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50 Xcel Laws and Rules Pertinent to
Insurance Comprehensive Questions
Which of the following does the commissioner of insurance NOT have the authority to examine its business records? Insurers Agents Brokers Policyholders - โ โ Policyholders A long term care policy issued in Virginia must provide coverage for at LEAST 6 months 12 months 18 months 24 months - โ โ 12 months Individual life insurance policies can charge no more than ____ interest per year on cash value loans 8% 10% 12% 14% - โ โ 8%
Which of the following is a requirement to be eligible for a group life policy in Virginia? Group must be formed for a purpose other than obtain insurance Group must designate one of its members to be the named insured Group must have been formed for obtaining insurance Group must include at least five employers - โ โ Group must be formed for a purpose other than obtain insurance Which type of coverage is exempt to the rules pertaining to senior- specific certifications and professional designations? Annuities Title insurance Life insurance Long-term care - โ โ Title insurance A client would like to purchase an annuity from an agent. The agent does NOT need to make reasonable efforts to obtain information from client on which of the following? Client's financial status Client's tax status Client's marital status Client's investment objectives - โ โ Client's marital status Who issues Medicare Supplement policies?
Agent remains a resident agent for another 12 months in the original state of licensure - โ โ Agent's license shall terminate immediately Which of the following does COBRA allow a terminated employee to receive? Continued health coverage at no cost Continued coverage in group health plan Continued coverage for the spouse of the employee only Continued coverage without administrative fee - โ โ Continued coverage in group health plan Which of the following would be a valid reason for the state of Virginia to deny an insurance agent license? Felony Conviction Traffic violation misdemeanor Residing in Virginia for less than 120 days Sharing commissions with another licensed insurance agent - โ โ Felony Conviction Each Long Term Care policy sold in Virginia must include a Free Look provision that refunds all prey within _________days of policy delivery. 15 30 60 90 - โ โ 30
If an agent has not completed the continuation education requirement by November 30, final opportunity to complete this requisite extended to June 30 every odd year March 1 every even year January 31 every off year December 31 every even year - โ โ December 31 every even year In Virginia, Long-Term Care insurance Must offer inflation protection to applicant May exclude dementia treatment May not exclude benefits for alcoholism Does not require a free look period - โ โ Must offer inflation protection to applicant According to the Rules governing advertisement of life insurance and annuities, an agent may NOT take which if the following actions during a sales presentation? Asking for referrals Comparing another insurance company's policy Mentioning guaranteed policy dividends Comparing the cost of two similar policies - โ โ Mentioning guaranteed policy dividends
Converting group term coverage to an individual whole life policy after the insured as reached attained age of 50 - โ โ Charging a different rate for someone in the same actuarial class A licensed business entity acting as an insurance agent MUST Notify the Bureau of Insurance of any fictitious name used Report commissions to the Bureau of Insurance Complete continuing education requirements every 5 years Have been conducting business in Virginia for 3 years - โ โ Notify the Bureau of Insurance of any fictitious name used An agent charged an insurance applicant an administration fee. At what point must the agent give a written disclosure for this fee? Prior to any services being rendered Within 20 days after delivery of the policy Within 45 days after delivery of the policy Prior to the sales appointment - โ โ Prior to any services being rendered Which of these organizations approves continuation courses in Virginia? National Association of Insurance and Financial Advisors (NAIFA) Virginia Department of Education Virginia Insurance Continuing Education Board
National Association of Continuing Education (NACE) - โ โ Virginia Insurance Continuing Education Board With whom may an agent share commissions with? A licensed claims adjuster A licensed agent with the same license type An insurance company underwriter Anyone the agent deems appropriate - โ โ A licensed agent with the same license type If an existing Accident and Health policy is being replaced with a new policy, the decision to replace should NOT be based on: Waiting periods Commission to be paid Exclusions and limitations Underwriting requirements - โ โ Commission to be paid An accident and health insurance applicant who fails to include material medical information on an application would be reason for the insurer to: Offer different insurance products Reduce the insurance agents commission deny any future claims and refund the premium Pay claims and reduce the premium - โ โ deny any future claims and refund the premium
Payment of Claims provision Other insurance provision Waiver of Premium provision - โ โ Payment of Claims provision Which of the following is information that an Insurer is NOT expected to provide to an employer when offering health coverage to an employee? The provisions relating to renewability of coverage The provisos relating to exclusions The benefits and premiums available under all health insurance coverage for which the employer is qualified What must an agent sign when an existing Life Insurance policy is being reissued with a reduction in cash value? Policy Summary Buyer's Guide Affidavit Notice Regarding Replacement of Life Insurance or Annuity - โ โ Notice Regarding Replacement of Life Insurance or Annuity Which of these circumstances requires an agent to make reasonable efforts to obtain information concerning the suitability of an annuity? Agent helps a client with the purchase of an annuity Agent sets up sales appointment Agent purchases advertisement regarding a new annuity product
Agent helps a client with the purchase of an annuity - โ โ Agent helps a client with the purchase of an annuity Life Insurance coverage will frequently contain an Accelerated Benefits rider attached to the policy. What would be considered a "qualifying event " under these riders? Seasonal unemployment Short-term Disability Medical condition resulting in a significantly- shortened lifespan Divorce - โ โ Medical condition resulting in a significantly- shortened lifespan J the agent makes false statements to a perspective client about the projected dividends for a policy. J may be found guilty of: Defamation Misrepresentation Subrogation Twisting - โ โ Misrepresentation Which of the following is the requirement for an individual to perform the duties of an insurance agent? Be bonded and insured Reside in the state for 1 year Be duly licensed Keep an annual sales quota - โ โ Be duly licensed
Which of these policies does NOT require a policy loan provision? Whole life Universal life Term life Variable life - โ โ Term life Which of these statements accurately reflects Virginia law regarding life insurance advertisements? An insurance agency is responsible for advertisements placed by its insurance agents The commission must approve advertisements before they are used Testimonials may not be used Guaranteed dividends may be advertised - โ โ An insurance agency is responsible for advertisements placed by its insurance agents The Rules Governing Advertisement of Life Insurance and Annuities were created to provide: Consumers with a choice of life insurance providers Full disclosure to the public of all material and relevant information Consumer with a comparison of the AM Best rating of Virginia insurance companies A summary of insurance advertising language for consumers - โ โ Full disclosure to the public of all material and relevant information
A health insurer in Virginia may NOT discontinue coverage in which of the following situations? Failure to pay premium Insured engaged in fraud Insured no longer resides in the service area Insured's health status has declined - โ โ Insured's health status has declined If an administration fee is charged by an agent, the customer's written signature is REQUIRED only if the fee is greater than a month's premium Only if the fee is authorized by an officer of the insurer Only if the fee is greater than 5% of the premium In every occurrence - โ โ In every occurrence Which of the following coverages does NOT need to be provided under the Affordable Care Act(ACA) Preventative services as set by the CMS Elective cosmetic surgery Emergency services Pre-existing conditions - โ โ Elective cosmetic surgery The Affordable Care Act (ACA) provides health coverage to dependents up to the age of
An agent offers an applicant something of value not mentioned in the contract as an inducement to purchase an insurance policy. This illegal act is called coercion Rebating Sliding Sobrogation - โ โ Rebating In order for an individual to receive commissions from an insurance company for services as an agent, the individual MUST be: Licensed Licensed and appointed At least 21 years old A resident of Virginia for 2 years - โ โ Licensed and appointed Health Maintenance Organization (HMO) MUST Be licensed to operate in only one state Be operated by a fully accredited hospital Be federally funded Require its providers must be under contract or employment - โ โ Require its providers must be under contract or employment
