LOUISIANA LAWS AND RULES HEALTH QUIZ WITH VERIFIED ANSWERS (TESTED BY EXPERTS) 2024 UPDAT, Exams of Insurance law

Download LOUISIANA LAWS AND RULES HEALTH QUIZ WITH VERIFIED ANSWERS (TESTED BY EXPERTS) 2024 UPDAT and more Exams Insurance law in PDF only on Docsity! LOUISIANA LAWS AND RULES HEALTH QUIZ WITH VERIFIED ANSWERS (TESTED BY EXPERTS) 2024 UPDATE A Louisiana insurance producer solicits a life insurance policy. In the event of a controversy between the insured and the company, the producer is considered to represent the insured beneficiary company policyholder - ✔✔company When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT give the applicant a Notice Regarding Replacement of Life Insurance give the applicant the original or a copy of the proposals used in the sales presentation obtain the beneficiary's signature on a summary of all policies to be replaced submit to the producer's insurance company a copy of the Notice Regarding Replacement of Life Insurance signed by the applicant - ✔✔obtain the beneficiary's signature on a summary of all policies to be replaced Each policy of life insurance shall contain a provision that a grace period shall be allowed within which the payment of any premium after the first may be made. The standard grace period shall be 15 days 30 days 45 days 60 days - ✔✔30 days In order to qualify for a company convention, an insurance producer agrees to pay the first quarterly premium for the applicant for new insurance. This is called a gift rebate loan cost of doing business - ✔✔rebate When may a producer first solicit insurance? When licensed by the Insurance Commissioner After registering for the insurance exam When appointed by an insurer At any time - ✔✔When appointed by an insurer In order to solicit insurance, an individual MUST achieve all of the following EXCEPT Life Insurance Producer License Long Term Care Insurance Producer License Casualty Insurance Producer License Health Insurance Producer License - ✔✔Health Insurance Producer License Which is true about the licensing of business entities in Louisiana? A separate license is issued for each line of insurance A licensed producer must be designated as responsible for compliance with state insurance laws and regulations Business entities handling only commercial lines need NOT be licensed No licensing is necessary as long as all producers active within the business entity are properly licensed - ✔✔A licensed producer must be designated as responsible for compliance with state insurance laws and regulations In a health insurance contract, changes may be made: Only when approved in writing by an officer of the insuring company Only when approved by the producer Only if the insured does so within five years from the date of issue Only if the insured provides evidence of insurability - ✔✔Only when approved in writing by an officer of the insuring company An application for individual health insurance must be: Verbal In writing, and can be altered by the producer In writing, and normally becomes part of the contract In writing, but does not become part of the contract - ✔✔In writing, and normally becomes part of the contract In general practice, which statement is true of the powers of the Commissioner of Insurance with respect to access to a producer's business records? Records can only be accessed by an order of a state court Authorization must come from the National Association of Insurance Commissioners (NAIC) Records must be produced upon the request of the Commissioner to the producer The Commissioner has no right to access a producer's business records because of privacy considerations - ✔✔Records must be produced upon the request of the Commissioner to the producer Under which circumstances must a producer's insurance business records be provided to the Louisiana state Insurance Commissioner? Only by an order of a state court By authorization of the National Association of Insurance Commissioners Upon request of the Commissioner Under no circumstances due to privacy considerations - ✔✔Upon request of the Commissioner Under Louisiana standards for marketing long-term care coverage, all of these are prohibited sales practices EXCEPT Twisting Replacing existing coverage High pressure tactics Cold lead advertising - ✔✔Replacing existing coverage Agreements made by terminally ill persons to sell their life insurance policies at a discount in order to pay medical expenses are called Repurchase agreements Viatical settlements Nonforfeitures Living wills - ✔✔Viatical settlements Proceeds of the viatical settlement contract could be subject to the claims of Creditors Children Spouse A producer must complete one accredited college course each year A producer must meet specified course requirements within a two-year period A producer who has a four-year degree in insurance is exempt from continuing education requirements - ✔✔A producer must meet specified course requirements within a two-year period After a producer's license has been suspended or revoked, how long before he/she can apply for reinstatement? 1 year 3 years 5 years 7 years - ✔✔1 year How many hours of continuing education must insurance producers who sell life policies usually complete before they can renew their licenses? 10 hours 16 hours 24 hours Continuing education is encouraged but not required - ✔✔24 hours A Medicare Supplement policy cannot deny claims for losses occurring more than how long after the effective date of coverage because of a pre-existing condition? 3 months 6 months 12 months 18 months - ✔✔6 months Which of the following statements about long-term care insurance is CORRECT? A long-term care policy may require prior hospitalization before the policyowner qualifies for benefits in a skilled nursing facility Individual long-term care policies must contain a 10-day free look period Individual long-term care policies must contain a renewability provision on the first page of the policy Insurers may cancel or decline to renew long-term care policies because of the insured's age or mental health - ✔✔Individual long-term care policies must contain a renewability provision on the first page of the policy