DC laws and rules pertinent to insurance - Chapter 8 (Health) Exam

in the district of columbia, monthly premium health insurance policies must provide a grace period of at least

10 days

what is the MINIMUM benefit period that must be offered by a Long-Term Care policy

12 months

a producer must complete 24 hours of continuing education every

2 years

the district of columbia requires that an insurance producer must complete ___ hours of continuing education every 24 months

24 hours

Within _____ days after policy delivery, both Medicare Supplement and Long-Term Care policies can be returned for a 100% premium refund

30

if a producer changes his/her residence address, the commissioner must be notified within

30 days

the grace period for individual life insurance policies is ___ days

30 days

how long must all health plans initially provide coverage on newborn children

31 days

how long must all health plans initially provide coverage on newborn children?

31 days

when an employee is terminated, how long does this employee have to convert group life coverage to an individual plan

31 days

the waiting period for a pre-exisiting condition under a medicare supplement policy may not go beyond

6 months

the waiting period for a pre-existing condition under a medicare supplement policy may NOT go beyond

6 months

a life policy loan in the District of Columbia cannot charge a fixed rate of interest higher than

8%

An example of unfair discrimination would be

An insurance company that charges different premiums for insureds in the same risk classification

An example of false advertising would be

An insurer exaggerating its dividends in a magazine advertisement

which of the following is considered to be misrepresentation

a producer guaranteeing a policy's dividends

which of the following is considered to be misrepresentation?

a producer guaranteeing a policy's dividends

a(n) __ insurance company is defined as one formed in a country outside the united states

alien

a french insurance company conducting business in the district of columbia would be known in the district of columbia as a(n)

alien company

ABC Life Insurance company's home office is located in Massachusetts and is incorporated in Massachusetts. In Kansas they are considered to be

foreign

in dc, an insurer licensed to conduct business in dc, but domiciled in new jersey, is called a(n)

foreign company

Which requirement must be met by a group that seeks group health coverage for its members

must have been formed for a purpose other than obtaining insurance

which type of insurance company allows their policyowners to elect governing body

mutual

a medicare supplement policy can be cancelled by the insurer for

nonpayment

during the course of a medicare supplement sale, T the agent determines there is an existing policy being replaced. which of these actions is T NOT required to perform

notify the replaced insurance company

W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim?

the proceeds would be reduced based on whatever the premium would have been if purchased at age 59

Group Life policies in the District of Columbia are required to contain a conversion privilege that allows for conversion

to an individual policy for a stated period of time

group life policies in DC are required to contain a conversion privilege that allows for conversion

to an individual policy for a stated period of time

T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert

to an individual policy upon employment termination

T is an employee covered under a group life policy. if T's employment is terminated, the conversion privilege gives T the right to convert

to an individual policy upon employment termination

why would the commissioner examine the records of an insurance company

to determine the solvency of the company

An example of an unfair claims settlement practice is

turning down a claim without providing the basis of denial

an example of an unfair claims settlement practice is

turning down a claim without providing the basis of denial

coverage for credit insurance begins

when the debtor becomes obligated to the creditor

During an insurance transaction, who does the producer represent?

insurer

Defamation occurs when a producer makes a false statement intended to

malign another insurer

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

misrepresentation

which unfair trade practice involves a producer suggesting that an insurance policy is like a share of stock

misrepresentation

an example of an unfair claims settlement practice is

misrepresenting insurance policy provisions affecting a loss

when is a group health policy required to provide coverage for a newborn child

at the moment of birth

how often must an insurance producer's license in the district of columbia be renewed?

every 2 years

during the course of an insurance transaction, the producer represents the

insurer

Stock Insurance Company

is owned exclusively by its shareholders

___ is the act of replacing existing life insurance with a new life policy based upon misrepresentation

twisting

______ is the act of replacing existing life insurance with a new life policy based upon misrepresentation

twisting

what is the purpose of the District of Columbia life and health insurance guaranty association

ensures that claims filed against insolvent insurance companies will be paid

A license may be denied, suspended, or revoked if the licensee

found guilty of misrepresentation in obtaining the license

the Life and Health Insurance Guaranty Association is

funded by insurance companies through assessments

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

be licensed as a producer in the producer's state of domicile

in the district of columbia, a domestic insurance company MUST

be organized under DC insurance laws

which of the following permits an insurance company to transact business in the district of columbia

certificate of authority

which of these is a requirement for obtaining a resident insurance producer license in this state?

complete a prelicensing examination

which of these is a requirement for obtaining a resident insurance producer license in this state

completing a prelicensing examiniation

An insurance company must use its true ____ name in its advertising

corporate

what is the purpose of the District of Columbia Life and Health Insurance Guaranty Association

ensures that claims filed against insolvent insurance companies will be paid

during the course of a Medicare Supplement sale, T the agent determines there is an existing policy being replaced. Which of these actions is T NOT required to perform

notify the replaced insurance company the replacing INSURER must submit a written replacement notice to the replacing insurance company

An example of rebating would be

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

If a Medicare Supplement policy involves replacement, it must be verified on a question located

on the application

When a Medicare Supplement insurance policy is delivered, disclosure standards require that a(n) ___ of coverage be provided to the insured

outline

when a medicare supplement policy is delivered, disclosure standards require that a(n) ____ of Coverage be provided to the insured

outline

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

all of these are considered to be a breach of a producer's fiduciary duty EXCEPT

submitting premiums electronically

A producer selling Medicare Supplement Policies must provide every applicant with a(n)

suitability form

A producer selling Medicare supplement policies must provide every applicant with a(n)

suitability form

A(n) ___ license is issued by the commissioner of insurance to allow the personal representative of a deceased producer to provide service to existing policyowners

temporary

michael the insurance producer acts in a fiduciary capacity when conducting business with all of these principals except

the commissioner

a group life insurance policy can be converted to an individual whole life policy under which circumstance

employment termination

what is one of the roles of the commissioner

enforce District of Columbia insurance laws

Who issues Medicare Supplement policies

insurance companies

which of these statements is NOT true regarding health coverage for a newborn

coverage is limited to only congenital defects

insurance issued on a debtor to cover outstanding balances on installment loans is called

credit life

A brochure including an untrue statement regarding a competitor's ability to pay claims is an example of

defamation

which of the following unfair trade practices involves a producer who makes malicious statements about another person's financial condition

defamation

a ___ ______ is the signed document that starts the free-look period

delivery receipt

Under a Long Term Care policy, which of the following is considered an activity of daily living

dressing

A hearing must be held before a producer's license can be suspended or revoked. Prior to the hearing, the Commissioner of Insurance is required to

give written notice to the producer

in the district of columbia, a long term care policy must be ____ renewable

guaranteed

which of the following is NOT considered rebating

sharing commissions with a producer licensed in the same line of business