Questions with Numeric Answers

What is the fine for using an unapproved name by a producer? a. $250 b. $500 c. $1,000 d. $5,000

a. $250

In a noncontributory health insurance plan, what percentage of eligible employees must participate in the plan before the plan can become effective? a. 100% b. 75% c. 50% d. 25%

a. 100%

How long must an insurer keep the receipt of policy delivery to the policy owner if the delivery was by mail? a. 2 years b. 4 years c. 5 years d. 1 year

a. 2 years

How many eligible employees must be included in a contributory plan? a. 75% b. 90% c. 100% d. 50%

a. 75%

What is the maximum age for qualifying for a catastrophic plan? a. 26 b. 30 c. 45 d. 62

b. 30

A producer has been notified by the Commissioner to stop using an unapproved trade name. How many days does the producer have to change the trade name before facing a fine? a. 5 business days b. 10 days c. 30 days d. the name must be changed immediately

b. 10 days

To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters? a. 4 credits b. 6 credits c. 10 credits d. 40 credits

b. 6 credits

A health insurance policy lapses but is reinstated within an acceptable timeframe. How soon from the reinstatement date will coverage for accidents become affective? a. after 31 days b. immediately c. after 14 days d. after 21 days

b. immediately

How soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company? a. As soon as possible b. Within 20 days c. Within 60 days d. Within 90 days or as soon as reasonably possible, but not to exceed 1 year

d. Within 90 days or as soon as reasonably possible, but not to exceed 1 year

An association could buy group insurance for its members if it meets all of the following requirements EXCEPT a. has a constitution and by laws b. holds annual meetings c. is contributory d. has at least 50 members

d. has at least 50 members

A Louisiana insurance company ran an advertisement in June 2008. When could the company discard the file on this advertisement? a. June 2012 b. June 2013 c. June 2009 d. June 2011

a. June 2012

Which of the following producers will be required to complete continuing education hours to renew is license? a. A producer who is serving a term as a member of the legislature b. A producer licensed 4 years ago who holds only one line of authority c. A 67 year old producer who sells life insurance policies for a licensed insurer d. A nonresident producer who only completed continuing education in his own state.

b. A producer licensed 4 years ago who holds only one line of authority

A producer's license has been revoked for a violation of the Insurance Code. When can the producer apply for a new license? a. 2 years after revocation b. within 1 year of revocation c. 5 years after revocation d. Never; once a license is revoked, producers cannot get licensed again.

b. within 1 year of revocation

A producer didn't realize that he had committed an act in violation of the Insurance Code. How much would he probably be penalized? a. $0 b. $500 c. $1,000 d. $25,000

c. $1,000

An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the policy, stock performance declined and the cash value fell to $10,000. If the insured dies, how much will be paid out? a. $10,000 b. $40,000 c. $50,000 d. $60,000

c. $50,000

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to a. 3 years b. 5 years c. 10 years d. 12 years

c. 10 years

Individuals who itemize deductions can claim deductions for medical expenses not covered by health insurance that exceed what percent of their adjusted gross income? a. 5% b. 7% c. 10% d. 15%

c. 10%

Employer health plans must provide primary coverage for individuals with end-stage renal disease before Medicare becomes primary for how many months? a. 12 months b. 24 months c. 30 months d. 36 months

c. 30 months

In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years? a. 1 b. 3 c. 5 d. 10

c. 5 years

For how long is an insurance company allowed to defer policy loan request? a. 30 days b. 60 days c. 6 months d. 1 year

c. 6 months

Under the uniformed required provisions, proof of loss under health insurance policy normally should be filed within a. 30 days of a loss b. 60 days of a loss c. 90 days of a loss d. 20 days of a loss

c. 90 days of a loss

After a hearing, if the Commissioner finds that a licensee is using Unfair Methods of Competition, the Commissioner may issue a Cease and Desist order against that person and levy a fine of how much? a. $250 for each violation b. Up to $500 for each violation c. Up to $1,000 for each violation d. Up to $2,000 for each violation

c. Up to $1,000 for each violation

If a resident producer or solicitor has a change of residential or business address, how soon must the licensee notify the Commissioner? a. As soon as possible b. within 15 days c. within 30 days d. At license renewal

c. within 30 days

According to OBRA, what is the minimum number of employees required to constitute a large group? a. 15 employees b, 20 employees c. 50 employees d. 100 employees

d. 100 employees

To be eligible under HIPAA regulations, for how long should an individual converting to an individual health plan have been covered under the previous group plan? a. 5 years b. 12 months c. 63 days d. 18 months

d. 18 months

What is a penalty tax for nonqualified distributions from a health savings account? a. 8% b. 10% c. 12% d. 20%

d. 20%

If authorized to write life, property and casualty insurance, how many hours of continuing education instruction are producers required to complete every 2 years? a. 10 b. 12 c. 14 d. 24

d. 24 credits

An insured has Medicare Part D coverage. Upon reaching the initial benefit limit, what percentage of the prescription drug cost is the insured responsible for? a. 15% b. 16% c. 23% d. 25%

d. 25%

A person buys a individual long-term care policy and is not satisfied with the provisions. Within how many days will the insured be able to return the policy for a full premium refund? a. 10 days b. 15 days c. 20 days d. 30 days

d. 30 days

In instances where a coordination of benifits provision is necessary, and two relevant plans cannot agree on the order of benefits, they have to pay the claim in equal shares. How long do they have to determine the order of benefits? a. 60 days b. 90 days c. 7 days d. 30 days

d. 30 days

Insurer examinations must occur no less frequently than every.... a. 2 years b. 3 years c. 4 years d. 5 years

d. 5 years

At what age may an individual make withdrawals from an HSA for nonhealth purposes without being penalized? a. 55 b. 59 1/2 c. 62 d. 65

d. 65

A producer was originally licensed on April 1st, 2001. The producer's birthday is on October 17th. The producer last renewed her license in 2012. By what date must the producer renew her license again? a) April 1st, 2013 b) April 1st 2014 c) October 17th, 2014 d) October 31st, 2014

d. October 31, 2014

Which of the following is true regarding statistics used in advertisement? a. The statistics must be figured using data from the last 3 years. b. The equations used to figure them must also be shown. c. The use of statistics is not allowed in advertisements. d. The source must be identified.

d. The source must be identified.

The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as a. time limit on certain defenses b. payment of claims c. proof of loss d. legal actions

d. legal actions