DC laws and rules pertinent to insurance - Chapter 8 (Health) Exam
in the district of columbia, monthly premium health insurance policies must provide a grace period of at least
10 days
what is the MINIMUM benefit period that must be offered by a Long-Term Care policy
12 months
a producer must complete 24 hours of continuing education every
2 years
the district of columbia requires that an insurance producer must complete ___ hours of continuing education every 24 months
24 hours
Within _____ days after policy delivery, both Medicare Supplement and Long-Term Care policies can be returned for a 100% premium refund
30
if a producer changes his/her residence address, the commissioner must be notified within
30 days
the grace period for individual life insurance policies is ___ days
30 days
how long must all health plans initially provide coverage on newborn children
31 days
how long must all health plans initially provide coverage on newborn children?
31 days
when an employee is terminated, how long does this employee have to convert group life coverage to an individual plan
31 days
the waiting period for a pre-exisiting condition under a medicare supplement policy may not go beyond
6 months
the waiting period for a pre-existing condition under a medicare supplement policy may NOT go beyond
6 months
a life policy loan in the District of Columbia cannot charge a fixed rate of interest higher than
8%
An example of unfair discrimination would be
An insurance company that charges different premiums for insureds in the same risk classification
An example of false advertising would be
An insurer exaggerating its dividends in a magazine advertisement
which of the following is considered to be misrepresentation
a producer guaranteeing a policy's dividends
which of the following is considered to be misrepresentation?
a producer guaranteeing a policy's dividends
a(n) __ insurance company is defined as one formed in a country outside the united states
alien
a french insurance company conducting business in the district of columbia would be known in the district of columbia as a(n)
alien company
when is a group health policy required to provide coverage for a newborn child
at the moment of birth
Which of the following is a requirement to attain a nonresident producer license
be licensed as a producer in the producer's state of domicile
in the district of columbia, a domestic insurance company MUST
be organized under DC insurance laws
which of the following permits an insurance company to transact business in the district of columbia
certificate of authority
which of these is a requirement for obtaining a resident insurance producer license in this state?
complete a prelicensing examination
which of these is a requirement for obtaining a resident insurance producer license in this state
completing a prelicensing examiniation
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 competitor's ability to pay claims is an example of
defamation
which of the following unfair trade practices involves a producer who makes malicious statements about another person's financial condition
defamation
a ___ ______ is the signed document that starts the free-look period
delivery receipt
Under a Long Term Care policy, which of the following is considered an activity of daily living
dressing
a group life insurance policy can be converted to an individual whole life policy under which circumstance
employment termination
what is one of the roles of the commissioner
enforce District of Columbia insurance laws
what is the purpose of the District of Columbia Life and Health Insurance Guaranty Association
ensures that claims filed against insolvent insurance companies will be paid
what is the purpose of the District of Columbia life and health insurance guaranty association
ensures that claims filed against insolvent insurance companies will be paid
how often must an insurance producer's license in the district of columbia be renewed?
every 2 years
ABC Life Insurance company's home office is located in Massachusetts and is incorporated in Massachusetts. In Kansas they are considered to be
foreign
in dc, an insurer licensed to conduct business in dc, but domiciled in new jersey, is called a(n)
foreign company
A license may be denied, suspended, or revoked if the licensee
found guilty of misrepresentation in obtaining the license
the Life and Health Insurance Guaranty Association is
funded by insurance companies through assessments
A hearing must be held before a producer's license can be suspended or revoked. Prior to the hearing, the Commissioner of Insurance is required to
give written notice to the producer
in the district of columbia, a long term care policy must be ____ renewable
guaranteed
Who issues Medicare Supplement policies
insurance companies
During an insurance transaction, who does the producer represent?
insurer
during the course of an insurance transaction, the producer represents the
insurer
Stock Insurance Company
is owned exclusively by its shareholders
Defamation occurs when a producer makes a false statement intended to
malign another insurer
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
an example of an unfair claims settlement practice is
misrepresenting insurance policy provisions affecting a loss
Which requirement must be met by a group that seeks group health coverage for its members
must have been formed for a purpose other than obtaining insurance
which type of insurance company allows their policyowners to elect governing body
mutual
a medicare supplement policy can be cancelled by the insurer for
nonpayment
during the course of a medicare supplement sale, T the agent determines there is an existing policy being replaced. which of these actions is T NOT required to perform
notify the replaced insurance company
during the course of a Medicare Supplement sale, T the agent determines there is an existing policy being replaced. Which of these actions is T NOT required to perform
notify the replaced insurance company the replacing INSURER must submit a written replacement notice to the replacing insurance company
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
If a Medicare Supplement policy involves replacement, it must be verified on a question located
on the application
When a Medicare Supplement insurance policy is delivered, disclosure standards require that a(n) ___ of coverage be provided to the insured
outline
when a medicare supplement policy is delivered, disclosure standards require that a(n) ____ of Coverage be provided to the insured
outline
XYZ corp was issued a group health policy for its employees. Under this plan a
policy must be issued to XYZ, and a certificate must be issued to each employee
which of the following is NOT considered rebating
sharing commissions with a producer licensed in the same line of business
all of these are considered to be a breach of a producer's fiduciary duty EXCEPT
submitting premiums electronically
A producer selling Medicare Supplement Policies must provide every applicant with a(n)
suitability form
A producer selling Medicare supplement policies must provide every applicant with a(n)
suitability form
A(n) ___ license is issued by the commissioner of insurance to allow the personal representative of a deceased producer to provide service to existing policyowners
temporary
michael the insurance producer acts in a fiduciary capacity when conducting business with all of these principals except
the commissioner
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 proceeds would be reduced based on whatever the premium would have been if purchased at age 59
Group Life policies in the District of Columbia are required to contain a conversion privilege that allows for conversion
to an individual policy for a stated period of time
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 an individual policy upon employment termination
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 an individual policy upon employment termination
why would the commissioner examine the records of an insurance company
to determine the solvency of the company
An example of an unfair claims settlement practice is
turning down a claim without providing the basis of denial
an example of an unfair claims settlement practice is
turning down a claim without providing the basis of denial
___ is the act of replacing existing life insurance with a new life policy based upon misrepresentation
twisting
______ is the act of replacing existing life insurance with a new life policy based upon misrepresentation
twisting
coverage for credit insurance begins
when the debtor becomes obligated to the creditor