Chapter Exam: Louisiana Laws and Rules
The required grace period for a life insurance policy sold in louisiana is ___ days.
30
a producer must notify the commissioner within ___ days of a felony conviction.
30
within how many days must a licensee submit a change in address?
30
a licensed producer MUST be _________ by an insurer to be eligible for soliciting insurance contracts.
Appointed
Before a producer may sell, solicit, or negotiate insurance for an insurer, the producer must have a(n)
Appointment
A company that is authorized by the commissioner to transact insurance business in louisiana is called a(n)
Authorized Insurer
with a scheduled dental policy, how are covered expenses paid?
Benefits are limited to a specific maximum dollar amount per procedure
Medicare provides coverage for each of the following except
Custodial Care
How often must an insurance producer's license in Louisiana be renewed?
Every two years
Sharon the producer intentionally submitted a false statement in support of a claim. This is considered a form of
Fraud
under the affordable care act, which of these plans is designed to provide coverage that is actuarially equivalent to 80% of the full actuarial value of the benefits provided under the plan?
Gold
maria the producer would like to advertise an annuity product on a highway billboard. Which of the following must be included in the advertisement?
Her name
an insurance producer who convinces a prospective insured to purchase a policy by exaggerating the benefits of the policy may be found guilty of
Misrepresentation
which of the following is not a requirement to obtaining a louisiana insurance producer license?
Must be 21
charles is a producer who is licensed in louisiana but resides in mississippi. Charles is considered to be a(n)
Nonresident producer
a business entity wishing to act as an insurance producer must
Obtain a producer's license
when a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions except
Obtain the beneficiary's signature
Medicare advantage plans are sometimes called
Part C
What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus?
Participating life insurance policy
a cease and desist order
forbids a stated practice listed in the order
An insurance producer decides to conduct business under an assumed name. The commissioner Must be notified of this change
prior to using the assumed name
A nonresident producer from a state outside of Louisiana may become licensed in louisiana IF a(n)
reciprocal arrangements exists with the state of domicile
which of these is not an Unfair Claims Settlement Practice?
settling a claim by arbitration
When a small employer health insurance plan is offered, it must be available
to all eligible employees who apply
a producer license is NOT required when
underwriting Insurance
The fair Credit Reporting Act protects consumers
with guidelines regarding credit reporting and distribution
proof of loss on a health insurance claim must be submitted to an insurer within ___ days after the insured's date of loss.
90
on occasion, insurable interest may exist in the absence of economic interest. Which of the following examples does this pertain to?
A husband and wife
a dependent child may remain on a parent's health insurance plan beyond age 26 if the child
has a mental or physical handicap and remains dependent on the parent
what is the purpose of the louisiana life and health insurance guaranty association?
insures that claims filed against insolvent insurance companies will be paid
a foreign insurance company doing business in louisiana
is a company that was formed under the laws of another state
An alien insurer
is an insurer operating in the U.S. but headquartered outside the U.S.
A medicare supplement policy can be cancelled by the insurer for
nonpayment
Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken?
$5,000
In louisiana, small employer health plans require a minimum of ___ employee(s).
1
To be classified as a small employer in louisiana, an employer must employ
1-50
The louisiana life and health insurance Guaranty Association
Protects insureds from insurance company insolvency
Karen the producer pays for her client's initial premium payment as an incentive for purchase. this act is considered a(n)
Rebate
a life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the
Reinsurer
according to Louisiana law, group life insurance conversion privileges must NOT
Require evidence of insurability
Kiara filled out a life insurance application and was given a policy illustration that showed future premiums being paid out of nonguaranteed values. This illustration must disclose that
She may need to resume premium payments depending on the actual results.
a producer who sells most of his/her insurance policies to family members is said to be engaging in
Controlled Business
______ life is designed to pay the balance of a loan if the insured dies before repayment of the loan.
Credit
an individual who has a contract with an insurance company to represent it is called a(n)
Producer
upon receipt of proof of loss, an insurer MUST pay a life insurance death benefit claim
Promptly
an example of unfair discrimination would be
Charging different premiums for policyowners in the same risk classification
in Louisiana, legal action can be taken for up to ___ year(s) against an insurer for failure to pay health insurance claims after proof of loss was submitted.
1
if a health policy is reinstated after it had lapsed for nonpayment, there is a waiting period of ___ days before a claim covering sickness will be covered.
10
how long is the free-look period for a life insurance policy sold in louisiana?
10 days
What is the minimum benefit period that must be offered by a long-term care policy?
12 months
an insurer has ___ days to file a notice of appointment to the commissioner.
15
an insurer has ____ days to file a notice of appointment to the commissioner
15
an eligible employee can be excluded from group health coverage for up to ___ Months if he/she is considered a "late enrollee".
18
how many days is a temporary producer's license valid?
180 Days
How long after its effective date will an individual life insurance policy become incontestable?
2 years
an insurer need NOT pay interest on death benefits if the proceeds of the life policy are paid within
20 days after the date of the death of the insured
All louisiana licensed producers MUST complete which of the following continuing education requirements?
24 hours every 2 years
After a disability policy has been in force for ___ year(s), it is considered incontestable.
3
after ___ year(s) from date of issue, a policy can no longer be cancelled by the insurer for misstatements (except for fraud).
3
Open enrollment for medicare supplement coverage starts
3 months before your 65th birthday
within ___ days after policy delivery, both medicare supplement and long-term care policies can be returned for a 100% premium refund.
30
Greg has recently been terminated from his job that covered him for group life insurance. how long does he have to convert his coverage to an individual policy?
31 days
a life insurance applicant in louisiana may backdate the application for up to ___ month(s).
6
an indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called
Coinsurance
a policyowner who anticipates death or develops a life-threatening condition may obtain proceeds from a life insurance contract. These proceeds are known as
Accelerated benefits
What happens if the insurer discovers that the insured's age was accidentally misstated on an application for an individual life insurance policy?
Benefits will be calculated according to how much coverage the premium paid would have purchased for the correct age.
Coverage for newborns under an accident and health plan MUST include coverage for
Birth abnormalities
how are health plans classified according to the affordable care act?
Bronse, Silva, Gold, Platinum
which of these is not considered a form of life insurance advertisement?
Buyers guide
all of the following are considered to be fraud except
Collecting an insurance charge that is less than what is required
which of the following permits an insurance company to transact business in louisiana?
Certificate of Authority
An existing life insurance policy is being replaced by a new one. A notice of replacement must be provided by the ________ to be signed by the applicant.
Producer
a(n) _________ sells, solicits, or negotiates insurance on behalf of insurance companies for compensation.
Producer
which of the following unfair trade practices involves a producer who makes malicious public statements regarding an insurer's financial condition?
Defamation
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning this type of annuity?
During periods of inflation, annuitants will experience a decrease in purchasing power of their payments
a common exclusion or limitation on a dental policy is
Endodontics
how often must the commissioner examine each domestic insurance company?
Every 5 years
Which of the following is NOT information found in a life insurance buyer's guide?
How to take legal action against an insurance company
An insurer is required to offer which of the following to each long-term care applicant at the time of purchase?
Inflation protection
The do not call registry offers exemptions for calls placed from all of the following except
Insurance sales calls
according to the affordable care act, any plan in existence prior to which date is considered a grandfathered plan?
March 23, 2010
under the louisiana health plan, comprehensive health benefits are provided to
Medically uninsurable residents
An arkansas resident producer who would like to solicit insurance in louisiana must obtain a nonresident license in louisiana. which of these is NOT a requirement for obtaining a nonresident license?
Pass louisiana's state licensing exam
which of these is a requirement for obtaining a resident insurance producer license in this state
Pass the appropriate examination
A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n)
Payor rider
A pre-existing condition is a condition for which medical advice or treatment was recommended by or received from a provider of health care service within ____ months preceding a health policy's effective date.
Six
An insurer's claim settlement practices are regulated by the
State insurance departments
Which entity regulates claim settlement practices?
State insurance departments
a life insurance replacement transaction could result in a(n)
Surrender charge
when a medicare supplement insurance policy is being replaced, who must sign the notice of replacement?
The producer and applicant
Insurable interest does NOT exist between
Two unrelated neighbors
A life insurance policy sold in louisiana can be contested by the insurer only during the first ___- years of the contract.
Two years
when the commissioner of insurance requests a producer's business records, they must be produced
Upon request
In order for a business entity to be licensed as a producer,
a licensed producer must be designated as responsible for compliance with state insurance laws
replacement can be defined as
a transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered
when is a group health policy required to provide coverage for a newborn child?
at the moment of birth
A domestic insurance company in Louisiana MUST
be organized under louisiana insurance Laws
a medicare supplement policy's outline of coverage must include a(n)
description of policy benefits
all medicare supplement policies must contain which provision?
pre-existing conditions may be excluded from coverage for a maximum of 6 months
