Colorado Accident & health laws state exam simulator
Who is not eligible to receive commissions from the sale of an insurance product? Corporate executive General agent Licensed home office employee Personal producer
corporate executive
An insurer can deny a claim under a long-term care insurance policy for any material misrepresentation made by the insured if it has been in effect for fewer than 6 months no more than 2 years at least 1 year more than 6 months
fewer than 6 months
Renewing a producer's license requires __ hours of continued education every 2 years. 24 36 12 18
24
A producer must remit premiums to the insurer within ___ days after receipt. 10 45 30 15
45
How long must a replacing insurer maintain the records of a replacement transaction? 5 years 4 years 2 years 3 years
5 years
A company that has not been authorized to operate in Colorado is known as an undesirable carrier a nonadmitted insurer a prohibited entity an alien company
a nonadmitted insurer
If a producer is going to deposit any premium into a bank account prior to remitting the funds to the insurer, he/she must use a separate insurance trust account combined trust account joint savings account bonded insurance trust account
separate insurance trust account
Paying insurance premiums on a more frequent basis will cause the policy to have lower premiums graded premiums average premiums higher premiums
higher premiums
Ultimately, who is responsible for a producer-generated advertisement? The Department of Insurance Producer Insurer Life and Health Guaranty Association
insurer
Which information is NOT included in the Colorado Supplement to the Summary of Benefits and Coverage form? Covered cancer screenings Deductibles Insurer's prior year financials Balanced billing
insurer's prior year financials
If a producer is found to be writing primarily controlled business, the Commissioner will have the producer imprisoned the Commissioner will not renew the license the producer will be forced to return all commissions to the insurer the producer must assign a portion of the business to another producer
the commissioner will not renew the license
Which of the following is an example of defamation? A brochure including an untrue statement regarding a competitor's ability to pay claims A truthful estimate of the dividends A pamphlet listing a competitor's financial rating A verbal statement of a competitor's complaint ratio
A brochure including an untrue statement regarding a competitor's ability to pay claims
Which of the following is NOT required to be disclosed to an applicant for health insurance? Any change to the standard compensation Standard compensation schedule for the product being sold Any contingent compensation received The insurance producer will receive a commission from the carrier
Any contingent compensation received
When may the Commissioner issue an emergency cease and desist order? If there is suspicion of an unauthorized person engaging in insurance business without being licensed When an insurance agency does not reach their annual sales quota For any reason the Commissioner sees appropriate If there is suspicion of an insurance policy being replaced
If there is suspicion of an unauthorized person engaging in insurance business without being license
Which of the following is an example of a misrepresentation? Making malicious statements about an insurer Describing a universal life policy as a security Returning a portion of a premium as inducement to purchase insurance Failing to affirm or deny coverage of claims within a reasonable time
describing a universal life policy as a security
In Colorado, what is required to be covered in individual and group medical expense policies? Epilepsy Accidental death In vitro fertilization Diabetes
diabetes
Which of the following offers an insurance applicant the right to review the contract and receive a full refund? Elimination period Refund period Free-look period Probation period
free-look period
All of the following penalties apply to anyone giving intentional false testimony during an insurance examination EXCEPT imprisonment up to three months guilty of a misdemeanor guilty of a felony fine of up to $5,000
guilty of a felony
A verbal or written statement which misleads a policy's features, benefits, or coverage is considered coercion rebating misrepresentation defamation
misrepresentation
As a condition to be approved for a loan, a creditor may require the borrower to obtain an insurance policy through the lender obtain an insurance policy for more than the loan amount obtain an insurance policy through an insurer of lender's preference obtain an insurance policy through an insurer of the borrower's preference
obtain an insurance policy through an insurer of the borrower's preference
Which of the following coverage exclusions or limitations is permitted under a long-term care policy issued in Colorado? Alzheimer's disease Preexisting conditions Senile dementia Parkinson's disease
pre-existing conditions
If a producer chooses to conduct business under an assumed name, when must notification be given to the Commissioner? No notice is required At the time of license renewal No later than 30 days after using the assumed name Prior to using the assumed name
prior to using the assumed name
In Colorado, which of the following is true regarding the commingling of an insured's funds with the funds of the producer? It is never okay It is okay with the insurer's written approval It is okay if records are kept on the transaction It is okay with the insured's written approval
it is never okay
A fiduciary responsibility is defined as a relationship of special trust and confidence when a person is entrusted with another's funds the responsibility of the insured to pay premiums in a timely fashion the responsibility the producer has to the appointing insurer the relationship between the broker and the insurer whose products are sold
a relationship of special trust and confidence when a person is entrusted with another's funds
If an insurance company wishes to discriminate rates based on gender, it must receive prior approval from the Department of Insurance be justified by actuarial statistics allow for no more than a 10% rate difference disclose the rate difference on the application
be justified by actuarial statistics
Which of the following documents are NOT required to mention the Colorado Fraud Statute? Claim forms Certificates of authority Policies Applications
certificates of authority
All of the following are considered a form of advertisement EXCEPT newspapers communication or materials used within an insurer's own organization free lunch seminars telemarketing scripts
communication or materials used within an insurer's own organization
A producer license may be suspended or revoked if the producer is found to be engaging in replacement converting a term life policy to a whole life policy selling with a nonresident license misrepresentation
misrepresentation
If an insurer is authorized to conduct business in another state and wishes to conduct business in Colorado, it must receive a certificate of authority from the Federal government receive a certificate of authority from a reciprocal state receive a certificate of authority from Colorado receive a certificate of authority from a bordering state
receive a certificate of authority from Colorado
In Colorado, all of the following are considered unfair trade practices EXCEPT coercion rebating replacement misrepresentation
replacement
A license is deemed to be used for controlled business if during any 12-month period the licensee wrote more than 10 policies on controlled business the licensee wrote policies totaling more than $25,000 on controlled business the licensee's total premiums on controlled business made up more than 25% of his total premiums the licensee's total premiums on controlled business exceeded the total premiums on all other business
the licensee's total premiums on controlled business exceeded the total premiums on all other business
An insurer cannot deny a claim unless the policy has exceeded the contestable period there is a reasonable explanation of the claim it exceeds a specific dollar amount the Commissioner gives a written approval
there is a reasonable explanation of the claim
Upon request, when must the Colorado Supplement to the Summary of Benefits and Coverage Form be provided? Within 30 business days Within 7 business days Within 15 business days Within 10 business days
within 7 business days
An insurer that terminates a producer's appointment must inform the Commissioner within how many days? 45 55 15 30
30
An producer who violates a cease and desist order may, after a hearing, be fined up to $750 $1000 $500 $250
500
From what point must the insurer pay interest on the proceeds of a death claim? Date claim is postmarked Date of death Date insurer is notified of the death claim Date claim is received by insurer
date of death
Circulation of a maliciously critical statement about an insurer's financial condition meant to damage the insurer's reputation or business is called defamation unfair discrimination conservation coercion
defamation
All accident and health policies issued in Colorado that provide major medical services must offer policyholders the opportunity to purchase supplemental coverage home health care coverage double indemnity coverage disability coverage
home health care coverage
Which of the following is NOT a required provision for an accident and health policy? Insurance with other insurers Reinstatement Grace period Incontestable
insurance with other insurers
Which of the following is an example of rebating? offer of temporary insurance coverage cancellation of an insurance policy without cause sale of mass-marketed insurance products returning a portion of a premium as inducement to purchase insurance
returning a portion of a premium as inducement to purchase insurance
Which of the following is a duty of the Commissioner? Setting insurance rates Writing insurance laws Setting sales quotas Reviewing and approving license applications
reviewing and approving license applications
A producer that only sells insurance to family members is said to be engaging in personal business domestic business family business controlled business
controlled business
If a producer completes an insurance application, collects the initial premium, and issues the appropriate receipt, coverage will be contingent upon the insurer's underwriting policies coverage will begin 14 days after the free-look period coverage will begin when the policy is delivered coverage will begin the day of application
coverage will be contingent upon the insurer's underwriting policies
Which of the following is CORRECT regarding a producer's fiduciary responsibility with client's funds? A producer may commingle personal funds with funds paid by or to a client with prior approval from the Department of Insurance A producer may never commingle personal funds with funds paid by or to a client A producer may commingle personal funds with funds paid by or to a client with the client's written permission A producer may commingle personal funds with funds paid by or to a client with the insurer's written permission
A producer may never commingle personal funds with funds paid by or to a client
Licensing is required for all of the following EXCEPT travel ticket selling selling prepaid legal services limited lines credit surplus lines
selling prepaid legal services
A health insurer may exclude medical coverage for any claims that result from skydiving snow-skiing off-highway vehicle riding snowmobiling
skydiving
What is the maximum amount the Commissioner can fine an insurer for each violation of a cease and desist order? $1,000 $500 $5,000 $10,000
10,000
T calls to file a claim on his health insurance policy. Within how many days must the insurer provide T's proof of loss forms? 15 days 20 days 10 days 30 days
15 days
When an employee's coverage terminates under a group health policy, the employee must be offered continuation coverage for 18 months 180 days 60 days 365 days
18 months
When a claim has been denied, the insurer must issue a statement to the policyowner explaining the coverage, provision, or laws on which denial was based cancel the policy notify the producer refund all paid premiums
issue a statement to the policyowner explaining the coverage, provision, or laws on which denial was based
The primary difference between the Colorado Partnership LTC policy and other LTC policies is longer lifetime benefits Medicaid asset protection higher daily benefits optional inflation protection
medical asset protection
In regards to maternity care, which of the following is not required to be covered in the State of Colorado? Standard newborn circumcision Injuries or sickness Congenital defects Birth abnormalities
standard newborn circumcision
