Last Chapter end of Cram Course Review- Chapter 8 Indiana Laws and Rules Pertinent to Insurance
The free-look period for life insurance policies issued in Indiana is___days?
Answer: 10 days
What is the minimum Grace period for an individual Health policy that is paid monthly?
Answer: 10 days
A life policy loan in Indiana cannot charge a fixed rate of interest higher than
Answer: 8 %
During the course of an insurance business transaction, who does the producer legally represent?
Answer: Insurance company
During the course of an insurance transaction, who does the producer legally represent?
Answer: Insurance company
Which of the following statements is CORRECT about the Indiana Life and Health Insurance Guarantee Association?
Answer: It protects Indiana insurance policyowners in the event an insurance company becomes insolvent
Kathy has a family Health insurance policy where any dependent children she has are removed from the policy once they have reached a certain age. This policy is known as:
Answer: Limiting age
Defamation occurs when an agent makes a false statement intended to
Answer: Malign another insurer
Life insurance coverage will frequently contain an Accelerated Benefits Rider attached to the policy. What would be considered a qualifying event under these riders?
Answer: Medical condition resulting in a significantly shortened lifespan.
Maternity coverage is required in which type of policy?
Answer: Medical expense policy
An applicant MUST receive an Outline of Coverage when an application is taken for a(n)
Answer: Medicare Supplement Policy
Convincing a prospective insured to buy an insurance policy based on exaggerations is called
Answer: Misrepresentations
T is covered by a group major medical policy with his employer. He leaves his employer and coverts the coverage to an individual policy. All of these statements about the new policy are true, Except?
Answer: New policy pays the same benefits as the group policy
Why would the Insurance Commissioner issue a temporary license?
Answer: To allow the personal representative of a deceased producer to provide service to existing policyowners
Group Life policies in Indiana are required to contain a conversion privilege that allows for conversion?
Answer: To an individual policy for stated period of time
Why would the commissioner examine the records of an insurance company?
Answer: To determine the solvency of the company
An example of an unfair claims settlement practice is
Answer: Turning down a claim without providing the basis of denial
How many days is a temporary producer's license valid?
Answer: 180 days
The Indiana Children's Health Insurance Program (CHIP) provides children of need with health benefits until the child reaches age ______ or becomes financially ineligible, whichever is earlier.
Answer: 19 years
According to Indiana Law, how long can statements made by the applicant on a Health Insurance policy be contested?
Answer: 2 years
A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss?
Answer: 20 days
If a new life insurance policy is replacing an existing one, the insured is given the right to return for a full refund at least ____ days after policy delivery.
Answer: 20 days
The Affordable Care Act (ACA) provides health coverage to dependents up to the age of?
Answer: 26 years old
At minimum, Long term care policies in Indiana must contain?
Answer: 30 day free look period
According to Indiana Law, how long is the Free look period for Medicare Supplement policy?
Answer: 30 days
All Long-term care polices purchased in Indiana Must contain a free look period of?
Answer: 30 days
An insurer that terminates a producer's appointment must notify the commissioner within _____days of the date of termination?
Answer: 30 days
At the very least, an admitted insurance company shall be examined once every ____years?
Answer: 5 years
A life insurance policy can be backdated before the application date up to?
Answer: 6 months
Which of the following is considered to be misrepresentation?
Answer: A producer guaranteeing a policy's dividends
What is Indiana's definition of Life Insurance replacement?
Answer: A transaction in which a new policy is bought, and an old policy is terminated
At what point may a producer sell insurance for an insurer?
Answer: After being properly appointed by the insurer
Insurance companies that are organized in countries outside the united states are referred to as?
Answer: Alien
What type of insurance company is domiciled in England, but conducts business in Indiana?
Answer: Alien
An insurer is NOT required to provide information on fraudulent claims if requested by
Answer: An insured
The coordination of Benefits (COB) provision exists in order to?
Answer: Avoid duplication of benefit payments
Which of the following is a requirement to attain a nonresident producer's license in Indiana?
Answer: Be licensed as a producer in the producer's state of domicile
A(n) _______ of authority permits an insurance company to transact business in Indiana?
Answer: Certificate
An individual covered under a Group life insurance policy is considered to be a(n)?
Answer: Certificate holder
Which of the following permits an insurance company to transact business in Indiana?
Answer: Certificate of authority
In Indiana, which of the following is considered an Unfair competition practice?
Answer: Coercion
An applicant for a resident insurance producer's license MUST meet which of the following requirements?
Answer: Complete a pre-licensing examination
Which of the following is NOT a situation that involves life insurance policy replacement?
Answer: Converting a term policy to a permanent policy with the same insurer
Indiana's 10-day free-look period for life insurance policies begins on the:
Answer: Date of delivery
An insurer distributes public brochures that contain a false statement regarding a competitors ability to pay claims. This act is considered an example of:
Answer: Defamation
Consumers who purchase Health insurance through a Marketplace/Exchange?
Answer: Do not have their health history taken into account
The insurance commissioner is authorized ?
Answer: Enforce state laws relating to insurance
What is the purpose of the Indiana Life and Health Insurance Guarantee Association?
Answer: Ensures that claims filed against insolvent insurance companies will be paid
S takes out a health insurance policy which contains a provision that states that the agent does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this?
Answer: Entire Contract
How often must an insurance producer's license in Indiana be renewed?
Answer: Every two years
An example of unfair claims settlement practice is
Answer: Failing to effectuate prompt, fair, equitable settlements of a claim
Which of the following employees may Not be excluded from a group life plan?
Answer: Full time employees after the probationary period
Which of the following is a requirement to be eligible for a group health policy?
Answer: Group must be formed for a purpose other than obtaining insurance
Which of the following is a requirement to be eligible for a group life policy in Indiana?
Answer: Group must be formed for a purpose other than obtaining insurance
Under the Patient Protection and Affordable Care Act (PPACA), consumers have access to health coverage that is?
Answer: Guaranteed available and renewable
If a producer commits an act of coercion or intimidation, how would the producer's insurance company be held responsible for this act?
Answer: If the insurer approves of the act
All of these are powers of the commissioner Except?
Answer: Incarcerate a producer
During a life insurance sales transitions, which of the following forms must be completed by a producer if the customer has existing life insurance coverage that is being replaced?
Answer: Notice Regarding replacement of Life Insurance or Annuity
A licensed business entity acting as an insurance producer must:
Answer: Notify the department of insurance of any fictitious name used
If a new Medicare supplement policy involves the replacement of existing coverage, it must be verified on a question located:
Answer: On the application
According to Indiana's Mammography coverage statute, which of these benefits are considered mandatory in every medical expense policy?
Answer: One mammogram every year for women age 40 and older
In Indiana, which of the following MUST be delivered to a policyowner upon the sale of an individual life insurance policy?
Answer: Policy Summary and Buyer's guide
XYZ Corp was issued a group health policy for its employees. Under this plan a
Answer: Policy must be issued to XYZ, and a certificate must be issued to each employee
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.
Answer: Producer
An individual who in any manner sells, solicits, or negotiates insurance on behalf of insurance companies for compensation is an insurance:
Answer: Producer
The _____must provide the insured with proper disclosure concerning the replacement of a life insurance policy?
Answer: Producer
Who is responsible for determining if Long-term care coverage is appropriate to meeting an applicant's needs?
Answer: Producer
The insurance commissioner may suspend, revoke, or refuse to renew a producer's license for which of the following reasons?
Answer: Producer has used fraudulent, coercive, or dishonest practices
Which of the following is Not a valid reason for the insurance commissioner to suspend or revoke a producer's license?
Answer: Producer represents more than one insurance company
When an existing life insurance policy is terminated so that a new life insurance policy can be purchased, this transaction is referred to as?
Answer: Replacement
According to Indiana Law, group life insurance conversion privileges MUST Not?
Answer: Require Evidence of Insurability
According to Indiana Law, group life insurance conversion privileges must NOT?
Answer: Require evidence of insurability
According to Indiana law, group life insurance conversion privileges Must NOT?
Answer: Require evidence of insurability
An example of rebating would be?
Answer: Returning a portion of a premium as inducement to purchase insurance
Which of the following is NOT a required provision in group life polices?
Answer: Right to Loan
In order to terminate a producer's appointment, the insurer MUST?
Answer: Send notice of the termination to the commissioner
Which of the following is NOT considered Rebating?
Answer: Sharing commissions with a producer in the same line of business
An example of Rebating would be?
Answer: Splitting commissions with a policyholder
A(n) _________license may be issued in cases where a producer has become disabled or dies, requiring a replacement to service the producer's business?
Answer: Temporary
In a Medical Expense Health insurance policy, what is considered to be the limiting age?
Answer: The age in which dependent children can be taken off an insurance policy
Which of the following statements is correct about the insurance commissioner's authority to examine the business records of a producer?
Answer: The commissioner may exam them whenever its deemed necessary
Which of these statements regarding health coverage for physically handicapped dependents is False?
Answer: The dependent must have been over 10 years of age when the handicap was incurred
When a life insurance application is completed, a policy summary must be given to the applicant. The Policy summary must include?
Answer: The premium cost for basic coverage applied for
When a life insurance policy application is completed, a Policy Summary must be given to the applicant. The policy summary must include?
Answer: The premium cost for basic coverage applied for
Which of the following is a requirement to attain a nonresident producer license in Indiana?
Answer: The producers state of residence must have reciprocity with Indiana.
If an insurer offers health coverage to an employee, the insurer MUST inform the employer of all of the following information EXCEPT:
Answer: The terms of the insurer's provider agreements
A producer who makes misleading statements that lead to the termination of an existing insurance policy so that a new policy with another insurer can be taken out has committed:
Answer: Twisting
J is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of?
Answer: Twisting
Insureds in the same risk classification are being charged different premiums by an insurance company. This insurer is committing the illegal act of
Answer: Unfair discrimination
How long does an insurance company appointment remain in force?
Answer: Until terminated
T is a producer who forgot to renew her license. She may reapply for a license without an examination
Answer: Within one year after no renewal
Which of the following plans is NOT required to meet Minimum Essential Coverage (MEC) standards under the Affordable Care Act (ACA)
Answer: Worker's Compensation
A domestic insurance company in Indiana MUST?
Answer: be organized under Indiana insurance laws
What would be an accurate definition of "controlled business"?
Answer: insurance business that is written on the producer's own life, property, or interests
An example of rebating would be
Answer: offering a client something of value not stated in the contract in exchange for their business
An example of unfair discrimination would be
Answer: offering different terms of coverage for different policyowners having the same risk classification
A producer must notify the commissioner within____ days an address change?
Answer; 30 days
Which of the following is Not a required provision in a group life policy?
Answer: Accidental Death and Dismemberment
