Iowa laws and rules
Which of the following is NOT considered rebating?
Sharing commission with an agent licensed in the same line of business
An unintentional violation of Iowa Insurance law could lead a producer to a fine of up to _ per violation.
1,000
According to Iowa law, a group life insurance policy requires a minimum of how many insurers?
10
The free look period in Iowa for individual health insurance policies is _ days
10
Before holding a hearing regarding an agent's unfair or deceptive practice, the Insurance Commissioner MUST give how many days notice?
10 days
An insurance company is required to send forms for filing proof of loss to a claimant within _ days after company receives notice of a claim
15 days
The grace period for group life policies is _ days
31
How many days must the insured wait to take legal action against a health insurer after submitting written proof of loss of the insured refused to pay
60 days after a claim for loss has been filed by the insured
The commissioner of insurance is the chief officer of the Iowa insurance division and is appointed by the governor for a _ year term
A 4 year term
What is the required renewability status of all Medicare supplement policies?
All Medicare supplements must be guaranteed renewable
What is an insolvent insurance company?
An insurance company is insolvent when it cannot Pay its debts, it has more liabilities then assets
Which of the following is a requirement to attain a nonresident producer license?
Be licensed as a producer in the producer's state of domicile
When an unfair trade practice has been discovered, the Comissioner may issue a
Cease and desist order
Which I'd the following is a requirement for a producers license renewal?
Completing the required continuing education
According to Iowa law, group life insurance conversion privileges must NOF
Require evidence of insurability
The Life and Health insurance Guaranty Association is
funded by insurance companies through assessments
Who issues Medicare Supplement policies
insurance companies
B the producer would like to sell an annuity to his client. Before selling the annuity, B needs to collect all of the following information from his client EXCEPT
Martial status, when purchasing an annuity martial status is not required
When a Medicare Supplement policy is delivered, disclosure standards require that a _ of Coverage be provided to the insured
OUTLINE OF COVERAGE
Iowa insurance laws address diabetes coverage. Under Iowa insurance laws, policies MUST
Apply the same deductible and copays to covered diabetic supplies as other medical conditions
When is group health policy required to provide coverage for a newborn child?
At the moment of birth A Group Health policy is required to provide coverage for a newborn child at the moment of birth.
When must a producer deliver a Notice Regarding Replacement of Life Insurance?
At the time of application
What does the Iowa Life and Health Insurance Guaranty Association provide?
Claim payments of admitted, insolvent insurance companies
According to the affordable care act (Aca) which of the following coverages is NOT required?
Coverage for cosmetic surgery
Insurance issued on a debtor to cover outstanding balances on installment loans is called
Credit life
Which of the following unfair trade practices involves a producer who makes malicious statements about another persons financial condition?
Defamation- a producer who makes a statement that is maliciously critical of another person of insurers financial condition is guilty of defamation
The required free-look period in a Medicare Supplement policy is ___ days
30 days
Long-term care policies issued In Iowa MUST be
Guaranteed renewable
Which situation does not require a producer to provide a suitability statement to the annuity company
When a producer discusses annuities in general with a client, but no specific recommendation is made
A life insurance policyowner may sell their policy to a _ in order to receive a percentage of the policy's face value.
VIATICAL SETTLEMENT PROVIDER
How often must the Commissioner examine each domestic insurance company?
every five years.
In a life insurance contract, the policy, application, and riders or endorsements are considered to be the
Entire Contract
An individual covered under a group life insurance policy is considered to be an
certificate holder
Why would the commissioner examine the records of an insurance company?
determine the solvency of the company
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
The _ must provide an insured with proper disclosure concerning the replacement of an existing policy
producer
Essential benefits without annual and lifetime limits are required on any health policy purchased
through the Federal Marketplace
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
Under Iowa law, which of the following provisions is not required in a Medicare supplement policy?
Limitation on pre-existing conditions for up to 12 months
Under Iowa law, which of the following provisions is NOT required in a Medicare Supplement policy?
Limitation on pre-existing conditions for up to 12 months. There is only a 6 month limitation on pre-existing conditions for Medicare supplements
Which of the following is NOT a situation that involves life insurance policy replacement?
Maintaining an existing policy and applying for a new one
What must be signed by both the producer and the applicant when an existing life insurance policy is being reissued with a reduction in cash value?
Notice Regarding Replacement
In Iowa, an insurer licensed to conduct business in Iowa, but domiciled in New Jersey, is called a
Foreign company
A hearing must be held before a producers license can be suspended or revoked. Prior to the hearing the Commissioner is required to
Give written notice to the producer
Which is the states high risk pool coverage for residents who cannot obtain coverage through the traditional insurance market
Iowa comprehensive health insurance association
Life insurance replacement regulation protects the interests of
Policyowner
Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed?
The correct answer is "Misrepresentation". An agent who tells a client that dividends are guaranteed may be guilty of misrepresentation.
W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim?
The proceeds would be reduced based on whatever the premium would have been if purchased at age 59
ABC Insurance company would like to issue a small employer group policy in this state. Before doing so, it is required to
be authorized to write accident and health insurance in this state
Which of the following is considered rebating?
returning a portion of the premium or the agent's/broker's commission on the premium to the insured or other inducements to place business with a specific insurer.
Long term care insurance must provide coverage for at least _ months
12
The Commissioner must give _ days notices prior to holding a hearing regarding a producer's violation of an unfair trade practice
10 days
Before holding a hearing regarding an producers unfair or deceptive practice, the Insurance Commissioner MUST give how many days notice?
10 days notice
An individual life insurance policy issued in Iowa must have a free look period of at least _ days.
10 days upon policy delivery
A labor union must have at LEAST ____ members to be issued a group life policy
10 members
What is the MINIMUM benefit period that must be offered by A Long term care policy?
12 months
At what point may a producer sell insurance for an insurer?
After being properly appointed by the insurer
An example of misrepresentation is
Anyone who makes a fraudulent statement on an insurance application in order to obtain benefits from an insurance company
According to the Time Payment of Claims provision, how soon must an insurer pay for a covered medical expense after proof of loss has been submitted?
IMMEDIATELY
P is a producer who is licensed in Iowa, but a resident of Nebraska p is a _ producer
Nonresident
T the producer is replacing a client's existing insurance policy with a new one. Prior to policy delivery, which form must the client be provided with?
Notice Regarding Replacement
If a Medicare supplement policy involves replacement, it must be verified on a question located
On the application
Which of these is a requirement for obtaining a resident insurance producer license in this state?
Pass the appropriate examination
An example of unfair discrimination would be
offering different terms of coverage for different policyowners having the same risk classification
XYZ Corp was issued a group health policy for its employees. Under this plan a
policy must be issued to XYZ, and a certificate must be issued to each employee
According to Iowa insurance law anyone found to have violated a cease and desist order may be subject to a fine of up to _ for each violation.
10,000
The MAXIMUM time period that pre-existing conditions can be excluded in long-term care policies is
6 months
In Iowa, which of the following is considered an Unfair Trade Practice?
Coercion, which means manipulation and physical or mental force to sway or change a decision
S the producer has deposited premiums collected from clients into his personal bank account. This illegal act is called
Commingling
A Medicare supplement policy can be cancelled by the insurer for
nonpayment
Under the Affordable Care Act ( ACA), health care coverage is provided for dependents up to the age of:
26
How often must an insurance producer's license in Iowa be renewed?
3 years and 36 hours of continuing education to keep the license active 3 of those must be in ethics
A producer must notify the Commissioner within _____ days of a felony conviction.
30 days
Group Life policies in Iowa are required to contain a conversion privilege that allows for conversion
To an individual for a stated period of time
J is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of?
Twisting, twisting is inducing or attempting to induce any insured person through misrepresentation to lapse forfeit or surrender insurance
Convincing a prospective insured to buy an insurance policy based on exaggerations is called
Misrepresentation
