Health Exam Questions

If the insurer failed to pay a claim within the required period of time, all overdue payments will be charged an annual interest of -6% -8% -10% -12%

12%

To comply with the timely payment claim provision, insurers must pay a claim within how many days of receiving proof of loss? -15 days -30 days -45 days -90 days

30 days

According to the Fair Credit Reporting Act, consumer reports are prohibited from reporting negative information about a customer after how many years? -3 years -5 years -6 years -7 years

7 years

Because the insurer is the party who controls the language used in the policy and the insured cannot change that wording, an insurance policy is considered what type of contract? -Aleatory -Adhesion-- -Conditional -Third Party

Adhesion

According to the general statues and rules for insurance contacts issued in this state, who should receive notice of right to file a complaint? -All policyowners when a policy is issued -Only the insureds who have submitted claims -Only the policyowners who are not the insureds -The applicants whose requests from insurance have been denied

All policyowners when a policy is issued

Who is considered a nonresident agent? -An agent who resides in another state but is license in this state -A agent who is a US citizen -An agent whose license has been revoked -An agent who does not earn commission in this state

An agent who resides in another state but is licensed in this state

A producer CANNOT act as an agent of an insurer without which of the following? -A certificate of authority -An appointment by the insurer -A signed contract -A posted bond

An appointment by the insurer

An agent accepts the premium pay 35 days after it is due telling the insured that the policy will continue to remain in force. This is an example of what type of agent authority? -Fiduuciary -Implied -Apparent -Expressed

Apparent

Due to family emergencies a producer let his license lapse 3 months ago, now he is ready to start transacting insurance again, what steps must the producer take to reinstate his license? -Complete double the required continuing education credits -obtain 3 letters of commendation, at least 2 from clients -Retake the licensing exam -Complete continuing education hours and pay a renewal fee

Complete continuing education hours and pay a renewal fee

A warranty under which certain things will be done or not done after the policy takes effect is an

Conditional Warranty

In order for an insurance contract to be legally binding, it must have all of the following except -Legal purpose -Counteroffer -Agreement -Consideration

Counteroffer

Who determines whether an insurer's operations are financially sound and that the insurer remains solvent? -Financially Industry Regulatory Authority -Guaranty Association -Department of Insurance -National Association of Insurance Commissioners (NAIC)

Guaranty Association

Which of the following principals describes restoring the insured to his or her original financial status after a loss? -Reasonable expectations -Indemnity -Warranty -Utmost good faith

Indemnity

Who is responsible for the content of an insurer's television commercial? -Insurer -Department of Insurance -The TV station -Advertising Agency

Insurer

How does reinsurance benefit insurers? -It helps protect the insurer against catastrophic losses -It frees the insurer of all liabilities -It offers a way to differentiate policies -It allows the insurer to charge higher premiums

It protects the insurer against catastrophic losses

If the Department issues and desist order that means the insurer must do which of the following? -Suspend all insurance transactions in the state -Surrender its certificate of authority -Stop committing a particular violation -Terminate all producer appointments

Stop committing a particular violation

A temporary license may be issued for which of the following reasons? -The agent as retired and is selling the business -The agent is disabled and the disability keeps him from transacting insurance -The agent is taking an extended vacation out of the country The agent's license has been temporarily suspended

The agent is disabled and the disability keeps him from transacting insurance

Which of the following insurance states that the larger the number of people with a similar exposure to loss, the more predictable actual losses will be. -Adverse Selection -Exposure units -Underwriting -The law of large numbers

The law of large numbers

What is the purpose of requiring license for persons who transact insurance? -To be able to collect Insurance -To protect the general public -To generate income for the Department of Insurance -To Protect the insurer from liability and lawsuits

To protect the general public