Connecticut Insurance Test 2021

Which of the following is condisered to be an example of unfair restraint of competition?
 
Sliding
Subrogation
Coercion
Defamation

Which of the following must clearly be illustrated in ALL sales material for market value adjusted annuities?

The market value adjustment must always be approved by the Commissioner

The market value adjustment is always downward

The market value adjustment is always upward

The market value adjustment can be either upward or downward

A producer's license may only be suspended or revoked if the producer

has been afforded a right to a hearing

has engaged in replacement of an existing policy

filed for bankruptcy

did not meet a sales quota

Which of the following situations would qualify an insured to receive funds from an accelerated (living) benefit rider?

Insured is expected to remain in a nursing home for life

Insured has entered a substance abuse facility

Insured has declared bankruptcy

Insured is recovering from a broken leg

A(n) ____________ is a licensee who charges a fee for contracted insurance advisory services.

advisor
adjuster
producer
consultant

An example of an Unfair Claims Settlement Practice is

Making it mandatory that proof of loss be provided for each claim

Requiring a time limit for submitting claims

Failing to promptly investigate and settle legitimate claims

Paying claims in a timely matter

What is the actuarial value of a bronze level health plan?

60
70
80
90

An insured's statement of a policy's benefits which is to be used in marketing materials is called a(n)

advertisement
testimony
promissory warranty
guaranty

A temporary license may be issued to which of the follwoing?

Employee of a retired producer

Person who purchases a producer's existing business

Person who wishes to sell insurance to family members for a short tiie interval 

Employee of a disabled producer

Which of the following causes of disability is NOT covered under Connecticut workers compensation laws?

Falling down on the job

Illness caused by job conditions

Strokes that occur on the job

Intentional, self-inflicted injuries that occur at the worksite

When an insurer markets its Medicare Supplement products in Connecticut, which method is acceptable?

Advertising the insurer's guaranty association coverage

Using methods of intimidation and coercion

Replacing an existing policy with one that has greater benefits

Using old lead advertising

Which of these is NOT considered a Federal punishment for unfair and deceptive insurance practices?

Prison sentence
Revocation of license
Monetary fine
Community service

All of these are used to prevent adverse selection a group dental plan EXCEPT

Provide evidence of insurability

Probationary period

Waiting period

Decreased employee participation

How can a group dental insurer discourage adverse selection?

Allow pre-existing conditions
Eliminate deductibles and coinsurance
Extend open enrollment period
Limit the duration of coverage

In Connecticut, the Human Immunodeficiency Virus (HIV) consent form

must direct all positive test results to the Commissioner

must be signed by the beneficiary

must disclose who will be receiving a copy of the test results

must describe the types of tests to be implemented

A television advertisement features a health insurance product that is endorsed by a specific group.  In this advertisement, 

the compensation amount must be disclosed

the group must be approved by the Better Business Bureau

any control by the insurer over this group must be disclosed 

the group's officer must be listed

Which of the following is considered to be a prosthodontic dental procedure?

Filling
Root canal
Bridgework
Teeth cleaning

The free look period provided in life insurance policy is usually

10 days
31 days
45 days
60 days

Why does Connecticut require insurers to maintain a minimum level of assets?

To justify its AM Best Rating
For transparency reasons
To comply with the NAIC
To demonstrate insurer solvency

Which of the following is NOT information needed to determine the suitability of annuity recommendation? 

Annual income
Age
Financial objectives
Level of education

To be classified as a small employer in Connecticut, an employer must employ how many eligible employees?

1 to 10
1 to 25
1 to 50
1 to 75

In Connecticut, continuing education courses must be approved by the 

Attorney General
Department of Education
Commissioner
NAIC

If a live insurance applicant is shown future premiums are to be paid out of non-guaranteed values, the illustration used in the sales presentation MUST

be signed and notarized by the Commissioner

disclose that premium payments are guaranteed to be permanently forfeited by the insurer

be given the insured within 10 days after the policy delivery

disclose that premium payments may need to be resumed depending on actual results

Charging different premiums to policyholders in the same risk classification is referred to as

unfair discrimination
rebating
twisting
misrepresentation

According to the Affordable Care Act (ACA), insurers can no longer deny health coverage due to pre-existing conditions unless that plan is a(n)

Grandfathered plan
Accident plan
Individual plan
Group plan

A(n) ______ insurer writes business in a state other than the one in which it is domiciled.

foreign
reciprocal
nonadmitted
alien

According to federal fraud and false statements regulation what is required for a prohibited person to transact insurance business in this state?

Completing twenty-four hours of ethic education

Completing three years of community service

Written consent from the U.S. Attorney General

Written consent from the state insurance regulatory agency

Insurance crimes which affect interstate commerce are prosecuted by the 

US Attorney General
Governor
FBI
Department of Homeland Security

Licensed producers in Connecticut are authorized to

rate coverages
approve coverages
solicit, receive, and forward applications to the insurer
classify rates

An insurance applicant has made a false statement on the application that will affect the insurer's decision on whether or not to issue the policy.  This false statement is considered to be a(n)

irrelevant representation
immaterial representation
material misrepresentation
consensual representation

After conducting a hearing, the Commissioner is empowered to issue a cease and desist order.  A violation of such an order is punishable by monetary fine not to exceed

$5,000
$10,000
$25,000
$50,000

Which of the following is NOT a valid cause for termination of an employee's group health coverage? 

The coinsurance limit has been exceeded

The master policy has been terminated

Employment has been terminated

No monetary contributions made by the employee

A producer is holding a meeting with a potential client about replacing an existing group health insurance policy.  The topic that should be included in the conversation is

the producer's commission on the sale

a comparison of benefits between the current and proposed plans

waiving all policy clauses

a detailed analysis of each company's AM Best rating

James the producer has sold a life insurance contract to a client without using an illustration, even though his insurer offers one. For this particular transaction, the applicant

must sign a statement that no illustration was provided
will be automatically declined for coverage
is not guaranteed the terms of the contract
is entitled to monetary compensation

Which of these is NOT a standard provision in qualified long-term care policies sold in Connecticut?

30-day free look period

Guaranteed renewability

Prior hospitalization

Provide minimum coverage for 12 consecutive months

Mentally or physically handicapped dependent children MUST be convered under an individual health insurance policy

for life
until age 21
until age 26
until they become self-supporting

A life insurance policyowner sells her policy to a third party in a life settlement.  Under this transaction, the policyowner

must pay income taxes on the full amount received
receives an amount more than the policy's death benefit
receives the policy's full death benefit
receives an amount less that n the policy's death benefit

Any administrate action taken against a producer MUST be reported to the Commissioner within ____ days after the final disposition.

20
30
40
50

The Commissioner is empowered to perform each of the following acts EXCEPT

Monitor insurer solvency

Make rules and regulations that are consistent with the laws of Connecticut

Make rules that are consistent with those of neighboring states

Monitor insurer premium rates

A group health certificate for coverage issued in Connecticut MUST contain a(n)

AM Best rating

NAIC guideline

insurer's balance sheet

summary of policy features and benefits

An annuity contract may be returned for a full refund during the 

inconestible period
grace period
free look period
refund period

An insured has been ordered by the court to provide a child's health insurance.  Upon this order, the insurer must allow the enrollment of this child

only after providing evidence of insurability

within 90 days of the order

after satisfying a brief waiting period

at any time

A producer MUST notify the Commissioner for

conducting business under an assumed name

not reaching a sales quota

a change in marital status

sharing commissions with another licensee

Someone who is licensed to negotiate a life settlement contract is called a(n)

independent investor
registered investment adviser
life settlement broker
life settlement purchaser

Life settlement proceeds may be subject to the claims of

creditors
adjusters
insurers
beneficiaries

When does a family health policy's coverage for a newborn child begin?

At the moment of birth

When the policyowner notifies the insurance company

When the required additional premium is paid

No more than 10 days after date of birth

Which of the following facilitates nonresident licensing in the state of Connecticut?

Nonforfeiture agreement
MIB
Uniform Trade agreement
Reciprocity agreement

Which of the following is NOT a valid reason for an insurer to constest a life insurance policy during the policy's first two years of existence?

Misstatement of age
Fraud
Material misrepresentation
Material concealment

Which of the following actions may result in a producer's license being suspended by the Commissioner?

Soliciting insurance under a temporary license

Rebating part of a commission to the applicant

Soliciting insurance on behalf of a foreign insurer

Splitting the commission with another licensed producer

Jerry has an indemnity plan which covers dental expenses.  Typically, these type of plans

has a limited network of dentists to chose from

cover preventative care once every six months

never require a deductible for major services

cover oral surgery as a result from an injury

A life insurance applicant is tested for the Human Immunodeficiency Virus (HIV).  The applicant MUST be informed that the testing

will not help determine the applicant's insurability

violates civil liberties

is not 100% accurate

helps determine the insurability of the applicant

A producer's failure to provide title and true nature of a policy upon solicitation is an example of 

unfair discrimination
coercion
fraud
misrepresentation

John has a criminal record in which he was convicted of a felony that involved dishonesty.  Under Federal law, how would John be able to engage in insurance transitions?

Completing a court-ordered prison sentence

Completing a court-ordered probation period

Paying a fine of up to $50,000

Given written consent by the state insurance regulatory agency

Which of the following is NOT classified as an "employee" under a group employer insurance plan?

Active partners
Employees of subsidiary firms
Independent contractors
Retired employees

Life settlement brokers are NOT allowed to 

advertise their services

implement fees

introduce policyowners to settlement providers

complete transactions prior to being approved for a license

Insurance producer Kelly offers insured a $500 shopping card if they purchase an insurance product through her.  What is this an example of?

a fair trade practice

coercion, which is an unfair trade practice

rebating, which is an unfair trade practice

enticement, which is an unfair trade practice

Which term refers to insurance written on the intersts of the licensee, the licensee's employer, or the licensee's immediate family?

Controlled business
Closed business
Managed business
Direct business

A group health plan covers employees in Connecticut, Massachusetts, and Rhode Island.  The state regulatory jurisdiction established for this plan does NOT affect which plan aspect?

Required contract provisions

Qualifications for eligibility

Minimum enrollment percentages

COBRA continuation of coverage

A consultant derives their income from which source?

Clients
NAIC
Insurance companies
Resident producers

All of these are common limiting factors with dental insurance EXCEPT for

Limit placed on number of teeth that may be treated annually
Limit on cosmetic-related procedures
Limit on number of X-rays per year
Limit on number of annual teeth leanings

Which of these situations would NOT potentially involve a prison sentence under Federal law?

Selling insurance with a nonresident license

Misappropriating insurance premiums

Embezzlement of an insurer's funds

Sending threatening letters to an insurer

When evaluating an insurer's financial status, the Commissioner may consider each of the following EXCEPT

Comparing the premiums received with the surplus for each year

Underwriting profits

Monitoring general account investments

Comparing an insurer's agency agreements to determine maximum-paid commissions

In regards to health insurance, what is meant by the term "primary policy"?

It is the first policy purchased by the insured

It is the policy that will pay up to its limit before any other policy pays

It is the policy with the fewest exclusions

It is the policy with the highest limit of coverage

Which of the following best describes the purpose of HIPAA? 

To eliminate current policy limitations and reductions

To reduce a pre-existing condition waiting period when coverage is sought for a new medical plan

To reduce the elimination periods in individual and group disability income plans

To provide benefits for a person's loss of income

Which of the following statements BEST describes a double indemnity provision in travel accident insurance?

Benefits are doubled under certain circumstances stated in the policy

If the claim is disputed in court and the insurer loses, the face amount will be doubled

Benefits cover two people when traveling

Accidents and illnesses are covered while the insured is traveling

How are premiums for an individually-owned disability income policy treated for tax purposes?

Amount spent on premiums over 7.5% of gross income is tax deductible

Partially tax deductible

Fully tax deductible

Not tax-deductible at all

the coinsurance for skilled nursing services covered by Medicare after the 100% Medicare coverage ends is 

15% of the approved amount

30% of the approved amount

a percentage of the approved amount

a flat dollar amount per day

According to the Affordable Care Act, coverage may be rescinded

if purchased through the employer

if obtained by the individual

if facilitated through the Navigator

if intentionally false statements were offered

During the sale of a life insurance policy, a producer may provide an incomplete illustration

if the appointing insurer is approved to do so

When the policy's face amount is under $100,000

Only if the policy sold is a variable product

Never

After the initial enrollment period for Medicare Part B has expired, when may an individual purchase again?

January through March of each year

October through December of each year

Six months after the individual's birthday month of each year

Three months after the individual's birthday month of each year

The agreement in which hospitals and physician groups in a specific area with an insurance company to provide medical care at predetermined costs is

Preferred Provider Organization (PPO)

Health Maintenance Organization (HMO)

Designated Provider Organization (DPO)

Professional Service Organization (PSO)

Which is an accurate description of the premium in a graded premium life insurance policy?

Level premium for a stated number of years then increases annually for the remainder of the contract

Level premium for a stated number of years then decreases annually for the remainder of the contract

Annual decreases in premium for a stated number of years then remains level

Annual increases in premium for a stated number of years then remains level

Which of these statements reflects an accurate portrayal of Medicare SELECT?

Insured uses preferred providers in exchange for paying lower premiums

Evidence of insurability must always be given before enrollment

Medicare SELECT is normally subject to deductibles and coinsurance

Open enrollment periods do not apply to Medicare SELECT plans

When an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis.  What exactly does needs analysis involve?

Identifies the needs of an individual and the individual's dependents

Takes into account the present value of future income earned by the breadwinner

Places a dollar value on teh life of the individual 

Establishes the investment risk level acceptable to the individual

Third-party administration has become fairly common in accident and health insurance due to the growth of'

the Affordable Care Act

self-funding of benefits

health savings accounts

Medicaid

All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT

Acquire a statement of good health signature

Gather the initial premium

Review policy with applicant

Leave a conditional receipt with client

When a deferred annuity is surrendered, who must sign the authorization to do so?

Owner

Annuitant and beneficiary

Annuitant

All parties involved

A terminally ill policyowner decides to sell his life insurance policy at a discount to help support his family.  This sale is call a(n)

accelerated death benefit

assignment

viatical settlement

nonforfeiture option

Which of these is NOT considered a type of limited payment whole life insurance?

Life paid-up at 65

20 payment life

15 payment life

Endowment at age 70

Some standard Medicare Supplement policies include which benefit?

Hospice care

Respite care

Vision care

Custodial care

Tim is covered by an accident and health insurance policy that may not be changed in any way by the insurer up to a stated age, as long as the premiums are paid.  What type of policy is this?

Optional renewable

Noncancelable

Guaranteed renewable

Conditionally renewable

Long Term Care policies will usually pay for eligible benefits using which of the following methods? 

Delayed

Fee for service

Expense incurred

Respite

Interest is credited to a fixed annuity no lower than the 

variable contract rate

contract guaranteed rate

current rate of inflation

prime rate

Which of the following relationships demonstrates insurable interest in the absence of economic interest?

Lifelong friends

Employees

Marriage partners

Business associates

How can a group dental insurer discourage adverse selection?

Allow re-existing conditions

Eliminate deductibles and coinsurance

Extend open enrollment period

Limit the duration of coverage

Which of these statements accurately portrays an adjustable life insurance policy?

Policy can alternate between forms of term and whole life insurance

Cash value loans are not permitted

Evidence of insurability required for conversion

Settlement options are limited

Which of the following statements is TRUE if the owner of an IRA names their spouse as beneficiary, but then dies before any distributions are made?

Surrender charge is applied

The account can be rolled into the surviving spouse's IRA

Distributions will be received tax-free if surviving spouse is over age 59 1/2

Future distributions are payable to the owner's estate

A producer's failure to provide title and true nature of a policy upon solicitation is an example of

unfair discrimination

coercion

fraud

misrepresentation

All of these are used to prevent adverse selection in a group dental plan EXCEPT

Provide evidence of insurability

Probationary periods

Waiting periods

Decreased employee participation

The contractual rights which allow the owner of a deferred annuity to surrender the cash value several years before the annuity date are called

nonforfeiture options

settlement options

conversion options

surrender options

Which of the following is NOT a function of accident and health insurance?

Pays a death benefit as a result of natural causes

Covers the loss of income from a disability

Covers the cost of medical care as a result of an accident 

Pays for hospice care in the event of terminal illness

Why do insurers require a minimum number of employees participate in a group insurance plan?

Efficiency is maximized

Minimize adverse selection

Profits are maximized

Claims are minimized

Which of these would NOT likely qualify as a presumptive disability?

Loss of sight in one eye

Loss of both hands

Loss of hearing

Loss of speech

In a staff model HMO, enrollees normally have which of the following pharmacy options available to them?

Mail-order pharmacy

In-house pharmacy

Captive pharmacy

Network pharmacies

Kevin has an existing life insurance policy and assigns it to another insurer for a new contract.  How would this transaction be treated for tax purposes?

As a Section 1035 exchange

As a transfer

As a rollover

As a Section 1040 exchange

Which of the following is NOT an intended use of an annuity?

Obtain income benefits for a stated period of time for more than one person

Accumulate assets on a tax-deferred basis

Create immediate lifetime income benefits

Create new funds upon death of a wage-earner

An insurance company's failure to enforcde a contract's provision is called a(n)

waiver

warranty

assignment

concealment