Second part of Exam FX
An insurer must notify the consumer in writing that an investigative consumer report has been requested within how many days of the initial request ?
3 days
The purpose of the Fair Credit Reporting Act is to.?
Ensure the consumers receive a copy of investigative consumer reports
The "stop-loss" feature on a major medical policy is intended to
Establish a maximum amount of out-of-pocket expense that an insured will have to pay for medical expense in a calendar year
Which is the following criminal activities would be sufficient violation to warrants rejection revocation or suspension of an insurance producers license?
Forgery
An insurer that operates for one or more social educational charitable benevolent or religious purposes for the benefit of its members is known as a ?
Fraternal insurer
All of the following are features of catastrophic plans except?
High premiums
According to the fair credit reporting act all of the following statements are true except?
If an applicant is declined for an insurance policy, he or she has no right to know what was in the report
Which of the following is NOT a Medicaid qualifier ?
Insurability
The Minnesota life and health insurance guaranty association was created to protect all of the following EXCEPT?
Insureds
The Minnesota life and health insurance guaranty association was created to protect all of the following EXCEPT?
Insurers
The Minnesota life and health insurance guaranty association was created to protected all of the following expect ?
Insurers
What advantage does the recurrent disability provision provide to the insured under a disability income policy ?
It eliminates the imposition of a second elimination period for the same disability
Which I'd the following time periods is the general enrollment period for Medicare part b ?
January 1 through March 31st each year
Which I'd the following whole life policies charges a level annual premium for the lifetime of the insured ?
Limited pay whole life
Answers to questions in an insurance application are called representations and as such they are ?
believed to be true to the best of the applicant's knowledge
Which of the following is not an indicator of a competent party ?
business; profession
Which of the following is NOT normally an excluded cause of disability in an individual disability income policy ?
complications from pregnancy
During policy solicitation, an insurer exaggerates the financial condition of one of its competitors, and makes it sounds worse than it is. This is an example of an unfair trade practice of
defamation
Which of the following is NOT true regarding a noncancellable policy?
insurer can increase the premium above what is stated in the policy if claims experience is greater than expected
Fraternal Benefit Society
is operated for the benefit of its members
Medicare Part B covers all of the following EXCEPT?
long term care services
Which of the following best describes a presumptive disability?
one that is severe enough that the insured automatically qualifies for full disability benefits
Insurance contracts are unilateral in nature. What does that mean?
only one party makes a promise
An insured purchased a health insurance policy with a renewability clause that states the policy is guaranteed renewable this means that as long as the required premiums are paid the policy will continue until the insured ?
reaches age 65
Which of the following is not a characteristic of a managed care plan?
risk retention
HMOS are known as what type of plans?
service
An insured undergoes a minor surgical procedure. The insurer owes the insured $500 in medical claims. However the last premium of $200 due on the policy was never paid. How much should the insured receive in claims ?
$200
An insured undergoes a minor surgical procedure. The insurer owes the insured $500 in medical claims. However the last premium of $200 due on the policy was never paid. How much should the insured receive in claims ?
$300
An insured undergoes a minor surgical procedure. The insurer owns the insured $500 in medical claims. However the last premium of $200 due on the policy was never paid. How much should the insured receive in claims?
$300
If a producer transacts insurance without being appointed by that insurer for all offenses the insurer will pay ?
$300
Elaine's basic hospital expense policy has a $500 per day limit for room and board in a hospital for a maximum of 5 days. Elaine got sick and had to spend 3 days in the hospital at $650 a day . How much will Elaine have to pay to cover the rest of her room and board charges?
$450
Elaine's basic hospital policy has a $500 per day limit for room and board in a hospital for a maximum of 5 days. Elaine got sick and had to spent 3 days in the hospital at $650. How much will Elaine have to pay to cover the rest of her room and board charges ?
$450
In Minnesota Medicare supplement insurance police's must provide a free look period of ?
30 days
Licensees must report of any action taken against them in another jurisdiction or by another government agency in Minnesota within how many days of the final disposition of the matter ?
30 days
A disability income policy has a waiting period of 7 days. If the insured is disabled for 15 days how many days of benefits will the policy pay ?
8 days
In health insurance what is coinsurance ?
A percentage of the cost of service that the insured and the insurer share
The probationary period is
A specified of time that a person joining a group has to wait before becoming eligible for coverage
The probationary period is ?
A specified period of time that a period joining a group has to wait before becoming eligible for coverage
In order to get a non resident license is this state producer must?
Apple and pay a fee to a non resident state that reciprocates
In order to get a non resident state that reciprocates?
Apply and pay a fee to a non resident that reciprocates
The corridor deductible applies between?
Basic and major medical coverage
A dentist is off work for 4 months due to a disability. His dental assistants salary would be covered by
Business Overhead Insurance
Which of the following would be an example of an insurer participating in the unfair trade practice of discrimination?
Charging the insured higher premiums based on her race
Regarding the consideration clause which is the following is NOT correct?
Consideration is defined as the exchange of values
Regarding consideration, which of the following is NOT correct ?
Consideration of the insurer and insured must be equal
Regarding the consideration clause, which of the following is NOT correct?
Consideration of the insurer and insured must be equal
Which is the following is NOT a characteristic of a Managed care plan ?
Controlled access
During a hearing the commissioner can do any of the following EXCEPT?
Cross examine a witness
All of the following statements about mutual insurance companies are correct EXCEPT?
Dividends are a return of unused premiums
An individual is approaching retirement age and is concerned about having proper coverage should have to be placed in a long term care facility his agent told him that ltc policies would provide necessary coverage at all of the following level's Except?
Monthly
In order to get a nonresident license is this state a producer must ?
Pass the nonresident exam
An insureds home is destroyed by a fire in this example the fire is a ?
Peril
Medicare Part A services do NOT include which of the following?
Private duty nursing
Which of the following optional provisions allow the insurers to limit benefits to an insureds average income over the last 2 years?
Relation of earnings of insurance
Which of the filling is NOT characteristic of a managed care plan ?
Risk retention
Which of the following whole life policies charges a level annual premium for the life time of the insured ?
Straight life
Which of the following whole life policies charges a level annual premium for the lifetime of insured ?
Straight life
Upon payment of a loss, the insured is obligated to surrender to the insurer the right to sue a negligent party. This is called?
Subrogation
Once the initial limit in Medicare part d is reached how is the beneficiary affected?
The beneficiary is then responsible for a portion of prescription drug costs
Which of the following cannot obtain a temporary license?
an employee of a retiring producer until the training of the new personnel is complete
probationary period
The period of time between the effective date of a health insurance policy and the date coverage for all or certain conditions begins.
What is the purpose of the impairment rider in a health insurance policy?
To exclude coverage for a specific impairment
Which of the following statements is INCORRECT regarding the definition of total disability?
Total disability is the inability to perform partial duties of any occupation for which a person is suited by reason of education, training or experience
Which of the following statements is INCORRECT regarding the definition of total disability?
Total disability is the inability to perform partial duties of any occupation for which a person is suited by reason of education, training or experience.
Which of the following statements is incorrect regarding the definition of total disability?
Total disability is the inability to perform partial duties of any occupation for which a person is suited by reason of education, training or experience.
Which of the filling statements is incorrect regarding the definition of total disability?
Total disability is the inability to perform partial duties of any occupation for which a persons is suited by reason of education training or experience
If an insured child is clinically diagnosed as having an emotional disablement and requiring care in a residential treatment facility how would the insureds health insurance respond to treatment expenses?
Treatment would be covered on the same basis as other benefits
If an insureds child is clinically diagnosed as having an emotional disablement and requiring care in a residential treatment facility how would the insureds health insurance respond to treatment expenses?
Treatments would be covered on the same basis as other benefits
Insurers are forbidden to do all of the following with their advertisements EXCEPT?
Use words or phrases that exaggerate the terms of the policy
Under the mandatory uniform provision Notice of Claim written notice or a claim must be submitted to the insurer within what time parameters ?
Within 20 days
an individual is approaching retirement age and is concerned about having proper coverage should he have to be placed in a long term care facility. His agent told him that LTC policies would provide necessary coverage at all the following levels EXCEPT?
acute