CHAPTER EXAM PENNSYLVANIA LAWS AND RULES
According to Pennsylvania law, postnatal care must be delivered within how many days of discharge? 1 day 2 days 3 days 5 days
2 days
A life insurance policy becomes incontestable after it has been in force for 30 days 6 months 2 years 3 years
2 years
Producers must complete a total of ___ Continuing Education credits for each two-year licensing period. 12 24 36 48
24
An Accelerated Death Benefit in Pennsylvania must be at least what percentage of the total death benefit? 15% 25% 50%
25%
In Pennsylvania, the Time Limit on Certain Defenses provision provides that no misstatements (EXCEPT fraud) made by the applicant on a health insurance application can be used to void the policy or deny coverage after the expiration of 1 year 2 years 3 years 5 years
3 years
Within how many days must a producer report to the Commissioner any charges made against him/her? 20 30 40 50
30
A licensed producer must report any administrative action taken against the licensee in another jurisdiction or by another agency department in Pennsylvania within how many days of the final disposition? 10 days 30 days 60 days 90 days
30 days
In a Long-Term Care policy, the right-to-examine period is 10 days 30 days 45 days 60 days
30 days
In an accident and health plans, premiums paid less frequently than monthly require a minimum grace period of at least 7 days 10 days 20 days 31 days
31 days
In Pennsylvania, accident and health plans are required to provide mammograms for women starting at age 35 40 45 50
40
As of January 1, 2014, an employer with up to 25 full time equivalent (FTE's) with average annual wages of less than $50,000 may be eligible for a tax credit of ___ of the premiums paid by the employer. 30% 40% 50% 60%
50%
The Medicare Supplement open enrollment period is the 6 month period that begins at age 62 6 month period that begins with the month in which enrollment in Part B Medicare occurred typically at the age 65 3 month period that begins at age 62 3 month period that begins at age 65
6 month period that begins with the month in which enrollment in Part B Medicare occurred typically at the age 65
No Long-Term Care policy may exclude pre-existing conditions for a period of more than 90 days 6 months 12 months 18 months
6 months
In Pennsylvania, and employee must request spousal coverage under a group sponsored accident and health plan within __ days of marriage.
60
In Pennsylvania, HIPAA laws require that an individual's prior creditable coverage may reduce the maximum pre-existing condition exclusion period that a new group health plan can apply. This rule is applicable as long as there has been no gap in creditable coverage for a period greater than 30 days 60 days 63 days 90 days
63 days
In Pennsylvania, what's the requirement for a minor to receive proceeds from a death benefit? Has to be atleast 15 years old Must live in the same state as insured The Commissioner must approve A guardian must be appointed
A guardian must be appointed
In Pennsylvania, who is responsible for Continuing Education (CE) course content approval? Pennsylvania Department of Educatin National Association of Insurance Commisioners Commissioner NIPR
Commissioner
In Pennsylvania, which of the following is NOT something a licensee must do to renew their insurance license? Confirm previous exam scores Submit proper paperwork Complete required continuing education Pay the proper fees
Confirm previous exam scores
A hospital or medical expense policy will typically cover dental treatment expenses under which circumstance? After the annual limit of dental policy's coverage is reached Dental treatment is needed to repair an injury Cosmetic dental treatment is performed If treatment is performed at a in-network provider
Dental treatment is needed to repair an injury
Violations of US Code Title 18 section 1033, may result in Fine/ and or imprisonment Termination of appointment Revocation of license Cease and desist order
Fine/ and or imprisonment
For licensing purposes, if an applicant has a home or office location in the state of Pennsylvania, this would be consistent with which of the following? Territory Delivery state Home state Non-resident requirement
Home state
For licensing purposes, if an applicant has a home or office location in the state of Pennsylvania, this would be consistent with which of the following? Territory Delivery state Home state Non-resident requirement
Home state
The Pennsylvania Department of Insurance may take each of the following actions EXCEPT Issue Cease and Desist Order Impose fines Revoke licenses Incarceration
Incarceration
Which of following provisions protects a Pennsylvania policyowner from an innocent mistake made on the application over 2 years ago? Entire contract provision Nonforfeiture provision Spendthrift provision Incontestability provision
Incontestability provision
A resident producer license requires each of the following EXCEPT Applicant receiving a passing score on state exam Satisfied prelicensing education requirements Fingerprint submission Insurer appointment
Insurer appointment
A Medicare Supplement policy may be cancelled by an insurer for which of the following reasons? Higher than expected claims Smoking Material misrepresentation Deterioration of health
Material misrepresentation
What is the required action to be taken by a Pennsylvania licensee before operating under an assumed business name? Notify the Commissioner Notify Governor Notify the insurer where employed Obtain a permit
Notify the Commissioner
Which of the following is a violation of Pennsylvania insurance law? Failure to pay insurer appointment fees Offering insurance contracts through unlicensed entities Charging policy fees Failing to notify the Commissioner of any administrative action taken against the licensee within 10 days of the final disposition of the matter
Offering insurance contracts through unlicensed entities
The document that describes policy features, benefits exclusions and riders in a long term care policy is known as the Shopper's Guide Buyer's Guide Outline of Coverage MIB Report
Outline of Coverage
Which of the following is a person who negotiates an insurance contract on behalf of an insurer? Negotiator Consultant Advisor Producer
Producer
The branch of dentistry which deals with the replacement of missing parts is called Endodontics Periodontics Orthodontics Prosthodontics
Prosthodontics
Which Accident and Health policy provision allows the policyowner a stated amount of time to return a newly-delivered policy for a full refund of premiums if not satisfied for any reason? Grace epriod Contestability Right to examine Legal action
Right to examine
The Pennsylvania Insurance Department is responsible for each of the following EXCEPT Insurers Producers Shareholders Approval of forms
Shareholders
In Pennsylvania, a producer may have their license revoked for which of the following acts? Loss of insurer appointment Failing to renew license on a timely basis Sharing commissions with another licensed producer Signing a prospect's name without their knowledge or presence
Signing a prospect's name without their knowledge or presence
In Pennsylvania, an insurer may backdate policy issue not more than how many months from the date of a life insurance application? One month Three months Six months Nine months
Six months
A life insurance producer licenses in the Commonwealth of Pennsylvania is authorized to Approve the payments of a claim Reinstate an insurance contract after the expiration date Solicit receive and forward applications to the insurer Replace a policy without notifying the insurer
Solicit receive and forward applications to the insurer
A life insurance illustration showing future premiums being paid out of nonguaranteed values must disclose that These policy premiums will vanish The policy guaruntees payment of these premiums The policyowner forfeits the option of paying these premiums from other The policyowner may need to resume premium payments depending on actual results
The policyowner may need to resume premium payments depending on actual results
Life insurance may make an immediate benefit payment before insured dies in which transaction? Viatical Settlement Accident injury Modified Endowment Contract Absolute Assignment
Viatical Settlement
Viatical settlement brokers send packets of information to potential viatees. These information packets normally include existing policy terms and which of the following? Viators medical prognosis Proceeds of the settlement to be placed in a trust account Executed absolute assignment Brochure describing the process of viatical settlements
Viators medical prognosis
For Pennsylvania Insurance Code violations, the Commissioner may assess a(n) prison sentence administrative penalty insurer appointment termination monetary award for pain and suffering
administrative penalty
The Commissioner has the right and duty to set premium rates advise consumers on insurance products audit insurer financial reports and conduct market studies obtain and put to private use a producers license
audit insurer financial reports and conduct market studies
In order to solicit insurance in Pennsylvania, all of the following is required EXCEPT pass the state examiniation complete a prelicensing course be at least 21 years of age pay the appropriate fee
be at least 21 years of age
An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called a managed plan stop loss coinsurance a deductible
coinsurance
When collecting insurance premiums from a client, a producer MUST temporarily deposit the funds in a personal account pay the client interest on any monies held send receipt of payment to the Commissioner forward premiums to the insurer on a timely basis
forward premiums to the insurer on a timely basis
Commissions may be shared by a licensed Producer and family member licensed and appointed Producers a licensed Producer and prospective prospect a Producer and non-licensed employee
licensed and appointed Producers
A producer who sells insurance in Pennsylvania but resides in another state is called an unauthorized producer alien producer nonresident producer authorized producer
nonresident producer
A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered is called Nonforfeiture Replacement Reinvestment Rollover
replacement
All statements in an insurance application, in the absence of fraud are considered exclusions warranties representations guarantees
representations
Long-Term Care policies must provide coverage for claims arising from Senile dementia Acute care in hospital Alcoholism Drug addiction
senile dementia
A licensee can have his/her license denied or revoked by the Commissioner if the licensee miscalculates a policy's premium the licensee does not meet his/her sales quota the licensee accidentally misinterprets a policy's provision the licensee has committed insurance-related fraud or dishonesty
the licensee has committed insurance-related fraud or dishonesty
When an insurance company consistently fails to provide reasonable explanations for the denial of a claim, this is called a(n) breach of contract unfair claim settlement fraudulent claim practice unlawful insurance act
unfair claim settlement
In Pennsylvania, a Specified disease accident and health plan must provide a minimum benefit in the amount of $2,000 $2,500 $5,000 $10,000
$5,000
The free look period provided in a lie insurance policy is usually 10 days 31 days 45 days 60 days
10 days
A Pennsylvania temporary producer license may be issued for a period not to exceed 30 days 45 days 90 days 180 days
180 days
