Health insurance - quiz

Which of the following is an example of a producer being involved in an unfair trade practice of rebating? a) Making deceptive statements about a competitor b) Telling a client that his first premium will be waived if he purchases the insurance policy today c) Inducing the insured to drop a policy in favor of another one when it is not in the insured's best interest d) Charging a client a higher premium for the same policy as another client in the same insuring class

b) Telling a client that his first premium will be waived if he purchases the insurance policy today Rebating is defined as offering any inducement in the sale of insurance products that is not specified in the policy, including money, reductions in commissions, promises, and personal services. Both the offer and acceptance of a rebate are illegal.

All of the following are correct regarding misrepresentation ЕХСЕРТ a) The fines for misrepresentation range from $200 up to $10,000. b) Misrepresentation includes the guarantee of dividends. c) Misleading advertisements are considered misrepresentations. d) The fines for misrepresentation range from $50 to $1,000.

d) The fines for misrepresentation range from $50 to $1,000. Misrepresentations include guaranteeing dividends and creating misleading advertisements. Penalties for misrepresentation include fines of $200 up to $10,000.

A Medicare supplement policy's benefits are reduced in order to not duplicate coverage. Which of the following must occur in order for this change to be legal?

nothing

No long-term policy may contain provisions that are less than

Guaranteed renewable

Which of the following entities determines who can receive a Limited Lines Producer License? a) State insurance board b) The company that the person represents c) Federally-based written examination d) Director

b) The company that the person represents A limited lines producer must be designated by an insurance company prior to submitting the application to the Director; the appointing organization must pay the required fee.