Chapter Exam: Arizona Laws and Rules

A terminated employee has how many days upon termination to convey group life insurance coverage to an individual policy

31 Days

The period during which a buyer may return a fixed annuity contract for a full refund is called the?

Free look period

When family coverage is in place, newborn children are automatically covered under a medical plan for a period of at least?

31 Days

What is the minimum number of employees needed for a small employer medical expense plan in Arizona?

2

An annuity becomes incontestable after I has been in force for .

2 Years

An annuity becomes incontestable after it has been in force for?

2 Years

EXCEPT for fraud, the time after issuance of a policy during which an insurance company may contest a health insurance claim due to the statements on an application is?

2 Years

A licensee whose name or address changes must notify the Department of Insurance within?

30 Days

How many days notice does the Affordable Car Act require insurers to give before rescinding coverage?

30 Days

The standard grace period for a life insurance policy sold in Arizona is?

30 Days

Starting in 2016, businesses with up to _____ employees will be defined by the ACA as a "small business"

100

An insurance company may delay the payment of a cash value of a surrendered whole life insurance policy for up to?

6 months

Under the Telemarketing Sales Rule, telemarketing calls may NOT be received until?

8:00AM

Under the Telemarketing Sales Rule, telemarketing calls May NOT be received after?

9:00 PM

An individual currently owns a long-term care policy. At the time of application for similar coverage, which item must be signed by the applicant and retained by the insurer?

A replacement notice

Which plan offers coverage for nursing home (custodial) care without requiring any previous period of hospitalization?

AHCCCS (Arizona Health Care Cost Containment System)

If a provision in an accident and health policy does not conform to Arizona's standards, the insurer must?

Amend the policy to conform to Arizona's minimum standards

All of the following are unfair claims settlement practices EXCEPT?

An attempt to settle a claim by arbitration

The administrator of a reciprocal insurer who manages the premiums collected from the group's members Is called?

An attorney in fact

All of the following may obtain a temporary's producer's license EXCEPT?

An employee of a licensed producer who is retired.

What must the insurer provide to certificate holders when a group Medicare Supplement insurance policy is terminated an not replaced?

An offer of conversion to individual coverage.

If a group endorsed an accident and health insurance product in an advertisement, the public must be made aware of?

Any control by the insurer over the group

When the court orders an insured to provide a child's health insurance, the insurer must allow her child to be enrolled?

At any time

The refusal of doing business with an individual or business is called?

Boycott

In accident and health insurance, 60 days must pass after written proof of loss has been received by an insurer before the insured may?

Bring legal action against the insurer

An insurer that confines or largely limits the exposures it writes to those of its owners is called?

Captive

All of these are considered to be a violation of the Federal Fraud and False Statements Act EXCEPT

Claims Reimbursement

In regards to the Affordable Care Act (ACA), which bid these is NOT a role of the health insurance exchange?

Contact the employer if an employee stops coverage under a plan offered in the exchange.

The business of life settlements may include all of the following EXCEPT

Conversion of Term Life insurance contracts

Jerry has an indemnity plan which covers dental expenses. Typically, these type of plans

Cover preventative care once every six months.

Proceeds of a life settlement contract could be subject to the claims of?

Creditors

A producer's License may be suspended?

For misappropriation of premiums

Under which marketing system do insurers solicit customers by mass media advertising and mail without the service of an agent?

Direct Response

Arizona Law requires the Human Immunodeficiency Virus (HIV) consent form to?

Disclose the types of individuals or organizations that may receive a copy of the test results.

Which provision makes the application part of the annuity contract?

Entire Contract clause

Which of these is NOT considered a preventative service in a dental plan?

Fillings

An accident and health insurance policy covers the insured, the insured's spouse, and their child. If additional children are born to the family's the accident and health insurance policy must cover the children?

From the date of birth.

Which type of Medicare Supplement information can be used without prior state approval?

Government Publications

According to the Affordable Care Act, coverage may be rescinded?

If intentionally false statements were offered

In Arizona, a long-term café policy may offer coverage?

In which benefits are based on an individual's ability to perform the activities of daily living.

Under Arizona workers' compensation laws, which of following situations would be excluded from disability benefits?

Intentional self-inflicted injuries at the workplace

All of the following is information that is reasonably appropriate to determine the suitability of an annuity recommendation EXCEPT

Level of education

When considering the replacement of an individual accident and health insurance policy, a predicting conditions exclusion in the new contract?

May reduce the insured's benefits

Which statement is true if trade association groups eligible for group medical benefits?

Members of the associations are usually in the industry

False advertising of an insurance policy is considered?

Misrepresentation

If a producer misleads or fails to adequately disclose the title and true nature of a policy offered to a potential insured, it may be considered?

Misrepresentation

During the first two years a Life insurance policy is in force, the insurer may contest a policy for all of the following reasons EXCEPT?

Misstatement of age in the applicant

Under which circumstance can an insurer cancel a Medicare Supplement insurance policy without prior approval by the Arizona Department of Insurance?

Multiple Medicare Supplement policies on the same person

Under the uniform mandatory provisions, an accident and health insurer has the right to request an autopsy?

Only where not prohibited by law

In most dental plans, a deductible typically is NOT applied to?

Preventative and diagnostic services

A producer doing business under an assumed name must notify the Director?

Prior to using the assumed name

Under Federal Law, which if the following actions may result in a producer becoming imprisoned?

Producer embezzling funds from an insurer

An example of endodontic treatment is a?

Root canal

Regulations for variable insurance contracts are set by all of the following EXCEPT?

State attorney general's office

Claim settlements practices of insurers are regulated by?

State insurance departments

Under the Fair Credit Reporting Act, which statement is true?

The consumer who was investigated must be advised that credit, insurance, or employment was denied because of an unfavorable report.

In Arizona, an insurer providing small employer group medical plans may discontinue an employer's coverage if

The insurer no longer offers the plan to any employer

The Arizona Life and Disability Insurance Guaranty Fund protects an insured in the event of?

The insurer's insolvency(bankruptcy)

Unless it is regarding fraud, which of the following statements about the contestability of a life insurance plan is true?

The policy can usually only be contested by the insurer during the first two years of the contract.

Illustrations used in the sales of life insurance contain a statement that must be signed by?

The producer

When a Medicare Supplement insurance policy is being replaced, who must sign the notice of replacement?

The producer and the applicant

In Arizona, who is primarily responsible for determining the appropriateness of a Medicare Supplement policy for a proposed insured?

The producer who solicits the application

What is a certificate of authority?

There license required for an insurer to conduct business in the state

A while life policy that provides a choice of dividend options must include the following statement about dividends?

They are not guaranteed

A producer must maintain customer records for how many years following the completion date of the insurance transaction?

Three Years

Which of these situation would NOT potentially involve a prison sentence under Federal Law?

Transacting Insurance with a nonresident license

When an individual purchases insurance as a result of threats made by the producer, there had been a violation of?

Unfair trade practice laws

Individual health insurance policies must cover mentally and physically handicapped dependent children?

Until they become self-supportive

When replacing a life insurance policy, which of the following is advisable?

Wait until the new policy is issued and delivered before surrendering existing policy.

I'm Arizona, maternity coverage for the birth of an adopted child is covered if the insured legally adopts the baby?

Within one year of birth