Ch. 20 - Oklahoma Laws and Rules
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
Jerry has an indemnity plan which covers dental expenses. Typically, these type of plans
cover preventative care once every six months
A producer's license may only be suspended or revoked if the producer
has been afforded a right to a hearing
Under which circumstance may be an insurable interest exist between two individuals in absence of an economic interest?
They are marriage partners
All Medicare supplement policies sold during the open enrollment period MUST
have a free-look period of 10 days
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
A stock insurance company
is owned exclusively by its shareholders
A producer is NOT required to report a change in
marital status
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
Which of the following provisions is NOT required to be included in qualified long-term care policies?
prior hospitalization
An insurance producer agrees to pay the first monthly premium for an insurance applicant. This is called a(n)
rebate
What is a life insurance producer authorized to do?
solicit, receive and forward applications to the insurer
Licensed producers in Oklahoma are authorized to
solicit, receive, and forward applications to the insurer
An Oklahoma producer must meet continuing education requirements within a -year.
two
A producer who misrepresented pertinent policy provisions related to a claim committed a(n)
unfair claims settlement practice
Newborn children are automatically covered under an existing family medical plan at the moment of birth for a period of at least days.
31
A medical expense plan must allow a hospital stay at least hours for mothers an newborn children following a normal delivery.
48
An insurer may exclude coverage for a pre-existing condition on a Medicare Supplement policy for up to how many months.
6
An insured must provide written proof of loss to the insurer within days from the date of loss.
60
Under HIPAA (Health Insurance Portability and Accountability) requires guarantee issue of insurance as long as there has not been more than a day gap in coverage.
63
Under Oklahoma law, which of these is NOT a form of inducement?
Gifts under $100
Which of the following is NOT a valid reason for the Commissioner to suspend a licensed producer>
Being convicted of a misdemeanor
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
When a producer uses physical or mental force, with the intent of convincing an applicant to buy insurance, this is considered:
Coercion
Which renewal provision ALL Medicare Supplement policies include?
Guaranteed renewable
A licensee whose address changes must notify the Commissioner within how many days?
30
When soliciting insurance, a producer CANNOT
emphasize Guaranty Association benefits
To be classified as a small employer in Oklahoma, an employer must employ how many eligible employees?
1 to 50
A group health plan sold in Oklahoma cannot deny, exclude, or limit benefits for losses incurred more than months after the effective date of coverage due to pre-existing conditions.
12
In Oklahoma, a temporary license may be issued for a period not to exceed days.
180
Oklahoma requires that a licensee completes hours of continuing education on the subject of ethics every reporting period.
3
Any administrative action taken against a producer MUST be reported to the Commissioner within days.
30
Before terminating a long-term care policy for nonpayment, an insurer must give the policyowner days advance notice.
30
If an insurer terminates a producer's appointment, it must notify the Commissioner within how many days of the termination.
30
The free-look period for a new Medicare Supplement policy that has replaced an exisitng one is how many days.
30
Violations of US Code Title 18 section 1033, may result in
Fine and/or imprisonment
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
The Oklahoma Life and Health Insurance Guaranty Association does NOT provide protection to
HMO subscribers
Under which circumstance would inflation protection NOT be included in a long-term policy?
Policyowner declines the coverage in writing
Which of the following actions may result in a producer's license being suspended?
Rebating a portion of the commission to the insured
Which of these is NOT an Unfair Claims Settlement Practice?
Refusing to pay persons bringing false or fraudulent claims
Which of the following actions may result in a producer's license being suspended?
Splitting the commission with another licensed producer
An insurance policy is marketing a health insurance policy in Oklahoma which contains a provision that is in conflict with Oklahoma insurance law. What remedy must be taken by the insurer?
The provision must be amended to conform to the minimum statutory requirements
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
Charging different rates between individuals of the same class and equal expectation of life is best described as:
Unfair discrimination
An insurer formed according to the legal requirements of another country is considered a(n)
alien insurer
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
All Medicare supplement policies sold during the open enrollment period MUST
be issued regardless of health status
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
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
All of these are used to prevent adverse selection in a group dental plan EXCEPT
decreased employee participation
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
The following is information that should be taken into consideration when making suitable recommendations concerning the purchase of insurance, EXCEPT
education
A Fraternity Benefit Society has each of the following characteristics EXCEPT
exists for profit
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
An annuity contract may be returned for a full refund during the
free look period
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
The is required to notify the Commissioner in the event of appointment termination.
insurer
Defamation occurs when a producer makes a false statement intended to
malign another insurer
The pre-existing conditions exclusion under a small employer health plan
may be partially or fully satisfied by having creditable coverage with a previous employer
A producer is proposing that a policyowner replace an existing individual health insurance policy with a new one. Under the new contract, a pre-existing conditions exclusion
may reduce the insured's benefits
In Oklahoma, false advertising is an example of
misrepresentation
A(n) producer lives in another state and transacts insurance in Oklahoma.
nonresident
An insurer may NOT refuse the renewal of a small employer health insurance plan because of
overuse of medical services
In order to conduct insurance transactions in Oklahoma, a(n) MUST be appointed.
producer
The Commissioner is responsible for all of the following EXCEPT
recommending insurers
A long-term care policyowner is replacing existing coverage with a new policy. Replacement regulations require a(n) notice be signed by the applicant and retained by the replacing insurer.
replacement
When an insurer markets its Market Supplement products in Oklahoma, which method is acceptable?
replacing an existing policy with one that has greater benefits
Which is these is NOT a qualification for becoming an Oklahoma resident producer?
resided in Oklahoma for at least 12 months
An example of endodontic treatment is a
root canal
Who is responsible for determining the appropriateness of a Medicare Supplement policy for an applicant?
the insurer
