WV Laws & Rules Insurance
What type of statement may a producer make to a client about a Whole Life policy?
"Nonforfeiture benefits will be available after a period of time"
A group life insurance policy insured may assign up to ________ of the insured's coverage
100%
What is the MINIMUM benefit period that must be offered by a Long-Term Care policy sold in WV?
12 months
A labor union must have at LEAST ____ members to be issued a group life policy
25
When an employee is terminated, how long does the employee have to convert group life coverage to an individual plan?
31 days
The waiting period for pre-existing conditions on Medicare Supplement policies is ____ months
6
The maximum time period that pre-existing conditions may be excluded in long-term care policies is
6 months
While taking an application for an Accident and Sickness (A&S) policy, a producer must list any other health insurance policies they have sold to the applicant if the sale involves
Replacement
What type of individual requires continuing education?
Resident Producer
False Advertising
The act of an insurance company publishing misleading information about its policy's provisions
A life insurance policyowner recently died. The proceeds from this policy are NOT exempt from creditor's claims when they are payable to
The insured's estate
What does the WV Life and Health Insurance Guaranty Association provide?
claim payments of admitted, insolvent insurance companies
What permits an insurance company to transact business in WV
Certificate of Authority
One definition of replacement is "the act of replacing an existing insurance policy with another" Replacement is
Closely regulated and requires full disclosure
What action does NOT constitute life insurance policy replacement?
Convert term coverage to a whole life policy
What is NOT a situation that involves life insurance policy replacement?
Converting to a term policy to a permanent policy with the same insurer
Misrepresntation
Convincing a prospective insured to buy an insurance policy based on exaggerations is called
P is an employee covered under his employer's Group Life policy for $25,000. He quits after 1 year on the job. Which statement about his conversion options is NOT true?
Employee can convert to a $25,000 Term policy
How often must an insurance producer's license in WV be renewed?
Every two years
Name an organization that provides health services on a prepaid basis?
Health Maintenance Organization HMO
Defamation occurs when a producer makes a false statement intended to
Malign another insurer
Which Unfair Trade Practice involves a producer suggesting that an insurance policy is like a share of stock?
Misrepresentation
An example of rebating is
Offering a client something of value not stated in the contract in exchange for their business
What action, taken by a producer, is considered a violation of West Virginia's insurance laws pertaining to Medicare Supplements?
Producer delivers the policy to an applicant more than 7 business days after they received it for delivery
Why does WV require producers to obtain a license to solicit insurance?
Public protection
Which of the following is a requirement to attain a nonresident producer license?
The producer's state of residence must have reciprocity with this state
According to WV law, a Group Life insurance policy required at LEAST _____ insureds
Two
The WV Life and Health Insurance Guaranty Association is
funded by insurance companies through assessments
Defamation occurs when a producer makes a false statement intended to
malign another insurer
A producer who is a resident in another state but licenses to transact insurance in WV is called a ______ producer
nonresident
If a new Accident and Sickness (A&E) policy involves the replacement of existing coverage, it must be verified on a question located
on the application
The _______ must provide an insured with proper disclosure concerning the replacement of an existing policy
producer
Life insurance replacement regulation protects the interests of
the policyowner
An example of an unfair claims settlement practice is
turning down a claim without providing the basis of denial
ABC Insurance Company failed to accept a valid Proof of Loss statement. This is considered to be a(n)
unfair claims practice