MA LAWS AND RULES INSURANCE EXAM
QUESTIONS AND ANSWERS 100%
CORRECT!
, If a producer willfully violates a Mass Unfair Trade Practice law, what is the MAX
administrative penalty for each violation - ANSWER $1,000
in order to determine an accelerated life insurance benefit, which of the following is
considered an activity of daily living? - ANSWER to be eligible to receive long-term care
benefits, an insured must be unable to perform at least 2 activities of daily living (ADLs)
due to a loss of functional capacity or severe cognitive impairment... eating is
considered an act of daily living
when an insured under a group life insurance plan in Mass elects the conversion option,
the new policy is issued - ANSWER within the conversion period
The business of life settlements may include all of the following except:
a) conversion of Term Life insurance contracts
b) effectuating life settlement contracts
c) procuring life settlement contracts
d) tracking life settlement contracts - ANSWER conversion of term life insurance
contracts
a transaction in which a new life insurance policy is purchased and an existing life
insurance policy is surrendered is called - ANSWER replacement
What is a certificate of authority - ANSWER In order to conduct insurance business all
licensees must obtain a Certificate of Authority (CA) directly with an insurance
company(s).
The grace period for a life insurance policy with an annual premium is usually how many
days - ANSWER 30 days
When the superintendent believes a producer has violated the law, the superintendent
has the authority to - ANSWER issue a cease and desist order against the producer
During the first two years a life insurance policy is in force, the insurer may contest a
policy for all of the following reasons except:
a) misstatement of age in the application
b) material misrepresentation in the application
c) fraud in the purchase of the policy
d) material concealment in the purchase of a policy - ANSWER misstatement of age in
the application
QUESTIONS AND ANSWERS 100%
CORRECT!
, If a producer willfully violates a Mass Unfair Trade Practice law, what is the MAX
administrative penalty for each violation - ANSWER $1,000
in order to determine an accelerated life insurance benefit, which of the following is
considered an activity of daily living? - ANSWER to be eligible to receive long-term care
benefits, an insured must be unable to perform at least 2 activities of daily living (ADLs)
due to a loss of functional capacity or severe cognitive impairment... eating is
considered an act of daily living
when an insured under a group life insurance plan in Mass elects the conversion option,
the new policy is issued - ANSWER within the conversion period
The business of life settlements may include all of the following except:
a) conversion of Term Life insurance contracts
b) effectuating life settlement contracts
c) procuring life settlement contracts
d) tracking life settlement contracts - ANSWER conversion of term life insurance
contracts
a transaction in which a new life insurance policy is purchased and an existing life
insurance policy is surrendered is called - ANSWER replacement
What is a certificate of authority - ANSWER In order to conduct insurance business all
licensees must obtain a Certificate of Authority (CA) directly with an insurance
company(s).
The grace period for a life insurance policy with an annual premium is usually how many
days - ANSWER 30 days
When the superintendent believes a producer has violated the law, the superintendent
has the authority to - ANSWER issue a cease and desist order against the producer
During the first two years a life insurance policy is in force, the insurer may contest a
policy for all of the following reasons except:
a) misstatement of age in the application
b) material misrepresentation in the application
c) fraud in the purchase of the policy
d) material concealment in the purchase of a policy - ANSWER misstatement of age in
the application
