Health Ch. 8 LOUISIANA LAWS AND RULES

An annuity becomes incontestable after it has been in force for 30 days 60 days 2 years 3 years

2 years

After a producer's license has been suspended or revoked, how long before he/she can apply for reinstatement? 1 year 3 years 5 years 7 years

1 year

How many hours of continuing education must insurance producers who sell life policies usually complete before they can renew their licenses? 10 hours 16 hours 24 hours Continuing education is encouraged but not required

24 hours

A licensee whose name or address changes must notify the Commissioner within 10 days 30 days 45 days 60 days

30 days

Each policy of life insurance shall contain a provision that a grace period shall be allowed within which the payment of any premium after the first may be made. The standard grace period shall be 15 days 30 days 45 days 60 days

30 days

A Medicare Supplement policy cannot deny claims for losses occurring more than how long after the effective date of coverage because of a pre-existing condition? 3 months 6 months 12 months 18 months

6 months

Which is true about the licensing of business entities in Louisiana? A separate license is issued for each line of insurance A licensed producer must be designated as responsible for compliance with state insurance laws and regulations Business entities handling only commercial lines need NOT be licensed No licensing is necessary as long as all producers active within the business entity are properly licensed

A licensed producer must be designated as responsible for compliance with state insurance laws and regulations

Which statement is true regarding Louisiana's continuing education requirements for licensed producers? There are no continuing education requirements in Louisiana A producer must complete one accredited college course each year A producer must meet specified course requirements within a two-year period A producer who has a four-year degree in insurance is exempt from continuing education requirements

A producer must meet specified course requirements within a two-year period

All of the following are unfair claims settlement practices EXCEPT Misrepresentation of policy provisions to an insured An unreasonable delay in the payment of a claim An attempt to settle a claim by arbitration Failure to give a reasonable explanation for denying a claim

An attempt to settle a claim by arbitration

How are health plans classified according to the Affordable Care Act? 1st Tier, 2nd Tier, 3rd Tier, 4th Tier Bronze, Silver, Gold, Platinum Standard, Above Average, Good, Superior Plan A, Plan B, Plan C, Plan D

Bronze, Silver, Gold, Platinum

Which license is REQUIRED in order to solicit Long Term Care insurance in the State of Louisiana? Life Insurance Producer License Long Term Care Insurance Producer License Casualty Insurance Producer License Health Insurance Producer License

Health Insurance Producer License

An application for individual health insurance must be: Verbal In writing, and can be altered by the producer In writing, and normally becomes part of the contract In writing, but does not become part of the contract

In writing, and normally becomes part of the contract

Which of the following statements about long-term care insurance is CORRECT? A long-term care policy may require prior hospitalization before the policyowner qualifies for benefits in a skilled nursing facility Individual long-term care policies must contain a 10-day free look period Individual long-term care policies must contain a renewability provision on the first page of the policy Insurers may cancel or decline to renew long-term care policies because of the insured's age or mental health

Individual long-term care policies must contain a renewability provision on the first page of the policy

In a health insurance contract, changes may be made: Only when approved in writing by an officer of the insuring company Only when approved by the producer Only if the insured does so within five years from the date of issue Only if the insured provides evidence of insurability

Only when approved in writing by an officer of the insuring company

In general practice, which statement is true of the powers of the Commissioner of Insurance with respect to access to a producer's business records? Records can only be accessed by an order of a state court Authorization must come from the National Association of Insurance Commissioners (NAIC) Records must be produced upon the request of the Commissioner to the producer The Commissioner has no right to access a producer's business records because of privacy considerations

Records must be produced upon the request of the Commissioner to the producer

Under Louisiana standards for marketing long-term care coverage, all of these are prohibited sales practices EXCEPT Twisting Replacing existing coverage High pressure tactics Cold lead advertising

Replacing existing coverage

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. Disclosure of the name of the reporting agency is prohibited. The consumer must initiate legal action to remove unfavorable information from the report. A reporting agency must furnish an investigative report to any person who requests the information.

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

Under which circumstances must a producer's insurance business records be provided to the Louisiana state Insurance Commissioner? Only by an order of a state court By authorization of the National Association of Insurance Commissioners Upon request of the Commissioner Under no circumstances due to privacy considerations

Upon request of the Commissioner

Agreements made by terminally ill persons to sell their life insurance policies at a discount in order to pay medical expenses are called Repurchase agreements Viatical settlements Nonforfeitures Living wills

Viatical settlements

When may a producer first solicit insurance? When licensed by the Insurance Commissioner After registering for the insurance exam When appointed by an insurer At any time

When appointed by an insurer

An insurer operating in the U.S. but headquartered outside the U.S. is a foreign insurer an alien insurer unauthorized authorized

an alien insurer

Under Louisiana law, the agreement between an insurance producer and insurer under which the insurance producer, for compensation, may sell, solicit, or negotiate policies issued by the insurer is defined as an appointment a binding agreement a certificate of authority a license

an appointment

Someone who sells, solicits, or negotiates insurance contracts for compensation is called an insurance adjuster an insurance producer advisor a life insurer

an insurance producer

An insurer, in general business practice, fails to promptly provide a reasonable explanation for the denial of a claim. This is considered to be a contractual liability an unfair claim settlement practice a violation of the grace period provision a fraudulent insurance act

an unfair claim settlement practice

In order to solicit insurance, an individual MUST achieve all of the following EXCEPT pass the insurance exam be at least 21 years of age be appointed by insurance company be of good character and trustworthy

be at least 21 years of age

A Louisiana insurance producer solicits a life insurance policy. In the event of a controversy between the insured and the company, the producer is considered to represent the insured beneficiary company policyholder

company

Proceeds of the viatical settlement contract could be subject to the claims of Creditors Children Spouse Beneficiary

creditors

When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT give the applicant a Notice Regarding Replacement of Life Insurance give the applicant the original or a copy of the proposals used in the sales presentation obtain the beneficiary's signature on a summary of all policies to be replaced submit to the producer's insurance company a copy of the Notice Regarding Replacement of Life Insurance signed by the applicant

obtain the beneficiary's signature on a summary of all policies to be replaced

In order to qualify for a company convention, an insurance producer agrees to pay the first quarterly premium for the applicant for new insurance. This is called a gift rebate loan cost of doing business

rebate

The life insurance buyer's guide includes information about all of the following EXCEPT how to take civil action against an insurer decide how much life insurance to buy compare life insurance policy rates compare life insurance policy requirements

take civil action against an insurer