Health Insurance Exam Practice

An insurer terminates an agent's appointment. Within how many days of termination must the intermediary be notified?

15 days

The Commissioner issues an order without having conducted a hearing. Within how many days of receiving the order can the person aggrieved by the order request a trial?

30 days

An insurance policy is considered a "new policy" if it has been in effect for what maximum time period in days?

60 days

According to the Law of Agency, a principal is represented by a/an

Agent

Which of the following changes does NOT need to be reported to the Commissioner within 30 days? A) From nonresident to resident status B) Each commission paid to a licensee who has held a license for less than 1 year C) The principal officers of a corporation licensed as intermediaries D) Management powers in the business entity

B. Each commission paid to a licensee who has held a license for less than 1 year

When does an agent's license expire? A) Biennially, on December 31st B) Annually C) Every 2 years D) Every even-numbered year

C. Every 2 years

A producer who fails to separate premium monies from his own personal funds is guilty of what?

Commingling

An insurance producer just sold an insurance policy to his sister. What kind of business is this?

Controlled

If a court ordered payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept? A) Reasonable expectations B) Cease and desist C) Nonforfeiture D) Indemnity

A. Reasonable expectations

Which of the following is an example of a producer's fiduciary duty? A) The trust that a client places in the producer in regard to handling premiums. B) An obligation to state every known fact about the policy the producer is selling. C) A duty to base all transactions upon the principle of Utmost Good Faith. D) The obligation to tell the truth to the best of one's knowledge

A. The trust that a client places in the producer in regard to handling premiums.

Which of the following is true regarding state regulations for record maintenance? A) Insurer's records must be maintained both electronically and in paper form. B) Insurer's records may be maintained electronically. C) Insurer's records must be maintained as hard copies of original records. D) Any records except for checks may be maintained electronically.

B. Insurer's records may be maintained electronically

An insurer refuses to renew a policy written by an intermediary whose contract has been terminated. This is allowed if A) The intermediary is the subject of an investigation by the Commissioner. B) The policy has been in effect for 5 years or more. C) The intermediary has retired. D) The notice contains an offer to renew the policy by written request.

D. The notice contains an offer to renew the policy by written request.

Which of the following is a person who receives a fee or commission to attempt to negotiate settlements between a life insurance policyholder or certificate holder and one or more viatical settlement providers? A) Life claims settlement mediator B) Life settlement intermediary C) Life settlement broker D) Life claims settlement adjuster

C. Life settlement broker

An agent makes a sales pitch that contains blatant lies about the insurer and its competitions. Who will ultimately be held legally responsible for this?

The insurer