State Law Supplement

What is the aggregate penalty the commissioner may charge an insurer that has knowingly engaged in an unfair trade practice?

750,000

How must insurance producers account for each insurance policy and the premiums they receive on it?

As a separate account of the insured

All of the following are examples of unfair claim settlement practices EXCEPT

paying a claim without conducting an investigation

Suppose a producer helps a client set up an estate plan, which is not part of the producer's usual service. The producer can charge a fee for this service if all of the following circumstances are in place EXCEPT

when the producer always planned to sell insurance to the client

All of the following are duties of the commissioner EXCEPT

writing insurance laws

What is the maximum amount the commissioner can fine an insurer for each violation of a cease and desist order?

$10,000

How many hours of continuing education must be in courses associated with the lines of insurance for which the producer is licensed?

18

When an employee's coverage terminates under a group health policy, the employee must be offered continuation coverage for

18 months

A producer has how many days to file a written appeal to the commissioner after he has been terminated by his appointing insurer?

30

An insurer that terminates a producer's appointment must inform the commissioner within how many days?

30

How many days is the free-look period for a purchaser of a long-term care insurance policy?

30

An individual accident and health policy whose premiums are paid on a quarterly basis, without any subsidy assistance, must contain a grace period of at least how many days?

31

A fraternal benefit society representative need not be licensed as a producer if he sells life insurance with a face amount equal to or less than

50,000

What accident and health insurance renewability clause means the insurer cannot unilaterally change any provision while the policy is in force but can change premium rates by class?

Guaranteed renewability

A company that has not been authorized to operate in Colorado is known as

a non admitted insurer

A fiduciary responsibility is defined as

a relationship of special trust and confidence when a person is entrusted with another's funds

A producer who was to write a majority of his insurance business on the employees and officers of a restaurant owned by his wife is transacting

controlled business

The commissioner gives approval to an insurer to do business in Colorado in a certificate of

authority

The commissioner may

conduct investigations and subpoena witnesses whenever he deems it necessary

To be licensed to sell life, accident, and health insurance in Colorado, an applicant must complete

100 hours of prelicensing education

Which of the following statements about a Medicare supplement policy is CORRECT?

The insurer may cancel it because the insured has not paid the premiums.

Which of the following is a set of formal techniques that evaluates the clinical necessity, appropriateness, or efficiency of health care services and procedures?

Utilization review

An insurer providing group health coverage may not be required to issue a converted policy to

anyone covered with medicare

In general, people who represent fraternal benefit societies to solicit insurance are

considered insurance producers and must meet all licensing requirements

Circulation of a maliciously critical statement about an insurer's financial condition to damage the insurer's reputation or business is called

defamation

Long-term care policies can limit or exclude coverage for all of the following circumstances EXCEPT

family history of heart condition before the effective date of coverage

An insurer can deny a claim under a long- term care insurance policy for any material misrepresentation made by the insured if it has been in effect for

fewer than 6 months

All accident and health policies issued in Colorado that provide major medical services must offer policyholders the opportunity to purchase

home health care coverage

An insurance policy that increases benefits to keep up with anticipated cost increases for long-term care services is said to have

inflation protection

All of the following are violations of Colorado insurance law EXCEPT

informing a new policyholder that his new policy, if lapsed for nonpayment of premium, could be reinstated upon reapplication

An insurance producer who solicits insurance on behalf of an insurer represents the

insurer

Which of the following is NOT considered an essential health benefit?

long term care services

The primary difference between the Colorado Partnership LTC policy and other LTC policies is

medicaid asset protection

Accident and health policies that provide coverage on an expense-incurred basis for a family member of the insured

must cover a newborn child from the moment of birth

An insurer offering small employer health benefit plans

must not apply any waiting period that exceeds 90 days

How often must an individual accident and health insurance policy pay for the mammograms of a 56-year-old Colorado woman?

once every year

Which of the following coverage exclusions or limitations is permitted under a long-term care policy issued in Colorado?

preexisting conditions

Suppose that an insurance producer urges an elderly applicant to buy a second Medicare supplement policy "just to be sure" all potential medical expenses are covered. This sale is

prohibited because the sale of a supplement which will provide the person with more than one Medicare supplement is illegal

In Colorado, all of the following are considered unfair trade practices EXCEPT

replacement

All of the following insurance practices are illegal in Colorado EXCEPT

replacing one life insurance policy with another

When an insurer terminates a producer's appointment, the insurer must notify

the commissioner and producer

When appropriate, the commissioner reports a violation of insurance law to

the district attorney