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MN Life and Health Insurance Exam
Producer financial and compliant records must be kept on file for ____ years. -Correct Answer โ โ 6 years.
Premium refunds must be sent to insured within _____ days of the producer receipt from the insurer. -Correct Answer โ โ 5 days
Insurers: Policy forms, applications, and advertising must be retained for ____ years after the effective date. -Correct Answer โ โ 3 years
Insurers: Claim records must be retained for ____ years after the claim is paid or denied -Correct Answer โ โ 3 years
Insurers: must refund unearned premium to the insured within _____ days. -Correct Answer โ โ 30 days
Oral binders must be put into writing to the insured within _____ business days. -Correct Answer โ โ 5 days
The applicant has the right to challenge any erroneous information contained in the consumer report within ____ days -Correct Answer โ โ 30 days
Adverse information remains in a credit report for ____ years. Bankruptcy information remains in the credit report for ____ years. - Correct Answer โ โ 7 years, 10 years.
Free-look for life insurance -Correct Answer โ โ 10 days
Free look for life insurance replacements -Correct Answer โ โ 30 days
Individual life insurance policy grace period -Correct Answer โ โ 1 month
A life policy may be backdated up to ___ months before the application date. -Correct Answer โ โ 6 months
Former employees may continue coverage for up to ___ months after termination. -Correct Answer โ โ 18 months
To continue coverage for a child with disabilities, proof of the incapacity and dependency must be furnished to the insurer within ____ days of the child reaching the policies limiting age. -Correct Answer โ โ 31 days.
Medicare: The policy must cover a preexisting condition during the first _____ months of coverage if the insured was not diagnosed or treated for the particular condition during the ______ days immediately preceding the effective date of coverage. -Correct Answer โ โ 6 months, 90 days
Free-look for Medicare supplements -Correct Answer โ โ 30 days
Medicare: Renewal provision must be _________ or better (non- cancelable) -Correct Answer โ โ guaranteed renewable
"Guide to health insurance for people with medicare" must be given at time of _____ -Correct Answer โ โ Application
"Open enrollment" within _______ of enrolling in Medicare part B, and aging of 65 or older -Correct Answer โ โ 6 months
Penalty for violating medicare supplement laws -Correct Answer โ โ $5,
LTC: Policy holder must cover preexisting conditions during the first ______ months of coverage if the insured was not diagnosed or treated for the particular condition during the _______ days immediately preceding the effective date of coverage. -Correct Answer โ โ 6 months, 90 days
LTC: Renewal provision must be _______ or better (Non-cancelable) - Correct Answer โ โ Guaranteed renewable
"Shoppers guide to LTC" must be given BEFORE taking the _______ - Correct Answer โ โ Application
LTC: coverage may include a waiting (elimination period) of up to _____ days -Correct Answer โ โ 180 days
Penalty for violating long-term care insurance laws. -Correct Answer โ โ $10,
An HMO evidence of coverage myst be issued within _____ days of the effective date -Correct Answer โ โ 15 days
HMO must offer an annual open enrollment period of at least_____ days -Correct Answer โ โ 14 days
HMO premium grace period -Correct Answer โ โ 31 days
Free-look for individual HMO contracts -Correct Answer โ โ 10 days
Any health service plan corporation that violates any applicable law is subject to a civil penalty of no more than $______ per violation - Correct Answer โ โ $5,
Employee means an individual employed for at least _____ hours a week, but does not include individuals who work on a temporary, seasonal, or substitute basis. -Correct Answer โ โ 20 hours
Number of employees to qualify as a small business -Correct Answer โ โ 1 to 50
The commissioner may suspend or revoke a health carrier's license and impose a momentary penalty not to exceed $_______ for each violation of statute. -Correct Answer โ โ $25,
The commissioner examines each insurer every ___ Years. -Correct Answer โ โ 5 years
$____ fine per day if a person violates, aids, or abets a written cease and desist order -Correct Answer โ โ $10,
License fee may request a hearing within ____ days of commissioners order. After hearing request, Commissioner has ____ days to hold the hearing. -Correct Answer โ โ 30 Days, 30 days
All accident and health insurance policies must be filed with the commissioner at least ____ days prior to use -Correct Answer โ โ 60 days
License periods after the first licensing period are___ years -Correct Answer โ โ 2 years
A temporary insurance producer license may be issued for up to ___ days -Correct Answer โ โ 180 days
A licensee's time to notify the commissioner of address change is ___ days -Correct Answer โ โ 10 days
A license is suspended for any period of time no less than ___ months -Correct Answer โ โ 3 months`
A person who's license is revoked can reapply after ___ years. The producer must obtain a performance bond of at least _____ -Correct Answer โ โ 2 years, $20,
Commissioner may fine a producer up to ___ per violation -Correct Answer โ โ $10,
The insurer must fine notice of appointment within ___ days of first sale by the producer. -Correct Answer โ โ 15 days
An insurer that terminates an appointment must notify the commissioner within _____ days -Correct Answer โ โ 30 days
Within ____ days, the insurer must send written notice of the termination to the producer. -Correct Answer โ โ 15 days
Within ___ days after receiving notice of termination, the producer may file written comments concerning the termination with the commissioner -Correct Answer โ โ 30 days
The penalty for failing to appoint a producer is $____ per offense, and up to $____ maximum per unappointed producer -Correct Answer โ โ $25, $
The producer must notify the commissioner of any administrative action taken or criminal prosecution against the producer within ____ days -Correct Answer โ โ 30 days
A health carrier electing to cease doing business in the small employer market much notify the commissioner and each covered a small employer ____ days in advance. -Correct Answer โ โ 180 days
The health carrier cannot with a new business in the Minnesota small employer market for _____ years from the date of notification to the commissioner. -Correct Answer โ โ 5 years.
Exposure -Correct Answer โ โ Susceptibility to loss
Straight Deductible -Correct Answer โ โ Insured pays a certain amount of loss before insurer is required to make a payment.
Aggregate Deductible -Correct Answer โ โ Insured pays for all the losses until they exceed a certain amount.
Corridor Deductible -Correct Answer โ โ Applied between basic coverage and major medical coverage - bridges the gap.
Franchise Deductible -Correct Answer โ โ Requires insurer pay for an entire loss if the loss exceeds a certain dollar amount. Used with disability income policies and long term care.
Elimination Period Deductible -Correct Answer โ โ Used with disability income policies and long -term care.
Indemnity -Correct Answer โ โ Restoring insured to same financial position they were in before loss. Common exceptions include replacement cost (full value w/o depreciation), Valued policy (face amount of total loss regardless of actual cash value) and Pro- ratability (insurer will pay proportional share of the loss.)
Primary and Excess Indemnity -Correct Answer โ โ Primary insurer pays first, then once exhausted the excess insurer pays.
Coordination fo Benefits -Correct Answer โ โ When more than one group health insurance policy covers the same loss.
event of loss, insured promises to pay premiums and have truthful representations.
Unilateral Contract -Correct Answer โ โ Only one party makes a legally enforceable promise.
Contract of Adhesion -Correct Answer โ โ Insured must accept contract as is.
Aleatory Contract -Correct Answer โ โ An unequal value is exchanged between the parties.
Conditional Contract -Correct Answer โ โ Contract may be voided if polity conditions aren't met.
Property and Casualty Declarations -Correct Answer โ โ -Period coverage
-Policy limits
-Premium
Life and Health Declarations -Correct Answer โ โ -Parties of contract
-Policy limit
-Age of unaired at issuance date.
Insuring agreement -Correct Answer โ โ Named Peril: Policy only overs specifically listed perils
Open Peril: Policies cover all losses except those listed
Conditions -Correct Answer โ โ Duties and responsibilities of the insured and insurer
Endorsements -Correct Answer โ โ Modifications to a property or casualty policy must be in writing & are attached to the insurance
Riders -Correct Answer โ โ Modifications to life and health policy that must be in writing and attached to the policy.
Who must be licensed? -Correct Answer โ โ - Producers
- Insurance companies
- Managing general agent
Express Authority -Correct Answer โ โ Powers given to the agent per agency agreement
Implied Authority -Correct Answer โ โ Authority not given in the agency agreement, but necessary to complete functions allowed in the agency agreement.
1935 Agent Disclosure Law -Correct Answer โ โ Requires that producers tell potential clients
-Name
-Insurance Company
-and Intent to sell insurance
Fair Credit Reporting Act -Correct Answer โ โ When a credit report is ordered, applicant must be notified both verbally and in writing. Applicant has a right to request a copy of the report. Applicant has a right to challenge any of the info.
Gramm-Leach-Bliley Act -Correct Answer โ โ Companies to disclose their privacy policy and how a customers personal info may be used.
Required Conduct of agents -Correct Answer โ โ Producers may accept loans from clients, in writing, all records must be kept for at least 6 years after.
Decreasing Term -Correct Answer โ โ Premium remains level during the term, but death benefit decreases with time. (Like a mortgage)
Increasing Term -Correct Answer โ โ Death benefit AND premium increase over the term of coverage
