State Life and Health Portion Flashcards
All of the following acts by an insurance producer would violate Alaska’s insurance laws except
A. making defamatory comments about a competing insurance company.
B. telling a prospect that a policy has received a certain level of dividends for the past 5 years.
C. telling a prospect that the insurer has a higher A.M. Best rating than it actually has.
D. offering shares of stock as an inducement to purchase insurance.
B
Which of the following documents is not required in an application for a certificate of authority?
A. a copy of the insurer’s financial statement.
B. a list of the kinds of insurance to be transacted.
C. a list of the insurer’s shareholders.
D. a copy of the insurer’s charter or articles of incorporation.
C
An authorized insurer may also be referred to as
A. an admitted insurer
B. a certified insurer
C. an authorized insurer
D. a domestic insurer
A
A certificate of authority is required for which one of the following activities?
A. transactions relating to policies written while an insurer held a certificate of authority in Alaska.
B. negotiating annuity contracts.
C. reinsurance transactions.
D. surplus lines insurance transactions.
B
For violations of a cease and desist order given by the Director of Insurance, the guilty party may be fined up to
A. $100,000 for each violation
B. $1,000 for each violation
C. $1 million for each violation
D. $10,000 for each violation
C
Individual health insurance policies delivered in Alaska must include all of the following information except
A. the policy’s exceptions and reductions
B. identification of each form, rider, and endorsement
C. the entire premium
D. the policy’s guaranteed dividends
D
A small employer is any employer that employed how many employees during the preceding calendar year?
A. between 2 and 150
B. any number of employees as long as they are located at one facility
C. between 10 and 50
D. between 2 and 50
D
An independent adjuster trainee license is effective for how long?
A. 10 years
B. 3 months
C. 12 months
D. 3 years
C
Death by any of the following are reasons to deny the death benefit of a life insurance policy except
A. while flying a plane
B. during the course of a hazardous occupation
C. from a heart attack while playing a sport
D. an act of war
C
Which of the following statements regarding a certificate of authority is false?
A. an insurer may not transact insurance in Alaska without a certificate of authority
B. the director must accept or reject an application for a certificate of authority within 60 days
C. once the certificate of authority is accepted, it becomes the property of the insurer
D. a certificate of authority is continuous as long as the insurer pays the annual fee
C
If an insurer appoints an insurance producer as its agent:
A. it must give written notice to the producer but not to the director of the appointment
B. the director must hold a hearing to determine whether she accepts the appointment
C. the director and insurer must agree on the length of the producers appointment
D. it must notify the director within 30 days of the date the agency contract is executed
D
A licensee must notify the Director within 30 days of all of the following acts except:
A. conviction of a misdemeanor
B. a change in marital status
C. license suspension in another state
D. a change of phone number
B
Which statement regarding newborn children covered under a family health plan is correct?
A. coverage begins 24 hours after birth
B. coverage begins when the family notifies the insurer of the birth
C. coverage begins when the child is 1 year old
D. coverage begins when the child is born
D
A domestic incorporated insurer with capital divided into shares and owned by its stockholders is known as
A. a mutual assurance corporation
B. a stock insurer
C. a foreign insurer
D. a fraternal benefit society
B
How often must individual insurance producer licenses be renewed?
A. whenever the individual is examined by the director
B. every two years
C. whenever the producer changes his business address
D. every year
B
Which of the following entities sells insurance for a company that is not licensed to transact insurance business in Alaska to people who cannot obtain coverage from licensed insurers?
A. limited insurance representative
B. managing general agent
C. independent adjuster
D. surplus lines insurance broker
D
Long term care insurance policies can:
A. be cancelled because the insureds mental health deteriorates
B. only be sold to insureds who are over age 65
C. establish a new waiting period if the insured decides to increase benefits
D. provide coverage for skilled nursing care only
C
An insurance producer’s license may be revoked for all of the following activities except:
A. knowingly accepting insurance business from a person not licensed in Alaska
B. conviction of a felony
C. soliciting a relative for life insurance
D. misrepresenting insurance policy provisions
C
All individual life insurance policies must contain a trial period of how many days?
A. 20 days
B. 10 days
C. 5 days
D. 14 days
B
What association protects owners of insurance policies issued by insurers who become insolvent?
A. consumer protection department
B. alaska insurance guaranty associations
C. insurance insolvency board
D. alaska life insurance pool
B
Which of the following statements regarding Medicare supplement policies is correct?
A. they can reject an applicant on the basis of her previous health history
B. they can indemnify losses resulting from sickness on a different basis than losses resulting from accidents
C. they can terminate coverage of a spouse solely due to the occurrence of an event specified for termination of coverage for an insured(other than for nonpayment of premiums)
D. they must cover all part a medicare elegible expenses for hospitalization not covered by medicare from the 61st thru the 90th day in any medicare benefit period
D
Which of the following statements is true with regard to license applicants?
A. applicants must be at least 21 years old
B. applicants must take a prelicense education course
C. applicants must pass a state licensing exam
D. applicants must have a bachelors or associates degree in insurance
C
Which of the following statements about medicare supplement policies is correct?
A. it generally duplicates coverage provided by medicare
B. it is designed to reimburse individuals eligible for medicare for medical, hospital, and surgical expenses
C. it can only be sold by insurance producers holding a special license
D. it is mainly for people who are receiving welfare assistance from the government
B
What can an individual first apply for a medicare supplement policy?
A. whenever the individual wishes
B. when the individual is 65 years old and enrolls for benefits under medicare part b
C. whenever the individual has had a condition that requires long term rehabilitative care
D. when the individual loses his group health care due to retirement
B
Which of the following statements is not an example of rebating?
A. offering to pick up the tab for dinner at an expensive restaurant if the prospect signs an application
B. offering to take your top five clients to an end of the year appreciation dinner
C. offering to reduce the annual premium by an amount equal to one half of the producers commission
D. offering a pair of tickets to a college football game in exchange for the purchase of a policy
B
Individual life insurance policies must include a provision entitling policyholders to a grace period for nonpayment of premiums during which time the death benefit remains in force. How long is the grace period?
A. 30 days
B. 90 days
C. 10 days
D. 1 year
A
If the Director suspends an insurers certificate of authority, the insurer:
A. may not have its license reinstated at the end of the suspension period
B. does not have to file annual statements during the suspension period
C. may service business already in force
D. may continue to write new business in Alaska
C
The insurance Director is
A. appointed by the Commissioner of Commerce, and Economic Development
B. elected by popular vote
C. appointed by the state senate
D. hired by the Insurance Division
A
What is the maximum civil penalty that may be assessed for a willful violation of the Insurance Code?
A. $1 million
B. $10,000
C. $250,000
D. $25,000
D
Insurance companies that transact business through unauthorized persons or companies may be fined up to
A. $2,000 per violation
B. $2,500 per violation
C. $500 per violation
D. $1,000 per violation
B
Which nonprofit association provides health insurance for individuals who are uninsured or denied adequate health insurance coverage?
A. Department of Commerce and Economic Development
B. Comprehensive Health Insurance Association
C. National Association of Insurance Commissioners
D. Alaska Health Insurance Guaranty Association
B
The benefits of a life insurance policy that the policyholder does not forfeit even if the policy lapses are called
A. policy loans provisions
B. reinstatement requirements
C. Nonforfeiture values
D. Accelerated benefits
C