State Laws
Under the Small Employer Health Insurance Availability Act in Kansas, the employer must have no more than _____ eligible employees to qualify. A 15 B 75 C 50 D 25
c
All of the following are true regarding penalties imposed by the Commissioner, except: A The Commissioner may impose a penalty of up to $1,000 per violation, not to exceed $10,000 in any 6-month period, if the person knew he/she was engaging in an unfair practice B The Commissioner may order refund of premiums or withheld money, with interest, to an injured party C The Commissioner may suspend, revoke or refuse to renew the person's license if the person knew he/she was engaging in an unfair practice D The Commissioner may double the amount of tax on premiums paid to a producer writing business for a company not authorized to transact business in Kansas
a
An agent replacing a life policy or annuity must give the applicant and the insurer all of the following, except: A Buyer's Guide B Copy of each sales proposal C Signed replacement notice D Outline of Coverage
a
An example of ___________ is charging a lower rate to one individual who lives in a certain geographic location in which others are charged the correct higher rate. A Unfair discrimination B Twisting C Boycott D Rebating
a
Blanket Insurance will cover all but one of the following: A Independent CPA B Sport's team C Volunteer fire department D Schools
a
The Commissioner may subject a person who has violated the Kansas Insurance Code to imprisonment up to _________ in the county jail. A 6 months B 12 months C 3 months D 36 months
a
giving the insured a rebate of premium, special favors in benefits, or other inducement not otherwise specified in the policy
rebating
In Kansas, the free-look period for Medicare Supplement and LTC policies is _____ days. A 30 B 10 C 25 D 20
a
A licensing candidate must be at least _____ years of age to be licensed. A 20 B 18 C 25 D 21
b
A producer licensed to transact insurance in Kansas is required to hold an appointment with how many insurers? A 5 B 1 C 2 D 3
b
The Commissioner may issue a temporary license for up to ____ days: A 60 B 90 C 365 D 180
d
In Kansas, all life insurance policies must contain a provision that in the event of death of the insured, settlement must be made upon receipt of which of the following? A Due proof of death B Signed statement by producer C Newspaper obituary D Hospital bill
a
In order to transact excess lines insurance, a property/casualty producer must have which of the following? A Appointment from the Commissioner B Excess lines license C Surplus lines license D Insurance company appointment
b
Which of the following are part of the legal responsibility of maintaining an insurance license? A A producer must inform the Commissioner of any change in address within 90 days B A producer must inform the Commissioner of any change in address within 30 days C A producer must inform the Commissioner of any change in address within 60 days D A producer must inform the Commissioner of any change in address within 10 days
b
Which of the following children would not be covered under the parent's individual or group health insurance policy? A Child place in enrollee's home by a child placement agency for the purpose of adoption from the date of placement if the date of the adoption petition is filed within 280 days B An adopted newborn child from the moment of birth if the adoption petition was filed within 15 days of the child's birth C Child adopted by the enrollee from the date the adoption petition was filed D Newborn child of the enrollee from the moment of birth
b
Which of the following statements is correct regarding required provisions for individual coverage? A The Time Limit on Certain Defenses, including nonpayment of premium, is 2 years after the policy has been in force B The Time Limit on Certain Defenses, except for nonpayment of premium, is 2 years after the policy has been in force C The free-look period is 15 days D The time frame for pursuit of legal action cannot exceed 3 years
b
A new life policy is being purchased, and the producer knows that an existing contract will be lapsed. This is an example of (policy): A Exchange B Surrender C Replacement D Termination
c
Which of the following is correct regarding a temporary license? A The duration of a temporary license may not exceed 80 days B A temporary license may not be renewed C A temporary license may be issued to the surviving spouse of a disabled or deceased producer D A temporary license may be issued for up to 180 days after successfully completing the licensing examination
c
Which of the following is false regarding the Life and Health Insurance Guaranty Association Act? A Every insurer transacting insurance in Kansas must be a member of the Association B The Association assumes all of the rights, duties and obligations of an insolvent insurer C The Association is under the immediate supervision of the NAIC D If a policy is not covered by the Association, such policy must be delivered with a disclosure to that effect
c
Which of the following is not a reason for which the Commissioner may conduct a hearing? A The Commissioner has reason to believe that a person is engaging in an unfair trade practice B A person fails to file a report with the Commissioner C A producer inadvertently submitted the incorrect application form to the insurer D A person fails to respond to an inquiry by the Commissioner
c
Which of the following statements is correct concerning long-term care insurance? A A determination of impairment cannot be more restrictive than the inability to perform 5 of the activities of daily living or the presence of cognitive impairment B LTC policies must be at least noncancellable C Insurers are required to offer inflation protection with every LTC policy that is purchased D Coverage for home health care or community services must be provided in a dollar amount equivalent to at least one year's coverage available for nursing home benefits
c
A replacing insurer is not required to do which of the following? A Keep copies of sales proposals for at least 3 years B Verify that a replacement is compliant with state regulations C Maintain copies of comparison statements D Notify each insurer whose insurance is being replaced within 10 working days
d
All of the following are true regarding life insurance advertising, except: A The name of the insurer must appear on all advertisements B Insurers must be responsible for and control all advertising content C Insurers must keep every advertisement on file for at least 4 years or until the filing of the next regular report on its examination of the insurer, whichever is longer D The penalty for violation of the advertising rules is a fine of up to $500 per violation
d
An example of ___________ is charging a lower rate to one individual who lives in a certain geographic location in which others are charged the correct higher rate. A Rebating B Twisting C Boycott D Unfair discrimination
d
A life and health producer must complete how many hours of continuing education every 2 years? A 12 B 15 C 30 D 8
a
All of the following are true regarding the Life and Health Insurance Guaranty Association, except: A An insurer may use the existence of the Association in advertisements to purchase insurance B It prevents financial loss to policyholders when an insurer becomes insolvent C Other member insurers are assessed to provide money for the claims of an insolvent insurer D The Association is not liable for more than $300,000 in the aggregate for any one life
a
Choose the statement that is true regarding the inflation protection coverage under LTC policies? A Insured can increase the benefit level without providing evidence of insurability B Increases in benefit levels are compounded annually at a rate not less than 8% C Does not include a maximum specified indemnity limit D The inflation protection coverage is required on all LTC policies
a
Claims paid by the Kansas Life and Health Guaranty Association comes from which of the following? A Assessments from member companies B State Guaranty Fund C Federal Guaranty Association Fund D Premiums collected from insureds
a
The producer must keep a copy of the life insurance replacement form for what period of time? A 3 years B 7 years C 2 years D 90 days
a
What is the maximum amount the Association will pay in health insurance benefits for an insolvent insurer: A $100,000 B $500,000 C $300,000 D $250,000
a
Which of the following is not exempt from replacement regulations: A Replacing a Whole Life policy with a Term policy for a spouse B Group life insurance policies C A term policy that is nonconvertible, nonrenewable with 5 years or less to expire D Credit life insurance administered by group-type methods
a
Which of the following is true about the Kansas Commissioner of Insurance? A Commissioner is elected by the voters in Kansas B The Governor of Kansas appoints the Commissioner of Insurance C The Commissioner is elected by the State Senate D The Federal Court holds a hearing and the Federal Judge determines who will be the Commissioner
a
Which of the following is true concerning the definition of a Foreign Company? A A foreign company is licensed to do business in Kansas and incorporated in another state B A foreign company is licensed and incorporated in another country outside of the U.S. C A foreign company is licensed in another state, but incorporated in Kansas D A foreign company is licensed and incorporated in another state
a
Which of the following statements is correct about group plan preexisting conditions? A The preexisting condition exclusion does not apply to pregnancy B A group policy may exclude benefits for any condition existing prior to the effective date C A preexisting condition exclusion may be imposed for 180 days following the date of enrollment D A preexisting condition exclusion may be imposed if the condition was treated in the 6 months prior to enrollment
a
Which of the following penalties can the Commissioner impose for committing an Unfair Method of Competition or an Unfair Trade Practice: A A fine not more than $200 per violation in any 6 month period B Imprisonment for up to 5 years in prison C A fine not to exceed an aggregate of $100,000 in any 6 month period D A cease and desist order
d
Individual life insurance policies are incontestable by the insurer after they have been in force for how many years? A 1 B 3.5 C 2 D 3
c
All of the following are true regarding a life policy and its reserves, except: A The policy proceeds are free from the claims of the policyholder's creditors B The policy proceeds are not free from taxes C The policy proceeds are free from the claims of the insured's creditors D The policy proceeds are free from the claims of the beneficiary's creditors
b
In Kansas, the Accelerated Benefit Provision becomes effective for accidents on which of the following dates? A Anniversary date B Effective date C 30 days after the effective date D 90 days after the effective date
b
All of the following are true regarding provisions for individual life policies, except: A The policy may be backdated up to 9 months to conserve age B The policy must have a grace period of at least 30 days C The policy must have a free-look period of 10 days D The policy must be incontestable after 2 years from the date of issue
a
Which of the following statements is true regarding pre-existing conditions under a group health policy? A A pre-existing condition exclusion may be imposed for up to 90 days after the date of enrollment for a medical condition that existed 6 months prior to the effective date of enrollment B A pre-existing condition exclusion may be imposed for up to 6 months after the date of enrollment for a medical condition that existed 12 months prior to the effective date of enrollment C A pre-existing condition exclusion may be imposed for up to 6 months after the date of enrollment for a medical condition that existed 6 months prior to the effective date of enrollment D A pre-existing condition exclusion may be imposed for up to 90 days after the date of enrollment for a medical condition that existed 90 days prior to the effective date of enrollment
d
All of the following are true regarding what is required for a Foreign Company to be authorized to transact business in Kansas, except: A The foreign company must have been in operation for at least 3 years B The foreign company requires immediate regulatory attention by the Department of Insurance C The foreign company must make the required deposit with the Kansas Insurance Department D The foreign company must demonstrate that the majority ownership interests of the company are financially sound
b
The Insurance Commissioner is: A Appointed by the President of the NAIC B Elected every 4 years through public nomination C Appointed by the Governor and confirmed by the State Senate D Appointed by the State Senate and confirmed by the Governor
b
What is the FIRST consequence when a Kansas producer fails to report completion of continuing education requirements by their biennial renewal date? A The producer's license expires B The producer's license is suspended for 90 days C The producer is summoned to a hearing before the Commissioner D The producer is served with a cease and desist order
b
Which of the following is false regarding CE requirements: A 12 hours for Property and/or Casualty, or Personal lines B Continuing Education courses are required every 4 years C 12 hours for Life and/or Health D 4 hours for Title
b
Which of the following is not a purpose of the statutes regarding the replacement of life insurance? A Reduces the opportunity for misrepresentation B Protects the beneficiaries from a loss of benefits C Regulates the activities of insurers and producers D Establishes penalties for violation of the statutes
b
Which of the following is not considered to be rebating: A Giving the insured tickets to the Super Bowl B Accepting the applicants premium for a policy C Offering special favor in dividends or other benefits D Offering any rebate of premium
b
Which of the following is not true regarding the powers of the Commissioner of Insurance: A Enforce insurance laws B Make insurance laws C Issue producer licenses D Issue Certificates of Authority to Insurers
b
Which of the following is the correct time limit for a terminated employee in Kansas to continue his group health insurance? A 12 months B 18 months C 1 month D 6 months
b
Which of the following statements is correct concerning provisions in group life insurance policies? A There must be a provision allowing anyone who has been covered under the group policy for at least one year to convert to an individual policy upon termination of the group policy B There must be a provision providing a payment of up to $250 to any person appearing to be equitably entitled in the absence of a designated beneficiary C There must be a provision that if an insured dies during the conversion period, no benefit is payable under the group policy D There is no conversion privilege available to the spouse of an insured when insurance is terminated for such spouse
b
Which of the following statements is correct with respect to a Certificate of Authority? A Once an insurer has applied for a Certificate of Authority, it may transact business in Kansas until and if the application is denied by the Commissioner B It is unlawful for an insurer to transact any business in Kansas without a Certificate of Authority C Insurers are not required to have a Certificate of Authority in order to transact business in Kansas D An insurer may transact business in Kansas for a maximum of 30 days before obtaining a Certificate of Authority
b
With regard to financial examinations, the Commissioner: A Must conduct a financial examination of an insurer at least once every 3 years B Must conduct a financial examination of an insurer at least once every 5 years C May, but is not required to examine insurance companies D Must conduct a financial examination of an insurer at least once every 10 years
b
All but one of the following apply to advertisements of life insurance: A The advertisement cannot imply coverage in all jurisdictions, unless it is a fact B They cannot be misleading C An insurer or producer who violates advertising regulations is subject to a fine of up to $5,000 for each violation D Advertisements must be truthful
c
All of the following are true regarding a life policy and its reserves, except: A The policy proceeds are free from the claims of the beneficiary's creditors B The policy proceeds are free from the claims of the policyholder's creditors C The policy proceeds are not free from taxes D The policy proceeds are free from the claims of the insured's creditors
c
Any paid-up benefit of an annuity must be at least the present value as of the surrender date if which of the following options exists? A A nonforfeiture option B A cash surrender option C A cash surrender nonforfeiture option D Anytime
c
If a producer offers any special favor in dividends or other benefits to an insured, the producer is guilty of which of the following marketing practices? A Twisting B Intimidation C Rebating D Defamation
c
In Kansas, which of the following is exempt from licensing requirements? A Title producer B Life producer C Travel producer D Pre-need producer
c
The Kansas Life and Health Guaranty Association does not apply to which of the following? A Life insurance B Annuity insurance C Excess insurance D Health insurance
c
The following types of policies may defer the payment of dividends for more than 5 years, except: A Industrial insurance B Annuities C Variable Universal Life D Pure Endowments
c
To protect beneficiaries from creditors, a life policy must be free from which of the following? A Policy loan payments B Property taxes only C Any of the insured's creditors D Claims of the insurer
c
Under the ACA dependent children must be covered to what age: A 22 years of age B 18 years of age C 26 years of age D 30 years of age
c
Which of the following is a false statement about the powers of the Commissioner of Insurance regarding Department of Insurance hearings? A The Commissioner can examine witnesses and evidence B The Commissioner can serve a person a statement of charges and conduct a hearing C The Commissioner does not have the power to issue a cease and desist D The Commissioner has subpoena power
c
Which of the following is false regarding what is required for a Foreign Company to be authorized to transact business in Kansas? A The foreign company must demonstrate that the majority ownership interests of the company are financially sound B The foreign company must make the required deposit with the Kansas Insurance Department C The foreign company requires immediate regulatory attention by the Department of Insurance D The foreign company must have been in operation for at least 3 years
c
Which of the following statements is true regarding continuation of coverage under a group health insurance policy? A If an insured's coverage is terminated for any reason, the insured is eligible for continuation of coverage for 18 months if such insured has been covered under the group policy for at least 6 months B If an insured's coverage is terminated for any reason, the insured is eligible for continuation of coverage for 12 months if such insured has been covered under the group policy for at least 6 months C If an insured's coverage is terminated for any reason, the insured is eligible for continuation of coverage for 18 months if such insured has been covered under the group policy for at least 3 months D If an insured's coverage is terminated for any reason, the insured is eligible for continuation of coverage for 12 months if such insured has been covered under the group policy for at least 3 months
c
All of the following are true regarding persons required to be licensed, except: A To qualify for a nonresident license, a nonresident producer must be in good standing in his/her home state B A producer is an individual or business entity required to be licensed to transact insurance C An individual or business entity that is a resident of another state and licensed as a producer in another state may be licensed as a nonresident producer in Kansas D The term 'producer' does not include a broker
d
All of the following is true regarding the receipt for premium, except: A The receipt may void coverage if a check or draft for the premium is not honored when presented B The receipt may limit coverage by specifying the amount and type of temporary coverage C The receipt may void the coverage if the application contains a material misrepresentation or was fraudulently completed D The receipt may not exclude coverage for suicide
d
An accelerated benefit is a rider added to a policy that: A Cannot be taken as a lump sum B Can contain restrictions on use C Cancels the policy regardless of the amount of the accelerated benefit received D Requires a summary being given at the time of application
d
Any paid-up benefit of an annuity must be at least the present value as of the surrender date if which of the following options exists? A A nonforfeiture option B Anytime C A cash surrender option D A cash surrender nonforfeiture option
d
Choose the transaction regarding the existing contract that would not be considered a replacement when a new life insurance policy is issued. A Contract is converted into paid-up insurance B Contract lapses C Contract is terminated D Contract is reissued with an increase in amount
d
Encouraging a client to lapse one policy to take out another while the agent inflates the benefits of the policy is known as which of the following? A Intimidation B Coercion C Defamation D Twisting
d
Under Kansas law, which of the following rate discrimination practices IS allowed? A Based on the insured's age in auto liability policies B Between a blind person and a sighted person C Based on geographic location D Based on actuarial data
d
What is the correct order of escalating consequences if a producer fails to maintain CE requirements? A The producer's license is revoked, then confiscated B The producer's license is suspended, then terminated C The producer's license is suspended, then revoked D The producer's license is suspended, then deemed expired
d
When an insurance policy is going to be replaced, the insured must receive from the producer all but one of the following: A A list of all existing policies to be replaced B Notice of Replacement signed by both the producer and the applicant C An outline of coverage D A guarantee of insurability
d
Which of the following does not meet Kansas Small Employer Health Insurance Availability Act: A A pre-existing exclusion may not exceed 90 days B The employees must work at least 30 hours to be eligible C Pregnancy cannot be considered a pre-existing condition D There must be at least 75 employees to be covered
d
Which of the following is correct regarding license renewal? A A producer's license is renewed annually B A producer's license remains in effect for two years C Unless suspended, revoked or refused renewal, a producer's license is perpetual D Unless suspended, revoked or refused renewal, a producer's license remains in effect provided that the producer has met the educational requirements by the biennial due date
d
Which of the following is correct with regard to producer appointments? A All producers in an agency are appointed by the agency and not by an insurer B An insurer that certifies a producer must notify the Insurance Department within 10 days of the appointment C A producer may not cancel his/her own certification D A producer must be appointed by at least one insurer in order to transact insurance in Kansas
d
Which of the following is not a purpose of the statutes regarding the replacement of life insurance? A Regulates the activities of insurers and producers B Establishes penalties for violation of the statutes C Reduces the opportunity for misrepresentation D Protects the beneficiaries from a loss of benefits
d
Which of the following is not true of Coordination of Benefits: A Medicare is the secondary payor of the insured is still working and has coverage under an employer group health plan B A group plan covering a spouse who also has coverage under their own group plan is secondary C A group health plan covering an employee is the primary plan D A child covered under both parents' plan will have primary coverage under the older parent's group plan
d
Which of the following is true regarding a change of address/place of business: A Notification must be given within 90 days B Notification must be given within 20 days C Notification must be given within 60 days D Notification must be given within 30 days
d
Which of the following statements is correct with respect to a Certificate of Authority? A An insurer may transact business in Kansas for a maximum of 30 days before obtaining a Certificate of Authority B Once an insurer has applied for a Certificate of Authority, it may transact business in Kansas until and if the application is denied by the Commissioner C Insurers are not required to have a Certificate of Authority in order to transact business in Kansas D It is unlawful for an insurer to transact any business in Kansas without a Certificate of Authority
d