State Supplement

A temporary license may be issued for no longer than A) 30 days B) 45 days C) 90 days D) 180 days

D) 180

An insurance producer earning 55 continuing education credits during his second license renewal period A) will lose 10 credits B) may carry 10 credits over to their next renewal period C) needs more credits to renew his license D) will be required to return any extra credits earned

B) may carry 10 credits over to their next renewal period

The required free-look period of individual life insurance policies with face amount less than $25,000 is A) 7 days B) 10 days C) 20 days D) 30 days

B) 10 days

An individual who lets her producer license lapse may reinstate her license within how many months without taking another licensing exam? A) 6 B) 12 C) 24 D) 36

B) 12

Pointing out to a prospective client that the life insurance policy you are presenting is covered by the Massachusetts Life and Health Insurance Guaranty Association is A)an excellent sales idea B) prohibited by law C) encouraged by the state Division of Insurance required to be part of every sales presentation D) allowed if the producer gives the Buyer's Guide

B) prohibited by law

All of the following are powers and duties of the Commissioner EXCEPT A) issue cease and desist orders B) prosecute brokers who violate state insurance laws C) examine domestic insurance companies D) conduct complaint hearings

B) prosecute brokers who violate state insurance laws

The federal regulation that permits an applicant for insurance coverage to disoute any adverse inforamtion that surfaces on a credit report is known as the A) Privacy act B) Brady Bill C) Fair Credit Reporting Act D) Applicant Bill of Rights D)

C) Fair Credit Reporting Act

First-year commissions on Medicare supplements may not exceed A) 75% of the compensation paid in the second year B) 100% of the compensation paid in the second year C) 150% of the compensation paid in the second year D) 200% of the compensation paid in the second year

D) 200% of the compensation paid in the second year

A Fine of not more than $ 1,000 and imprisonment for not more than 6 months best identifies the penalties for A) rebating B) larceny C) Unfair claim practice D) misrepresentation

D) Misrepresentation

After a producer's initial 36- month license renewal period, how many continuing education credits must be earned before her next license renewal A) 12 B) 24 C) 45 D) 60

C) 45

If an individual violates a cease and desist order issued by the Commissioner, he will be subject to a fine of A) $1,000 B) $ 2,500 C)$ 5,000 D) $10,000

D) $10,000

Health insurance policies issued in Massachusetts must provide a free-look period of at least A) 10 days B) 20 days C) 30 days D) 60 days

A) 10 days

In Massachusetts, a producer must be at least how many years of age? A) 18 B) 19 C)20 D) 21

A) 18

A notice of hearing concerning a license suspension must be delivered by A) messenger B) the Commissioner C) first-class mail D) registered mail

D) registered mail

When a life insurance policy replacement occurs, the producer must provide the insured with a A) premium statement B) policy receipt C) copy of all sale materials D) replacement disclosure notice

D) replacement disclosure notice

if the commissioner finds that an individual is impersonating a producer, the violator may be assessed which of the following penalties? A) a $100 fine B) A $150 fine C) A $250 fine D) A $500 fine

A) 100 fine

The number of standardized Medicare supplement policies available in Massachusetts is A) 3 B) 5 C) 7 D) 9

A) 3

An authorization to conduct an AIDS- related medical examination may remain valid for no more than A) 30 days B) 90 days C) 180 days D) 365 days

B) 90 days

The Commissioner must inspect the financial records of each domestic company every A) year B) 2 years C) 5 years D 10 years

C) 5 years

When an existing life insurance policy is replaced, the replacement policy must have a free-look period of how many days A) 10 days B) 15 days C) 20 days D) 30 days

C) 20 days

which of the following regarding an adviser's license is TRUE? A) It is issued by an admitted insurer B) its duration is 10 years C) it may be issued to a partnership D) No application is required to be submitted nor exam taken in order to become an adviser

C) It may be issued to a partnership

A policy form may not be used in Massachusetts unless it has been approved by the Commissioner or on file for at least A) 30 days B) 90 days C) 6 months D) 1 year

A) 30 days

A buyer's guide, which must be presented to life insurance policy applicants, is A) generally required to be given before premium is accepted B) a sales tool developed by each life insurance company C) a complete summary of the policy being presented D) always presented to the insured after the policy is issued C

A) generally required to be given before premium is accepted

Under an individual or group health insurance policy, an insured's newborn child must be covered from A) the moment of birth B) the date the insurer receives any required additional premium C) 31 days after the child's birth D) the child's first birthday D) the child's first birthday

A) moment of birth

An applicant whose application for a producer license has been denied and who desires a hearing with the Commissioner must file a written demand for a hearing within A) 15 days B) 30 days C) 45 days D) 60 days

B) 30 days

when a producer collects money from a prospective insured, where should the money be placed? A) in his own bank account B) In a premium trust account C) In a joint agency account D) In a Separate Account

B) in a premium trust account

If a party seeking to recover on an insurance policy has been damaged by an unfair or deceptive trade practice, the court may award additional punitive damages of up to A) 5% of the claim B)10% of the claim C) 25% of the claim D) 50% of the claim

C) 25% of the claim

A producer must report to the Commissioner any administrative action taken against her by any governmental agency within A) 10 days B) 15 days C) 30 days D) 45 days D

C) 30 days

A producer doing business under an assumed name must notify the Commissioner A) within 30 days B) within 45 days C) within 90 days D) prior to using the assumed name

D) prior to using the assumed name

Insureds of an insolvent insurer who sustain a loss in Massachusetts may have their claim paid by A) the Assigned Risk Plan B) the Insurance Commissioner C) the Massachusetts Life and Health Insurance Guaranty Association D) No agency; their claim would not be paid D)

C) the Massachusetts Life and Health Insurance Guaranty Association

All of the following statements are correct regarding Massachusetts' continuing education requirements EXCEPT A) 60 hours of approved continuing education must be completed during the first 3 years of licensure B) 45 hours of approved continuing education must be completed during the seconds 3-year term of licensure C) The requirements do not apply to persons licensed to sell variable contracts D) any excess credits earned during one reporting period may be carried forward to the next

C) the requirements do not apply to persons licensed to sell variable contracts

Any person with access to the assets in an insurer's separate account for variable products must be bonded for at least A) $ 10,000 B) $ 25,000 C)$ 50,000 D) $ 100,000

D) $100,000

Under an individial or group health insurance policy, an insured's dependent children can generally be covered up to the age of A) 19 B) 21 C) 23 D) 26 D) 26

D) 26

All of the following are permissible exclusions in a long-term care insurance policy EXCEPT A) self-inflicted injuries B) participation in a felony C) acts of war D) Alzheimer's disease

D) Alzheimer's disease

A producer is required to maintain and retain a complaint record for A) 1 year B) 2 years C) 3 years D) 4 years

B) 2 years

an adviser's license renews every A) 2 years B) 3 years C) 4 years D) 5 years

B) 3 years

Larceny is an unfair trade practice in Massachusetts. All of the following situations describe this practice EXCEPT A) a producer collects premiums from an insured and intentionally withholds them from an insurer B) a producer is overdue in sending premiums to an insurer after collecting them from an insured C) a producer combines collected premiums with his own funds in order to avoid paying an insurer D) a producer fails to refund premium due an insured

B) a producer is overdue in sending premiums to an insurer after collecting them from an insured

Accelerated benefits provided by a life insurance policy that may provide benefits to pay for long-term care services A) are received tax free like all other life insurance proceeds B) could be taxable in some circumstances C) are paid only from policy dividends D) when paid, have no effect on the death benefit

B) could be taxable in some circumstances

A producer who disregards overdue premium notices from an insurer may be guilty of A) misrepresentation B) larceny C) rebating D) perjury

B) larceny

A producer who changes his address must notify the Commissioner A) as soon as possible B) within 30 days C) within 45 days D) within 90 days

B) within 30 days

A provision in a long-term care policy issued in Massachusetts limiting preexisting conditions may not exceed A) 30 days B) 3 months C) 6 months D) 12 months

C) 6 months

Generally, the maximum period that a life insurance policy my be backdated is A) 1 month B) 3 months C) 6 months D) 9 months

C) 6 months

All of the following statements are correct regarding an insurance adviser EXCEPT A) an adviser must supply 3 references with the application for a license B) an adviser must be a Massachusetts resident C) an adviser must also be licensed as an insurance producer D) an adviser must pass a written licensing examination

C) An adviser must also be licensed as an insurance producer

Medicare supplement policies may not include renewal provisions less favorable to the insured than A) conditionally renewable B) nonrenewable C) noncancellable D) guaranteed renewable

D) guaranteed renewable

Medicare supplement policies in Massachusetts may contain A) waiting periods but not preexisting conditions exclusions B) preexisting conditions exclusions but not waiting periods C) both waiting periods and preexisting conditions exclusions D) neither waiting periods nor preexisting conditions exclusions

D) neither waiting period not preexisting conditions

Offering a valuable consideration to an applicant or insured that is not specified in an insurance policy best describes A) twisting B) hedging C) larceny D) rebating

D) rebating

which of the following parties is responsible for the payment of examination (audit) expenses? A) the insurer being examined B) The division of insurance C) The Commissioner of Insurance D) The auditing department of the corporation

A) the insurer being examined

When an insurer appoints a producer as its agent, the Commissioner must be notified A) within 15 days B) within 30 days C) within 45 days D) as soon as possible

A) within 15 days

A person who commits a deceptive act or practice may be fines not more than A) $1,000 B) $2,500 C)$5,000 D)$10,000

A)$1,000

An application for insurance who knowingly shares a producer's commission in return for purchasing a policy is guilty of A) rebating B twisting C) Coercion D) Collusion

A) rebating