Insurance
Financial planning
An insurance producer is prohibited from charging separate fees for any of the following services EXCEPT
The plan must be contributory
All the following characteristics are required in order to establish a group health plan for an association EXCEPT
Considered unfair discrimination
Denying insurance coverage on the basis of a person's martial status is
20 calendar days
If an insurer receives a request for information i many format other than an Examination Request (10 days) it must respond within
The employer is the policyholder
Which of the following statements concerning group health insurance is CORRECT?
Guaranteed Renewable
Under which of the following provisions does the insured have the right to renew the policy for the life of the contract, while the insurance company may increase the premiums on a class basis only?
Guaranteed Insurability Rider
Under which of the following would an insured be allowed to purchase additional disability income coverage without evidence of insurability?
The insurer
An insurance producer represents
Notice of Claim
Insureds' duties to notify insurers of a loss are covered under which of the following provisions?
A legal practice
Of $10,000 in premiums a producer wrote over the past year, $3,000 came from sales to a business which employs the producer's spouse. This is considered
Business Overhead Expense
Which of the following disability policies will cover business' rent or employee salaries following the owner's disability?
Elimination Period
An insured has a disability policy. After becoming disabled, the insured must wait 90 days before qualifying for benefits. This timeframe is called the
Medicare SELECT
An insured is covered under a Medicare policy that provides a list of in-network healthcare providers that the insured must use to receive coverage. In exchange for this limitation, the insured is offered a lower premium. Which type of Medicare policy does the insured own?
Irrevocable
An insured names his spouse as beneficiary on an AD&D policy. This insured needs his spouse's permission to change the beneficiary. In this situation, the beneficiary is considered
$30,000
An insurer who willfully violates a single provision of an unfair trade practice regulation may be fined
After 1 year
If the producers license was revoked for a violation of the Insurance Code, when can the producer apply for a new license?
Promptly
Insurers must complete claim forms
Each year by March 1st
Insurers must file audited financial statements with the Commissioner
Catastrophic medical expense protection
Major medical Expense policies will pay for all of the following EXCEPT
Defamation
Making statements that are false, maliciously critical, and designed to injure an insurance person or business is known as
100
To be eligible for group insurance for its members, an association group must have at least how many members
Disability income coverage
Under the Affordable Care Act, all of the following are the required essential benefits EXCEPT
Immediately
Under the Time of Payment of Claims, health insurance claims must be paid
20 days
Under the notice of claim provision, insureds are required to provide insurers with notice of loss within
Early detection through regular checkups
What is the goal of the HMO?
31 days
What is the grace period for a health insurance policy with an annual premium payment mode?
$25,000
What is the maximum civil penalty per violation if an unauthorized entity violates the Commissioner's cease and desist order?
Presumtive Disability
An insured owns a disability policy and is in an accident which leaves him permanently blind. Which of the following provisions in a disability policy would qualify the insured for benefits, even if the insured is able to resume working?
The states and federal government
Medicaid is funded by
45 days
A heath insurance policy that lapsed due to nonpayment of premium may be reinstated if the outstanding premium is paid. How long after that will the coverage be reinstated?
Representations
Statements made by an applicant for an insurance policy that are true to the best of the applicants knowledge?
Requiring claimants to submit proof of loss
Under the CO Unfair Claim practice regulations, all of the following would be considered violations EXCEPT
If the change is signed by both the agent and the policyholder
Under which of the following circumstances may the uniform individual accident and sickness policy provisions be changed?
To cover expenses for Medicare deductibles and coinsurance
What is the purpose of Medigap policies?
$100
What is the maximum copayment an insured many need to pay for a 30 day supply of insulin drugs, before costs are covered under a health insurance policy?
HMO provides both the financing and patient care for its members, while traditional companies provide financing only
What is the primary difference between an HMO and a traditional insurance company?
100%
What percentage of the cost of a medical expense plan may be deducted by a sole proprietor?
Once the insured satisfies the policy deductible
When does the coinsurance provision apply?
The same annual deductibles and copayments established for all other covered benefits
Diabetic benefits provided under sickness and accident policies are subject to
Adhesion
Insurance policies are not drawn up through negotiations and an insured has little to say about its provisions. What contract characteristic does this describe?
Legal Benefits Are: death, medical/rehabilitation benefits, income benefits
Under workers compensation, which of the following benefits are NOT included?
When the policy owner receives the policy
When does the free-look period begin for insurance policies?
Commissions can only be shared among agents appointed by the same insurer
Which of the following is true regarding commission sharing by insurance agents?
The Payment of claims
Which of the following specifies WHO claims are to be paid?
Family Composition
Which of the following standards is used to determine premium rates under the Affordable Care Act?
To be eligible, one must meet certain requirements
Which of the following statements is CORRECT about Social Security?
The group is assessed individually for insurability
Which statement is NOT true regarding underwriting group health insurance?
An executive officer of the company
Who has the authority to make changes to an insurance contract?
An agent who resides in another state, but it is licensed to write insurance in this state
Who is considered a nonresident agent?
Consideration
What insurance principle means something of value that each party gives to the other?
An applicant submitting the application
Which of the following actions would be considered an offer?
The Fair Credit Reporting Act
Which of the following acts protects consumers against the distribution of incorrect and obsolete personal or financial information?
An executive officer of the insurer
Which of the following individuals has the authority to change the policy or waive any of its provisions?
Coverage for dependents
Which of the following is NOT an exclusion in medical expense insurance policies?
Offering a prospective insured a multi-policy discount
Which of the following is NOT considered a rebate?
Expenses related to eye glasses or hearing aids must be covered
Which of the following is true of a Medigap Policy?
Monthly
Which of the following premium payment modes would result in the highest overall premium for a year's worth of life insurance?
The insurer being examined
Who is responsible for covering the expenses associated with the examination of domestic insurers?
It does not have limits on contributions
Which of the following is NOT true regarding a flexible spending account?
Plan members who use the services of an in-network facility will pay a lower amount
Which of the following is a characteristic of PPOs?
A lump-sum benefit payment option
Which of the following is a feature of a disability buyout plan?
All plans must offer the core benefits
Which of the following is a requirement for standard Medicare supplement plans?
It must obtain a producers license
Which of the following is requirement for an insurance agency transacting insurance in CO?
Anyone living in the US over 65
Which of the following persons would qualify for Medicare Part A?
Cannot do so without a hearing
Which of the following statements is correct concerning the Commissioner's authority to revoke a license?
It allows coverage to be increased without a physical exam
Which of the following statements is correct concerning the Guaranteed Insurability Rider?
Voluntary termination
Which of the following would NOT be a qualifying event under COBRA?
Driving
Which of the following would NOT be considered an Activity of Daily Living (ADL) for insurance purposes?
Carry-over provision
Which of the following would allow an insured to apply the last 3 months of expenses from one policy year to the next policy year to satisfy the next years total deductible?
Gross misconduct, employment status from full-time to part time, company downsizing
Which of the following would be a qualifying event for COBRA?
The state
Which type of government is primary concerned with regulating insurance?
Inform the applicant the negative results will be made public in 5 years
Written consent forms for HIV tests must do all the following EXCEPT
30 days
A Medicare Supplement policy must have a free-look provision of at least
Principal Sum
After an insured loses a limb in an accident, he receives $100,000 from a $200,000 AD&D policy. The $100,000 payment would be considered the
Producers are required to give applicants an Outline of Coverage
All are true regarding Medicare Supplement policies EXCEPT
To allow the producer to show why penalties should not be assessed
Believing a producer has violated provisions of the Insurance Code, the Commissioner will schedule a hearing
The lower the premium
In LTC policies, the longer the elimination period
Hospital room and board charges
Which of the following is NOT covered under Medicare Part B?
Collecting interest on customer balances held in producer's trust and account
All of the following are considered are considered to be misuses of fiduciary funds EXCEPT
A reinstated policy provides immediate coverage for an illness
All of the following are correct about the required provisions of health insurance policy EXCEPT
The name may be similar to another name currently on file
All of the following are regulations for producers using an assumed name EXCEPT
Rebates are allowed if it is in the best if its in the best interest of the client
All of the following are true regarding rebates EXCEPT
Projecting a divided on a participating policy
All of the following practices would be prohibited EXCEPT
Rebating
An agent who offers a cash reward to a prospect for buying a policy is guilty of
The insurer
An agent who solicits and files applications for the sale of life insurance represents
10 days
An insured pays a monthly premium of $100 for health insurance. What would be the duration of the grace period under her policy?
$5,000
An insurer who frequently misses deadlines to respond to inquires from the Division of Insurance may be fined, for each violation, as much as
An applicant submits an application to the insurer
An offer is usually made when
5 years following license completion
For how many years must a producer keeps supporting documentation of his or her continuing education completion?
everyone in the group, regardless or age, health history, and occupation. Because of this blanket coverage, the group as a whole is assessed for insurability. The size, average age, gender ratio, persistency and industry of the group are considered, along with other factors, when determining premiums.
Group health insurance must cover
The insured's doctors IS: proposed insured, the policy owner, the agent
Health insurance applications are required to be signed by all of the following EXCEPT
1
In CO, what is the minimum number of employees required in order to offer small group health insurance?
During which illness-related disabilities are excluded from coverage
In a disability policy, the probationary period refers to the time
No tax
In an individual long-term insurance plan, the insured is able to deduct the premiums from taxes. What income taxation will be imposed on the benefits received?
Counteroffer
In order for an insurance contract to be legally binding, it must have all of the following elements EXCEPT
90 days
Most polices will pay the accidental death benefits as long as the death is caused by the accident and occurs within
Aleatory
Over several years a policy owner paid $10,000 in premiums for his insurance policy. When he suffered a loss, the insurance company paid out $50,000 in benefits. What characteristic of an insurance contract does this describe?
Variable (life) policies
Producers must be registered with FINRA to sell which type of insurance products?
Certified Mail
The Commissioner issued an emergency cease and desist order. How must it be delivered?
Every 5 years or as deemed necessary
The Commissioner may examine admitted companies
A flat amount
The benefits for individual disability plans are based on
The extent of benefits is determined by the insured's income
What describes group disability income insurance?
The insurer may terminate the contract only at renewal for certain conditions
Which of the following is NOT a feature of a noncancellable policy?
36 months
In the event an employee is covered under a group health insurance policy dies, how long many a spouse receive coverage through COBRA?
LTC Partnership
An individual has used all off her private LTC benefits and needs to apply for Medicaid coverage. However, she wants to protect her assets. What mechanism will allow her to do this?
The employer contributions are NOT included in the individual insured's taxable income
How do employer contributions to a Health Savings Account affect the insured's taxes?
Caregiver benefits
If an employee is insured on the job, which of the following will NOT be a standard benefit through Workers Compensation?
Adjust the benefit
If an insured misstated his age on the application for health insurance, the insurance company has the right to
Medicare Part A or in Parts A and B
In order to sign up for Medicare Part D, Prescription Drug Coverage, the insured must be enrolled in which of the following?
Acceptance
The point at which an insurer issues a policy is known as
The individual will have to repay the amount to the insurance company
An individual's long-term care insurance policy paid excessive benefits after a recent claim. How will this excess be handled?
5 days
A consumer would like to get more information on their Investigative Consumer Report. How many days does the insurer have to comply?
Is renewable at the insured's option to a specified age
A guaranteed renewable disability insurance policy
31 days
A health insurance with a monthly mode premium must have a grace period for at least how long?
The Elimination Period
Disability income policies have a period of time between any covered accident and when benefits will be paid. This is known as
24 credit hours every 2 years regardless of the number of license held
CO Insurance Continuing Ed law requires
Preventive Care
HMOs help reduce the cost of health care by providing