Chapter 5 - Mississippi Insurance Laws & Rules
Long-Term Care policies sold in Mississippi may exclude coverage for pre-existing conditions for
6 months
An insurance company must do which of the following to terminate a producer's appointment?
Send notice of the termination to the Commissioner of Insurance
Defamation is BEST described as publishing or circulating which of the following types of material?
Brochures falsely criticizing the financial condition of an insurance company
An example of Life insurance policy replacement would be which of the following?
Cash surrender an existing life policy and purchasing a new life policy
Which of the following BEST defines unfair discrimination?
Charging different rates for individuals in the same risk class
What is the requirement for maintaining an individual Mississippi producer license?
Completing 24 hours of continuing education every 2 years
At what point does the Life and Health Insurance Guaranty Association become involved with an insurer's affairs?
When the insurer becomes insolvent
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
Life insurance replacement regulation is designed to protect the interests of the
policyowner
An insurance company appoints a(n)_________ to transact insurance.
producer
After notice and a hearing, the Insurance Commissioner may revoke a producer's license for all of the following reasons EXCEPT the
producer is found to be insolvent
The Commission of Insurance MUST give ___ days notice before holding a hearing regarding a producer's unfair practice.
10 days
A Long-Term Care policy sold in Mississippi must provide benefits for a MINIMUM of
12 months
Every insurance producer MUST maintain all records, books, and documents for insurance transactions for a period of not less than
3 years
A producers must notify the Commissioner of Insurance within ___ days of an address change.
30 days
All Long-Term Care policies in Mississippi MUST contain a free-look period of
30 days
Any criminal charges taken against a producer must be reported to the Commissioner of Insurance by the producer within how many days of the final disposition?
30 days
ABC Insurance Company is replacing an existing life policy from XYZ Insurance Company. ABC Insurance Company must provide which of the following documents to XYZ Insurance company?
A policy summary
A producer is attempting to replace an existing life insurance policy with a new one. What must the producer submit as part of the application?
A signed statement by the applicant regarding the replacement
A producer is attempting to replace an existing life insurance policy with a new one. What must this producer submit as part of the application?
A signed statement by the applicant regarding the replacement
Which of the following actions must be taken by an insurance company that wishes to conduct business in Mississippi?
Acquire a certificate of authority
What is a responsibility of the Commissioner of Insurance?
Administering insurance laws
Who would be given an exemption from licensing requirements in Mississippi?
An employee of a licensed producer who only answers the phone and schedules appointments
B is a producer who primarily writes insurance business on his family. Which of the following is B engaged in?
Controlled business
A producer is suggesting replacement if a prospective insured is given all of the following advice, EXCEPT:
Convert your Term insurance to Whole Life
How does the Commissioner of Insurance attain office?
Elected by the people of Mississippi to a 4-year term
How often must an insurance producer's license be renewed?
Every 2 years
What would be an accurate definition of "controlled business"?
Insurance business that is written on the producer's own life, property, or interests
With whom may a producer share commissions with?
Licensed producer
Long-Term Care policies sold in Mississippi are required to contain cost disclosure information in bold print. Where does the law require this information?
Outline of coverage- cover page
J is a producer who is recommending that an insured surrender an existing life insurance policy and purchase a new one. Which provision would this producer be subject to?
Replacement
Which of the following would be a valid reason for suspending or revoking an insurance license?
The producer misappropriated money held in a fiduciary capacity
Which of the following parties must provide an insured with proper disclosure concerning the replacment of an insurance policy?
The producer who sells the new insurance policy
Replacement is involved in all of the following situations, EXCEPT when
a Term policy is converted to a permanent plan with the same insurance company
In Mississippi, an insurance company formed under the laws of Mexico is called a(n):
alien company
Acme Insurance Company conducts business in Mississippi and was incorporated in Mississippi. This company is considered to be a(n)
domestic insurer
A hearing must be held before a producer's license can be suspended or revoked. Prior to the hearing, the Commissioner of Insurance is required to
give written notice to the producer
Long Term Care policies in Mississippi must contain all of the following, EXCEPT a
guarantee of issue at age 65
The Commissioner of Insurance does NOT have the power to
incarcerate a producer
The Life and Health Insurance Guaranty Association
is funded by insurance companies through assessments
During the course of an insurance transaction, if a producer makes a false or incomplete statement, he/she could be found guilty of
misrepresentation
An insurance producer is guilty of twisting if the producer
misrepresents a policy to induce a policyowner to surrender an existing policy
The pre-existing condition clause in a long-term care policy MUST be waived when the
new policy replaces existing coverage with the same insurer
A producer has returned part of his commission to the insured as an inducement to purchase the insurance. This illegal action is called
rebating
The purpose of the Rules Governing Life Insurance and Annuity Replacement is to
reduce the opportunity for misrepresentation and incomplete disclosure
Health policies sold in Mississippi are REQUIRED to begin medical coverage of a newborn beginning at
the moment of birth
T is a producer who forgot to renew her license. She may reapply for a license without an examination
within one year after no renwal
