Colorado Life & Health Insurance State Law Supplement Practice Exam

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

The usual free look period For life insurance policy that is not delivered as a replacement policy is how many days?

15

A group life policy is incontestable (except for nonpayment of premium) once it has been in effect for:

2 Years

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

30

A group life insurance policy holder must be given a grace period for premium payment of how many days?

31

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

50,000

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

A nonadmitted insurer

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

Anyone covered by Medicare

An insurer that terminates the producers appointment must inform the commissioner within how many days?

30

The primary difference between the Colorado partnership LTC policy and other LTC policy is is:

Medicaid asset protection

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

Once every year

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

The commissioner and producer

All of the following are duties of the commissioner except: a. keeping records of the insurers that he has examined b. adopting rules and regulations c. writing insurance laws d. submitting an annual report to the General assembly

See. Writing insurance laws

If the producer office to refund part of a prospects premium in exchange for the purchase of a life insurance policy, the producer is committing the illegal act of:

Rebating

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

$10,000

If an individual collected $100,000 in benefits from her Colorado partnership LTC policy, how much asset protection will she receive?

$100,000 or 100%

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

Authority

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

100 hours of pre-licensing education

The commissioner may...

Conduct investigations and subpoena witnesses whenever he deems it necessary

In general, people who represent fraternal benefit society's 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

All of the following are examples of unfair claims settlement practices except: A. Paying the claim without conducting an investigation B. Denying a claim promptly but without explaining the coverage or laws on which the denial is based C. Paying a claim promptly but without explaining the coverage or laws on which the payment is based D. Denying the claim without making an investigation

A. Paying a claim without conducting an investigation

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

As a separate account of the insured

Which of the following policy holders may request that the commissioner examine an insurer because they fear the insurer is unsound or insolvent?

At least five policyholders that have at least $100,000 insurance in force and to have specified their concerns in writing

Which of the following statements about a Medicare supplement policy is correct: a. The insurer may cancel it on the grounds of the insured's health status alone. B. The insurer may cancel it because the insured has not paid the premiums C. It can indemnify against losses resulting from sickness on a different bases from claims resulting from accidents D. The insurer may cancel it on the grounds of the insured's geographic location

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

Which of the following statements regarding the notice regarding replacement of life insurance is correct:

C. A copy of the notice must be signed by the applicant and submitted with the application.

All accident and health policies issued in Colorado they provide a major medical services must offer policyholders the opportunity to purchase: a. Disability coverage B. Double indemnity coverage C. Home health care coverage D. Supplemental coverage

C. Home health care coverage

All of the following are violations of Colorado insurance law except: a. Charging individuals of the same class different premium rates b. Offering tickets to a football game as an incentive to purchase a policy c. In forming a new policy holder that his new policy, if lapsed for nonpayment of premium, could be reinstated upon reapplication d. Having an arrangement to sell stock to a person contingent upon the purchase of an annuity

C. In forming a new policy holder that his new policy, if lapsed for nonpayment of premium, could be reinstated upon reapplication

In Colorado all of the following are considered unfair trade practices except: a. Misrepresentation b. Rebating c.. Replacement D. Coercion

C. Replacement

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

Controlled business

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

Inflation protection

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

Insurer

When appropriate the commissioner reports a violation of insurance law to

The district attorney

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

Utilization review

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 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

Which of the following is not a problem when existing life insurance is replaced with new coverage?

B. Comprehensive coverage may increase under the new policy.

Suppose a producer helps a client set up an estate plan, which is not part of the producers usual service. The producer can charge a fee for this service if all of the following circumstances are in place except: A. When it is clear from the beginning that no sale of an insurance product is related to the service B. When the client signs the disclosure statement which stipulates that he is not obligated to buy insurance from the producer in exchange for the service C. When the producer always planned to sell insurance to the client D. When the financial service is beyond the producers normal duties

C. When the producer always planned to sell insurance to the client

All of the following insurance practices are illegal in Colorado except: A. Soliciting or procuring insurance without a license B. Paying a fee for services as an insurance producer to anyone who is not properly licensed C. Inquiring about an applicant sexual orientation in connection with an application D. Replacing one life insurance policy with another

D. Replacing one life insurance policy with another

Long-term care policies can limit or exclude coverage for all of the following circumstances except: A. Pre-existing conditions or diseases B. Family history of heart condition before the effective date of coverage C. Treatment provided in a government facility which is not required by law D. Services provided by a member of the insured's family

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 six months

What accident and health insurance renewability clause means the insurer cannot unilaterally change any provision what the policy is in force that can change premium rate my class?

Guaranteed renewable

Which of the following coverage exclusions or limitations is permitted under a long-term care policy issued in Colorado? A. Pre-existing conditions B. Alzheimer's disease C. Senile dementia D. Parkinson's disease

Pre-existing conditions

A fiduciary responsibility is defined as:

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

Which of the following potential insurance sales would be subject to replacement regulations?

B. A new policy that causes an existing life insurance policy to be surrendered.

Which of the following is not considered an essential health benefit? A. Emergency services B. Long term care services C. Maternity and newborn care D. Prescription drugs

B. Long-term care services

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

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

To be valid, a group life insurance policy:

May not be issued to a group formed solely for the purpose of obtaining insurance.