Kentucky Insurance Regulations

"Asset disregard" means how much of an increase in the amount of assets the policyholder may own and retain for each $1 of benefit paid? Select one: a. 10 cents b. 50 cents c. $1 d. $2

$1

What is the minimum grace period for a health policy due monthly? Select one: a. 7 days b. 10 days c. 30 days d. 31 days

10 days

A life insurance policy may be returned by the policyowner to the company, within how many days after its receipt to the company or to the agent through whom it was purchased? Select one: a. 10 days b. 15 days c. 20 days d. 30 days

10 days A life insurance policy may be returned by the policyowner to the company, within 10 days after its receipt to the company or to the agent through whom it was purchased.

An industrial life insurance policy can be reinstated within:: Select one: a. 1 year b. 2 years c. 3 years d. 4 years

2 years

What is the maximum time allowed for a waiver of license renewal requirements that is given to producers who cannot comply with these requirements due to military service, long-term medical disability, or some other extenuating circumstance? Select one: a. 1 year b. 2 years c. 3 years d. 4 years

2 years

After how many years of premium payments with no premium defaults beyond the grace period may an insurer advance an amount to the policyholder? Select one: a. The first year b. 2 full years c. 3 full years d. 5 full years

3 full years

The Commissioner will be appointed by the Governor with the consent of the Senate, for a term not to exceed: Select one: a. 2 years b. 3 years c. 4 years d. 5 years

4 years

What is the minimum number of home health care visits in 12 months that can be offered in an individual health insurance policy? Select one: a. 30 b. 60 c. 62 d. 75

60

A long-term care insurance policy or certificate will not exclude coverage for a loss or confinement which is the result of a pre-existing condition unless that loss or confinement begins within: Select one: a. 3 months b. 6 months c. 9 months d. 12 months

6month

Which of the following statements is correct? Select one: a. A "domestic" insurer is one formed under the laws of this state. b. An "alien" insurer is one formed under the laws of any state, other than this state. c. A "foreign" insurer is one formed under the laws of any country other than a state of the United States. d. None of the above

A "domestic" insurer is one formed under the laws of this state.

Insurers are not liable for any loss sustained or contracted in consequence of the insured's being intoxicated, or under the influence of any narcotic or hallucinogenic unless: Select one: a. Loss is sustained or contracted in a state facility b. Administered on the advice of the insurer c. Administered on the advice of a physician d. Loss sustained or contracted is less than $250

Administered on the advice of a physician

Who must offer home health care coverage; coverage for mammograms, reconstruction and services stemming from mastectomy; and coverage for treatment of breast cancer? Select one: a. All insurers b. All health policies c. All accident policies d. All group or blanket health policies

All group or blanket health policies

For which of the following actions may the Commissioner place on probation, suspend, or impose conditions upon the continuance of a license of a producer? Select one: a. Entering into any life settlement contract or using any form that has not been approved b. Failing to pay state income tax or to comply with any administrative or court order directing payment of state income tax c. Forging another's name to an application for insurance, to any other document related to an insurance transaction, or to any document related to the business of life settlements d. All of the above

All of the above

Which of the following people are eligible to receive Medicare supplement insurance on a guaranteed issue basis after the termination of prior coverage? Select one: a. Anyone who is enrolled under an employee welfare benefit plan that ceases to provide health benefits that supplement Medicare b. Anyone who is enrolled under a Medicare supplement policy that ceases because of the insolvency of the issuer c. Anyone enrolled under a Medicare SELECT plan that ceases enrollment because of a change of residence d. All of the Above

All of the above

To which of the following organizations would the insurance code apply? Select one: a. An organization that does not issue charitable gift annuities b. Burial associations c. Assessment or cooperative insurers d. Insurance premium finance companies

An organization that does not issue charitable gift annuities

How is the Commissioner of the Kentucky Office of Insurance chosen? Select one: a. By popular vote b. Appointed by the Governor c. By application d. None of the above

Appointed by the Governor

Where a replacement is involved in the transaction, the replacing insurer must be able to do all of the following, EXCEPT: Select one: a. Verify that the required forms are received and are in compliance b. Ascertain that the sales material and illustrations used in the replacement meet the requirements are complete and accurate for the proposed policy or contract c. Notify any other existing insurer that may be affected by the proposed replacement within 5 business days of receipt of a completed application indicating replacement or accompanying statement indicating replacement d. Be able to produce copies of the notifications regarding replacement at any time while the insurer is providing insurance in Kentucky

Be able to produce copies of the notifications regarding replacement at any time while the insurer is providing insurance in Kentucky The insurer must be able to provide copies of the notifications for at least the immediately preceding 5 years or until the next regular examination by the Department.

All of the following are true regarding extension of benefits for any insurer offering group health insurance, EXCEPT: Select one: a. Benefits do not need to continue for a disabled member after a group policy is discontinued b. Benefits payable will be limited to the member's hospital confinement or period of total disability for a specific condition or injury c. For major medical coverage for hospital confinement, benefits may extend to discharge from the hospital confinement d. For major medical coverage for hospital confinement, benefits may extend up to 12 months

Benefits do not need to continue for a disabled member after a group policy is discontinued The insurer offering group health insurance must provide for an extension of benefits if a member is totally disabled when a group policy is discontinued.

When underwriting insurance contracts regarding HIV infection and health conditions resulting from HIV, the insurer must utilize medical tests that are reliable predictors of risk and that have been recommended by which of the following? Select one: a. Centers for Disease Control and Prevention (CDC) b. Food and Drug Administration (FDA) c. Both of the above d. None of the above

Both of the above

In addition to complying with all applicable requirements, the policy summary will also include an explanation of how the long-term care benefit: Select one: a. Interacts with other components of the policy b. Conflicts with other components of the policy c. Duplicates with other components of the policy d. Matches other components of the policy

Interacts with other components of the policy

Which of the following is required to become licensed as insurance producers? Select one: a. Employees of an insurer or insurance producer who receive any commission on policies b. Officers of an insurer or insurance producer whose activities are executive, administrative, managerial, or clerical c. A person whose job duties relate to underwriting, loss control, inspection, or processing, adjusting, investigating or settling claims d. All of the above

Employees of an insurer or insurance producer who receive any commission on policies

All individual health insurance policies providing coverage on an expense incurred basis regardless of whether the policies are issued for nonfamily or family coverage, will provide benefits for a newly born child of the insured: Select one: a. From the moment of birth b. 1 day after birth c. 3 days after birth d. 5 days after birth

From the moment of birth

The Commissioner may withdraw approval of a continuing education provider, course, or instructor for: Select one: a. Good and just cause b. Clear and present danger c. Up to 60 days d. Up to 90 days

Good and just cause

All of the following are true regarding genetic testing of an individual applying for health insurance, EXCEPT: Select one: a. Health insurers may request for a genetic test to be performed by the insured. b. Health insurers may not vary the premiums, terms, or conditions of the policy, for any beneficiary under the plan on the basis of a genetic test for which symptoms have not manifested. c. Health insurers may not request an applicant to disclose any genetic test about the insured. d. Health insurers may not disclose any genetic test information about an insured without prior authorization by the insured.

Health insurers may request for a genetic test to be performed by the insured. Health insurers may NOT request for a genetic test to be performed by the insured.

All of the following statements are true regarding the notice for replacement insurance, EXCEPT: Select one: a. No notices may be presented electronically; they must be submitted has a hard copy and mailed to the applicant within three business days after the application is submitted to the insurer. b. The notice will be signed by both the applicant and the producer attesting that the notice has been read aloud by the producer, or that the applicant did not wish the notice to be read aloud. c. The notice will list all life insurance policies or annuities proposed to be replaced, properly identified by name of insurer, the insured or annuitant, and policy or contract number if available. d. If a policy or contract number has not been issued by the existing insurer, alternative identification, such as an application or receipt number, will be listed.

No notices may be presented electronically; they must be submitted has a hard copy and mailed to the applicant within three business days after the application is submitted to the insurer. b. The notice will be signed by both the applicant and the producer

Susan is an insurance producer, but is currently on military duty in Iraq. What can she do when it is time for her producer's license to be renewed? Select one: a. Make a written request for a waiver of the renewal requirements b. Make a verbal request for a waiver to the Commissioner c. Nothing; she has to be in Kentucky to renew d. Nothing; she can just wait until she returns to Kentucky

Make a written request for a waiver of the renewal requirements

No life insurance policy, other than industrial life insurance, can be delivered in Kentucky, if the policy purports to be issued or to take effect: Select one: a. More than 3 months before the original application b. More than 6 months before the original application c. More than 9 months before the original application d. More than one year before the original application

More than one year before the original application

Which of the following means the act of conferring directly with, or offering advice directly to, a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract? Select one: a. Solicit b. Sell c. Negotiate d. Parley

Negotiate

Does an underwriter have to be licensed as an insurance producer? Select one: a. Yes b. No c. Not unless the Commissioner requires it d. Not unless she works more than 10 hours a week

No

If an insurance agent unintentionally misrepresents the terms of an insurance contract, is their license in danger of being suspended or revoked? Select one: a. Yes b. Not unless he intentionally misrepresents the terms of the contract c. Not unless he is trying to sell industrial insurance d. Not unless he is trying to sell group insurance

Not unless he intentionally misrepresents the terms of the contract

Susan's insurance company had its license suspended for 6 months. Can Susan continue to sell insurance during the suspension? Select one: a. Yes b. No c. Not unless the Commissioner of insurance gives Susan permission d. Not unless the state attorney general provides a waiver

Not unless the Commissioner of insurance gives Susan permission

What must be on the first page of the outline of coverage for any long-term policy? Select one: a. Company logo b. Agent's name c. Notice to Buyer d. A list of all the benefits

Notice to Buyer

In which of the following situations do anti-discrimination laws apply? Select one: a. Payment of illegally earned commission or other unlawful compensation b. Distribution by a participating insurer to its participating policyholders of dividends, savings, or the unused or unabsorbed portion of premiums and premium deposits c. An insurer waives, in whole or in part, a policyholder's deductible for food spoilage for an insured risk located in a county declared to be a federal disaster area d. Furnishing of information, advice, programs, or services that are intended to reduce the future cost of insurance of the policyholder or the probability or severity of loss and assist in the efficient administration and management of the policyholder's in

Payment of illegally earned commission or other unlawful compensation Anti-discrimination laws do not apply for payment of lawfully earned commission or other lawful compensation to duly licensed insurance producers or compensation disclosed in a written disclosure agreement.

Which of the following statements is true? Select one: a. An agent is allowed to directly or indirectly share their commission received on account of a transaction under their license with any individual or business entity not also licensed as agent. b. The Commissioner may issue a temporary license for a maximum period of 180 days to the designee of a licensed agent entering upon active service in the Armed Forces of the United States. c. A license is considered to be used for controlled business if the Commissioner finds that during any 6-month period the total premiums from controlled business exceed the total premiums on other business written. d. None of the above

The Commissioner may issue a temporary license for a maximum period of 180 days to the designee of a licensed agent entering upon active service in the Armed Forces of the United States.

All of the following are true regarding industrial life insurance policies, EXCEPT: Select one: a. The policy must have the name of the beneficiary designated on the policy or application. b. The policy may have a reservation of the right to designate or change the beneficiary after the issuance of the policy. c. The beneficiary designation of an industrial life insurance policy cannot be made irrevocable. d. A claim under the policy cannot be made less than 30 days after the insured's death.

The beneficiary designation of an industrial life insurance policy cannot be made irrevocable.

Which of the following constitutes an entire life insurance policy between the parties? Select one: a. The policy and the application b. The policy and its warranties c. The application and its representations d. The application and its warranties

The policy and the application

A Medicare supplement policy contains all the core benefits below, EXCEPT: Select one: a. Coverage of Part A Medicare eligible expenses to the extent not covered by Medicare from the 61st-90th day of benefit period b. Coverage of Part A Medicare eligible expenses to the extent not covered by Medicare for each lifetime inpatient reserve day used c. Upon exhaustion of Medicare hospital outpatient coverage, coverage of 100% of the Medicare Part A expenses d. Coverage under Medicare Parts A and B for the cost of the first 3 pints of blood

Upon exhaustion of Medicare hospital outpatient coverage, coverage of 100% of the Medicare Part A expenses "inpatient"

At what point are the duties of the producer complete with respect to replacement insurance? Select one: a. When the applicant arrives at the office of the producer replacing the existing policy b. When the producer and applicant sign a statement indicating that the applicant has an existing policy or contract c. When the producer and applicant sign a statement indicating that the applicant does not have an existing policy or contract d. After the replacing insurer has terminated the existing contract

When the producer and applicant sign a statement indicating that the applicant does not have an existing policy or contract

Which of the following statements regarding the rights of the agent following termination of an appointment is false? Select one: a. Insurers must notify the Commissioner of all appointment terminations within 30 days. b. Within 15 days after notification, the Commissioner must mail a copy of the termination to the licensee. c. Within 10 days of receiving a copy, the licensee may file written comments, which the Governor will use in making his final determination on the merits. d. All of the above

Within 10 days of receiving a copy, the licensee may file written comments, which the Governor will use in making his final determination on the merits.