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Chapter 1 quiz questions 1-20 > State Life and Health Portion > Flashcards

State Life and Health Portion Flashcards

1
Q

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.

A

B

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2
Q

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.

A

C

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3
Q

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

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4
Q

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.

A

B

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5
Q

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

A

C

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6
Q

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

A

D

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7
Q

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

A

D

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8
Q

An independent adjuster trainee license is effective for how long?

A. 10 years

B. 3 months

C. 12 months

D. 3 years

A

C

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9
Q

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

A

C

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10
Q

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

A

C

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11
Q

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

A

D

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12
Q

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

A

B

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13
Q

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

A

D

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14
Q

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

A

B

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15
Q

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

A

B

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16
Q

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

A

D

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17
Q

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

A

C

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18
Q

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

A

C

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19
Q

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

A

B

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20
Q

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

A

B

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21
Q

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

A

D

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22
Q

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

A

C

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23
Q

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

A

B

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24
Q

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

A

B

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25
Q

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

A

B

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26
Q

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

A

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27
Q

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

A

C

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28
Q

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

A

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29
Q

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

A

D

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30
Q

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

A

B

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31
Q

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

A

B

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32
Q

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

A

C

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33
Q

The Director can suspend or revoke a license for all of the following reasons except:

A. the licensee forged a name on an insurance application

B. the licensee was found guilty of twisting

C. the licensee was convicted of a felony

D. the licensee did not complete the required number of transactions

A

D

34
Q

All individual life insurance policies must include an incontestability provision, stating that the validity of the policy cannot be contested (except for nonpayment of premiums) after:

A. the policyholder has paid more than $1,000 in premiums

B. it has been in force for 2 years

C. the insured dies

D. the insured turns age 65

A

B

35
Q

The Director may require insurers to renew appointments

A. every four years

B. biennially

C. annually

D. biannually

A

C

36
Q

The director can issue all of the following limited licenses without requiring an examination except:

A. credit insurance limited producer licenses

B. bail bond limited producer licenses

C. annuity limited producer licenses

D. title insurance limited producer licenses

A

C

37
Q

Regarding Medicare supplement policies, a preexisting condition extends how long before the effective date of coverage?

A. 90 days

B. 3 years

C. 30 days

D. 6 months

A

D

38
Q

An insurance company’s license to do business in Alaska is called:

A. a certificate of authority

B. a mutual benefit card

C. a notice of risk assignment

D. a license to solicit registration

A

A

39
Q

The policy loan interest rate on life insurance policies with fixed rates cannot exceed:

A. $1,000 for the life of the policy

B. 8% per year

C. $500 per year

D. 15% per year

A

B

40
Q

An insurer formed under the laws of Alaska is known as

A. an alien insurer

B. a foreign insurer

C. a stock insurer

D. a domestic insurer

A

D

41
Q

All of the following people can be granted a temporary agent’s license except:

A. an employee of a licensed producer who becomes disabled

B. a resident applicant for an insurance producers license

C. the surviving spouse of a deceased producer

D. the designee of a licensed producer who enters active service in the U.S. armed forces

A

B

42
Q

What is the minimum age to be licensed as an insurance producer?

A. 21 years

B. 18 years

C. there is no minimum age, but applicants must pass the licensing examination

D. 25 years

A

B

43
Q

All medicare supplement policies must be:

A. guaranteed renewable

B. cancellable

C. renewable until age 65

D. renewable at the option of the insurer

A

A

44
Q

The Director can examine the accounts and assets of all of the following except:

A. a surplus lines insurance broker

B. an advertising agency that creates advertising for insurers domiciled in Alaska

C. a life insurer licensed in Alaska

D. an applicant for a certificate of authority to transact insurance in Alaska

A

B

45
Q

All of the following can be required before a policy loan is made except:

A. the policy must have a cash surrender value

B. premiums must have been paid for 3 full years

C. the policy must be pledged as security

D. the policyowner must have an acceptable credit rating

A

D

46
Q

Which of the following is not eligible to obtain a temporary producer’s license?

A. the next of kin of a producer who has become disabled

B. the surviving spouse of a producer who is deceased

C. the designee of a licensed producer who enters active military service

D. the employee of a producer who is taking an extended leave of absence

A

D

47
Q

Who administers the laws that relate to insurance in Alaska?

A. insurance producers

B. National Association of Insurance Commissioners

C. Alaska legislature

D. Director of Insurance

A

D

48
Q

Which of the following is covered by Alaska Insurance Guaranty Associations?

A. a reinsurance policy issued without an assumption certificate

B. the part of a policy that is not guaranteed by the insurer

C. a term life insurance policy issued by an insurer domiciled in Alaska

D. a life insurance policy issued in Alaska by a member insurer that, at the time of issue, did not hold a license in Alaska

A

C

49
Q

The insurance Director may do all of the following except:

A. issue certificates of authority and licenses

B. rewrite insurance laws at any time

C. examine books and records of companies and individuals

D. issue cease and desist orders

A

B

50
Q

If more than 50% of an insurance producer’s total commissions come from insurance written on the producer’s family, the producer is primarily participating in:

A. controlled business

B. coercion

C. group insurance

D. rebating

A

A

51
Q

According to Alaska insurance law, a life insurance policy must contain all of the following except:

A. license number of the producer

B. time when the insurance takes effect

C. risks that are insured against

D. title and brief description of the policy

A

A

52
Q

Any insurance policy or rider designed to provide coverage for at least 12 consecutive months for medically necessary preventive, therapeutic, rehabilitative, or personal care in a setting other than an acute care unit of a hospital is a:

A. long term care insurance policy

B. blanket health policy

C. credit health policy

D. medicare supplement policy

A

A

53
Q

At what age is a minor considered to be competent enough to receive a death benefit of up to $3,000 without a guardian?

A. 16 years

B. 18 years

C. 20 years

D. 14 years

A

A

54
Q

When conducting examinations, the Director has the authority to do all of the following except:

A. require the production of books and papers

B. administer oaths

C. subpoena witnesses

D. criminally prosecute licensees

A

D

55
Q

How often must the director examine the affairs of all domestic insurance companies?

A. only when questions arise concerning the financial condition of an insurer

B. every 3 years

C. every 5 years

D. every year

A

B

56
Q

All of the following statements about variable contracts are correct except:

A. they cannot include projections of past investment experience into the future

B. they must provide a 30 day grace period for any overdue payments

C. they must contain a statement explaining that the dollar amount will vary according to actual investment

D. they cannot include a reinstatement provision

A

D

57
Q

Which of the following individuals must take the written examination to receive a license:

A. Tina, an applicant for a life insurance producer license who held the same license last year in Alaska

B. Stan, an applicant for a license to sell annuities only

C. Jill, an applicant for a limited license

D. Bob, an applicant for a temporary license

A

B

58
Q

Agent Mahoney offers to refund her client’s first premium payment in exchange for the purchase of an insurance policy. Agent Mahoney is guilty of

A. misrepresentation

B. rebating

C. twisting

D. nothing, this is not considered an unfair marketing practice

A

B

59
Q

Which one of the following does not need to be licensed to transact business in Alaska?

A. the manager of a firm licensed as an insurance producer

B. the customer service representative who works in an insurers office

C. surplus lines insurance brokers

D. reinsurance intermediary managers

A

B

60
Q

Which of the following does a broker represent in an insurance transaction?

A. policyowner

B. insurance producer

C. state of alaska

D. insurer

A

A

61
Q

How many years experience in insurance administration functions must an applicant have within the last 10 years to qualify for a managing general agent license?

A. three years

B. nine years

C. one year

D. five years

A

A

62
Q

All of the following are required provisions of an individual life insurance contract except:

A. entire contract

B. reinstatement clause

C. grace period

D. conservation clause

A

D

63
Q

Which type of insurer is organized under the laws of a state other than Alaska?

A. domestic insurer

B. foreign insurer

C. national insurer

D. alien insurer

A

B

64
Q

Which of the following is not an unfair trade practice?

A. financing premiums

B. offering advantages in dividends that were not specified in the policy

C. making derogaroty statements

D. rebating premiums

A

A

65
Q

The duration of a temporary license is:

A. 90 days

B. 1 year

C. 1 month

D. 6 months

A

A

66
Q

Which of the following statements about Alaska’s continuing education requirement is correct?

A. at least half of the required number of hours must be related to the subject of ethics

B. self-study correspondence courses may be used to complete the continuing education requirement if they are approved by the Director

C. if a licensee has accumulated more credit hours than required, the excess hours may not be carried over to the next license period

D. Nonresident licensees must complete the required number of continuing education hours

A

B

67
Q

A surplus lines broker must

A. maintain an errors and ommissions insurance policy if required by the director

B. have a college degree

C. be at least 25 years old

D. have at least 3 years experience during the last 5 years working as an insurance producer

A

A

68
Q

In Alaska, all of the following individuals must be considered health care providers except:

A. nurse midwives

B. chiropractors

C. osteopaths

D. dental technicians

A

D

69
Q

Which one of the following is not a duty of the Director of Insurance?

A. making regulations to help carry out the provisions of the Alaska insurance title

B. issuing certificates of authority to transact insurance business in Alaska

C. writing the Alaska insurance laws

D. conducting hearings

A

C

70
Q

Trainee insurance producers must do all of the following except:

A. pass the Alaska insurance laws and regulations section of the producer examination within 4 months after the trainee license becomes effective

B. pass the general knowledge section of the producer examination within 8 months after the trainee license becomes effective

C. complete a baccalaureate degree at a 4 year college

D. work under the supervision of the employing licensee

A

C

71
Q

Credit union group life insurance policies must cover at least how many members at the date of issue?

A. 10 members

B. 100 members

C. 25 members

D. 5 members

A

C

72
Q

All insurance companies doing business in Alaska must file a statement of their financial condition with the director by:

A. March 2

B. April 15

C. February 2

D. April 2

A

A

73
Q

Group health policies must provide how much coverage for treatment of alcoholism or drug abuse?

A. lifetime benefits of at least 100,000

B. no minimum coverage is required

C. full coverage for all treatment in a licensed facility

D. at least $14,495 over two consecutive benefit years

A

D

74
Q

Violating Alaska’s insurance producer licensing requirements can be punished by all of the following except:

A. nonrenewal of the license

B. up to 2 years license suspension

C. civil penalty equal to the compensation paid to the licensee per each violation

D. up to $25,000 civil penalty for each willful violation

A

B

75
Q

All of the following provisions must be included in individual health insurance policies issued in Alaska except:

A. notice of claim

B. reinstatement

C. grace period

D. home health care

A

D

76
Q

Which of the following statements about the conversion provision in group life insurance is correct?

A. it allows the employee to convert coverage to an individual life insurance policy

B. the employee must provide evidence of insurability to convert to an individual life insurance policy

C. the employee must complete an individual policy application and pay the first premium within 6 months after the termination date

D. conversion provisions are optional in group life insurance policies

A

A

77
Q

Which of the following appointments does not need to be filed with the director at least ten days before the license takes effect?

A. an admitted insurer appointing a managing general agent

B. a domestic reinsurer appointing a reinsurance intermediary manager

C. an admitted insurer appointing an insurance producer as its agent

D. a managing general agent appointing an insurance producer as its subagent

A

C

78
Q

What is an authorized insurer?

A. an agent who has the authority to represent an insurance company

B. a company that is authorized by the director to transact insurance business in alaska

C. an agent who is authorized by the director to transact business in Alaska

D. a policyholder who has a legal contract with an insurance company

A

B

79
Q

Which of the following statements about long term care insurance policies is correct?

A. they generally provide 24 months or less of coverage

B. they must have a 30 day free look period

C. they can be canceled because of the insured’s physical condition

D. they must contain a provision establishing a new waiting period if the existing coverage is converted and benefits are decreased

A

B

80
Q

Which of the following is not a mandatory provision in a group life insurance policy?

A. policy loans provision

B. 31 day grace period

C. misstatement of age of provision

D. incontestability provision

A

A

Chapter 1 quiz questions 1-20 (15 decks)

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