Xcel Laws and Rules Pertinent to Insurance

The Rules Governing Advertisement of Life Insurance and Annuities were created to provide: Consumers with a choice of life insurance providers Full disclosure to the public of all material and relevant information Consumer with a comparison of the AM Best rating of Virginia insurance companies A summary of insurance advertising language for consumers

Full disclosure to the public of all material and relevant information

Which of the following is a requirement to be eligible for a group life policy in Virginia? Group must be formed for a purpose other than obtain insurance Group must designate one of its members to be the named insured Group must have been formed for obtaining insurance Group must include at least five employers

Group must be formed for a purpose other than obtain insurance

If an administration fee is charged by an agent, the customer's written signature is REQUIRED only if the fee is greater than a month's premium Only if the fee is authorized by an officer of the insurer Only if the fee is greater than 5% of the premium In every occurrence

In every occurrence

According to the Rules governing advertisement of life insurance and annuities, an agent may NOT take which if the following actions during a sales presentation? Asking for referrals Comparing another insurance company's policy Mentioning guaranteed policy dividends Comparing the cost of two similar policies

Mentioning guaranteed policy dividends

In Virginia, Long-Term Care insurance Must offer inflation protection to applicant May exclude dementia treatment May not exclude benefits for alcoholism Does not require a free look period

Must offer inflation protection to applicant

What must an agent sign when an existing Life Insurance policy is being reissued with a reduction in cash value? Policy Summary Buyer's Guide Affidavit Notice Regarding Replacement of Life Insurance or Annuity

Notice Regarding Replacement of Life Insurance or Annuity

A licensed business entity acting as an insurance agent MUST Notify the Bureau of Insurance of any fictitious name used Report commissions to the Bureau of Insurance Complete continuing education requirements every 5 years Have been conducting business in Virginia for 3 years

Notify the Bureau of Insurance of any fictitious name used

J is an insurance agent who maintains premiums in a fiduciary account. Which of the following expenses may NOT be paid from using funds withdrawn from this account? Return premiums due to insureds Personal medical expenses Commissions due to other licensees Premiums due to insurers

Personal medical expenses

Which of the following items are governed by the rules governing advertisement of Life Insurance and Annuities? Intra- company communications relating to insurance product development Employer announcements notifying employees about the availability of group insurance Prepared sales presentations used by insurance agents Insurance company announcements to policyholders about premiums adjustments

Prepared sales presentations used by insurance agents

An agent charged an insurance applicant an administration fee. At what point must the agent give a written disclosure for this fee? Prior to any services being rendered Within 20 days after delivery of the policy Within 45 days after delivery of the policy Prior to the sales appointment

Prior to any services being rendered

An agent offers an applicant something of value not mentioned in the contract as an inducement to purchase an insurance policy. This illegal act is called coercion Rebating Sliding Sobrogation

Rebating

An agent has influenced a policy-owner to convert an existing whole life policy to reduced paid up insurance. The agent then sells the policy owner a new universal life policy. This transition is called a(n) Misrepresentation Asset rollover Replacement Conversion

Replacement

Health Maintenance Organization (HMO) MUST Be licensed to operate in only one state Be operated by a fully accredited hospital Be federally funded Require its providers must be under contract or employment

Require its providers must be under contract or employment

Which of these policies does NOT require a policy loan provision? Whole life Universal life Term life Variable life

Term life

What would be a potential consequence for an agent who misappropriates insurance funds held in a fiduciary capacity? The commission may impose a $10,000 fine The commission may demand commissions to be given to the insured The commission may may suspend or revoke the agent's license The commission may indict the agent

The commission may may suspend or revoke the agent's license

Which of the following coverages does NOT need to be provided under the Affordable Care Act(ACA) Preventative services as set by the CMS Elective cosmetic surgery Emergency services Pre-existing conditions

Elective cosmetic surgery

Which of the following is a role of the state corporation commission? Incarcerate those who break insurance law Arbitrate insurance claims Establish rational insurance rules and regulations Establish insurance claims

Establish rational insurance rules and regulations

Which of the following would be a valid reason for the state of Virginia to deny an insurance agent license? Felony Conviction Traffic violation misdemeanor Residing in Virginia for less than 120 days Sharing commissions with another licensed insurance agent

Felony Conviction

Which of the following is a valid reason for suspending our revoking an insurance agent's license? Not meeting a sales quota Filed for bankruptcy Participating in the act of twisting Convicted of misdemeanor

Participating in the act of twisting

An individual heath insurance policy is REQUIRED to contain a(n) Subrogation provision Payment of Claims provision Other insurance provision Waiver of Premium provision

Payment of Claims provision

Which of the following does the commissioner of insurance NOT have the authority to examine its business records? Insurers Agents Brokers Policyholders

Policyholders

A long term care policy issued in Virginia must provide coverage for at LEAST 6 months 12 months 18 months 24 months

12 months

What is the qualification for being considered a small group in Virginia? Three employees 1 to 25 members 2 to 50 members 75 members

2 to 50 members

The Affordable Care Act (ACA) provides health coverage to dependents up to the age of 18 21 26 28

26

Under the Affordable Care Act (ACA):the coverage provided for dependents up to the age of: 18 21 25 26

26

An agent must notify the Bureau within _____ days of an address change. 15 30 45 60

30

Each Long Term Care policy sold in Virginia must include a Free Look provision that refunds all prey within _________days of policy delivery. 15 30 60 90

30

Individual life insurance policies can charge no more than ____ interest per year on cash value loans 8% 10% 12% 14%

8%

With whom may an agent share commissions with? A licensed claims adjuster A licensed agent with the same license type An insurance company underwriter Anyone the agent deems appropriate

A licensed agent with the same license type

According to the Affordable Care Act(ACA) a dependent child eligibility status is determined by Age Income Health Marriage status

Age

Which of these circumstances requires an agent to make reasonable efforts to obtain information concerning the suitability of an annuity? Agent helps a client with the purchase of an annuity Agent sets up sales appointment Agent purchases advertisement regarding a new annuity product Agent helps a client with the purchase of an annuity

Agent helps a client with the purchase of an annuity

Which of the following will happen if a licensed resident insurance agent moves to another state? Agent will need to forfeit residual commissions in the home state Agent's license shall terminate immediately Agent automatically qualifies for a license in the new state Agent remains a resident agent for another 12 months in the original state of licensure

Agent's license shall terminate immediately

Which of the following BEST describes an insurance agent conducting business in Virginia? An employee of an insurance company who only has administrative duties. An individual who sells, solicits or negotiates contract of insurance An individual who places insurance with nonadmitted companies An individual appointed by more than one insurance contract

An individual who sells, solicits or negotiates contract of insurance

Which of these statements accurately reflects Virginia law regarding life insurance advertisements? An insurance agency is responsible for advertisements placed by its insurance agents The commission must approve advertisements before they are used Testimonials may not be used Guaranteed dividends may be advertised

An insurance agency is responsible for advertisements placed by its insurance agents

Which of the following is the requirement for an individual to perform the duties of an insurance agent? Be bonded and insured Reside in the state for 1 year Be duly licensed Keep an annual sales quota

Be duly licensed

Unfair discrimination is BEST described as Charging a different rate for someone in the same actuarial class Charging a different policy rate for a 60 year old individual and a 30 year old individual Requiring physical exams for all employees to be covered by a company's insurance policy Converting group term coverage to an individual whole life policy after the insured as reached attained age of 50

Charging a different rate for someone in the same actuarial class

A client would like to purchase an annuity from an agent. The agent does NOT need to make reasonable efforts to obtain information from client on which of the following? Client's financial status Client's tax status Client's marital status Client's investment objectives

Client's marital status

If an existing Accident and Health policy is being replaced with a new policy, the decision to replace should NOT be based on: Waiting periods Commission to be paid Exclusions and limitations Underwriting requirements

Commission to be paid

Which of the following does COBRA allow a terminated employee to receive? Continued health coverage at no cost Continued coverage in group health plan Continued coverage for the spouse of the employee only Continued coverage without administrative fee

Continued coverage in group health plan

If an agent has not completed the continuation education requirement by November 30, final opportunity to complete this requisite extended to June 30 every odd year March 1 every even year January 31 every off year December 31 every even year

December 31 every even year

Which unfair trade practice involves making false statements about the financial condition of another insurance company? Coercion Defamation Unfair discrimination Rebating

Defamation

Who issues Medicare Supplement policies? Insurance companies Medicare Medicaid Federal Government

Insurance companies

A health insurer in Virginia may NOT discontinue coverage in which of the following situations? Failure to pay premium Insured engaged in fraud Insured no longer resides in the service area Insured's health status has declined

Insured's health status has declined

In order for an individual to receive commissions from an insurance company for services as an agent, the individual MUST be: Licensed Licensed and appointed At least 21 years old A resident of Virginia for 2 years

Licensed and appointed

Life Insurance coverage will frequently contain an Accelerated Benefits rider attached to the policy. What would be considered a "qualifying event " under these riders? Seasonal unemployment Short-term Disability Medical condition resulting in a significantly- shortened lifespan Divorce

Medical condition resulting in a significantly- shortened lifespan

J the agent makes false statements to a perspective client about the projected dividends for a policy. J may be found guilty of: Defamation Misrepresentation Subrogation Twisting

Misrepresentation

Which of the following is information that an Insurer is NOT expected to provide to an employer when offering health coverage to an employee? The provisions relating to renewability of coverage The provisos relating to exclusions The benefits and premiums available under all health insurance coverage for which the employer is qualified The terms of insurer's provider agreements

The terms of insurer's provider agreements

Which type of coverage is exempt to the rules pertaining to senior- specific certifications and professional designations? Annuities Title insurance Life insurance Long-term care

Title insurance

Which of these organizations approves continuation courses in Virginia? National Association of Insurance and Financial Advisors (NAIFA) Virginia Department of Education Virginia Insurance Continuing Education Board National Association of Continuing Education (NACE)

Virginia Insurance Continuing Education Board

An accident and health insurance applicant who fails to include material medical information on an application would be reason for the insurer to: Offer different insurance products Reduce the insurance agents commission deny any future claims and refund the premium Pay claims and reduce the premium

deny any future claims and refund the premium