Chapter 19 The Big One!!! Laws
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Questions and Answers
- 1.
SC requires that a licensee completes __ hours of continuing education on the subject of ethics every reporting period
- A.
1
- B.
2
- C.
3
- D.
4
Correct Answer
C. 3Explanation
The correct answer is 3 because SC requires a licensee to complete 3 hours of continuing education on the subject of ethics every reporting period. This ensures that licensees stay updated on ethical practices and standards in their profession, promoting professionalism and ethical behavior in their work.Rate this question:
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- 2.
A licensed producer MUST be ___ by an insurer tom be eligible for soliciting insurance contracts.
- A.
Admitted
- B.
Approved
- C.
Authorized
- D.
Appointed
Correct Answer
D. AppointedExplanation
To be eligible for soliciting insurance contracts, a licensed producer must be "appointed" by an insurer. This means that the insurer has officially designated the producer as their representative to sell their insurance policies. Being appointed signifies that the producer has met the necessary qualifications and requirements set by the insurer, ensuring that they are authorized to sell and service insurance policies on behalf of the company.Rate this question:
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- 3.
An eligible employee can be excluded from a group health coverage for up to __ months if he/she is considered a "late enrollee."
- A.
6
- B.
12
- C.
18
- D.
24
Correct Answer
C. 18Explanation
An eligible employee can be excluded from a group health coverage for up to 18 months if he/she is considered a "late enrollee." This means that if an employee does not enroll in the group health coverage within the specified timeframe, they may be subject to a waiting period of up to 18 months before they can join the coverage.Rate this question:
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- 4.
According to the Affordable Care Act, any plan in existence prior to which date is considered a grandfathered plan?
- A.
March 23, 2010
- B.
March 23, 2011
- C.
March 23, 2012
- D.
March 23, 2013
Correct Answer
A. March 23, 2010Explanation
According to the Affordable Care Act, any plan in existence prior to March 23, 2010 is considered a grandfathered plan.Rate this question:
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- 5.
If a health insurance claim is not promptly paid, legal action may be taken against the insurer after
- A.
30 days from the date proof of loss is furnished
- B.
60 days from the date proof of loss is furnished
- C.
90 days from the date proof of loss is furnished
- D.
3 years from the date proof of loss is furnished
Correct Answer
B. 60 days from the date proof of loss is furnishedExplanation
If a health insurance claim is not promptly paid, legal action may be taken against the insurer after 60 days from the date proof of loss is furnished. This means that the policyholder has a period of 60 days to wait for the insurer to pay the claim before they can take legal action. It is important for insurance companies to process and pay claims in a timely manner to avoid potential legal consequences.Rate this question:
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- 6.
A life insurance REPLACEMENT transaction gives the policyowner the right to return the policy for a 100% refund within __ days of policy delivery.
- A.
7
- B.
10
- C.
20
- D.
30
Correct Answer
D. 30Explanation
In a life insurance replacement transaction, the policyowner is given the option to return the policy for a full refund within a certain number of days after it is delivered. In this case, the correct answer is 30 days, indicating that the policyowner has a month to review the policy and decide if they want to keep it or return it for a refund.Rate this question:
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- 7.
Long-term care insurance applications MUST contain plain and unambiguous health questions. The exception to this rule would be applications for
- A.
Inflation riders
- B.
Guaranteed issue
- C.
Nonguaranteed issue
- D.
Secondary issue
Correct Answer
B. Guaranteed issueExplanation
Guaranteed issue is the exception to the rule that long-term care insurance applications must contain plain and unambiguous health questions. Guaranteed issue means that the insurance company is required to issue a policy to the applicant regardless of their health status or pre-existing conditions. In these cases, the application does not need to include health questions as the insurance company cannot deny coverage based on health.Rate this question:
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- 8.
Tia the producer is recommending to a prospect that an existing life insurance policy be replaced with a new one from her insurer. If this transaction moves forward, which of the following does NOT need to be provided to the prospect at or before the policy is derived?
- A.
Notice Regarding Replacement
- B.
Replacing insurer's financial statements
- C.
Buyer's Guide
- D.
Policy Summary
Correct Answer
B. Replacing insurer's financial statementsExplanation
The replacing insurer's financial statements do not need to be provided to the prospect at or before the policy is derived. The Notice Regarding Replacement is required to inform the prospect about the replacement of the existing policy. The Buyer's Guide is a document that provides information about life insurance policies and helps the prospect make an informed decision. The Policy Summary provides details about the terms and conditions of the policy. However, the replacing insurer's financial statements are not necessary for the prospect in this transaction.Rate this question:
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- 9.
When must a claim on a life insurance policy be paid after proof of loss has been received by the insurer?
- A.
Immediately
- B.
Within 30 days
- C.
Within 60 days
- D.
Within 90 days
Correct Answer
B. Within 30 daysExplanation
After proof of loss has been received by the insurer, a claim on a life insurance policy must be paid within 30 days. This means that the insurance company is obligated to process the claim and provide the payment within a month of receiving the necessary documentation and evidence of the loss. This ensures that beneficiaries receive the payout in a timely manner and can access the funds they are entitled to.Rate this question:
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- 10.
If a Medicare Supplement policy replaces another that had been in effect for at least 6 months, the replacing policy may impose which of the following time exclusions for pre-existing conditions?
- A.
0 months (the replacing policy may not impose any time period exclusions for pre-existing conditions as long as there was no gap in coverage for more than 63 days)
- B.
63 days
- C.
6 months
- D.
12 months
Correct Answer
A. 0 months (the replacing policy may not impose any time period exclusions for pre-existing conditions as long as there was no gap in coverage for more than 63 days)Explanation
If a Medicare Supplement policy replaces another policy that had been in effect for at least 6 months, the replacing policy may not impose any time period exclusions for pre-existing conditions as long as there was no gap in coverage for more than 63 days. This means that if there was continuous coverage with the previous policy for at least 6 months and there was no gap in coverage for more than 63 days, the new policy cannot impose any waiting period for pre-existing conditions.Rate this question:
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- 11.
Tim's individual life insurance policy has just recently lapsed. His policy may be reinstated at any time within ___ year(s).
- A.
1
- B.
2
- C.
3
- D.
4
Correct Answer
C. 3Explanation
Tim's individual life insurance policy may be reinstated at any time within 3 years. This means that even though the policy has lapsed, Tim still has a window of 3 years to reinstate it without having to reapply for a new policy. After this period, the policy may no longer be reinstated and Tim would have to apply for a new policy if he wants life insurance coverage.Rate this question:
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- 12.
Every producer licensed in SC must notify the Director within __ days of any change of address.
- A.
15
- B.
20
- C.
25
- D.
30
Correct Answer
D. 30Explanation
Every producer licensed in SC must notify the Director within 30 days of any change of address. This means that if a producer changes their address, they are required to inform the Director within a month. This is likely to ensure that the Director has up-to-date information on the location of all licensed producers in SC.Rate this question:
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- 13.
Twisting is BEST described as
- A.
Maing a fakse written or oral statement for th
- B.
Option 2
- C.
Option 3
- D.
Option 4
Correct Answer
A. Maing a fakse written or oral statement for thExplanation
Twisting is best described as making a false written or oral statement for the purpose of deceiving or misleading someone. This involves intentionally distorting the truth or providing misinformation in order to manipulate a situation or gain an advantage. It is a form of dishonesty and can have serious consequences in various contexts such as legal proceedings, business transactions, or personal relationships.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
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Feb 11, 2020Quiz Created by
Kernsshanice