mississippi MUST contain a free-look period of

30 days

Any criminal charges taken against a producer must be reported to the Commissioner of Insurance by the producer within how many days of the final disposition?

30 days

The purpose of the Rules Governing Life Insurance and Annuity Replacement is to

reduce the opportunity for misrepresentation and incomplete disclosure

A producer is attempting to replace an existing life insurance policy with a new one. What must this producer submit as part of the application?

A signed statement by the applicant regarding the replacement