Xcel Laws and Rules Pertinent to Insurance Exam {50 Questions and Answers}, Exams of Insurance Economics

Download Xcel Laws and Rules Pertinent to Insurance Exam {50 Questions and Answers} and more Exams Insurance Economics in PDF only on Docsity! Xcel Laws and Rules Pertinent to Insurance Exam {50 Questions and Answers} 1. What must an agent sign when an existing Life Insurance policy is being reissued with a reduction in cash value? Policy Summary Buyer's Guide Affidavit Notice Regarding Replacement of Life Insurance or Annuity: answer- Notice Regarding Replacement of Life Insurance or Annuity 2. Which of these circumstances requires an agent to make reasonable efforts to obtain information concerning the suitability of an annuity? Agent helps a client with the purchase of an annuity Agent sets up sales appointment Agent purchases advertisement regarding a new annuity product Agent helps a client with the purchase of an annuity: answer- Agent helps a client with the purchase of an annuity 3. Life Insurance coverage will frequently contain an Accelerated Benefits rider attached to the policy. What would be considered a "qualifying event " under these riders? Seasonal unemployment Short- term Disability Medical condition resulting in a significantly- shortened lifespan Divorce: answer- Medical condition resulting in a significantly- shortened lifespan 4. J the agent makes false statements to a perspective client about the project- ed dividends for a policy. J may be found guilty of: Defamation Misrepresentation Subrogation Twisting: answer- Misrepresentation 5. Which of the following is the requirement for an individual to perform the duties of an insurance agent? 2 / 9 10. Which of the following will happen if a licensed resident insurance agent moves to another state? Agent will need to forfeit residual commissions in the home state Agent's license shall terminate immediately Agent automatically qualifies for a license in the new state Agent remains a resident agent for another 12 months in the original state of licensure: Agent's license shall terminate immediately 11. Which of the following does COBRA allow a terminated employee to re- ceive? Continued health coverage at no cost Continued coverage in group health plan Continued coverage for the spouse of the employee only Continued coverage without administrative fee: Continued coverage in group health plan 12. Which of the following would be a valid reason for the state of Virginia to deny an insurance agent license? Felony Conviction Traffic violation misdemeanor Residing in Virginia for less than 120 days Sharing commissions with another licensed insurance agent: Felony Convic- tion 13. Each Long Term Care policy sold in Virginia must include a Free Look provision that refunds all prey within days of policy delivery. 15 30 60 90: 30 14. If an agent has not completed the continuation education requirement by November 30, final opportunity to complete this requisite extended to June 30 every odd year March 1 every even year January 31 every off year December 31 every even year: December 31 every even year 15. In Virginia, Long-Term Care insurance Must offer inflation protection to applicant May exclude dementia treatment May not exclude benefits for alcoholism Does not require a free look period: Must offer inflation protection to applicant 19. Unfair discrimination is BEST described as Charging a different rate for someone in the same actuarial class Charging a different policy rate for a 60 year old individual and a 30 year old individual Requiring physical exams for all employees to be covered by a company's insurance policy Converting group term coverage to an individual whole life policy after the insured as reached attained age of 50: Charging a different rate for someone in the same actuarial class 20. A licensed business entity acting as an insurance agent MUST Notify the Bureau of Insurance of any fictitious name used Report commissions to the Bureau of Insurance Complete continuing education requirements every 5 years Have been conducting business in Virginia for 3 years: Notify the Bureau of Insurance of any fictitious name used 21. An agent charged an insurance applicant an administration fee. At what point must the agent give a written disclosure for this fee? Prior to any services being rendered Within 20 days after delivery of the policy Within 45 days after delivery of the policy Prior to the sales appointment: Prior to any services being rendered 22. Which of these organizations approves continuation courses in Virginia? National Association of Insurance and Financial Advisors (NAIFA) Virginia Department of Education Virginia Insurance Continuing Education Board National Association of Continuing Education (NACE): Virginia Insurance Con- tinuing Education Board 23. With whom may an agent share commissions with? A licensed claims adjuster A licensed agent with the same license type An insurance company underwriter Anyone the agent deems appropriate: A licensed agent with the same license type 24. If an existing Accident and Health policy is being replaced with a new policy, the decision to replace should NOT be based on: Waiting periods Commission to be paid Exclusions and limitations Underwriting requirements: Commission to be paid for which the employer is qualified The terms of insurer's provider agreements: The terms of insurer's provider agreements 31. Which of these policies does NOT require a policy loan provision? Whole life Universal life Term life Variable life: Term life 32. Which of these statements accurately reflects Virginia law regarding life insurance advertisements? An insurance agency is responsible for advertisements placed by its insur- ance agents The commission must approve advertisements before they are used Testimonials may not be used Guaranteed dividends may be advertised: An insurance agency is responsible for advertisements placed by its insurance agents 33. The Rules Governing Advertisement of Life Insurance and Annuities were created to provide: Consumers with a choice of life insurance providers Full disclosure to the public of all material and relevant information Emergency services Pre-existing conditions: Elective cosmetic surgery 37. The Affordable Care Act (ACA) provides health coverage to dependents up to the age of 18 21 26 28: 26 38. An agent must notify the Bureau within days of an address change. 15 30 45 60: 30 39. Which of the following items are governed by the rules governing adver- tisement of Life Insurance and Annuities? Intra- company communications relating to insurance product development Employer announcements notifying employees about the availability of group insurance Prepared sales presentations used by insurance agents Insurance company announcements to policyholders about premiums adjust- ments: Prepared sales presentations used by insurance agents 46. Which of the following is a requirement to be eligible for a group life policy in Virginia? Group must be formed for a purpose other than obtain insurance Group must designate one of its members to be the named insured Group must have been formed for obtaining insurance Group must include at least five employers: Group must be formed for a purpose other than obtain insurance 47. Which type of coverage is exempt to the rules pertaining to senior- specific certifications and professional designations? Annuities Title insurance Life insurance Long-term care: Title insurance 48. A client would like to purchase an annuity from an agent. The agent does NOT need to make reasonable efforts to obtain information from client on which of the following? Client's financial status Client's tax status Client's marital status Client's investment objectives: Client's marital status 49. Who issues Medicare Supplement policies? Insurance companies Medicare Medicaid Federal Government: Insurance companies 50. An agent has influenced a policy-owner to convert an existing whole life policy to reduced paid up insurance. The agent then sells the policy owner a new universal life policy. This transition is called a(n) Misrepresentation Asset rollover Replacement Conversion: Replacement