AD Banker Chapter 15 Quiz

The Commissioner may grant or deny an agent a request for an extension to comply with the continuing education requirements. Which of the following describes the time required to comply?

90 if granted, 30 if denied

To be able to start operations, a mutual company must have all of the following, except:

A minimum number of stockholders

Which of the following would be defined as a replacement under Alabama State Law?

A policyowner cancels a policy in order to purchase a new policy

What is the underlying purpose of a second injury fund?

To promote the employment of previously injured or physically handicapped workers

A producer can reinstate their license once it has lapsed without retaking a prelicensing course and without taking a new license exam within:

12 months

If an insurance company requests additional information regarding a claim, upon receiving the additional information, how many days does the insurer have to pay or deny the claim?

21

A producer who is subject to the continuing education requirements must complete _________ classroom hours of continuing education or its equivalent on a biannual basis, 3 of which must be on ethics or business practices.

24

Eligibility for the payment of benefits under a long-term care insurance policy may require either a deficiency in the ability to perform no more than _______ of the activities of daily living or the presence of cognitive impairment.

3

A licensee must inform the Commissioner of a change of legal name or address within ______ days of the change.

30

An individual long-term care insurance policy may not be terminated for nonpayment of premium unless the insurer has give notice to the insured and any designated persons at least _____ days before the effective date of the termination.

30

An insurer that issues a health insurance policy must pay for services rendered by Alabama health care providers within ______ calendar days upon receiving a clean electronic claim.

30

If the Commissioner denies a request for an extension to comply with the continuing education requirements, the licensee must complete the continuing education requirements within _______ days after being notified of the denial.

30

Medicare supplement policies and Long-Term care policies must provide a 'free look' period of:

30

Upon written demand by a person aggrieved, the Commissioner must hold a hearing within:

30 days upon receipt of demand

An insurer may reserve the right to defer the payment of a cash surrender value for up to _________ months after demand is made and the policy is surrendered.

6 months

A producer who violates the Alabama long-term care insurance regulation may be fined up to 3 times the amount of any commissions paid for each policy involved or up to ________, whichever is greater.

$10,000

The maximum liability of the Life and Disability Insurance Guaranty Association for cash values, for any one life is:

$100,000

The maximum liability of the Life and Disability Insurance Guaranty Association for all benefits, including cash values, for any one life is:

$300,000

An individual disability policy, unless it is a single premium nonrenewable policy, must allow the person to whom the policy is issued to return the policy within _____ days of its delivery for a refund of premiums.

10

A minor aged ______ years or older may contract for insurance on his or her own life.

15

A life insurance policy is incontestable, except for nonpayment of premiums, after it has been in force during the lifetime of the insured for ______ from its date of issue.

2 years

A producer must keep complete records pertaining to transactions under the producer's license for at least:

3 YEARS

Which of the following IS NOT a type of illustration under the Alabama regulation governing life insurance illustrations?

Annualized Illustration

The head of the state department of insurance has all of the following powers, except:

Creating and establishing new premium rates for insurance companies operating in the state

An agent holds a license and sells insurance for several companies, but is not appointed with company XYZ. If the agent writes a policy for XYZ, which of the following would apply?

If issued by the company, the company would be fined up to 3 times the premium received

Which of the following IS required when an application for an annuity is taken?

If the application is taken over the phone, the applicant must be provided an Annuity Disclosure document no later than 5 days after completing the application

Death benefits paid under Workers' Compensation:

Include both a one-time burial allowance and a weekly benefit for a surviving spouse and /or children

All of the following are true regarding the States Second Injury Fund, except:

It is used to relieve the state of any burden for Workers' Compensation benefits

Who is Alabama's current Commissioner of Insurance?

Jim Riddling

Non-financial regulatory activities are known as:

Market Conduct

The statements and descriptions in an application for a life insurance policy or annuity are:

Representations and not warranties

Which is true regarding Long-Term Care Incontestability?

All Answers

When advertising you may NOT imply that:

All the answers

In the context of replacement, the term 'conservation' means any attempt by the:

Existing insurer or its agent to continue existing life insurance in force

Which of the following provided the federal government the right to regulate the insurance industry, regarding fraud and false statements?

McCarran-Ferguson

Twisting involves which of the following?

Policy Replacement

The Alabama Health Insurance Plan (AHIP) provides all of the following, except:

Premiums are only 75% of standard rates

All of the following are true regarding advertising in life insurance, except:

Premiums cannot be mentioned in an advertisement at all

If a company wishes to share information about a customer's health with a third party:

The customer must actively opt-in to allowing the disclosure

Which of the following is needed to receive a producer's license after passing the state licensing exam?

The producer must submit a uniform application for licensure with the Commissioner

When replacement is involved, an agent must present the applicant with a Notice Regarding Replacement of Life Insurance no later than:

The time of taking application

If you are charged with a violation of Alabama State Insurance Law, which of the following is/are true?

all the answers

Which of the following is/are required when reinstating a life insurance policy after a default in premiums?

all the answers