WV Life Insurance Laws and Rules
A producer who intentionally violates Unfair Trade Practice law could receive a fine of up to:
$5,000.
A producer must notify the Insurance Commissioner within ____ days following the final deposition of an admin action by any government agency. 10 20 30 40
30 days
Domestic Insurance Company
A company that resides and is incorporated under the laws of the state in which its home office is located.
Commingling
A producer who has combined premiums collected with personal funds has engaged in commingling, which is a prohibited act.
Alien Insurance Company
An insurance company incorporated outside the country
Unauthorized Insurer
An insurance company that has not applied, or has applied and been denied a Certificate of Authority.
Which of the following permits an insurance company to transact business in WV?
Certificate of authority
In WV, which of the following is considered an Unfair Trade Practice? Replacement Coercion Aleatory Subrogation
Coercion.
Which of these actions does NOT constitute life insurance policy replacement? Discontinue premiums on an existing policy and apply the payments to a new policy, take Reduced Paid-Up insurance and purchase a new policy with another insurer, Cash surrender an existing policy and purchase a new policy, Convert term coverage to a whole life policy
Convert term coverage to a whole life policy.
Which of these products does NOT require continuing education for the producer selling them? Property and Causality (P&C), Credit Accident and Sickness Insurance, Health insurance, Life insurance
Credit Accident and Sickness insurance.
Individuals in WV are personally invited to apply for life insurance on the basis of the offer. This type of solicitation made by the insurer is called: Batch Response, Direct response, Bracket response, Bundle response
Direct Response - an offer to persons in this state, either directly or through a third party.
Model Health Plan
For "uninsurable" people of WV.
Free Look Period
In WV, insurers must provide a minimum of 10 days for a free look period upon policy delivery.
long-term care insurance
Insurance coverage that provides a daily monetary benefit to people who are chronically ill and who require living assistance either at home or in a residential facility, 30 day free look period is required for this policy.
Defamation occurs when a producer makes a false statement intended to: malign another insurer, replace an existing insurance policy with another, restrict fair trade, misrepresent the provisions of an insurance policy.
Malign another insurer.
Which of the following provides funding for the WV Life and Health Guaranty? NAIC, Dept. of insurance, Revenue bonds, Member company assessments
Member company assessments - funded by assessments on member companies.
Which type of insurance company allows their policyowners to elect a governing body? Stock, Mixed, Admitted, Mutual
Mutual
What must be signed by both the producer and applicant when an existing life insurance policy is being reissued with a reduction in cash value? Policy Guide, Buyer's Guide, Replacement receipt, Notice Regarding Replacement.
Notice Regarding Replacement.
Outline of Coverage
Required for Long Term Care insurance. Considered a summary of coverage.
Examination of Records
The Commissioner can examine anyone in the business of insurance in the state at anytime. A company shall be examined every 5 years.
Fingerprinting
The Commissioner requires all applicants be fingerprinted and background checked before obtaining their ins. license.
Which of the following is a requirement to attain a nonresident producer license? The producer must be at least 21 years of age, The producer's state of residence must have reciprocity with this state, The producer must be bonded in the producer's state of domicile, The producer must pass a special examination for nonresident producers.
The producer's state of residence must have reciprocity with this state.
Foreign Insurance Company
a company whose home office is in ANOTHER state.
Commingling
a producer who has combined premiums collected with personal funds has done this act, and it is illegal
Authorized Insurer
a qualified insurance company
Producer
an applicant for a West Virginia insurer must be: 18 years of age, not committed any act that is grounds for suspension etc., completed a pre licensing course, passed the state exam, submit the app with fees, not intended to use the license primarily for controlled business, deemed trustworthy and competent.
Mutual Life Insurance Companies
an insurance company owned and controlled by its policyowners.
Stock Insurance Company
an insurance company that is owned and controlled by stockholders.
When recommending a purchase or exchange of an annuity, the producer or insurer must have a reasonable basis for believing that a recommendation is suitable based on all of the following facts disclosed by an applicant EXCEPT the applicant's: net worth, present income, intended use, county of residence
county of residence
The Boarding of Insurance Agent Education:
develops the continuation education program and submits the proposal to the insurance commissioner for approval
Shopper's Guide
each prospective client is entitled to receive this guide.
Commissioner of Insurance
enforces the insurance laws of WV. This executive position is appointed by the Governor of West Virginia
Producer Appointments
if cancelled, notify the Commissioner within 15 days
Misrepresentation
it is illegal to misrepresent any fact about an insurance policy, such as policy terms, benefits, value and cost.
Notice to buyer
must be on the first page of the long term care policy.
Continuing Education
must complete 24 hrs of continuing education every 2 years to keep their license. 3 of these hours are to be in ethics.
A producer who is resident in another state but licensed to transact insurance in WV is called a _____ producer nonresident foreign alien reciprocal
nonresident producer.
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
WV Life and Health Guaranty Assoc.
provides claim payments of admitted, insolvent (financially incapacitated) insurers.
Insurance Transaction
solicitation or inducement to purchase insurance, negotiations towards the sale of insurance, executing a contract of insurance, advising on coverages and claims.
Notice and Hearing
the Commissioner may call and hold hearings for any purpose deemed necessary.
Insurance Commissioner
the commissioner may conduct investigations or examinations whenever deemed necessary, subpoena the witnesses to testify.
cease and desist order
the commissioner may issue this order to any person committed of an unfair or deceptive act.
Limits and Exclusions
these are NOT permitted on the basis of Alzheimer's and Dementia.
