North Carolina regulations for health exam FX chapter quiz

What is the maximum duration of a temporary license?

180 days

After an insurance contract ends the insurer must maintain records regarding the transaction for at least

5 years

The commission reports any violations of insurance laws and regulations to the?

Attorney general- The insurance commissioner is required to report any violation of insurance law to the attorney Jones

By what date must agents complete the required continuing education?

By the last day of the licensees birth month every 2 years

Which of the following would allow the spouse of an insured under a group health policy to continue receiving coverage after the spouse and insured divorced?

Conversion provision

Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?

Discrimination Permitting individuals of the same class to be charged a different rate for the same insurance is the unfair trade practice of discrimination

if an insurer excepts premium payments by credit card who is responsible for paying the fees charged by credit card company

Insurer accepting payment

ethical standards

Intimidating or discouraging a claimant from seeking legal advice or counsel

What is the best description of misrepresentation

Issuing sales material with exaggerated statements about policy benefits Misrepresentation- issuing, publishing or circulating any illustration or sales material that is false misleading or deceptive to the policy benefits or terms this includes oral statements

On its advertisement a company claims that he has phones and its position that are in fact not available for the payment of losses or claims the company is guilty of

Misrepresentation

Discrimination between individuals of the same class in the amount of premiums or rates charged for any policy of insurance is

Prohibited by law

An individual who sells insurance solely as a foreign military sales agent Works with a

Restricted license

All the following are considered unfair trade practices in the business of insurance except

Sharing commissions

Whenever an insurer knows that a person has violated either the fraudulent claims or embezzlement provisions, it is the insurer's duty to notify which of the following?

The insurance commissioner- It is a duty of an license person, including employees or representatives of an insurance company, to notify the commissioner of any violations of the general statuses of the insurance code.

Agents who persuade insureds To cancel the policy in favor of another one when it might not be in the insured's best interest are guilty of

Twisting- misrepresentation that persuades an insured or policyowner to his or her detriment to cancel laps or switch policies

What is a licensed suspension period for second offense of violating state rules regarding records and reports?

Up to 1 year First offense between 1 and 6 months Second offense 1 year

Conversion Provision

allows individual insured members to convert to an individual plan without evidence of insurability if their employment is terminated.(usually has 31 days to convert)

The required privacy disclosure notice must be provided by insure to current policyholdholders at least once in any period of:

12 months

The commissioner must examine every domestic insurer at least once every

5 years

How are state insurance guaranty associations funded?

By their members - authorized insurers

If the commissioner denies an initial application for an agent, how long does the applicant have to request a review after receiving notification of the denial?

30 days

And employer responsible for paying part or all of the premium for a group live or group health plan and not willfully failed to pay the premium without first giving the employees how many days advance notice?

45 days Failure to do so is a felony

An agent has completed a total of 30 hours of continuing education (CE) during a license renewal period. How many of these hours may the agent apply toward the next CE compliance?

6 24 total hours are required, any remaining hours can be carried over to the next CE, which is every 2 years

How was the commissioner of insurance selected for the office?

Elected in a general election for a 4 year term The commissioner of insurance is the chief officer of the insurance department and is elected by the people of the state to serve a four year term