Life

An insurer that terminates a producers appointment must inform the commissioner within how many days?

30

Fraternal Benefit Society

An incorporated society or order that is operated on the lodge system and is conducted solely for the benefit of its members and their beneficiaries and not for profit. Does not have capital stock.

Lapse Notice

- Must be sent to the policy owner at the end of the required grace period - the reason for the lapse by first-class United States mail to the last-known address of the policy owner at least twenty-five days before the effective date of lapse

In Colorado, a life insurance applicant has _____ days after policy delivery for a full refund of premium if not satisfied for any reason.

15!

What year was McCarran-Ferguson Act enacted?

1945

When replacing an existing life insurance policy, the replacing insurer must notify the existing insurer within

5 business days

How long must a replacing insurer maintain the records of a replacement transaction?

5 years

Third Party Ownership

A policy owner who is not the prospective insured. The policy owner and the insured may be and often are the same person.

adhesion contract

A standard-form contract in which the stronger party dictates the terms. "TAKE IT OR LEAVE IT"

Information included in the Colorado Supplement to the Summary of Benefits and Coverage form

Deductibles Covered cancer screenings Balanced Billing

PPOs

Preferred Provider Organizations

Service Providers

Service providers offer benefits to subscribers in return for the payment of a premium. Benefits are in the form of services provided by the hospitals and physicians participating in the plan. They sell medical and hospital care services, not insurance. These services are packaged into various plans, and those who purchase these plans are known as SUBSCRIBERS.

Government Insurance Programs

Social Security, Medicare, Medicaid

Types of agent authority

express, implied, apparent

When does a life insurance applicate need to be informed of their rights that fall under the FCRA?

upon completion of the application

Participating Life Insurance

A life insurance policy that allows policy holders to "participate" or share in the profits of the insurance company (mutual insurer). Policy which pays a dividend to its owner.

If an annuity application was not taken in person, an insurer must provide the applicant a Buyer's Guide

within 5 business days of the insurer receiving the application

Social Security

federal program of disability and retirement benefits that covers most working people

HMO

health maintenance organization

Home Service Insurers

home service insurance is industrial insurance sold by home service or debit life insurance companies. Face amounts are small; usually $1,000 to $2,000 and premiums are paid weekly.

Commissioners can

issue orders to carry out their duties disclose in to law enforcement to use in investigations conduct hearings

1970 Fair Credit Reporting Act

provides individuals privacy protection and fair and accurate credit reporting

Colorado does not allow and insurer to deny a life insurance claim due to _______ after the policy has been in force for one year

suicide

Mutual Insurance Company

A type of insurance company owned by its policyholders.

Stock Insurance Company

A type of insurance company owned by stockholders. SH get paid share of dividends Non Participating

Commercial Insurance

Health insurance that covers medical expenses and disability income for the insured that is not paid for by the government. These policies are sold individually or as part of a group plan through an employer.

"Separate insurance trust account."

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 ...

Fiduciary Responsibility

The legal duty of a representative to manage property in the interest of the owner. A relationship of special trust and confidence when a person is entrusted with another's funds.

What type of reinsurance contract involves two companies automatically sharing their risk exposure?

Treaty reinsurance, each party automatically accepts specific percentages of the insurers business.

The commissioner may issue an emergency cease and desist order without a hearing for all of the following except!

Writing controlled business

Unilateral Contract

a contract in which only one party makes an enforceable promise. Most insurance policies are unilateral contracts in that only the insurer makes a legally enforceable promise to pay covered claims.

Aleatory Contract

a contract where the values exchanged may not be equal but depend on an uncertain event

According to the Colorado fraud statute, these three things must contain a warning against insurance fraud?

applications policies claim forms

According to the Colorado fraud statue, what does not need to contain a warning against insurance fraud?

certificates of authority

A producer license may be suspended or revoked if the producer is found to be

engaging in misrepresentation