Ch. 11 Laws & rules

How many days is the free-look period for Medicare supplements and long-term care insurance?

30 days

To qualify as a small employer, an employer must employ no more than

50 eligible employees

The document that describes policy features, benefits, exclusions and riders in a Long-Term Care policy is known as the

Outline of Coverage

Which of the following is TRUE regarding suitability of a Long Term Care Insurance Policy?

The agent must have reasonable grounds for believing that the recommendation is suitable for the customer

The minimum number of hours required per week for an employee to be eligible for small group coverage is

20 hours

Which of the following would be prohibited advertising?

Advertising that uses the Minnesota Life and Health Insurance Guaranty Association for the purpose of sales xxxxxx Advertising that highlights the length of time the agent has been working as an insurance producer Advertising about more than one type of insurance in the same piece of advertising material Advertising more frequently than once per month

When determining the exact cause of death from an accident, which of the following actions by the insurer takes precedence?

Autopsy

Once a policy has been reinstated, the insured MUST wait what amount of time before coverage for sickness is available?

Coverage for accidental injury begins immediately upon reinstatement. Coverage for sickness is subject to a 10-day waiting period.

Under Minnesota law, what is the criteria for continuation of a health plan if a covered employee becomes totally disabled while employed by the employer?

Coverage must be provided on the same basis as any covered employee as long as the employee remains totally disabled

The entity that has the power to revoke a producer's insurance license is the

Department of Commerce

Which of the following acts by an insurer, if committed without just cause and performed with such frequency as to indicate a general business practice, constitutes an Unfair Claims Settlement Practice?

Failing to adopt and implement reasonable standards for the prompt investigation of claims

Under long-term care insurance, which of the following MUST an insurer offer to each policyowner at the time of purchase?

Lifetime minimum benefit levels Daily minimum benefit levels A decrease in annual benefit levels An inflation protection feature xxxxx

How many total hours of continuing education must insurance producers complete biannually?

Producers must complete 24 hours of continuing education every two years, 3 of which must be in ethics.

What is a certificate of authority?

The license required for an insurer to conduct business in the state

Under Minnesota law, which of the following is TRUE for coverage under a hospital or medical expense insurance policy of disabled children who are incapable of self-sustaining employment?

The requirement to cover disabled children includes children who have a developmental disability, mental illness or disorder, or physical disability

In replacing a Medicare Supplement Policy, when is a notice regarding replacement NOT required?

When it is a direct response issuance

Under Minnesota law, the agreement between an insurance producer and insurer under which the insurance producer, for compensation, may sell, solicit, or negotiate policies issued by the insurer is defined as

an appointment

Funding for the Minnesota Life and Health Guaranty Association is derived from

assessments on member companies

A policyowner can cancel an individual life or health insurance policy, which is NOT a replacement policy by

contacting the insurer by phone on or before the 10th day after receiving the policy returning the policy with written notice of cancellation before midnight of the 10th day after receiving the policy xxxxxx giving written notice on or before midnight on the 30th day after receiving the policy returning the declaration page of contract on or before the 10th day after receiving the policy

All of the following are qualifying events for continuation or conversion coverage EXCEPT

divorce involuntarily terminated employer ceases operations xxxxx voluntarily leaving employment

The Commissioner of Commerce is empowered to

enforce state laws relating to insurance

When an insurance appointment with a producer is terminated, the party that must notify the producer of the termination is the

insurer

Upon receiving a producer complaint, the Commissioner of Commerce may immediately

issue a cease and desist order- asking another individual or entity to stop some illegal or suspect activity

A temporary producer license can be issued in any of the following circumstances EXCEPT

surviving spouse of a producer a prospective producer who is enrolled in an insurance pre-license class xxxxxx designee of a producer entering the active service in the armed services any circumstance the Commissioner deems to be in the public interest

A false written or oral statement made by a producer for the purpose of replacing an existing policy to the detriment of the insured is

twisting

Deferred commissions may be paid to a person who sold an insurance policy when the person

was a licensed producer at the time of the sale

An insurance producer MUST notify the Commissioner of Commerce of a change in legal name or address

within 10 days of the change

An insurance producer gives an applicant a $25 gift card as an inducement for the purchase of a policy. This is

"a gift". A promotional advertising item or gift of $25 or less per year is not a rebate if the receipt of the item or gift is not conditioned on purchase of a policy.

What is the MAXIMUM amount of protection for health claims per individual under the Minnesota Life and Health Guaranty Association if an insurer becomes insolvent?

$500,000

An insurer must send a notice of appointment for a producer within __ days from the date of an executed agency contract or after submitting the first application to the insurer.

15 days

A licensee who is required to take continuing education MUST include how many ethics coursework hours?

A licensee is required to take 24 hours of continuing education every two years. Of the 24 hours, 3 must be in ethics

Which of the following individuals is eligible for coverage under the Minnesota Comprehensive Health Association (MCHA)?

A self-employed Minnesotan who is uninsured and has been denied health insurance coverage by an individual health insurance carrier due to not meeting height and weight criteria

When MUST a newborn child be covered under an existing health insurance policy?

Immediately

The primary purpose of replacement regulation is to

protect policyowners from misrepresentations and loss of benefits