ad banker la ch 15

All of the following qualifications are required for a producer license, except:

Be at least 21 years of age

The Insurance Commissioner is:

Elected every 4 years

A Certificate of Insurance is:

Evidence of insurance coverage

Which of the following statements is correct?

No person may act as a producer in Louisiana unless licensed by the Department of Insurance

Which of the following is NOT a disclosure requirement for accelerated benefits?

A description of the accelerated benefit's cash values

'Producer' includes all of the following, except:

Adjuster

A blanket health policy may NOT be issued to which of the following?

An employee

When must the Outline of Coverage and Guide be provided?

Both must be provided at the time of application

Which of the following is false regarding the dependent child age limit?

Generally, a dependent child is covered up to age 24

Which of the following is a required benefit and not optional for the policyholder?

Mental disorders

Which of the following are true regarding the duties of insurers?

Replacement requirements do not apply to the existing insurer

With regard to pre-existing conditions:

'Pre-existing condition' means a condition for which medical advice or treatment was recommended by, or received within 6 months preceding the effective date of coverage

The time frame for pursuit of legal action cannot exceed:

1 year

An insurer must file a notice of appointment with the Commissioner within:

15 days after the date the agency contract is executed

An insurer is prohibited from contesting any claim on a life insurance policy after the policy has been in force for:

2 years

How many credit hours of continuing education must a producer complete every renewal period?

24 (with at 3 hours in ethics)

The reinstatement period for a life insurance policy is:

3 years

With regard to termination and renewal of a license, which of the following is false?

A business entity producer's license expires April 30 of each even-numbered year

When is the Notice of Information Practices required to be provided to existing customers?

Annually

When do individual producer licenses expire?

April 30 of each even-numbered year

Which of the following may be excluded under medical expense insurance?

Drugs provided in a research trial with no charge

Which of the following is true concerning the Federal Patient Protection and Affordable Care Act?

Insurers are prohibited from imposing lifetime dollar limits on essential benefits

All of the following types of coverage are exempt from the New Cancer Therapy regulation, except:

Major Medical

Which of the following is NOT correct regarding the licensing of a business entity?

Only the designated producer may transact business on behalf of the business entity

A new life policy is being purchased, and the agent knows that an existing contract through a different insurer will be lapsed. This is an example of (policy):

Replacement

Which of the following statements is false regarding Relation of Earnings to Insurance?

The minimum monthly benefit cannot be more than $100

When demanded, Hearings are held:

Within 30 days after the date a hearing is demanded

The duration of the grace period for individual life insurance policies is:

30 days

The free look period with regard to a long-term care policy must be for:

30 days

With regard to privacy regulation, a customer relationship is established when:

A consumer becomes a licensee's policyholder or agrees to pay for financial advice about insurance

Which of the following statements is false with respect to HIV testing?

A person may not opt out of HIV testing

Who among the following would be eligible for coverage under the Louisiana Health Insurance Association?

A person who is not covered under any other health plan

Which of the following statements is false?

A policyholder may request premiums and benefits be suspended for up to 12 months if he/she will be entitled to Medicaid benefits

An initial privacy notice is NOT required to be provided to:

A prospective customer

Which of the following statements is true with respect to supplemental illustrations?

A supplemental illustration must be accompanied by or preceded by a basic illustration

Which of the following is incorrect with regard to commissions and compensation?

An insurer may pay a commission to an unlicensed producer who is appointed by the insurer

Which of the following statements is correct?

Any sale of Medicare supplement coverage that will provide an individual more than one Medicare supplement policy or certificate is prohibited

Who among the following would not have an insurable interest in an insured under a life insurance policy?

Employee on the life of his/her employer

Which of the following statements is true regarding continuation of coverage under a group health insurance policy?

If an insured's coverage is terminated for any reason, the insured is eligible for continuation of coverage for 12 months if such insured has been covered under the group policy for at least 3 months

Which of the following is an example of what an advertisement cannot do?

Imply that an insurer is endorsed by a government entity

Anyone who makes a payment to unlicensed entity may be subject to:

Imprisonment for up to 3 years

The Commissioner may revoke, suspend, or refuse to renew a license for all the following, except:

Issued insufficient coverage to a customer through apparent authority

Which of the following is NOT an unfair claims practice?

Promptly acknowledging communications pertinent to a claim

The purpose of the Louisiana Health Insurance Association is to:

Provide health insurance to residents who are otherwise unable to obtain coverage in the private market

Which of the following is NOT a purpose of the rule regarding replacement of life insurance?

Regulate the replacement of insurance by the consumer

Which of the following is incorrect with regard to outline of coverage requirements?

The Outline of Coverage may include advertisements

Which of the following statements is correct regarding health policy provisions?

The Time for Limit on Certain Defenses is 3 years after the policy has been in force

Which of the following statements in NOT correct regarding variable contracts?

The contract must state that the benefits are on a guaranteed basis

Which of the following statements is false with regard to notification of termination of an appointment?

The insurer must mail a copy of the notification to the agent within 30 days after notifying the Commissioner

Which of the following are incorrect regarding suitability standards for long-term care insurance?

The producer must not focus on the consumer's ability to pay for long-term care insurance or the consumer's existing insurance, but rather focus on the consumer's goals and needs for long-term care

Which of the following is NOT covered by inflation protection?

The right to periodically decrease premiums

Which of the following statements is false regarding required provisions for Medicare supplement policies?

A Medicare supplement policy may not exclude pre-existing conditions for more than 12 months from the effective date of coverage

Which of the following statements is NOT correct with regard to advertising for health insurance?

A direct response insurer may advertise the low cost of a plan due to no agent being involved

With regard to genetic information:

A general authorization for the release of medical records or medical information is not considered an authorization to disclose genetic information

All of the following are correct with regard to cancellation, except:

A health insurance policy is renewable pursuant to the insurer's option

Which of the following is correct regarding a temporary license?

A temporary license may be issued to the surviving spouse of a disabled or deceased producer

Which of the following statements is false regarding requirements for accelerated benefits?

Accelerated benefits effective for illness immediately upon the effective date

Which of the following statements is false with respect to required provisions for group life insurance?

Additional new insureds may not be added to a group life policy after it has been issued

Passive Unfair Claims Practices do not include failing to:

Affirm or deny coverage within a reasonable period without receipt of proof of loss

The minimum age at which a minor may contract for annuities or for insurance is:

Age 15

Which of the following is false concerning licensing for variable products?

An agent must be licensed as a life agent in order to sell a registered variable contract

Which of the following statements is true concerning small employer insurance?

An eligible employee is any individual employed by an employer

Which of the following are false regarding the Life and Health Insurance Guaranty Association?

An insurer has the option of becoming a member of the Association

Which of the following is correct regarding requirements for home health care benefits?

An insurer may not require the insured to have an acute condition before home health care services are covered

Which of the following is true with regard to coverage for newborn and/or adopted children?

Coverage begins when the child is placed in the home even though the adoption process is not yet finalized

Which of the following statements is NOT correct?

In lieu of fines, the Commissioner may have a producer imprisoned for up to one year

Which of the following statements is correct with respect to a Certificate of Authority?

It is unlawful for an insurer to transact any business in Louisiana without a Certificate of Authority

Which of the following statements is NOT correct concerning Medicare Select insurance?

Medicare select does not pay for covered services that are not available through network providers

Which of the following correctly describes the practice of Twisting?

Misleading and convincing an insured to surrender, lapse, or exchange an existing policy for a different one, to the insured's detriment

With regard to examinations by the Commissioner, the Commissioner:

Must conduct a financial examination of an insurer at least once every 5 years

A producer is not considered to be holding a license for the purpose of controlled business as long as:

No more than 25% of the total volume of premiums per year is derived from controlled business

With regard to examinations, which of the following statements is NOT correct?

The expense of examination of an insurer or of any person is paid by the Department

Which of the following statements is correct concerning conversion provisions in group life insurance policies?

The group policy may limit the amount of an individual policy to the lesser of the insured's terminated group coverage (minus the amount of any group insurance he/she becomes eligible for within 31 days of the termination) or $2,000

Which of the following is false with respect the health policy replacement?

Under group coverage, medical conditions that can be excluded are limited to those that were diagnosed or treated during the 12-month period prior to the day coverage begins under the policy

With regard to delivery receipt requirements, which of the following is true?

Upon policy delivery, a producer must get the policyholder's signed receipt acknowledging delivery

Which of the following is incorrect with regard to rules for coordination of benefits?

When a plan is primary, it must reduce its benefits so that the total benefits paid or provided by all plans are not more than 100% of total allowable expenses

A Medicare supplement policy cannot be denied, conditioned, or priced because of the health status, claims experience, receipt of health care, or medical condition of an applicant:

When the application is submitted prior to or during the 6-month period beginning with the first day of the first month in which an individual is both aged 65 or older and the applicant is enrolled for benefits under Medicare Part B