Which of the following is an example of defamation?
A brochure including an untrue statement regarding a competitor's ability to pay claims
A truthful
... [Show More] estimate of the dividends
A pamphlet listing a competitor's financial rating
A verbal statement of a competitor's complaint ratio - Answer- A brochure including an untrue statement regarding a competitor's ability to pay claims
Which of the following is an example of rebating?
offer of temporary insurance coverage
cancellation of an insurance policy without cause
sale of mass-marketed insurance products
returning a portion of a premium as inducement to purchase insurance - Answer- returning a portion of a premium as inducement to purchase insurance
Which of the following is a duty of the Commissioner?
Setting insurance rates
Writing insurance laws
Setting sales quotas
Reviewing and approving license applications - Answer- reviewing and approving license applications
A license is deemed to be used for controlled business if during any 12-month period
the licensee wrote more than 10 policies on controlled business
the licensee wrote policies totaling more than $25,000 on controlled business
the licensee's total premiums on controlled business made up more than 25% of his total premiums
the licensee's total premiums on controlled business exceeded the total premiums on all other business - Answer- the licensee's total premiums on controlled business exceeded the total premiums on all other business
In Colorado, which of the following is true regarding the commingling of an insured's funds with the funds of the producer?
It is never okay
It is okay with the insurer's written approval
It is okay if records are kept on the transaction
It is okay with the insured's written approval - Answer- it is never okay
Who is not eligible to receive commissions from the sale of an insurance product?
Corporate executive
General agent
Licensed home office employee
Personal producer - Answer- corporate executive
Which of the following is an example of a misrepresentation?
Making malicious statements about an insurer
Describing a universal life policy as a security
Returning a portion of a premium as inducement to purchase insurance
Failing to affirm or deny coverage of claims within a reasonable time - Answer- describing a universal life policy as a security
An insurer that terminates a producer's appointment must inform the Commissioner within how many days?
45
55
15
30 - Answer- 30
In Colorado, all of the following are considered unfair trade practices EXCEPT
coercion
rebating
replacement
misrepresentation - Answer- replacement
A fiduciary responsibility is defined as
a relationship of special trust and confidence when a person is entrusted with another's funds
the responsibility of the insured to pay premiums in a timely fashion
the responsibility the producer has to the appointing insurer
the relationship between the broker and the insurer whose products are sold - Answer- a relationship of special trust and confidence when a person is entrusted with another's funds
Circulation of a maliciously critical statement about an insurer's financial condition meant to damage the insurer's reputation or business is called
defamation
unfair discrimination
conservation
coercion - Answer- defamation
Which information is NOT included in the Colorado Supplement to the Summary of Benefits and Coverage form?
Covered cancer screenings
Deductibles
Insurer's prior year financials
Balanced billing - Answer- insurer's prior year financials
How long must a replacing insurer maintain the records of a replacement transaction?
5 years
4 years
2 years
3 years - Answer- 5 years
From what point must the insurer pay interest on the proceeds of a death claim?
Date claim is postmarked
Date of death
Date insurer is notified of the death claim
Date claim is received by insurer - Answer- date of death
Ultimately, who is responsible for a producer-generated advertisement?
The Department of Insurance
Producer
Insurer
Life and Health Guaranty Association - Answer- insurer
If an insurance company wishes to discriminate rates based on gender, it must
receive prior approval from the Department of Insurance
be justified by actuarial statistics
allow for no more than a 10% rate difference
disclose the rate difference on the application - Answer- be justified by actuarial statistics
As a condition to be approved for a loan, a creditor may require the borrower to
obtain an insurance policy through the lender
obtain an insurance policy for more than the loan amount
obtain an insurance policy through an insurer of lender's preference
obtain an insurance policy through an insurer of the borrower's preference - Answer- obtain an insurance policy through an insurer of the borrower's preference
All of the following penalties apply to anyone giving intentional false testimony during an insurance examination EXCEPT
imprisonment up to three months
guilty of a misdemeanor
guilty of a felony
fine of up to $5,000 - Answer- guilty of a felony
All of the following are considered a form of advertisement EXCEPT
newspapers
communication or materials used within an insurer's own organization
free lunch seminars
telemarketing scripts - Answer- communication or materials used within an insurer's own organization
If a producer completes an insurance application, collects the initial premium, and issues the appropriate receipt,
coverage will be contingent upon the insurer's underwriting policies
coverage will begin 14 days after the free-look period
coverage will begin when the policy is delivered
coverage will begin the day of application - Answer- coverage will be contingent upon the insurer's underwriting policies
When a claim has been denied, the insurer must
issue a statement to the policyowner explaining the coverage, provision, or laws on which denial was based
cancel the policy
notify the producer
refund all paid premiums - Answer- issue a statement to the policyowner explaining the coverage, provision, or laws on which denial was based
A producer that only sells insurance to family members is said to be engaging in
personal business
domestic business
family business
controlled business - Answer- controlled business
Renewing a producer's license requires __ hours of continued education every 2 years.
24
36
12
18 - Answer- 24
Which of the following offers an insurance applicant the right to review the contract and receive a full refund?
Elimination period
Refund period
Free-look period
Probation period - Answer- free-look period
An producer who violates a cease and desist order may, after a hearing, be fined up to
$750
$1000
$500
$250 - Answer- 500
A producer license may be suspended or revoked if the producer is found to be engaging in
replacement
converting a term life policy to a whole life policy
selling with a nonresident license
misrepresentation - Answer- misrepresentation
If a producer chooses to conduct business under an assumed name, when must notification be given to the Commissioner?
No notice is required
At the time of license renewal
No later than 30 days after using the assumed name
Prior to using the assumed name - Answer- prior to using the assumed name
Paying insurance premiums on a more frequent basis will cause the policy to have
lower premiums
graded premiums
average premiums
higher premiums - Answer- higher premiums
A verbal or written statement which misleads a policy's features, benefits, or coverage is considered
coercion
rebating
misrepresentation
defamation - Answer- misrepresentation
Upon request, when must the Colorado Supplement to the Summary of Benefits and Coverage Form be provided?
Within 30 business days
Within 7 business days
Within 15 business days
Within 10 business days - Answer- within 7 business days
Which of the following is NOT required to be disclosed to an applicant for health insurance?
Any change to the standard compensation
Standard compensation schedule for the product being sold
Any contingent compensation received
The insurance producer will receive a commission from the carrier - Answer- Any contingent compensation received
In regards to maternity care, which of the following is not required to be covered in the State of Colorado?
Standard newborn circumcision
Injuries or sickness
Congenital defects
Birth abnormalities - Answer- standard newborn circumcision
In Colorado, what is required to be covered in individual and group medical expense policies?
Epilepsy
Accidental death
In vitro fertilization
Diabetes - Answer- diabetes
Which of the following is NOT a required provision for an accident and health policy?
Insurance with other insurers
Reinstatement
Grace period
Incontestable - Answer- insurance with other insurers
A health insurer may exclude medical coverage for any claims that result from
skydiving
snow-skiing
off-highway vehicle riding
snowmobiling - Answer- skydiving
T calls to file a claim on his health insurance policy. Within how many days must the insurer provide T's proof of loss forms?
15 days
20 days
10 days
30 days - Answer- 15 days
When an employee's coverage terminates under a group health policy, the employee must be offered continuation coverage for
18 months
180 days
60 days
365 days - Answer- 18 months
Which of the following coverage exclusions or limitations is permitted under a long-term care policy issued in Colorado?
Alzheimer's disease
Preexisting conditions
Senile dementia
Parkinson's disease - Answer- pre-existing conditions
All accident and health policies issued in Colorado that provide major medical services must offer policyholders the opportunity to purchase
supplemental coverage
home health care coverage
double indemnity coverage
disability coverage - Answer- home health care coverage
The primary difference between the Colorado Partnership LTC policy and other LTC policies is
longer lifetime benefits
Medicaid asset protection
higher daily benefits
optional inflation protection - Answer- medical asset protection
An insurer can deny a claim under a long-term care insurance policy for any material misrepresentation made by the insured if it has been in effect for
fewer than 6 months
no more than 2 years
at least 1 year
more than 6 months - Answer- fewer than 6 months
Which of the following documents are NOT required to mention the Colorado Fraud Statute?
Claim forms
Certificates of authority
Policies
Applications - Answer- certificates of authority
If an insurer is authorized to conduct busines [Show Less]