Chapter 8: Laws and Rules
in dc the monthly premium health insurance policies must provide a grace period of at least
10 days
what is the minimum benefit period tht must b offered by long term care policy
12 months
how many days is a temporary producers license valid
180
a producer must complete 24 Horus of continuing education every
2 years
DC requires tht an insurance producer must complete ____ hours of continuing education every 24 months
24 hours
dc requires that an insurance producer must complete _____ hours of continuing education on the subject of law and ethics every reporting period
3
if a producer is guilty of a felon he is required to notify the commissioner within hm days
30
if a producer cadges his/her resident the commissioner must be informed with in
30 days
the grace period of individual life insurance policies is ____
30 days
within ____ days after policy delivery, a medicare supplement policy can be returned for 100% premium refudn
30 days
In dc quartile paid premium health insurance policies have a ___ grace period
31 days
how long must all health plans initially provide coverage on a newborn children
31 days
when an employee is terminated, how long does this employee have to convert to group life coverage to an individual plan
31 days
the waiting period for a pre-existing condition under a medicare supplement policy may not go beyond
6 months
the max time period tht pre-existing conditions can be exluded in a long term care policy is
6 motnhs
coverage for inpatient drug and alcohol treament must be included with each health insurance policy for at least ______ days per year
60
a life policy loan in dc cannot charge a fixed rate of interest higher than
8
When is a Group Health policy required to provide coverage for a newborn child?
@ moment of birth
which of the following is not considered rebating
Sharing commission with an agent licensed in the same line of business
which is a misrepresentation
a producer guaranteeing a policy dividends
which of following is considered to be misrepresentation
a producer tells an applicant that an insurance policy is like a share of stock
a _____ insurance company is defined as one formed in a. country outside the united states
alien
an example of false advertising would be
an insurance company publishing misleading information about insurance coverage
with whom may a producer legally share commissions
another producer who is licensed int he same line of insurance
an insurer may pay commissions directly to any person for services as a producer provided the producer is licensed and ____-
appointed
______ is the authority given o a producer to transact business on behalf of the insurer
appointment
which of the following is a requirement to attain a nonresident producer license
be a licensed as a producers state of domicile
in dc a domestic insurance company must
be organized under dc insurance laws
which of the following permits an insurance company to transact business in dc
certificate of authority
an example of unfair discrimination is
charging different premiums for insured in same risk class
what does DC guaranty association provide
claim payments of admitted insolvent insurance comapnies
Michel the insurance producer act in fiduciary capacity when conducting business with all of these principles except
commisioner
a foreign insurance company doing business in DC
company formed under laws of another state
which of these is a requirement for obtaining a resident insurance producer license in this state
complete a relicensing examination
an insurance company must use its true ______ name in its advertising
corporate
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 competitors ability to pay claims is an example of
defamation
a brochure including an untrue statement regarding a competitors ability to pay class is an example of
defamtion
a ___ ___ is the signed document that starts the free-look period
delivery reciept
why would the commissioner examine the records of an insurance company
determine the company's solvency
a group life insurance policy can be converted to an indicvidual wholesaled life policy under which circumstance
employment termination
how often must an insurance producers licensed be renewed
every 2 years
how often must the commissioner examine each domestic insurance company
every 5 years
An example of false advertising would be *Paid testimonials from celebrity endorsements *An insurer exaggerating its dividends in a magazine advertisement *An agent spending more than $25 on marketing gifts for a client *An insurer advertising in an insurance trade journal
exaggerating dividends on a magazine
an example of an unfair claims practice would be
failing to effectuate prompt fair and equitable settlements of a claim
The act of an insurance company publishing misleading information about its policy's provisions is called
false advertising
which of the following is not a valid reason for the suspension of a producer license
filing bankruptcy
in dc an insurer licensed to conduct business in dc but domiciled in New Jersey is called an
foreign company
Which requirement must be met by a group that seeks group health insurance
formed for a different purpose than getting insurnace
Life and Health Insurance Guaranty Association
funded by admitted insurance companies through assessments
the life and health insurance guaranty association is
funded by insurance companies through asssements
a hearing must be held before. producers license can be suspended or revoked. prior to hearing the commissioner is required to
give written notice to the producer
in dc a longterm care policy must be ____ renewable
guaranteed
who issues medicare supplement polcies
insurance companies
during the course of an insurance transaction the producer represents
insurer
Who pays for expenses incurred by the board subsequent to suspicion of finding a misbranded or adulterated drug?
insurer being examined
A license may be denied, suspended, or revoked if the licensee
is found guilty of misrepresentation
a stock insurance company
is owned exclusively by its SH
conniving a prospective insured to buy an insurance policy based on exaggerations is called
isrepresentaton
defamation occurs when a producer makes a false statement intended to
malign another insurer
defamation occurs when a producer makes false statement intended to
malign another insurer
_____ can be defined as "making an unfair comparison of two insurance policies"
misrepresentation
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
which type of insurance company allows their policy owners to elect a governing body
mutual
a medicare supplement policy can be cancelled by the insurer for
non paymnt
during the course of a medicare supplement sale, t the agent determines there is an existing policy being replaced. which these actions is T not required o perform
notify replaced insurance companu
an example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
an example of unfair discrimination would be
offering different terms of coverage for different policyowners having the same risk classification
if a medicare supplement policy involves replacement , it must be verified on a question located
on the application
When a Medicare supplement policy is delivered, disclosure standards require that a ____ of coverage be provided to the insured
outline
XYZ corp was issued group health policy for its employees. under this plan a
policy is issued to company certificate to employyee
who is a mutual insurance company owned by
policyholders
a person who places insurance on behalf of anyone seeking insurance is required to be licensed as a
producer
an individual who has a contract with an insurance company to represent it is called a
producer
which of the following is a requirement to attain a nonresident producer license
producers state of residence must have reciprocity with the DC
an example of rebating would be
returning a portion of premium as inducement to purchase insurance
in order to terminate a producers appoint the insurer must
send notice of the termination to the commisioner
all of these are considered to be a breach of a producer ficiary duty except
submitting premiums electronically
a producer selling medicare supplement policies must provide every applicant
suitability form
during an insurance transaction who does the producer represent
the 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 policy proceeds would be reduced based on whatever the premium would have been purchased at 59
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
to an individual policy upon employment termination
an example of an unfair claims settlement practice is
turning down a claim without proving the basis of denial
a producer is engaging in ____ if he misrepresents a policy to induce ta policy owner to surrenderr and existing policy
twisitnf
J is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy- what is J guilty of
twisting
________ is act of replacing existing life insurance with a. new life policy based upon misrepresenttion
twisting
j is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy. what is J guilty of
twisting
what is one of the roles of the commisioner
what is one of the roles of the commissioner
coverage for credit insurance begins
when the debtor becomes obligated to the creditor