ND Accident and Health Chapter 8:
North Dakota Laws and Rules Exam
Questions With Complete Solutions
/. Security laws passed by Congress are enforced by which Federal Agency? - Answer-
✅Security Exchange Commission.
/.A Buyer's Guide MUST: - Answer-✅Have it's content approved by the Commissioner.
/.Life insurance policies sold in North Dakota have a _____ day free-look period. -
Answer-✅20.
/.A producer license is NOT required when: - Answer-✅Providing referrals.
/.Insurance crimes which affect interstate commerce are prosecuted by the: - Answer-
✅US Attorney General.
/.A husband and wife are covered under the husband's group health insurance. If they
divorce, how long would the ex-wife be covered under this plan if she does not become
covered under another health plan? - Answer-✅36 months.
/.When can a producer share commission with another producer? - Answer-✅When the
other producer is licensed in the same line of business.
/.Tim's individual life insurance policy has just recently lapsed. His policy may be
reinstated at anytime within _____ year(s). - Answer-✅3.
/.An insured may return their accident and health policy within _____ days of policy
delivery. - Answer-✅10.
/.An individual health insurance policy may be cancelled by phone on or before the
_____ day after policy delivery. - Answer-✅10th.
/.Benefits for a Medicare Supplement policy: - Answer-✅Must not duplicate Medicare
benefits.
/.All of the following are typically included in a life insurance policy illustration EXCEPT:
A) Premium of policy
, B) Names of beneficiaries
C) Interest charged for policy loans
D) Cash surrender value in 20 years - Answer-✅B) Names of beneficiaries.
/.Life insurance replacement can be defined as: - Answer-✅Exchanging an existing life
policy for a new policy.
/.All of the following are causes for termination of an employee's group insurance
coverage EXCEPT:
A) The plans' coinsurance limit is reached
B) The employee fails to make a required contribution
C) The employment relationship is terminated
D) The master contract is cancelled - Answer-✅A) The plans' coinsurance limit is
reached.
/.A dependent child may remain on a parent's health insurance plan beyond age 26 if
the child: - Answer-✅Has a mental or physical handicap and remains dependent on the
parent.
/.Individual health policies contain both mandatory and optional provisions. An example
of an optional provision would be: - Answer-✅Misstatement of age.
/.An insured MUST wait _____ days to bring legal action against an insurer after written
proof of loss has been received by the insurer. - Answer-✅60.
/.A life insurance policy's advertising material MUST contain all of the following
information EXCEPT:
A) Producer's commission
B) If the spokesperson was paid
C) Statement that dividends are not guaranteed
D) Company's name - Answer-✅A) Producer's commission.
/.Long-term care policies sold in North Dakota may exclude coverage related to: -
Answer-✅Substance addictions.
/.A policyowner has _____ days after policy delivery to return a major medical policy for
a full refund. - Answer-✅10.
/.A life insurance policy sold in North Dakota can be contested by the insurer ONLY
during the first _____ year(s) of the contract. - Answer-✅two.
North Dakota Laws and Rules Exam
Questions With Complete Solutions
/. Security laws passed by Congress are enforced by which Federal Agency? - Answer-
✅Security Exchange Commission.
/.A Buyer's Guide MUST: - Answer-✅Have it's content approved by the Commissioner.
/.Life insurance policies sold in North Dakota have a _____ day free-look period. -
Answer-✅20.
/.A producer license is NOT required when: - Answer-✅Providing referrals.
/.Insurance crimes which affect interstate commerce are prosecuted by the: - Answer-
✅US Attorney General.
/.A husband and wife are covered under the husband's group health insurance. If they
divorce, how long would the ex-wife be covered under this plan if she does not become
covered under another health plan? - Answer-✅36 months.
/.When can a producer share commission with another producer? - Answer-✅When the
other producer is licensed in the same line of business.
/.Tim's individual life insurance policy has just recently lapsed. His policy may be
reinstated at anytime within _____ year(s). - Answer-✅3.
/.An insured may return their accident and health policy within _____ days of policy
delivery. - Answer-✅10.
/.An individual health insurance policy may be cancelled by phone on or before the
_____ day after policy delivery. - Answer-✅10th.
/.Benefits for a Medicare Supplement policy: - Answer-✅Must not duplicate Medicare
benefits.
/.All of the following are typically included in a life insurance policy illustration EXCEPT:
A) Premium of policy
, B) Names of beneficiaries
C) Interest charged for policy loans
D) Cash surrender value in 20 years - Answer-✅B) Names of beneficiaries.
/.Life insurance replacement can be defined as: - Answer-✅Exchanging an existing life
policy for a new policy.
/.All of the following are causes for termination of an employee's group insurance
coverage EXCEPT:
A) The plans' coinsurance limit is reached
B) The employee fails to make a required contribution
C) The employment relationship is terminated
D) The master contract is cancelled - Answer-✅A) The plans' coinsurance limit is
reached.
/.A dependent child may remain on a parent's health insurance plan beyond age 26 if
the child: - Answer-✅Has a mental or physical handicap and remains dependent on the
parent.
/.Individual health policies contain both mandatory and optional provisions. An example
of an optional provision would be: - Answer-✅Misstatement of age.
/.An insured MUST wait _____ days to bring legal action against an insurer after written
proof of loss has been received by the insurer. - Answer-✅60.
/.A life insurance policy's advertising material MUST contain all of the following
information EXCEPT:
A) Producer's commission
B) If the spokesperson was paid
C) Statement that dividends are not guaranteed
D) Company's name - Answer-✅A) Producer's commission.
/.Long-term care policies sold in North Dakota may exclude coverage related to: -
Answer-✅Substance addictions.
/.A policyowner has _____ days after policy delivery to return a major medical policy for
a full refund. - Answer-✅10.
/.A life insurance policy sold in North Dakota can be contested by the insurer ONLY
during the first _____ year(s) of the contract. - Answer-✅two.
