Name: Score:
53 Multiple choice questions
Term 1 of 53
How long does the pre-existing condition exclusion last?
up to 12 months
up to 6 months
up to 24 months
up to 36 months
Term 2 of 53
What is the maximum fine imposed by the Commissioner on a suspended Producer for their first
offense?
up to $7500
up to $5000
up to $20000
up to $1000
Term 3 of 53
proof of loss provision
insurer will waive the premium if the insured is disabled
- insurance remains in force
insured must give insurer written proof of loss within 90 days
lets an insurer cancel the policy at any time with 45 days' notice
requires the insurer to give claim forms to the insured within 15 days
,Term 4 of 53
cancellation provision
the insurer can cancel the policy at any time by giving written notice
- insurer must refund any advanced premiums paid
- allow for premium increases
requires the insurer to give claim forms to the insured within 15 days
period after a loss before benefits begin
**usually appears in disability insurance and long-term care insurance
lets an insurer cancel the policy at any time with 45 days' notice
Definition 5 of 53
gives the insurer the right to have the insured take a physical exam when a claim has been filed
- common with disability income claims
guaranteed issue policy terms
physical examination and autopsy provision
coverage for pre-existing conditions
waiver of medical history requirements
, Term 6 of 53
insuring clause
the insurer's promise to pay a benefit if a certain event occurs
- describes the type and scope of coverage
- defines terms used in the policy
- states the conditions under which the policy will pay a benefit
one that isn't certified to do business in a state
**ONLY THROUGH SURPLUS LINES INSURANCE CAN A NON-ADMITTED insurer transact
business
- enforcing and administering all laws pertaining to insurance
- make rules and regulations to help administer insurance code
- conduct examinations, administer oaths, question licensees, and issue subpoenas
assures the policyowner that the insurer will not cancel the policy but may increase
premiums BUT they must increase for all policies in that class issued in state
**usually guaranteed renewable until the insured reaches age 65
** standard in medical expense insurance policies and long-term care policies
Term 7 of 53
conditionally renewable
guarantees that the policy can renew coverage BUT the policyowner must meet certain
conditions
- insurer CAN increase premiums
the insurer cannot cancel the policy or increase the premium
- present the greatest risk to the insurer
- more expensive than others
funds a buy-sell agreement if an owner or partner is totally disabled
- premiums are not tax-deductible and benefits are not taxable income
lets an insurer cancel the policy at any time with 45 days' notice
53 Multiple choice questions
Term 1 of 53
How long does the pre-existing condition exclusion last?
up to 12 months
up to 6 months
up to 24 months
up to 36 months
Term 2 of 53
What is the maximum fine imposed by the Commissioner on a suspended Producer for their first
offense?
up to $7500
up to $5000
up to $20000
up to $1000
Term 3 of 53
proof of loss provision
insurer will waive the premium if the insured is disabled
- insurance remains in force
insured must give insurer written proof of loss within 90 days
lets an insurer cancel the policy at any time with 45 days' notice
requires the insurer to give claim forms to the insured within 15 days
,Term 4 of 53
cancellation provision
the insurer can cancel the policy at any time by giving written notice
- insurer must refund any advanced premiums paid
- allow for premium increases
requires the insurer to give claim forms to the insured within 15 days
period after a loss before benefits begin
**usually appears in disability insurance and long-term care insurance
lets an insurer cancel the policy at any time with 45 days' notice
Definition 5 of 53
gives the insurer the right to have the insured take a physical exam when a claim has been filed
- common with disability income claims
guaranteed issue policy terms
physical examination and autopsy provision
coverage for pre-existing conditions
waiver of medical history requirements
, Term 6 of 53
insuring clause
the insurer's promise to pay a benefit if a certain event occurs
- describes the type and scope of coverage
- defines terms used in the policy
- states the conditions under which the policy will pay a benefit
one that isn't certified to do business in a state
**ONLY THROUGH SURPLUS LINES INSURANCE CAN A NON-ADMITTED insurer transact
business
- enforcing and administering all laws pertaining to insurance
- make rules and regulations to help administer insurance code
- conduct examinations, administer oaths, question licensees, and issue subpoenas
assures the policyowner that the insurer will not cancel the policy but may increase
premiums BUT they must increase for all policies in that class issued in state
**usually guaranteed renewable until the insured reaches age 65
** standard in medical expense insurance policies and long-term care policies
Term 7 of 53
conditionally renewable
guarantees that the policy can renew coverage BUT the policyowner must meet certain
conditions
- insurer CAN increase premiums
the insurer cannot cancel the policy or increase the premium
- present the greatest risk to the insurer
- more expensive than others
funds a buy-sell agreement if an owner or partner is totally disabled
- premiums are not tax-deductible and benefits are not taxable income
lets an insurer cancel the policy at any time with 45 days' notice
