8 - Laws and Rules
Which of the following violations is considered an unfair trade practice?
Coercion
What MUST an insurance company use in its advertising?
Its true corporate name
Under Kansas law, an employee can enroll in an employer sponsored group medical plan within 31 days under all of the following conditions EXCEPT
a rate increase under their spouse's program
An insurance company can usually contest the information contained in an accident and health application for two years from the date that the
insurance company dates the policy
A certificate of authority permits an
insurance company to transact business
A Long-Term Care policy that provides for home health care must provide coverage that is equivalent to at LEAST
one-half of one year's coverage available for nursing home benefits
In order to assure compliance with the law, the Commissioner of Insurance may issue
orders
The Kansas Life and Health Insurance Guaranty Association was established to provide funds
to protect an insured in the event of an insurer's insolvency
A life/health insurance producer must have how many hours of ethics per continuing education reporting period?
1
Following a caesarean birth in a medical care facility, subject to the attending physician's approval, a health care plan must provide coverage for inpatient care for at least
96 hours
Under the Affordable Care Act, eligibility for dependent children can be determined by which of the following?
Age
In Kansas, which of the following is required in order to continue a resident insurance producer license?
Meeting continuing education requirements
Which of the following statements must be CORRECT for a nonresident to be eligible for a producer license in this state?
The producer's state of residence must have reciprocity with this state
An insurance company that is organized or chartered in a country other than the United States is defined as
alien
Which of the following is considered an Unfair Trade Practice under Kansas law?
Coercion
An insurance company must furnish claim forms to an insured so that the insured can file
proof of a loss
A producer must complete 12 hours of Continuing Education every
2 years
Which of the following actions by an insurance company is considered an unfair claims settlement practice?
Denying an insured's claim without indicating the basis of denial under the policy
How does the Commissioner of Insurance attain office?
Elected by the people of Kansas to a 4-year term
What type of Marketplace is the Kansas Health Insurance Exchange?
Federally Facilitated
ABC Life Insurance company's home office is located in Massachusetts and is incorporated in Massachusetts. In Kansas they are considered to be
Foreign
An advertisement for an Accident & Health policy may include statistical information under which of the following circumstances?
If the statisitical information is accurate and the source is cited
Which of the following statements is CORRECT about the Life and Health Insurance Guaranty Association?
It is funded by insurance companies through assessments
Which of the following statements is CORRECT about a domestic insurance company in Kansas?
It must be organized under Kansas insurance laws
An insurance company formed under the laws of Canada would be known in Kansas as a domestic company
an alien company
A creditor who requires a debtor to obtain insurance from a particular company or producer as a condition for a loan is guilty of
coercion
The Commissioner of Insurance may suspend or revoke the license of a producer who takes any of the following actions EXCEPT
represents more than one insurance company
Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are prohibited under the Kansas insurance laws covering
unfair trade practices
A stock insurance company is owned by it's
stockholders
A certificate of authority does which of the following?
Permits an insurance company to transact business in Kansas
For an individual health policy that is paid for on a monthly basis, the Grace Period provision is a MINIMUM of how many days?
Ten
The purpose of the Guaranty Fund is to
ensure that claims filed against insolvent insurance companies will be paid
To verify if replacement is involved in a Medicare Supplement sale, insurance law requires that a question about replacement appear on
the application form
To verify if replacement is involved in a Medicare Supplement sale, the law requires that a question about replacement appear on
the application form
An insurance company can be any of the following EXCEPT
domestic and alien
An insurance producer working for a mortgage company requires that an applicant buy insurance from the producer as a condition for granting a loan. This is an example of which of the following unfair practices?
Coercion
A producer must handle funds of a client or insurance company honestly and fairly and NOT use them for the producer's own purposes. This is called
fiduciary responsibility
The primary purpose of regulation of the insurance industry is to
promote the public welfare by maintaining the solvency of insurance companies
Which of the following is an example of rebating?
returning a portion of a premium as inducement to purchase insurance
An insurer must offer group medical coverage to all eligible employees of a small employer if the employee
satisfied an applicable waiting period
A temporary license is issued by the Commissioner of Insurance to allow
the personal representative of a deceased producer to provide service to existing policyowners
Before a licensed producer is eligible to transact insurance sales, they must be
appointed by an insurance company
Which of the following terms defines the authority given to an producer to transact business on behalf of the insurer?
appointment
If a producer is found guilty of a felony, he/she is required to notify the Commissioner within how many days?
30
Inpatient treatment for alcohol and drug abuse shall be for a minimum of how many days per year of coverage?
30
Within how many days must a producer notify the Commissioner of a change in address?
30
If a producer changes her residence address, she must notify the Commissioner within
30 days
An applicant for a nonresident producer license MUST meet which of the following requirements?
Be licensed as a producer in the producer's state of domicile
Which of the following basics is a producer's fiduciary responsibility?
Collecting premiums and paying them to the insurance company
An applicant for a resident insurance producer's license MUST meet which of the following requirements?
Complete a prelicensing examination
Making an unfair comparison of two policies is defined as
misrepresentation
A producer may legally share commissions only with
another producer who is licensed in the same line of insurance
Prior to use, a Long Term Care insurer MUST provide to the Department of Insurance a copy of
any Long Term Care insurance advertisement
A producer is an individual who has been authorized by an insurer to be its representative and to perform all of the following acts EXCEPT
authorize payment of certain claims
Before an insurance company can issue a small employer group policy, it MUST
be authorized to write accident and health insurance in this state
The Commissioner may examine the records of an insurance company in order to
determine the solvency of the company
An insurance company may be judged guilty of false advertising if it
exaggerates its dividends in a newspaper advertisement
When transacting insurance business, the producer legally represents the
insurance company
The Commissioner of insurance may suspend, revoke, or refuse to renew the license of a producer who
is found guilty of misrepresentation or fraud in obtaining the license
Producers may be found guilty of defamation if they make a false statement that is intended to
malign another insurance company
A producer who intentionally makes an untrue or incomplete statement in the course of an insurance transaction may be guilty of
misrepresentation
An insurance producer who convinces a prospective insured to purchase a policy by exaggerating the benefits of the policy may be found guilty of
misrepresentation
The pre-existing condition clause in a long-term care policy MUST be waived when the
new policy replaces existing coverage with the same insurer
When replacing a Medicare Supplement policy, a producer must take all of the following actions EXCEPT
notify the Insurance Department of the replacement
The Replacement of Life Insurance and Annuities regulation is designed to protect the interest of the
policyowner
After notice and a hearing, the Insurance Commissioner may revoke a producer's license for all of the following reasons EXCEPT the
producer is found to be insolvent
Insurance producer licenses normally must be renewed every
two years
A producer may only sell products from an insurer after
being properly appointed by the insurer
In Kansas, a domestic insurance company is defined as a company that
is incorporated and formed in Kansas
All of the following activities could result in the suspension of a producer's license EXCEPT
selling any replacement policy that causes an insured to lapse an existing policy
Continuing education hours for producers may be granted for participation in all of the following activities EXCEPT
attending a sales meeting
A temporary producer's license is valid for an initial period of how many days?
180
A Long-Term Care policy must offer a MINIMUM benefit period of how many months?
Twelve
The Commissioner of Insurance may issue a temporary producer's license for a maximum of how many days?
180
Medicare Supplement insurance is guaranteed issue if the policy effective date is within how many months of the insured's Medicare Part B starting date?
6
All health policies must cover the delivery expenses at birth of the birth mother of a child adopted within how many days of birth?
90
Which of the following statements is CORRECT about Accident and Health insurance advertisements?
Insurance companies are responsible for the accuracy of testimonials
A person covered by a group major medical policy leaves the group and converts the coverage to an individual policy. Which of the following statements is INCORRECT about the new policy?
It pays the same benefits as the group policy
A life/health producer must complete how many continuing education hours biennially?
Twelve
An insurance company that has not been approved by the state is considered to be
Unauthorized
The expenses incurred by the Commissioner for a financial examination of an insurance company are borne by the
company being examined
An insurance producer is BEST defined as
a person who has a contract with an insurance company to represent it
All of the following individuals are exempt from producer licensing requirements EXCEPT
a semi-retired producer
The Kansas Life and Health Insurance Guaranty Association Act applies to
annuity contracts
A newly licensed producer must complete how many hours of continuing education within 24 months after initial licensure?
12
Which of the following would be considered an unfair claim practice?
Misrepresenting insurance policy provisions affecting a loss
An organization that solicits insurance only among its members is known as a
fraternal benefit society
An insurance advertisement that tends to make a prospect want to find out more about a specific policy is referred to as an
institutional advertisement
An insurance company may compensate all of the following people EXCEPT
licensed producer not appointed by the company
Knowingly making misleading statements that would cause an insured to lapse, assign, or terminate an insurance policy in order to switch companies is an example of
twisting