MS Laws and Rules

Any criminal charges taken against a producer must be reported to the Commissioner of Insurance by the producer within how many day of the final disposition?

30

All long-term care policies purchased in MS MUST contain a free-look period of

30 days

Long-term care policies sold in MS may exclude coverage for pre-existing conditions for

6 months

ABC Insurance Company is replacing an existing life policy from XYZ Insurance Company. ABC Insurance Company must provide which of the following documents to XYZ Insurance Company?

A policy summary

A producer is attempting to replace an existing life insurance policy with a new one. What must this producer submit as part of the application

A signed statement by the applicant regarding the replacement

Which of the following actions must be taken by an insurance company that wishes to conduct business in MS?

Acquire a certificate of authority

What is a responsibility of the Commissioner of Insurance?

Administering insurance laws

Who would be given an exemption from licensing requirements in MS?

An employee of a licensed producer who only answers the phone and schedules appointments

At what point must a producer deliver a Notice to Applicant Regarding Replacement of Health Insurance?

At the time of application

How often must an insurance producer's license be renewed?

Every 2 years

How is life and health insurance guaranty associated funded?

From member companies

A Long-Term Care policy sold in MS MUST be

Guaranteed renewable

Long-term care policies sold in MS are required to contain cost disclosure information in bold print. Where does the law require this information be located?

Outline of coverage

An insurance company appoints a(n) ____________ to transact insurance.

Producer

J is a producer who is recommending that an insured surrender an existing life insurance policy and purchase a new one. Which provision would this producer be subject to?

Replacement

Which of these individuals would require continuing education?

Resident producers

Which of the following would be a valid reason for suspending or revoking an insurance producer's license?

The producer has misappropriated money held in a fiduciary capacity

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

Twisting

At what point does the life and health insurance guaranty association become involved with an insurer's affairs?

When the insurer becomes insolvent

Under which circumstance must the pre-existing condition clause in a long-term care policy be waived?

When the new policy replaces existing coverage with the same insurer

In MS, an insurance company formed under the laws of Mexico is called a(n)

alien company

All of these are considered a producer's breach of fiduciary duty EXCEPT

allowing premiums to be submitted electronically

Life insurance replacement regulation is designed to protect the interests of the

policyowner

A producer has returned part of his commission to the insured as an inducement to purchase the insurance. This illegal action is called

rebating.

The rules governing life insurance and annuity replacements were created to

reduce the opportunity for misrepresentation and incomplete disclosure

Michael the insurance producer acts in a fiduciary capacity when conducting business with all of these principals EXCEPT

the Commissioner of Insurance

Health policies sold in MS are REQUIRED to begin medical coverage of a newborn beginning at

the moment of birth

T is a producer who forgot to renew her license. She may reapply for a license without an examination

within one year after no renewal

A producer must notify the Commissioner of Insurance within how many days of an address change?

30

Before holding a hearing regarding an agent's unfair or deceptive practice, the Insurance Commissioner MUST give how many days notice?

10

The Commission of Insurance MUST give ____ days notice before holding a hearing regarding a producer's unfair practice.

10

A long-term care policy sold in MS must provide benefits for a MINIMUM of

12 months

And example of life insurance policy replacement would be which of the following?

Cash surrender an existing life policy and purchasing a new life policy.

Which of the following BEST defines unfair discrimination?

Charging different rates for individuals in the same risk class

What is the requirement for maintaining an individual MS producer license?

Completing 24 hours of continuing education every 2 years

B is a producer who primarily writes insurance business on his family. Which of the following is B engaged in?

Controlled business

Which of the following is NOT a situation that involves life insurance policy replacement?

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

With whom may a producer share commissions with?

licensed producer

Which of these actions does NOT constitute life insurance policy replacement?

convert term coverage to a whole life policy

Acme Insurance Company conducts business in MS and was incorporated in MS. This company is considered to be a(n)

domestic insurer

Replacement can be defined as

exchanging an existing policy for a new policy

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

The life and health insurance guaranty association

is funded by insurance companies through assessments