WV Laws & Rules Insurance

What type of statement may a producer make to a client about a Whole Life policy?

"Nonforfeiture benefits will be available after a period of time"

A group life insurance policy insured may assign up to ________ of the insured's coverage

100%

What is the MINIMUM benefit period that must be offered by a Long-Term Care policy sold in WV?

12 months

A labor union must have at LEAST ____ members to be issued a group life policy

25

When an employee is terminated, how long does the employee have to convert group life coverage to an individual plan?

31 days

The waiting period for pre-existing conditions on Medicare Supplement policies is ____ months

6

The maximum time period that pre-existing conditions may be excluded in long-term care policies is

6 months

While taking an application for an Accident and Sickness (A&S) policy, a producer must list any other health insurance policies they have sold to the applicant if the sale involves

Replacement

What type of individual requires continuing education?

Resident Producer

False Advertising

The act of an insurance company publishing misleading information about its policy's provisions

A life insurance policyowner recently died. The proceeds from this policy are NOT exempt from creditor's claims when they are payable to

The insured's estate

What does the WV Life and Health Insurance Guaranty Association provide?

claim payments of admitted, insolvent insurance companies

What permits an insurance company to transact business in WV

Certificate of Authority

One definition of replacement is "the act of replacing an existing insurance policy with another" Replacement is

Closely regulated and requires full disclosure

What action does NOT constitute life insurance policy replacement?

Convert term coverage to a whole life policy

What is NOT a situation that involves life insurance policy replacement?

Converting to a term policy to a permanent policy with the same insurer

Misrepresntation

Convincing a prospective insured to buy an insurance policy based on exaggerations is called

P is an employee covered under his employer's Group Life policy for $25,000. He quits after 1 year on the job. Which statement about his conversion options is NOT true?

Employee can convert to a $25,000 Term policy

How often must an insurance producer's license in WV be renewed?

Every two years

Name an organization that provides health services on a prepaid basis?

Health Maintenance Organization HMO

Defamation occurs when a producer makes a false statement intended to

Malign another insurer

Which Unfair Trade Practice involves a producer suggesting that an insurance policy is like a share of stock?

Misrepresentation

An example of rebating is

Offering a client something of value not stated in the contract in exchange for their business

What action, taken by a producer, is considered a violation of West Virginia's insurance laws pertaining to Medicare Supplements?

Producer delivers the policy to an applicant more than 7 business days after they received it for delivery

Why does WV require producers to obtain a license to solicit insurance?

Public protection

Which of the following is a requirement to attain a nonresident producer license?

The producer's state of residence must have reciprocity with this state

According to WV law, a Group Life insurance policy required at LEAST _____ insureds

Two

The WV Life and Health Insurance Guaranty Association is

funded by insurance companies through assessments

Defamation occurs when a producer makes a false statement intended to

malign another insurer

A producer who is a resident in another state but licenses to transact insurance in WV is called a ______ producer

nonresident

If a new Accident and Sickness (A&E) policy involves the replacement of existing coverage, it must be verified on a question located

on the application

The _______ must provide an insured with proper disclosure concerning the replacement of an existing policy

producer

Life insurance replacement regulation protects the interests of

the policyowner

An example of an unfair claims settlement practice is

turning down a claim without providing the basis of denial

ABC Insurance Company failed to accept a valid Proof of Loss statement. This is considered to be a(n)

unfair claims practice