Louisiana Insurance Questions and Answers with Verified Solutions

Louisiana Insurance Questions and Answers with Verified Solutions If a producer has been engaged in an administrative action by any governmental agency, within how many days following the final deposition must the producer report the action to the Commissioner? 30 days 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 30 days All of the following are considered to be fraud EXCEPT collecting a charge for insurance that is less than the charge applicable to that insurance In order to solicit insurance, an individual MUST achieve all of the following EXCEPT be at least 21 years of age When must a claim on a life insurance policy be paid after proof of loss has been received by the insurer? promptly Where on the policy form should individual long-term care insurance policies contain an appropriate captioned renewability provision? On the first page What is a condition for which medical advice or treatment was recommended by or received from a provider of health care service within six months preceding the effective date of an individual long-term care policy? Pre-existing condition All of the following services typically are considered maternity care in a health maintenance organization (HMO) EXCEPT: Well-baby care A nonresident of Louisiana who has satisfied the licensing requirements for a line of insurance in the licensee's state and who wishes to sell that line of insurance in Louisiana, must meet all of the following requirements EXCEPT: Take the appropriate Louisiana licensing examination Which of the following are considered viatical settlement providers in Louisiana? Licensed entities entering multiple agreements with terminally ill patients Before an insurance company may sell insurance in Louisiana, the company must: Secure a certificate of authority from the Department of Insurance When replacing individual health insurance, a producer should compare existing benefits with the proposed new policy to determine if: Existing benefits would be maintained under the new plan An application for individual health insurance must be: In writing, and normally becomes part of the contract The Louisiana Life and Health Insurance Guaranty Association was established to protect consumers in the event of an insurer's Insolvency An insurance producer is one who may do all of the following EXCEPT Underwrite insurance contracts How soon after the beginning of a loss must written notice of claim be presented under individual health insurance? 20 days When a life insurance policy is replaced, the applicant must sign a notice regarding replacement of life insurance provided by the Producer at the time of application for the replacement policy A viatical settlement contract is an agreement between A life insurance policy owner and a viatical settlement provider When a small employer health insurance plan is offered, it must be available To all eligible employees who apply What must the insurer provide to certificate holders when a group Medicare Supplement insurance policy is terminated and not replaced? An offer of conversion to individual coverage Under Louisiana standards for marketing long-term care coverage, all of these are prohibited sales practices EXCEPT Replacing existing coverage When an accident and health insurance policy provision is in conflict with the statutes of Louisiana, it is Amended to conform to the minimum statutory requirements A life insurance policy becomes incontestable after it has been in force for 2 years A licensee whose name or address changes must notify the Commissioner within 30 days A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered is called replacement If a producer chooses to conduct business under an assumed name, when must notification be given to the Commissioner? Prior to using the assumed name To receive an insurance license an applicant must Apply for the license after passing the appropriate examination After a producer's license has been suspended or revoked, how long before he/she can apply for reinstatement? 1 year A group life policy terminates a class of participants. To qualify for an individual policy, an employee must do which of the following? Have been insured at least 5 years Family group health and accident insurance policies can cover children until age 26 if the children are unmarried, full-time students An insurance producer who convinces a prospective insured to purchase a policy by exaggerating the benefits of the policy may be found guilty of misrepresentation An insurance producer is BEST defined as a person who has a contract with an insurance company to represent it When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT obtain the beneficiary's signature on a summary of all policies to be replaced All of the following actions are considered rebating EXCEPT sharing commissions with other licensed and appointed agents Replacing an existing life insurance policy with a new one may result in a surrender charge The life insurance buyer's guide includes information about all of the following EXCEPT how to take civil action against an insurer How are health plans classified according to the Affordable Care Act? Bronze, Silver, Gold, Platinum As classified by the Affordable Care Act (ACA), a Silver Plan offers 70% actuarial level of coverage provided In Louisiana, who is primarily responsible for determining the appropriateness of a Medicare Supplement policy for a proposed insured? The producer who solicits the application A producer is required to give an applicant for long-term care An outline of coverage A health insurance policy covers the insured, the insured's spouse, and their child. If additional children are born to the family, the health insurance policy must cover the children from the date of birth Which type of Medicare Supplement information can be used without prior state approval? government publications In Louisiana, when an individual is covered under a small employer's accident and health plan, the pre-existing conditions exclusion period may be partially or wholly satisfied by having creditable coverage with a previous employer When an insured under a group life insurance plan in Louisiana elects the conversion option, the new policy is issued without requiring evidence of insurability G had recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an individual policy? 31 days An insurable interest in each other's lives may exist in absence of an economic interest when the individuals are Marriage partners What is Louisiana's REQUIRED grace period for a life insurance policy? 30 days An insurer operating in the U.S. but headquartered outside the U.S. is an alien insurer In order to act as an insurance producer, a business entity must do which of the following? Obtain an insurance producer license What happens if the insurer discovers that the insured's age was accidentally misstated on an application for an individual life insurance policy? Benefits will be calculated according to how much coverage the premium paid would have purchased for the correct age Life insurance policies can refuse to pay benefits for death from all of the following causes of death EXCEPT heart attack A child's inclusion in a family health insurance policy begins at birth A producer who is licensed in Louisiana but resident in another state is called a nonresident producer 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 company The life insurance and annuity replacement regulation defines replacement as exchanging an existing policy for a new policy An insurer, in general business practice, fails to promptly provide a reasonable explanation for the denial of a claim. This is considered to be an unfair claim settlement practice In the health insurance policy, when should the written notice of claim be given to the insurer? Within 20 days after the occurrence or commencement of any loss covered by the policy Which is true about the licensing of business entities in Louisiana? A licensed producer must be designated as responsible for compliance with state insurance laws and regulations A nonresident of Louisiana who has satisfied the licensing requirements for a line of insurance in the licensee's state and who wishes to sell that line of insurance in Louisiana, must meet all of the following requirements EXCEPT: Take the appropriate Louisiana licensing examination