Chapter 8: lesson 4 Indiana laws and rules

His life policy loan in Indiana cannot charge a flex rate of interest higher than

8%

Health policy sold in Indiana are required to begin medical coverage of a newborn beginning at: n no

The moment of birth

How many days is a temporary producers license

180

What is Indiana's definition Of life insurance replacement?

The transaction in which A new policies bought an old policy is terminated

How long does an insurance company appointment remain in force

Until terminated or withdrawn

A long-term care policy sold in Indiana must provide benefits for a minimum of how many months?

12 months

A person insured under health policy is required to give the insurance company a notice of claim within ___ days after a covered loss.

20

In Indiana the maximum fine that a commissioner can impose on a producer or company who violates a crease or disist order is____ per violation.

25000

ABC insurance company fails to pay death benefits after Satisfactory proof of loss was submitted. ABC must then begin paying interest on the death proceeds after ___ days of receiving proof of loss.

30

A producer must notify the insurance commissioner within __ days of an address change

30 days

To continue health coverage for a newborn, the policy owner must notify the insurer of birth and provide the first premium payment within ——days of birth.

31

What is required for a producer to be in compliance with rule 13 life insurance advertising?

A potential applicant must be told that the life insurance is the exclusive subject of the sale

An insurance company that has qualified and received a certificate of authority from the Department of insurance to sell insurance in the state is considered to be a_____ insurer.

Admitted

What is the purpose of the Indiana life and health insurance guaranty association?

Assures that claims filed against insolvent insurance companies will be paid

Indiana 10 day free look. For life insurance policies begins on the;

Date of delivery

A group life insurance policy can be converted to an individual whole life policy under which circumstances?

Employee termination

Defamation occurs when a producer makes a false statement intended to

Malign another insurer

Maternity coverage is required in which type of policy?

Medical expense policy

XYZ Corp. was issued a group health policy for its employees.Under this plan a

Policy must be issued to XYZ, and a certificate must be issued to each employee

In a medical expense health insurance policy, what is considered to be the limiting age?

The age of which dependent children can be taken off an insurance policy

Which of these statements regarding health coverage for physically handicapped dependence is false?

The dependent must have been over ten years of age when the handicap was incurred

In order to terminate the producers appointment, the insurer must

The notice of the termination to the commissioner

When a life insurance application is completed, a policy summary must be given to the applicant. The policy summary must include

The premium cost for basic coverage applied for

Why would the insurance commissioner issue a temporary license?

To allow the personal representative of a deceased producer to provide service to existing policy owners

And example of an unfair claims settlement practice is:

Turning down a claim without providing the basis of denial

A producer inducing and insured to lapse, forfeit, or surrender insurance through misrepresentation is committing the illegal act of:

Twisting

A domestic insurance company in Indiana must

Be organized under Indiana insurance laws

With whom may be a producer share commissions with?

A licensed producer with the same type

Which of the following is considered to be a misrepresentation?

An agent guaranteeing a policy's dividends

Which of these correctly describes the purpose of the Indiana comprehensive health insurance plan?

Provides high risk insurance coverage for people who are uninsurable

Which of the following will happen if a license resident insurance producer move to another state?

Reduce her license shall terminate immediately

According to Indiana law group life insurance conversion privileges must not:

Require evidence of insurability-(must allow the converted policy to exceed 75% of the original group life amount, must allow a time. To convert group life coverage to an individual life policy, must require a rate increase)

Which of the following statements is correct about the insurance commissioners authority to examine the business records of the producer?

The Commissioner may examine them whenever it's deemed necessary

S Is a life insurance policy owner who enters into a written agreement to receive immediate cash in exchange for the sale and transfer of life insurance policy. This agreement is referred to as a(n)

Viatical Settlement

S takes out a health insurance policy which contains a provision that states that the producer does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this?

Entire contract

And example of an unfair claims settlement practice would be

Failing to effectuate prompt fair and equitable settlements have a claim

Which of the following is a requirement to be eligible for group health policy?

Group must be form for a purpose other than obtaining insurance

Which of the following is required to be eligible for a group life policy in Indiana?

Group must be formed form a purpose other than obtaining insurance

Kathy has a family health insurance policy where any dependent child she has are removed from the policy once they have reached a certain age. This policy is known as:

Limiting Age

Life insurance coverage will frequently contain an accelerated benefit rider attached to the policy. What would be considered a "qualifying event" under these riders?

Medical condition resulting in a significantly shortened lifespan

All of these statements are true regarding a child qualifying for coverage under the Indiana children's health insurance program except

Must be born in the United States to qualify (must be A resident of Indiana to qualify must be under 19 years of age to qualify must be families income level must be greater than 150% of federal poverty level but less than 200%

T is covered by a group major medical policy with his employer. He leaves his employer and converts the coverage to an individual policy. All of these statements about the new policy are true except:

New Policy pays the same benefits as the group policy

And example of rebating would be

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

In Indiana, which of the following must be delivered to a policy owner upon sale of an individual life insurance policy?

Policy summary and buyers guide

Who is responsible for determining if long-term care coverage is appropriate to meeting and applicants needs?

Producer

Which of the following is a reason for the commissioner to revoke a producers license?

Producer published malicious and false Information toward another insurance company producer found guilty of twisting after a hearing, producer offered a client a return of commission in exchange for a sale. (Can't revoke license for producer is insolvent, Producer represents more than one insurance company)