Chapter 19 The Big One!!! Laws

1. Twisting is BEST described as

Maing a fakse written or oral statement for th

Option 2

Option 3

Option 4

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.

Explanation

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.

2. According to the Affordable Care Act, any plan in existence prior to which date is considered a grandfathered plan?

March 23, 2010

March 23, 2011

March 23, 2012

March 23, 2013

According to the Affordable Care Act, any plan in existence prior to March 23, 2010 is considered a grandfathered plan.

Explanation

According to the Affordable Care Act, any plan in existence prior to March 23, 2010 is considered a grandfathered plan.

3. 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?

Notice Regarding Replacement

Replacing insurer's financial statements

Buyer's Guide

Policy Summary

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.

Explanation

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.

4. 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?

63 days

6 months

12 months

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.

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.

5. Tim's individual life insurance policy has just recently lapsed. His policy may be reinstated at any time within ___ year(s).

1

2

3

4

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.

Explanation

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.

6. Long-term care insurance applications MUST contain plain and unambiguous health questions. The exception to this rule would be applications for

Inflation riders

Guaranteed issue

Nonguaranteed issue

Secondary issue

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.

Explanation

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.

7. Every producer licensed in SC must notify the Director within __ days of any change of address.

15

20

25

30

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.

Explanation

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.

8. If a health insurance claim is not promptly paid, legal action may be taken against the insurer after

30 days from the date proof of loss is furnished

60 days from the date proof of loss is furnished

90 days from the date proof of loss is furnished

3 years from the date proof of loss is furnished

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.

Explanation

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.

9. When must a claim on a life insurance policy be paid after proof of loss has been received by the insurer?

Immediately

Within 30 days

Within 60 days

Within 90 days

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.

Explanation

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.

10. An eligible employee can be excluded from a group health coverage for up to __ months if he/she is considered a "late enrollee."

6

12

18

24

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.

Explanation

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.

11. A licensed producer MUST be ___ by an insurer tom be eligible for soliciting insurance contracts.

Admitted

Approved

Authorized

Appointed

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.

Explanation

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.

12. SC requires that a licensee completes __ hours of continuing education on the subject of ethics every reporting period

1

2

3

4

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.

Explanation

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.

13. A life insurance REPLACEMENT transaction gives the policyowner the right to return the policy for a 100% refund within __ days of policy delivery.

7

10

20

30

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.

Explanation

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.