RI Health Laws Ch. 14 Q& A

Once liability and the claim amount are no longer in dispute, the insurer must pay the claim: a. Within 10 days b. Immediately c. Within 30 days d. Within 15 days

C. Once liability and the claim amount are no longer in dispute, the insurer must pay the claim within 30 days.

How many credit hours of continuing education must a producer complete every renewal period? a. 24 (with at 3 hours in ethics) b. 18 (with at least 2 hours in ethics) c. 24 (with at least 6 hours in ethics) d. 12 (with at least 3 hours in ethics)

A. producer must complete 24 credit hours of continuing education every renewal period with at least 3 hours in ethics

Which of the following is true regarding the renewal of licenses? a. Licenses must be renewed annually b. Licenses must be renewed every 2 years c. Licenses do not need to be renewed d. Licenses must be renewed every 3 years

B. Licenses must be renewed every 2 years.

A producer must inform the Commissioner of a change of address within ___ days of the change. a. 10 b. 20 c. 30 d. 60

C. A producer must inform the Commissioner of a change of address within 30 days of the change.

Which of the following is false with respect to privacy regulation? a. A producer must provide a privacy notice to an individual who becomes the producer's customer, not later than when the producer establishes a customer relationship b. A consumer may not revoke their authorization to disclose personal health information once such authorization has been made c. Insurers must provide consumers with the opportunity to opt out of the disclosure of personal information d. A producer may not disclose any nonpublic personal information to any party unless the producer has provided the initial notice and an opt out notice to the consumer

b. A consumer may not revoke their authorization to disclose personal health information once such authorization has been made

With respect to Fraternal Benefit Societies, which of the following statements is NOT correct? a. A fraternal benefit society is taxed only on real estate it owns and office equipment it purchases b. The regulations that apply to producers do not apply to Society producers c. A fraternal benefit society operates for the benefit of its members and their beneficiaries d. A Society's license is continuous unless revoked or suspended

B. Producers of fraternal benefit societies are licensed according to the same regulations applying to resident and nonresident producers if the Society producer devotes at least 50% of their time to soliciting insurance for the Society.

With regard to examinations, which of the following statements is NOT correct? (A) The Commissioner may initiate actions or proceedings pursuant to an examination. (B) The expense of examination of an insurer or of any person is paid by the Department. (C) The Commissioner may examine, as often as the Commissioner deems advisable, the records of any insurer. (D)The Commissioner may conduct an examination to determine if any person has violated the laws of this state.

B. The expense of examination of an insurer or of any person is paid by the insurer or person examined.

An insurer who terminates employment or other relationship of a producer must notify the Commissioner within 30 days after the effective date of the termination. a. 10 b. 14 c. 30 d. 21

C. An insurer who terminates employment of an agent must notify the Commissioner within 30 days after the effective date of the termination. An insurer must mail a copy of the notification of termination to the agent within 15 days after notifying the Commissioner.

A person may file an appeal of a final order within ___ days from the date of service of the order. a. 10 b. 14 c. 20 d. 30

C. If the Commissioner orders a person to cease and desist, the person may file a notice of appeal. They may appeal any final order by filing within 20 days from the date of service of the order a written petition in the superior court of Providence County

Which of the following statements is false regarding stock and mutual companies? a. Mutual companies are owned by the policyholders b. Stock companies must notify stockholders before any necessary meetings will be held c. Stock companies are those owned by stockholders d. A mutual company may not convert to a stock company

D. A mutual company may convert to a stock company if it has assets equal to or exceeding the state capital requirements.

A person licensed as an insurance producer in another state who moves to this state must make application within ___ days of establishing legal residence to become a resident insurance producer. a. 30 b. 45 c. 60 d. 90

D. A person licensed as an insurance producer in another state who moves to this state must make application within 90 days of establishing legal residence to become a resident insurance producer.

Which of the following statements is NOT correct regarding compensation disclosure? a. Producers must comply with the requirement for notification regarding compensation for every initial placement of an insurance policy b. Notification to the insured may be made no later than at policy delivery c. Disclosure requirements do not apply to placement of insurance in residual markets d. Producers whose compensation is limited to commissions paid by the insurer are not required to notify insureds with respect to such commission

D. Producers whose compensation is limited to commissions paid by the insurer must inform insureds that they will be paid a commission by the insurer.

Each of the following are an example of boycott, coercion, or intimidation, except: a. Filing a false financial statement with public officials, or presenting it to someone with the intent to deceive b. Unreasonably disapproving a policy that provides requisite coverage c. Requiring insureds to purchase insurance from a specific insurer to secure a loan d. Offering shares of company stock as a means to entice prospects to buy insurance

a. Filing a false financial statement with public officials, or presenting it to someone with the intent to deceive

Which of the following is false regarding the Life and Health Insurance Guaranty Association? a. It prevents financial loss to policyholders when an insurer becomes insolvent b. An insurer has the option of becoming a member of the Association c. The Association is not liable for more than $300,000 in benefits for life insurance and $500,000 for basic hospital, medical and surgical insurance d. Other member insurers are assessed to provide money for the claims of an insolvent insurer

b. An insurer has the option of becoming a member of the Association