Ch. 19 Exam Questions (Life/Health)- Oklahoma Life and Health Insurance Laws and Rules

Individual health insurance policies must provide a minimum free-look period of ____ days upon policy delivery.

10

In conjunction with an Oklahoma insurance license renewal, which one of the following is the continuing education REQUIREMENT?

24 hours every 2 years

If an insurer terminated a producer's appointment, it must notify the Commissioner within ____ days of the termination.

30

Newborn children are automatically covered under an existing family medical plan at the moment of birth for a period of at least ______ days.

31

What is the best way to define life insurance replacement?

A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered

If a Texas company proposes, and/or makes an insurance contract by mail for an Oklahoma resident, this is considered:

Business in the state of Oklahoma

A(n) ____________ insurer operates in the US but is headquartered outside the US.

Alien

What is the best definition of a producer?

An individual appointed by an insurance company that represents the company and present policies on its behalf

A television advertisement features a health insurance product that is endorsed by a specific group. In this advertisement,

Any control by the insurer over this group must be disclosed

When an existing life insurance policy is being replaced with a new one, a replacement notice MUST be given

At the time of taking an application

Long-term care policies sold in Oklahoma may offer coverage in which

Benefits are based on an individual's ability to perform activities of daily living

What is a life insurance producer authorized to do?

Solicit, receive, and forward applications to the insurer

A producer recently replaced an existing Medicare Supplement policy with a new policy. The producer's compensation for the new policy

CANNOT exceed the renewal commission of the original policy

The Insurance Information and Privacy Protection Act is designed to limit or direct the information collection activities of all of the following, EXCEPT:

COBRA representatives

The Commissioner has reason to believe a producer is in violation of Oklahoma insurance law. Which of the following may be issued against the producer?

Cease and desist order

When a producer uses physical or mental force, with the intent of convincing an applicant to buy insurance, this is considered:

Coercion

All of these are used to prevent adverse selection in a group dental plan EXCEPT

Decreased employee participation

The following is information that should be taken into consideration when making suitable recommendations concerning the purchase of insurance, EXCEPT:

Education

When soliciting insurance, a producer CANNOT

Emphasize Guaranty Association benefits

An example of an Unfair Claims Settlement practice is

Failing to adopt reasonable standards for prompt claims investigations

Violations of US Code Title 18 section 1033, may result in

Fine and/or imprisonment

All individual long-term care policies delivered in Oklahoma MUST be renewable

For life

A(n) __________ insurer writes business in a state other than the one in which it is domiciled.

Foreign

Most Medicare Supplement information used by an insurer must be approved by the State. Which of the following types of information does NOT require State approval?

Government publications

When long-term care insurance is replaced, the insurer issuing the new policy cannot

Impose a new pre-existing conditions exclusion

A producer who offers 10% of his commission to a potential client as an incentive to purchase an insurance policy is committing the act of

Inducement

Before a Medicare Supplement advertisement is released to the public, it must first be approved by the

Insurance Commissioner

Which of the following situations would qualify an insured to receive funds from an accelerated (living) benefit rider?

Insured is expected to remain in a nursing home for life

Under which circumstance may an insurer discontinue a small employer group medical plan?

Insurer discontinues offering the plan to all employers

Which of the following is an example of defamation?

Making a statement that is false or maliciously critical of the financial condition of an insurer

A producer is NOT required to report a change in

Marital status

What is the minimum age required for open enrollment in Medicare Supplement insurance?

No minimum age required

A(n) _________ producer lives in another state and transacts insurance in Oklahoma.

Nonresident

Twisting means

Persuading an insured, to the insured's detriment, to switch policies

The ___________ is responsible for determining the appropriateness of a Medicare Supplement policy for an applicant.

Producer

Which of the following actions by a producer would NOT result in a license suspension or revocation?

Producing an insufficient amount of new premium

The Commissioner is responsible for all of the following EXCEPT

Recommending insurers

Which of these individuals would require continuing education?

Resident producer

An example of endodontic treatment is

Root canal

Once a child is born and covered under a health insurance plan, any reduction in benefits on the newborn is

Strictly prohibited

A producer has committed an insurance crime that violates US Code 1033 (interstate commerce). Who would be responsible for the prosecution of this crime?

US Attorney General

Under which circumstance may an insurable interest exist between two individuals in absence of an economic interest?

They are marriage partners

A producer who misrepresented pertinent policy provisions related to a claim committed a(n)

Unfair claims settlement practice

Charging different rates between individuals of the same class and equal expectation of life is best described as:

Unfair discrimination

On issuance of an emergency cease and desist, how must the Commissioner deliver notice to the person affected?

by certified mail

Before emailing a client an insurance document during a transaction, what must the client provide before the producer can send the document?

consent to receive the email

Group life plans sold in Oklahoma typically contain a conversion option. If the insured elects this option, the new policy

does NOT require evidence of insurability

An annuity contract may be returned for a full refund during the

free look period

A producer's license may only be suspended or revoked if the producer

has been afforded a right to a hearing

The __________ is required to notify the Commissioner in the event of appointment termination.

insurer