Life Insurance State Exam Ch. 8

appointment fee=

$10

the Commissioner may impose a civil penalty not to exceed ______ per violation.

$10,000

A promotional advertising item or gift of $______ or less per year is not a rebate as long as the receipt of the item is not conditional upon the purchase of an insurance product.

$25

The individual is entitled to a refund of the entire consideration paid for the policy within ___ days after notice of cancellation and return of the policy to the insurer.

10

The licensee shall inform the Commissioner within ___ days of a name or address change.

10

Notice of a hearing must be given at least ___ days in advance. After the hearing, the Commissioner has ___ days to compile a written order, containing the details and findings of the hearing.

20 days 45 days

Within 30 days, the Commissioner will review the submissions and enter an order of adoption, rejection, or call an investigatory hearing, notifying the insurer no less than

20 days prior

An individual must complete training classes every ___ months after completing the initial training course to sell, solicit, or negotiate long-term care insurance.

24

Licensees must complete a minimum of ___ credit hours of continuing education during each licensing period.

24

The Commissioner has ____ days to either grant or the demand for a hearing or to refuse.

30

change of ownership and beneficiary: The insurer shall, upon receipt of a completed request for change of ownership or beneficiary, respond in writing within ___ calendar days acknowledging that the change has been effected or specifying reasons that change cannot be processed.

30

he producer has ____ days from receipt of the notice to file written comments regarding the notification with the Commissioner.

30

An insurer that terminates an agent's appointment will notify the Commissioner within ________ after the effective date of termination.

30 days

penalty elimination periods range from ____ to _____ days

30 to 180

The individual or their surviving spouse has ____ days to convert coverage.

60

Whenever the Commissioner has knowledge that a person has engaged in an illegal practice or unfair or deceptive act, he may do any one or more of the following:

Administer oaths, summon and compel by order or subpoena the attendance of witnesses to testify; Request records; and Initiate criminal proceedings by presenting evidence of the commission of any criminal offense.

misappropriation/ conversion of funds:

An issuer providing health coverage through conversion policies, plans, or contracts shall not charge a fee, except for the premium.

The training must meet the following requirements:

Be no less than 8 hours; Be no less than 4 hours every 24 months; Approved by the Commissioner; and Must consist of topics related to long-term care insurance, long-term care services, and qualified state long-term care insurance partner programs

waivers:

If a licensed insurance producer is unable to comply with license renewal procedures due to military service, other extenuating circumstance(s), or a fine has been imposed for failure to comply with renewal procedures

right to cancel:

If returned by mail, the effective date of cancellation is the postmarked date on the envelope, provided that it is properly addressed and postage is prepaid.

suitability:

In recommending or issuing any insurance product to a potential customer, the insurer must have reasonable grounds for believing the recommendation is suitable for that customer.

Insurers must submit the names and addresses of all appointed agents to the Superintendent by _________ each year, with renewal appointment fees, in order to keep appointments in effect.

June 30th

discrimination:

Making or permitting any unfair discrimination among individuals of the same class and equal expectation of life in the rates charged or in the dividends or other benefits, or in any other of the terms and conditions of such contract.

defamation:

Making, publishing, disseminating, or circulating any statement which is false regarding the financial condition of an insurer and which is calculated to injure any person engaged in the business of insurance.

twisting:

No person may make or issue a statement that misrepresents insurance policies or makes incomplete comparisons of insurance policies for the purpose of causing a policyholder to lapse, forfeit, or convert any insurance policy.

Prohibited Sales Practice

No person, including an insurer, agent, or affiliate of an insurer, shall make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television station, or in any other way, an advertisement, announcement, or statement, written or oral, which uses the existence of the Minnesota Life and Health Insurance Guaranty Association for the purpose of sales, solicitation, or inducement to purchase any form of insurance. It is not a violation to explain verbally to an applicant or potential applicant the coverage provided by the Minnesota Life and Health Insurance Guaranty Association at any time during the application process or thereafter

exceptions:

Renewal or other deferred commissions may be paid to a person for selling, soliciting, or negotiating insurance in this state if the person was required to be licensed at the time of the sale, solicitation, or negotiation and was so licensed at that time.

An insurance producer license remains in effect unless revoked or suspended as long as:

The $50 renewal fee is paid for each line; Continuing education requirements are met; and All documentation required by the Commissioner is provided by the renewal date.

No policy form shall be delivered or issued for delivery unless it has been filed with the Commissioner and either:

The Commissioner has approved it or 60 days have elapsed and the Commissioner has not disapproved it as misleading or violative of public policy, which period may be extended by the Commissioner for an additional period not to exceed 60 days.

temporary:

The Commissioner may issue a temporary insurance producer license for a period not exceeding 180 days without requiring an examination

duties of insurer during direct response sales:

The insurer is prohibited from proposing a replacement in the solicitation of a direct response sale.

The association is under the direct supervision of the Commissioner and is subject to _______

all Minnesota insurance laws

All premiums or other money received by a producer from an insured or applicant for insurance must be promptly deposited directly in a

business checking, savings, or other similar account maintained by the producer or agency, unless the money is forwarded directly to the designated insurer.

Appointments will renew automatically on the __________ each year unless the insurer terminates the appointment prior to the renewal date.

first day of July

producer:

is a licensed person who sells, solicits, and negotiates insurance in the state of Minnesota for a specific line of authority.

stock insurer:

is an incorporated insurer with its capital divided into shares and owned by its stockholders.

fraternal:

is any incorporated society, order, or supreme lodge with no capital stock that is organized solely for the benefit of its members and beneficiaries and is a not for profit organization with a representative form of government.

credit accident health insurance:

is insurance on a debtor providing indemnity for payments due on a specific loan or other credit transaction while the debtor is disabled. The amount of credit accident and health insurance will not exceed the aggregate of periodic scheduled unpaid installments of indebtedness.

backdating:

occurs when the policy is to take effect more than six months before the original application for the insurance was made.

The Minnesota Life and Health Insurance Guaranty Association is a group of licensed insurers who sell life insurance, accident and health insurance, and annuities in the state of Minnesota, the purpose of the association is to ________

protect policyholders issued by an insolvent insurance company, up to specified limits

rebating includes:

rebating premiums, any special favor or advantage in the dividends or other benefits not specified in the contract, or giving, or selling any stocks, bonds, or other securities as inducement to contract, or anything of value whatsoever not specified in the contract.

Individuals insured under group health plans must be permitted to convert their group coverage to individual coverage if _______

the insured individual's employment is terminated or if the insured individual dies

If the insured dies during the grace period _______

the overdue premium will be deducted from the settlement as outlined in the policy.

If received after the due date, a penalty of ______ the unpaid renewal fee is assessed.

twice

Annuities:Insurance producers must complete a one-time ___ hour training course approved by the Commissioner and offered by an approved continuing education provider.

4

The individual has 60 days to continue coverage. If the individual dies during the 60-day period before electing continuation _______

it is assumed that they elected continuation and the beneficiaries receive full death benefits.

a duly licensed producer may ______

pay commissions or assign or direct that commissions be paid to a partnership of which the producer is a member, employee, or agent, or to a corporation of which the agent is an officer, employee, or agent.

the commissioner of insurance:

is the chief executive officer and Director of the department of insurance and will have all the powers and perform all the duties vested in and imposed upon the department of insurance. The Commissioner is appointed by the governor of Minnesota.

An insurance producer having express authority to bind coverage, who orally agrees on behalf of an insurer to provide insurance coverage, or to alter an existing insurance agreement, shall execute and forward a memorandum or binder containing the terms of the oral agreement to the insured within ______ business days from the time the oral agreement is entered, unless the insurer forwards the information.

five

The memorandum of coverage or binder may be forwarded by mail, facsimile, or electronically. The memorandum of coverage or binder must be forwarded by mail, unless _______

he insured authorizes facsimile or electronic transmission of it

mutual insurer:

incorporated insurer without permanent capital stock, and whose governing body is elected by its policyholders

credit life insurance:

is insurance on the life of a debtor in connection with a specific loan or other credit transaction. The amount of credit life will not exceed the actual amount of indebtedness.

certificate of authority:

is the "license" given to insurance companies providing authorization to do business in a particular state.

To appoint a producer as its agent, an insurer will file a notice of appointment with the Commissioner within ____ days from the date the agency contract is executed or the first application is submitted

15

Applicants for life, variable life and annuity, accident and health producer license must complete a pre-licensing study program of ____ hours

40

Commissioner shall create a statement of findings of fact relating to financial status and other matters concerning compliance and file with the department no later than

60 days following the examination

notice of policy owners rights: A copy of the notice must be given to the applicant. If the application is not taken from the applicant in person, the notice must be sent to the applicant within ___ hours after the application is taken.

72

An individual insurance producer who allows the license to lapse may reinstate the license without passing a written examination provided that it is requested within ____ months from the due date of the renewal fee.

12

The insurer shall mail a copy of the notification to the producer's last known address by certified mail, return receipt requested, postage prepaid or overnight delivery within _______ days after notifying the Commissioner.

15

The Commissioner is required to examine each domestic insurer at least

once every five years - but may examine whenever he wants if needed

All life insurance policies in the state of Minnesota must contain a grace period provision stating that the insured has a ______ period after the first of the month to pay their premium payment, which may be subject to a finance charge due to late premium payment.

one month

rebating:

permitting or offering to make a contract of insurance other than as plainly expressed in the contract.