Laws & Rules

Which provision is NOT a requirement in a group life policy?

accidental

One role of the Life and Health Guaranty Association is to

maintain public confidence in the promises of insurers

An insurance applicant was recently denied insurance coverage. The applicant is requesting access from the insurer to recorded personal information regarding this decision. Under the information and privacy protection act, the insurer MUST make the information available within __ business days

30

Which of the following is an important underwriting principle of group life insurance

Everyone must be covered in the group

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim for her beneficiary submits

Full benefits are payable under the Master Contract

An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a

$25,000 individual whole life policy

Z is an agent who violated the Insurance Information and Privacy Protection Act. Z was then issued and served a statement of charges and notice of hearing by the Commissioner of Insurance. Z's hearing date must be at least ____ days after service of charges.

10

Which of following statements about noncontributory employee group life insurance is false

A minimum number of employees is required to participate

Under what condition may a lender require the purchase of insurance as a condition of making a loan

Only if the borrower is not restricted in his/her choice of insurers. A lender may require the purchase of insurance as a condition of making a loan ONLY if the borrower is not restricted in his/her choice of insurers.

When an employee is terminated, which statement about a group term life conversion is true?

Policy proceeds will be paid if the employee dies during the conversion period

Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees?

Portion of the premiums paid for by the employer may be a tax deduction

An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be

converted to an individual permanent policy at an individual rate

The circulation of written literature that is maliciously critical of an insurers financial condition is called

defamation

The commissioner of Insurance has notified an insurer that an Individual Health Policy form does not comply with North Carolina laws. The insurer may

not issue the form in connection with any new application

If a corporation pays the premium on a group life policy for its employees, the corporation is required to report how much additional taxable income for each employee?

nothing

Essential Benefits without annual and lifetime limits are required on any health policy purchased

through the Federal Marketplace

An agent inducing an insured to lapse, forfeit, or surrender insurance through misrepresentation is committing the illegal act of

twisting. Twisting is inducing or attempting to induce any insured person through misrepresentation to lapse, forfeit, or surrender insurance.