Chapter 8

Which of these actions is not required when a producer replaces an existing individual life insurance policy? Provide the applicant a notice regarding replacement of life insurance Provide the applicant, the original, or a copy of the proposals used in the sales presentation Obtain the beneficiary signature Submit the producers insurance company, a copy of the notice regarding replacement of life insurance signed by the applicant

Obtain the beneficiary's signature

Once the insurance commissioner makes a ruling after a hearing the insured or insurer, may request a hearing within __ days

30

To continue health coverage for a newborn, the policy owner must notify the insurer of birth and provide the first premium payment within ____ days of birth

31

How long may an insurer defer granting a policy loan after receiving the loan application

6 months

In West Virginia how may the insurance commissioner penalize a producer for an insurance law violation?

A fine, only after a hearing

A producer has replaced an existing accident and sickness policy with a new one for a client which of the following forms must be provided to the client prior to policy delivery

Notice regarding replacement

Life insurance replacement regulation, protect the interests of

The policyowner

Which of the following is a requirement to attain a nonresident producer license The producer must be at least 21 years of age The producer state of residence must have reciprocate see within the state The producer must be bonded in the producer state of domicile The producer must pass a special examination for nonresident producer's

The producer's state of residence must have reciprocity with this state

Which statement must be included on the first page of an accident only policy

This is an accident only policy and it does not pay benefits for a loss from sickness

Which of the following is a requirement to attain a West Virginia resident producer license

Trustworthiness and Competence

Why would the Insurance Commissioner examine the records of an insurance company?

determine the solvency of the company

How often must an insurance producers license in West Virginia be renewed

every two years

A license may be denied, suspended, or revoked if the licensee

is found guilty of misrepresentation

John recently purchased a Long Term Care policy in West Virginia John's policy does not need to contain

A guarantee of issue at age 65

At what point must a producer deliver a notice to applicant regarding replacement of accident and sickness insurance

At time of application

All of the following could result in the revocation of a producers license, except Replacing an insurance policy from one insurer to another based on misrepresentation Making malicious and false statements about an insurer Forging a name on an insurance application Being charged with a misdemeanor for a driving incident

Being charged with a misdemeanor for a driving incident

Which of the following permits an insurance company to transact business in West Virginia

Certificate of Authority

In West Virginia which of the following is considered an unfair trade practice

Coercion

Which of these actions does not constitute life insurance policy replacement Discontinue premiums on an existing policy and apply the payments to a new policy Take reduced paid up insurance and purchase a new policy with another insurer Cash surrender an existing policy and purchase a new policy Convert term coverage to a whole life policy

Convert term coverage to a whole life policy

When recommending a purchase or exchange of an annuity, the producer or insurer, must have a reasonable basis, for believing that the recommendation is suitable based on all of the following fax disclosed buy an applicant except the applicants Present income Net worth Intended use County of residence

County of residence

Long-term care policies issued in West Virginia must be

Guaranteed renewable

How does the West Virginia Insurance Commissioner attain office

Gubernatorial appointment

Insurance Commissioner

Has authority to review policy forms if they will be issued for delivery in West Virginia

Convincing a prospective insured to buy an insurance policy based on exaggerations is called

Misrepresentation

Which unfair trade practice involves a producer suggesting that an insurance policy is like a share of stock

Misrepresentation

Which unfair trade practice involves a producer, suggesting that the insurance policy is like a share of stock

Misrepresentation

____ can be defined as making an unfair comparison of two insurance policies

Misrepresentation

A producer is making a sales presentation for a whole life insurance policy. Which of the following statements made the producer guarantee during the presentation My insurer guarantees dividends My insurer guarantees cash values I will guarantee a return of my commissions as an incentive I will guarantee you will not be declined for this policy

My insurer guarantees cash values

A hearing must be held before a producer's license can be suspended or revoked. Prior to the hearing, the Commissioner of Insurance is required to

give written notice to the producer

a(n) _________ sells, solicits, or negotiates insurance on behalf of insurance companies for compensation.

producer

An example of rebating would be

returning a portion of a premium as inducement to purchase insurance

To be classified as a small employer an employer must employ

2-50 employees

A labor union must have at LEAST ____ members to be issued a group life policy

25

A group life insurance policy insured may assign up to ___ of the insurance coverage

100%

What is the minimum benefit. That must be offered by a long-term care policy sold in West Virginia

12 months

Which of the following is not a situation that involves life insurance policy replacement? Depleting cash value in an existing policy and applying for a new one Converting a term policy to a permanent policy with the same insurer Taking a reduced paid up option for a policy and applying for a new one Terminating an existing policy and applying for one with better coverage

Converting a term policy to a permanent policy with the same insurer

The West Virginia life and health insurance guaranty association is

Funded by admitted insurance companies through assessments

S the producer charged a fee for placing an insurance policy under West Virginia law S must

Report the placement to his primary insurer

___ is the authority given to a producer to transact business on behalf of the insurer

appointment

T is an insurance license applicant who intends to primarily engage in insurance transactions on himself and his family. If the insurance department is made aware of this, T will most likely

not be issued a license

An example of rebating would be

offering a client something of value not stated in the contract in exchange for their business

Which of these contracts fall under replacement regulations

ordinary life

An individual who has a contract with an insurance company to represent it is called a

producer

J is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of?

twisting

In order to terminate a producers appointment, the insurer must

Send notice of the termination to the commissioner

Which of the following is not considered rebating Sharing commissions, with a producer licensed in the same line of business Returning premium to a client as an inducement for purchasing a policy Giving something of value to an insured in exchange for their business Offering special dividends

Sharing commission with an agent licensed in the same line of business

A producers license may be suspended or revoked if the license

Writes primarily controlled business

Producer gives prospective insured an outline of coverage when taking an application for a Medicare supplement policy Producer determines the appropriateness of the Medicare supplement policy for the proposed insured Producer delivers the policy to the applicant more than seven business days after they received it for delivery Producer towels applicant there is a 30 day free look period for a Medicare supplement policy

Producer delivers the policy to the applicant more than seven business days after they received it for delivery

Jasmine applies for accident and sickness coverage and a policy is later issued on a basis. Other than that originally applied for under West Virginia law a new disclosure statement must be delivered to Jasmine

With the policy

A __________ __________ is the signed document that starts the free-look period

delivery receipt