215B law (2)

In a long-term care policy, pre-existing condition limitations

Must appear as a separate paragraph and be clearly labeled.

During replacement of life insurance, a replacing insurer must do which of the following?

Obtain a list of all life insurance policies that will be replaced

An employer offers group life insurance to its employees for the amount of $10,000. Which of the following is true?

The cost of coverage is a deductible expense by the employer.

Which of the following persons is required to hold a producer license?

A person who negotiates insurance contracts

Long-term care policies require that in addition to the applicant at least one person must be designated in the policy. What is the role of that designated person?

To receive notice of policy lapse or termination -An individual long-term care policy cannot be issued until the insurer has received from the applicant either a written designation of at least 1 person, in addition to the applicant, who is to receive notice of lapse or termination of the policy for nonpayment of premium.

Which of the following statements is INCORRECT?

**a) Replacing insurance policies for the purpose of making commissions is legal. b) Misrepresenting the true nature or facts of a policy or its benefit in order to induce a policyholder to surrender one policy and replace it with another is illegal. c) It is illegal to be involved in any activity of boycott, coercion, or intimidation that is intended to restrict fair trade or to create a monopoly. d) Discrimination in rates, premiums, policy benefits, etc. for persons within the same class or with the same life expectancy is illegal.

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?

Defamation -Defamation is making statements that are false as to the financial condition of any insurer and which are calculated to injure any person engaged in the business of insurance.

A medical insurance plan in which the health care provider is paid a regular fixed amount for providing care to the insured and does not receive additional amounts of compensation dependent upon the procedure performed is called

Prepaid plan. -Under a prepaid plan, the health care providers are paid for services in advance, whether or not any services are provided. The amount paid to the provider is based upon the projected annual cost as determined by the provider.

Who examines the books and records of insurance companies in Florida?

The Chief Financial Officer

All small employer group health plans, in order to comply with the requirements of the Florida Employee Health Care Access Act, must be issued on what basis?

Guaranteed issue -A small group plan must be issued on a guaranteed-issue basis, which means an insurance policy must be offered to an employer, employee, or dependent of the employee, regardless of health status, pre-existing conditions or claims history.

Which of the following would be required to be licensed as an insurance producer?

A salaried employee who advertises and solicits insurance -A person does not require an insurance producer license if he or she only advertises without intent to solicit insurance. However, once there is solicitation, a license is required.

Who must sign the notice regarding replacement?

Both the applicant and the agent

An insurance producer just sold an insurance policy to his sister. What kind of business is this?

Controlled -When producers sell policies on themselves, their family, or their coworkers, this is called controlled business. Controlled business is legal as long as premiums paid on these policies do not exceed the premiums that the producer writes for other business.

Which of the following does NOT describe hospice care?

It provides care to people with life expectancies of 1 to 2 years. -Hospice provides short-term, continuous care in a home-like setting to terminally-ill people with life expectancies of 6 months or less.

A long-term care shopper's guide must be presented at what point?

Prior to the time of application -A long-term care insurance shopper's guide must be provided in the format developed by the National Association of Insurance Commissioners (NAIC). The shopper's guide must be presented to the applicant prior to completing the application.

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Replacement rule