Insurance Minnesota Exams 2 prep
Reaches age 65
"Guaranteed renewable" - means that as long as the required premiums are paid, the policy will continue until the insured
12 months
A producer's license lapses. It can be reinstated without requiring the producer to pass the licensing exam again, provided that the producer applies for reinstatement within.
Owned by stockholder
A stock is defined as an insurer
180
A temporary license in this state is valid for how many days?
Misrepresentation
An agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done.
Benefits paid will be those that would have been purchased at the correct age.
An applicant misstates his age on his applicant for a health insurance policy. He states that he is 39 when he is 49, When he filed a claim, what will most likely happen?
Mexico
An example of an Alien insurer doing business in this state is one formed under laws of
60 days to conversion
An individual recently host her job
15 days
An insured suffered a loss and notified her insurance company. The insurer must provide a claim form to the insured within.
Defamation
During policy solicitation, an insurer exaggerates the financial condition of one of its competitors, and makes it sounds worse than it is. This is an example of an unfair trade practice of
$450. 3x150
Elaine's Basic Hospital expanse policy has a $500 per day limit for room and board in a hospital for a maximum of 5 days. Elaine's got sick and had to spend 3 days in the hospital at $650 a day. How much will Elaine have to pay to corner the rest of her room and board charges?
An individual
For which of the following entities should an agent recommend a Personal Lines policy?
Misrepresentation
Guaranteeing future dividends is considered to be an unfair or deceptive act know as
Service--
HMO's are known as what type of plans?
-From the moment of birth
Has a kid
Key person disability income
If a business wants to make sure it will be able to cover losses due to the disability of its top employee, the business should get which type of policy.
The underwriter approves the application.
If an applicant submits the initial premium with an application, which action constitutes acceptance.
Returned to the insured on a pro rata basis--
If the insurer cancels a health policy that contains an optional cancellation provision, by giving the insured 5 days prior written notice, any unearned premium will be.
Motor Carrier--
In a commercial Auto Coverage policy, which of the following coverage forms applies to automobiles transporting property for a commercial enterprise?
Coverage E--
In a homeowners policy, which of the following coverages provides protection against bodily injury and property damage claims against the insured?
Mode of premium payment-
In health insurance, the length of the grace period varies according to the
A 27-year old married daughter who is attending college and lives with her parents
Under a group health insurance plan, benefits may be extended to all of the following dependents EXCEPT
60 days after written proof of loss has been submitted
Under the mandatory uniform provision Legal Actions, an insured is prevented from bringing a suit against the insurer to recover on a health policy prior to
It eliminates the imposition of a second elimination period for the same disability--
What advantage does the "recent disability" provision provide to the insured under a disability income policy?
The insured must be unable to perform some activities of daily living.
What is necessary in order to be eligible to receive benefits from a Long-Term Care policy.
$25
What is the maximum fine for insurers who allow producers to transact insurance for them without appointments?
10 Days
When producers change the address of their residence or office, the Commissioner must be notified within
A specified period of time that a person joining a group has to wait before becoming eligible for coverage.
Which of the following best defines the Probationary Period in group health policies?
Consideration
Which of the following elements of an insurance contract requires paying premium and providing a statement of good health?
Authorized
Which of the following is NOT an example of the company's location of incorporation?
Paying a Claim--
Which of the following is consideration of the part of an insurer?
All additional provisions written by insurers are cataloged by their respective states.
Which of the following statements is NOT true regarding health insurance policy provisions?
The agent
Who is obligated to make sure all questions are answered and all necessary signatures are collected in the application.
The parties that hold a group health insurance contract are the employees and the employer.
All of the following are characteristics of group health insurance plans EXCEPT
Ban a representation of an examinee by an attorney--
During a hearing, the commissioner can do any of the following, EXCEPT
Certificate of Authority
Insurers CANNOT transact insurance in this state without a
Principle Sum--
On an accidental Death and Dismemberment (AD&D) policy, the death benefit payable is known as the
Future increase option
The guaranteed purchase option is also referred to as the
Feeling--
The presumptive disability provision assumes that the insured is totally disabled upon loss of all the following EXCEPT
Must employ at least 2 people on 50% of its working days.
The state of Minnesota has enacted a plan designed to promote the availability of health insurance to small employers. To be eligible for coverage, which of the following requirements must be met?
$1,000
What is the maximum penalty per offense for transacting insurance without a certificate of authority.
2 years
According to the Time Limit on Certain Defenses provision, statements or misstatements made in the application at the time if issue cannot be used to deny a claim after the policy has been in force for a minimum of how many years?
Mental Illness.
All of the following are excluded from coverage in an individual health insurance policy EXCEPT
Consideration
Which of the following policy provisions makes it clear that both parties to a contract must contribute something of value for the contract to be effective?
The insurer does not have the right to conduct an autopsy, if not forbidden by state law.--
Which of the following statements is INCORRECT
deductiable
Which of the following terms refers to the portion of a loss that is paid by the insured?
Charging the insured higher premiums based on her race
Which of the following would be an example of an insurer participating in the unfair trade practice of discrimination?
One party accepts the exact terms of the other party's offer.
Which statement best describes agreement as it relates to insurance contracts?
Every 24 months
How often must producer licenses be renewed?
24
How many CE credits must be completed within each licensing period?
2 years
If a license is revoked, that person cannot apply for another license for another
Nothing
If an insured is injured while committing an illegal act and his health policy contains the illegal Occupation provision, what percentage of the claim will be paid;
Within 10 days of when the policy was delivered
If an insured is not entirely satisfied with a policy issued, the insured may return it to the insurance company and receive a refund of the entire premium paid, at which of the following times?
cease and desist order
If, after a hearing, it is determined that an insurer or producer is violating Minnesota insurance laws, the Commissioner will issue
By requiring that the insurance be incidental to the group
In addition to participation requirements, how does an insurer guard against adverse selection when underwriting group health?
A percentage of the cost of service that the insured and the insurer share.
In health insurance, what is coinsurance?
Apply and pay a fee to a nonresident state that reciprocates
In order to get a non resident is this state a producer must
60 days -
Under the mandatory uniform provision Proof of Loss, the claimant must submit proof of loss within what time period after the loss?
To state what and how much is covered in the plan.-
What is the purpose of a benefit schedule
Monthly
Following a covered loss, the Time Payment of Claims Provision requires that an insurance company pay disability income benefits no less frequently than
Private Duty Nursing-
Medicare Part A services do NOT include which of the following?
If paid by the individual, the premiums are tax deductible.
Which of the following is NOT correct concerning taxation of disability benefits?
Insurer can increase the premium above what is stated in the policy if claims experience is greater than expected.
Which of the following is NOT true regarding a noncancellable policy?
There are no cash values --
Which of the following is true regarding the cash value in term life insurance policies?
The insured can select any specialist, but non-network specialists will have higher out-of-pocket costs.
An insured is anxious to get treatment for a health condition, and is convinced that a specialist is needed to cure the condition. If the insured has a PPO plan, which of the following is true?
Blanked life
Which of the following kinds of group insurance is designed for groups of people who are exposed to a common hazard?
Custodial Care
Which of the following meets the insured's personal needs, and is provided by nonmedical personnel?
Only an executive officer of the company
With respect to the entire contract clause in health policies, who has the authority to make charges to an existing policy?
Twisting
An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change of surrender a life insurance policy or annuity has committed an illegal practice known as.
An insured suffers a relapse if a prior disability within 6-months of the initial covered disability.
An elimination (waiting) period may NOY have to be satisfied for a disability in which of the following?
A consumer report
Applicants have the right to know that the insurance company will collect certain personal information about their credit, character and reputation. The insurer may obtain such information from
The producer's commission schedule
As a part of the policy approval process, the Commissioner may require the insurer to provide all of the following, EXCEPT
Drug Addiction-
A Major Medical Expense policy would exclude coverage for all of the follow treatments EXCEPT
30 days
A Medicare supplement policy must have a free-look period of at least
Replace a percentage of his lost income
An insured had a heart attack while jogging, but is expected to return to work in approx. 6 weeks. The insured's disability income policy will.
Pro rata
An insured has 2 property policies in force covering the same risk. When a loss occurs, which of the following policy provisions states that each policy will pay the same proportion of its limits to the overall coverage?
He won't collect anything.
An insured has an individual disability income policy with a 30-day elimination period. He becomes disabled on June 1st for 15 days. When will he collect on his disability income payments?
Peril
An insured's home is destroyed by a fire. In this example, the fire is a
Insureds-
The Minnesota Life and Health Insurance Guaranty Association was created to protect all of the following EXCEPT
If an applicant is declined for an insurance policy, he/she has no right to know what was in the report.
According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT
Occupation
Among people in the same class and life expectancy, which of the following factors can be used to influence premium rates?
Emily will most likely be covered--but with pre-existing condition coverage limitations.----
Emily, 10 year old daughter of Bob, was in a auto accident and sustained injuries that will require her to use a wheel chair for the rest of her life. Bob is applying for health insurance. Which of the following is true?
Submit the description in their own words-
Insureds have the right to do which of the following if they have NOT received the proper claim forms within 15 days of their notice to the insurer of a covered loss under a major medical policy?
30 days
Long-term care insurance policies sold in Minnesota must provide a free-look period of
Obtain the consent of the insured--
Prior to paying a claimant under a professional liability policy, the insurer must
Entire Contract Provision
The uniform Provision Law that prevents an insurance company from altering its agreement with a policy holder by referring to documents or other items not contained in the policy is called the
Countersignature
To be valid, an insurance policy must have all of the following EXCEPT
To exclude coverage for a specific impairment-
What is the purpose of the impairment rider in a health insurance policy?
If provides catastrophic medical coverage beyond basic benefits on a usual, customary and reasonable basis.
Which of the following best describes a Major Medical Expense Policy?
Capital sums are percentages of principal sums-
Which of the following describes the relationship between a capital sum and a principal sum.
