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A comprehensive set of questions and answers for the minnesota life and health insurance exam. it covers various aspects of insurance regulations, including policy retention periods, premium refunds, consumer rights, and specific requirements for life, health, medicare, and long-term care insurance. The q&a format is ideal for exam preparation and knowledge reinforcement.
Typology: Exams
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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
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