Certificate Exam

How often must producers in this state fulfill their continuing education requirement? A. Annually B. Every 2 years C. Every 3 years D. Every 6 months

Every 2 years

The guaranteed purchase option is also referred to as the A. Multiple indemnity rider. B. Impairment rider. C. Evidence of insurability rider. D. Future increase option.

Future increase option.

Under the common accident provision, how many deductibles would be paid if five family members covered under the same major medical policy are injured in the same accident? A 01 B 02 C 03 D 05

1

A producer's license lapses. It can be reinstated without requiring the producer to pass the licensing exam again, provided that the producer applies for reinstatement within A. 90 days. B. 3 months. C. 6 months. D. 12 months.

12 months

After an insurer appoints a new agent, the Commissioner must be notified within A. 10 days. B. 15 days. C. 30 days. D. 60 days.

15 Days

If a producer transacts insurance without being appointed by that insurer, for all offenses, the insurer will pay A. $10,000. B. $300. C. $500. D. $5,000.

$ 300

If an insured is injured while committing an illegal act and the insured's health policy contains the Illegal Occupation provision, what percentage of the claim will be paid? A. 0% B. 50% C. 75% D. 100%

0%

Answers to questions in an insurance application are called representations and, as such, they are A. Not true. B. Warranties. C. Believed to be true to the best of the applicant's knowledge. D. Absolutely true.

Believed to be true to the best of the applicant's knowledge.

Which of the following is NOT an indicator of a competent party? A. Business profession B. Legal age C. Mental proficiency D. Comprehension of contract

Business profession

How often must producer licenses be renewed? A. Every 12 months B. Every 12 months for the first five years and every 24 months thereafter C. Every 24 months D. Every 24 months for the first ten years and every three years thereafter

Every 24 months

A husband and wife both incur expenses that are attributed to a single major medical insurance deductible. Which type of deductible do they have in their policy? A. Flat B. Annual C. Per occurrence D. Family

Family

According to the Time Limit on Certain Defenses provision, statements or misstatements made in the application at the time of issue cannot be used to deny a claim after the policy has been in force for a minimum of how many years? A. 1 year B. 2 years C. 3 years D. 5 years

2 Years

Which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producer's license? A. Trespassing through a neighbor's yard B. Public drunkenness C. Forgery D. Speeding in an automobile

Forgery

An insurer that operates for one or more social, educational, charitable, benevolent, or religious purposes for the benefit of its members is known as a A. Fraternal insurer. B. Mutual insurer. C. Reciprocal insurer. D. Stock insurer.

Fraternal insurer.

Which of the following is NOT true regarding a noncancellable policy? A. The guarantee to renew coverage usually only applies until the insured reaches age 65. B. Insured has the unilateral right to renew the policy for the life of the contract, and may discontinue paying premiums to cancel it. C. Insurer can increase the premium above what is stated in the policy if claims experience is greater than expected. D. Insurer cannot cancel the policy.

Insurer can increase the premium above what is stated in the policy if claims experience is greater than expected.

All of the following would be classified as "limited insurance coverage" EXCEPT A. Accidental death and dismemberment policy. B. Supplement Social Security coverage. C. Travel insurance policy. D. Dread disease policy.

Supplement Social Security coverage.

Which of the following types of care could be provided at a community center? A. Adult day care B. Respite care C. Intermediate care D. Skilled care

Adult day Care

Under the mandatory uniform provision Legal Actions, an insured is prevented from bringing a suit against the insurer to recover on a health policy prior to A A. One year after the occurrence of a disability. B. 30 days after the loss. C. 60 days after written proof of loss has been submitted. D. 90 days after written proof of loss has been submitted.

60 days after written proof of loss has been submitted.

If, after a hearing, it is determined that an insurer or producer is violating Minnesota insurance laws, the Commissioner will issue A. A license suspension. B. A warning. C. An order to rescind any policies sold by the violator. D. A cease and desist order.

A cease and desist order.

Which of the following statements is NOT true regarding health insurance policy provisions? A. All individual policies contain Universal Mandatory Provisions. B. Insurers may only offer optional provisions that are allowed by the state where the policy is delivered. C. Insurers may add provisions that are not in conflict with uniform standards. D. All additional provisions written by insurers are cataloged by their respective states.

All additional provisions written by insurers are cataloged by their respective states.

HMO members pay a small fee when they see their primary care physician. This fee is called a A. Coinsurance B. Deductible C. Stop-loss D. Copay

Copay

If a business wants to make sure it will be able to cover losses due to the disability of its top employee, the business should get which type of insurance? A. Health Savings Account (HSA) B. Business overhead expense C. Key person disability income D. Group health insurance policy

Key person disability income

An insurance company that is owned by the policyholders is called a A. Mutual insurer. B. Fraternal insurer. C. Stock insurer. D. Reciprocal insurer.

Mutual insurer.

Insurers are forbidden to do all of the following EXCEPT: A. Assume that the readers or viewers of advertising material are familiar with insurance terminology. B. Mislead readers or viewers of the coverage. provided under a policy. C. Use words or phrases that exaggerate the terms of the policy. D. Promote interest in insurance coverage.

Promote interest in insurance coverage.

If an insured is not entirely satisfied with a policy issued, the insured may return it to the insurance company and receive a refund of the entire premium paid, at which of the following times? A. Before any claim has been filed on the policy B. Within 10 days of when the policy was issued C. Within 10 days of when the insurer received the first premium D. Within 10 days of when the policy was delivered

Within 10 days of when the policy was delivered

Under the mandatory uniform provision "Notice of Claim", written notice of a claim must be submitted to the insurer within what time parameters? A. Within 10 days B. Within 20 davs C. Within 30 days D. Within 60 days

Within 20 davs

If a license is revoked, that person cannot apply for another license for another A. 6 months. B. Year. C. 2 years. D. 3 years.

2 Years

Core benefits are included in all Medicare supplemental policies. What percentage of Part B coinsurance is required? A. 15% B. 20% C. 35% D. 10%

20%

A Medicare supplement policy must have a free-look period of at least A. 10 days. B. 15 days. C. 30 days. D. 45 days.

30 Days

Long-term care insurance policies sold in Minnesota must provide a free-look period of A. 20 days. B. 30 days. C. 45 days. D. 10 days.

30 Days

Partial disability usually pays what percent of the total disability benefit? A. 10% B. 25% C. 50% D. 65%

50%

What guarantees that the information explained in the insurance contract is true? A. A representation B. Utmost good faith C. A binder D. A warranty

A warranty

An elimination (waiting) period may NOT have to be satisfied for a disability in which of the following? A. An insured suffered the disability from the results of active duty with the US Armed Forces B. An insured is disabled from a work-related accident C. An insured contracts an incurable disease D. An insured suffers a relapse of a prior disability within 6-months of the initial covered disability

An insured suffers a relapse of a prior disability within 6-months of the initial covered disability

Which of the following would be an example of an insurer participating in the unfair trade practice of discrimination? A. Charging the insured higher premiums based on life expectancy B. Charging the insured higher premiums based on their race C. Making malicious statements about the insured based on their race D. Charging different premium rates to the insureds in different insuring classes

Charging the insured higher premiums based on their race

The benefits from a business overhead expense insurance policy A. Are received tax free. B. Are only available upon the business owner's death C. Are limited to covered expenses and are taxable to the business D. Cover all business expenses but are taxable to the business owner

Cover all business expenses but are taxable to the business owner.

Agents may be found guilty of defamation if they make false statements that are intended to A. Misinform prospective clients about policy coverage. B. Misrepresent the benefits payable under policies. C. Maliciously criticize another insurance company. D. Deceive a policyholder.

Maliciously criticize another insurance company.

All of the following are excluded from coverage in an individual health insurance policy EXCEPT A. Mental illness. B. Experimental procedures. C. Purely cosmetic surgery. D. Treatment received in a government hospital.

Mental illness.

A producer who failed to comply with the state continuing education requirement is guilty of a A. Felony. B. First degree offense. C. Class A violation. D. Misdemeanor.

Misdemeanor

An insured was diagnosed two years ago with kidney cancer. She was treated with surgeries and chemotherapy and is now in remission. She also has a 30-year smoking history. The insured is now healthy enough to work and has just started a full-time job. Which describes the health insurance that she will most likely receive? A. She would be covered under her employer's group health insurance plan, without higher premiums B. She would be covered under her employer's group health insurance plan, but she would pay higher premiums than the other employees C. She would be denied coverage due to the risk posed by her prior medical history. D. She would be accepted under an insurance policy, provided that a rider excluding cancer-related conditions is attached.

She would be covered under her employer's group health insurance plan, without higher premiums

Which of the following statements is INCORRECT regarding the definition of total disability? A. Total disability can be the inability to perform the duties of one's own occupation. B. Total disability is the inability to perform partial duties of any occupation for which a person is suited by reason of education, training or experience. C. Disability is defined differently under certain disability income policies. D. Total disability can be the inability to perform any occupation for which a person is reasonably suited by reason of education, training or experience.

Total disability is the inability to perform partial duties of any occupation for which a person is suited by reason of education, training or experience.

In addition to participation requirements, how does an insurer guard against adverse selection when underwriting group health? A. By requiring that the insurance be incidental to the group B. By having each enrollee undergo a paramedical examination C. By obtaining MIB reports on each enrollee D. By imposing case management provisions

By requiring that the insurance be incidental to the group

Insurers CANNOT transact insurance in this state without a A. Certificate of Insurance. B. Letter of Clearance. C. Certificate of Authority. D. Broker's license.

Certificate of Authority.

During policy solicitation, an insurer exaggerates the financial condition of one of its competitors, and makes it sound worse than it is. This is an example of an unfair trade practice of A. Misrepresentation. B. Defamation. C. Twisting. D. False advertising.

Defamation

Which of the following time periods is the general enrollment period for Medicare Part B? A. March 1 through March 31 each year B. January 1 through March 31 each year C. March 1 through May 31 each year D. January 1 through January 31 each year

January 1 through March 31 each year

In order to get a nonresident license in this state a producer must A. Surrender their license in their state of residence. B. Apply and pay a fee to a nonresident state that reciprocates. C. Pass the nonresident state exam and satisfy their continuing education requirements. D. Represent an agency located is this state.

Apply and pay a fee to a nonresident state that reciprocates.

The corridor deductible applies between A. Limited and comprehensive. B. Minor and major coverage. C. Primary and secondary coverage. D. Basic and major medical coverage.

Basic and major medical coverage.

With respect to the entire contract clause in health policies, who has the authority to make changes to an existing policy? A. Solely the policyowner B. Changes cannot be made on the policy. C. Only an executive officer of the company D. Solely the producer

C @ Only an executive officer of the company

Regarding the consideration clause, which of the following is NOT correct? A. Consideration of the insurer and insured must be equal. B. Consideration is defined as the exchange of values. C. The insurer's consideration consists of providing coverage. D. The insured's consideration consists of providing information on the application, as well as agreeing to pay the premium.

Consideration of the insurer and insured must be equal.

What advantage does the "recurrent disability" provision provide to the insured under a disability income policy? A. It provides the insured with lifetime disability benefits. B. It eliminates the imposition of an elimination period for a separate disability. C. It imposes an elimination period for the disability. D. It eliminates the imposition of a second elimination period for the same disability.

It eliminates the imposition of a second elimination period for the same disability.

Which of the following best describes a Major Medical Expense Policy? A. It provides surgical coverage to an insured with a schedule indicating charges for each procedure. B. It provides coverage for in-hospital doctor visits that are of a nonsurgical nature. C. It provides coverage to an insured who is confined to a hospital with a daily benefit amount and a specified benefit period. D. It provides catastrophic medical coverage beyond basic benefits on a usual, customary and reasonable basis.

It provides catastrophic medical coverage beyond basic benefits on a usual, customary and reasonable basis.

Medicare Part B covers all of the following EXCEPT A. Home health visits. B. Outpatient hospital services. C. Long-term care services. D. Doctor's services.

Long-term care services.

Which of the following statements is INCORRECT? A. The insurer does not have the right to conduct an autopsy. B. The physical exam and autopsy provision gives the insurer the right to examine the insured, at its own expense. C. The physical exam and autopsy provision gives the insurer the right to examine the insured as often as may be reasonably necessary while a claim is pending. D. The insurer also has the right to conduct an autopsy, if not forbidden by state law.

The insurer does not have the right to conduct an autopsy.

If an applicant submits the initial premium with an application, which action constitutes acceptance? A. The underwriters approve the application. B. The applicant submits a statement of good health. C. The producer delivers the policy. D. The insurance company receives the application and initial premium.

The underwriters approve the application.

Which of the following is true regarding the cash value in term life insurance policies? A. The insured may borrow money from the cash value. B. Cash value is paid out at the end of the term. C. Cash value equals the death benefit. D. There are no cash values.

There are no cash values.

Regarding health insurance, all of the following are tax-deductible EXCEPT A. Employer paid group Long-Term Care. B. Employer paid group Accidental Death and Dismemberment. C. Employee paid group disability income. D. Employer paid group health insurance.

Employee paid group disability income.

Following a covered loss, the Time Payment of Claims Provision requires that an insurance company pay disability income benefits no less frequently than A. Monthly. B. Semi-annually. C. Annually. D. Weekly.

Monthly

Among the applicants in the same class and life expectancy, which of the following factors can be used to determine premium rates? A. Marital status B. Race C. Occupation D. Ancestry

Occupation

A stock insurer is defined as an insurer A. Owned by its policyowners. B. That invests at least 20% of its premium income in the stock market. C. Who pays dividends to its policyowners. D,. Owned by its stockholders.

Owned by its stockholders.

A core Medicare supplement policy (Plan A) will cover all of the following expenses EXCEPT A. Part A deductible. B. The first 3 pints of blood. C. 20% of Part B coinsurance amounts for Medicare-approved services. D. Part A coinsurance.

Part A deductible

An insured's home is destroyed by a fire. In this example, the fire is a A. Hazard. B. Risk. C. Exposure. D. Peril.

Peril

Utilization management consists of an evaluation of the appropriateness, necessity and quality of health care, and may include A. Preventive care. B. Prospective and concurrent review. C. Cost-saving services. D. Coordination of benefits.

Prospective and concurrent review.

An insured had a heart attack while jogging, but is expected to return to work in approximately 6 weeks. The insured's Disability Income policy will A. Replace a percentage of his lost income. B. Cover injuries only. C. Not pay. D. Pay a lump-sum benefit.

Replace a percentage of his lost income.

If the insurer cancels a health policy that contains an optional cancellation provision, by giving the insured 5 days prior written notice, any unearned premium will be A. Returned to the insured on a pro rata basis. B. Returned to the insured on a short-rate basis. C. Returned to the insured in full. D. Retained by the insurer.

Returned to the insured on a pro rata basis.

Who is obligated to make sure all questions are answered and all necessary signatures are collected on the application? A. The agent B. The applicant C. The insurer D. The issuer

The Agent

Who sets the standards for persons who act as agents for Nonprofit Health Service Plan Corporations? A. The Corporation B. The Commissioner of Human Services C. The National Association of Insurance Commissioners D. The Commissioner

The Commissioner

When an insurer examination is ordered by the Commissioner, who pays for the cost of the examination? A. The National Association of Insurance Commissioners B. The insurance company that is examined C. The Guaranty Association D. The Insurance Department

The Insurance Department

All of the following are characteristics of group health insurance plans EXCEPT A. The benefits under a group plan are more extensive than those under individual plans. B. The parties that hold a group health insurance contract are the employees and the employer. C. The cost of insuring an individual is less than what would be charged for comparable benefits under an individual plan. D• Employers may require the employees to contribute to the premium payments.

The benefits under a group plan are more extensive than those under individual plans.

What is necessary in order to be eligible to receive benefits from a Long-Term Care policy? A. The insured must meet certain economic standards. B. The insured must have been receiving disability benefits for 6 months. C. Age is the only requirement; upon reaching age 65, LTC benefits are available. D. The insured must be unable to perform some activities of daily living.

The insured must be unable to perform some activities of daily living.

An employee is covered under COBRA. His previous premium payment was $100 per month. His employer now collects $102 each month. Why does the employer collect an extra $2? A. To cover the employer's administration costs B. Penalty for termination C. Premiums go up every year regardless of health conditions D. To cover other employees who qualify to bypass premium payment

To cover the employer's administration costs

What is the purpose of a benefit schedule? A. To include the average charges for procedures B. To provide the dates for the payment of benefits C. To list the insured's copayments and deductibles D. To state what and how much is covered in the plan

To state what and how much is covered in the plan

An employee that becomes ineligible for group coverage because of termination of employment or change in status, must exercise extension of benefits under COBRA A. Within 60 days. B. Within 30 days. C. Before termination is complete. D. Within 10 days.

Within 60 Days