Colorado Life & Health Insurance Exam

$100 - answer-All group and individual health plans issued in Colorado that provide coverage for hospital, surgical, or medical expenses must cover diabetes, including equipment, supplies, and, when administered by a professional diabetes expert, outpatient self-management training and education. This includes how much $ for a 30-day insulin supply? $3,000 - answer-The Commissioner may assign penalties in addition to those authorized by law, including: fine the producer up to $? for the violation. $3,000; $30,000 - answer-If, after a hearing, the Commissioner finds that someone has engaged in an unfair method of competition, deceptive act or practice, or has violated any other rules or laws, they may impose a civil fine up to ____ per unintentional violation and up to a maximum of _________ for all unintentional violations. $750,000 - answer-The maximum penalty for a knowing violation of an unfair trade practice is: 1-3% - answer-Disability insurance is typically what percentage of someone's income? 102% - answer-COBRA states that with continuation of coverage, employers may require a former employee or their surviving spouse to pay up to 102% of the premium. 12 months - answer-Long-term care insurance is any insurance policy designed to provide coverage for not less than ___ consecutive months. 14 days - answer-Employees must be notified of their right to continue coverage within ___ days of a qualifying event. The employee or the beneficiary must notify the employer within 60 days if they elect to continue coverage. 15-year policy - answer-Which of the following term life insurance policies would have the highest 1st-year annual premium, all other factors being equal? 5-year 10-year 15-year 18 months - answer-In Colorado, continuation coverage must be provided for a long-term employee for up to ________ from the termination of employment. 180 days - answer-At least how many days in advance must an insurer give an insured notice of non-renewal for a health plan? 90 days 180 days 60 days 30 days 20 - answer-Employers with ___ + employees are required to offer COBRA for up to 18 months after an employee is terminated. 24 - answer-How many credit hours of continuing education must a Colorado producer complete every license renewal period? 3 - answer-With regard to an individual health policy issued in Colorado, an insured has ________ years to take legal action to recover benefits. 3 months - answer-All individual health benefit plans issued to policyholders that receive federal subsidies under the ACA must contain a provision for a grace period of: 3 years - answer-With regard to an individual health policy issued in Colorado, an insured has ________ years to take legal action to recover benefits -- in other words, how long, typically, is the reinstatement period from policy lapse? 3-month - answer-All individual health benefit plans issued for policyholders that receive federal subsidies under the Affordable Care Act must contain a provision that the policyholder is entitled to a ___ month grace period beginning the first month premium has not been received, as long as the policyholder has previously paid at least 1 full month's premium during the current benefit year. 30 days - answer-If a producer is the subject of criminal prosecution in any jurisdiction, the producer must report to the Commissioner after the initial pretrial hearing date within what time period? 10 days 30 days 60 days 90 days 30 days for electronic; 45 days for paper - answer-With a clean claim, the insured has ? days for paying or denying electronic and ? days for paper claims. 5 years - answer-Every ____ years, a licensed insurer must be examined by the state commissioner. 6 months - answer-In Colorado, Medicare Supplement policies may exclude or limit pre-existing conditions for up to: 60 days - answer-The special enrollment period states that following a triggering/qualifying event, a carrier must provide a special enrollment period of ____ days. 60 days, up to 3 years - answer-No one may take action to recover benefits under a health insurance policy: Until at least 60 days after the insurer has received written proof of loss; No more than 3 years after the written proof of loss is required to be submitted 60% - answer-In loss ratio, the LTC policy benefits will be deemed reasonable in relation to premiums if the expected loss ratio is at least _____ % 7-pay test - answer-A limitation of the total amount that can be paid into a policy in the first 7 years. 90 days - answer-In Colorado, if a claim submitted for payment of health care expenses is not clean, it must be paid, denied, or settled within: 90-day - answer-To help avoid unintentional lapse, an LTC policy must allow the policyholder to designate a third party to receive notification if the policy is about to lapse for nonpayment of premium. It must also provide a _______ - day reinstatement period after lapse for nonpayment of premium for policyholders who have a cognitive impairment. A) Diabetes must be covered, including equipment, supplies, and outpatient self-management training and education - answer-In Colorado, how is diabetes covered on health plans that provide coverage for hospital, surgical, or medical expenses? A) Diabetes must be covered, including equipment, supplies, and outpatient self-management training and education B) Coverage is not required for diabetes, equipment, supplies, or outpatient self-management training education C) Coverage is at the discretion of the health plan carrier D) Coverage must be purchased in the form of a rider A) The insured can return the policy within 15 days for a full refund - answer-All life insurance policies issued in Colorado must contain a prominent notice that states that: A) The insured can return the policy within 15 days for a full refund B) The policy is nonrefundable C) The policy can be returned only under a set of specific circumstances D) The insured can return the policy within 30 days for a partial refund ACA - answer-Colorado Supplement to the Summary of Benefits and Coverage Form is required by the ________ to distribute to Colorado employers. Accidental Death Benefit Rider - answer-doubles the face amount of life insurance if death occurs as a result of an accident Actuarial Value (AV) - answer-____________ is the percentage of total average costs for covered benefits that a plan will cover, with calculations based on the provision of essential health benefits to a standard population. This is calculated by using the publicly available calculator developed by the U.S. Department of Health and Human Services. Add a term rider - answer-Q has an ordinary straight whole life insurance policy for $100,000. Due to a change in circumstances, Q finds that there is now a need for more coverage, but the budget is not sufficient for another similar policy. What can Q do to satisfy the need for additional coverage at a low price? Additional compensation - answer-May be paid when the producer provides additional services, such as underwriting or administrative services, on behalf of an insurance company. This compensation made be paid by a parent company, affiliate, or a third-party Adverse selection - answer-What is a major concern for Underwriters, especially during the open enrollment period? At least 50 hours of an approved course including 3 hours of ethics - answer-Each person applying for an insurance license in Colorado must complete at least ___ hours of an approved course, including ___ hours of ethics. Automatic Premium Loan - answer-Allows the insurer to borrow from the cash value to pay unpaid premium after grace period expires. It makes sure that the policy does not lapse. B - Publicly-held corporations - answer-A buy-sell agreement can be used in all of the following businesses, except: A - A partnership B - Large publicly held corporations C - A sole proprietorship D - Closed corporation stockholders B) An individual who has an interest that arises only from the death of the individual insured - answer-Which of the following individuals would not qualify as having an insurable interest in the insured? A) A stepchild of the insured B) An individual who has an interest that arises only from the death of the individual insured C) An individuals who is a beneficiary under a designated beneficiary agreement D) A trustee of a trust Before the service is provided. - answer-When is commission disclosure required for health policies issued in Colorado? breast cancer and prostate screenings - answer-Which two screenings must be covered under Colorado group health insurance plans? Cash value > premiums paid - answer-The cost recovery rule is the difference between ___ and ___ ? Certificate of Authority - answer-The Commissioner will issue which of the following to all insurance companies that have complied with Colorado laws therefore authorizing them to do business? Class - an