ND Accident and Health Chapter 8: North Dakota Laws and Rules Exam Questions And Well Elaborated Answers| Graded A+

Security laws passed by Congress are enforced by which Federal Agency? - correct answers Security Exchange Commission. A Buyer's Guide MUST: - correct answers Have it's content approved by the Commissioner. Life insurance policies sold in North Dakota have a _____ day free-look period. - correct answers 20. A producer license is NOT required when: - correct answers Providing referrals. Insurance crimes which affect interstate commerce are prosecuted by the: - correct answers 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? - correct answers 36 months. When can a producer share commission with another producer? - correct answers 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). - correct answers 3. An insured may return their accident and health policy within _____ days of policy delivery. - correct answers 10. An individual health insurance policy may be cancelled by phone on or before the _____ day after policy delivery. - correct answers 10th. Benefits for a Medicare Supplement policy: - correct answers 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 - correct answers B) Names of beneficiaries. Life insurance replacement can be defined as: - correct answers 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 - correct answers 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: - correct answers 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: - correct answers 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. - correct answers 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 - correct answers A) Producer's commission. Long-term care policies sold in North Dakota may exclude coverage related to: - correct answers Substance addictions. A policyowner has _____ days after policy delivery to return a major medical policy for a full refund. - correct answers 10. A life insurance policy sold in North Dakota can be contested by the insurer ONLY during the first _____ year(s) of the contract. - correct answers two. Individual Medicare Supplement policies must allow an insured a MINIMUM of how many days after policy delivery to return the policy and receive a refund of premium? - correct answers 30. When consumer credit insurance is required as additional security for debt, the debtor: - correct answers Has the option of furnishing the required amount of insurance through insurance policies owned or controlled by the debtor. When a producer is replacing an existing ordinary life insurance policy, the producer must take all of the following actions EXCEPT: A) Give the application a Notice Regarding Replacement of Life Insurance B) Give the applicant the original or a copy of the proposals used in the sales presentation C) Obtain the beneficiary's signature on a summary of all policies to be replaced D) Submit to the producer's insurance company a copy of the Notice Regarding Replacement of Life Insurance signed by the applicant - correct answers C) Obtain the beneficiary's signature on a summary of all policies to be replaced. All long-term care policies sold in North Dakota are REQUIRED to pay the SAME daily benefit amount for "at home" care as paid for: - correct answers The daily amount paid for nursing home care. 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 is she does not become covered under another health plan? - correct answers 36 months. COBRA replacement ONLY applies to employers who employ at LEAST: - correct answers 20 employees. Medicare Advantage plans are sometimes called: - correct answers Part C. A producer who sells an individual life insurance policy in North Dakota MUST deliver to the policyowner a: - correct answers Policy Summary and Buyer's Guide. The North Dakota Life and Health Insurance Guaranty Association is a: - correct answers Nonprofit legal entity. The responsibility for regulating insurance continuing education requirements and approving insurance continuing education courses of instructions belongs to the: - correct answers North Dakota Insurance Commissioner. The standard grace period for a life insurance policy sold in North Dakota is _____ days. - correct answers 31. An example of consideration is: - correct answers A premium. Carlos has an insurance policy that contains an accidental death benefit rider. For death proceeds to be payable from this rider, death must occur within _____ days of an accident. - correct answers 90. Twisting involves: - correct answers Misrepresentation. The required grace period for a life insurance policy sold in North Dakota is _____ days. - correct answers 31. Persons entitled to seek a hearing as a result of a cease and desist action taken by the Insurance Commissioner have how many days to request a hearing? - correct answers 30. Life insurance replacement can be defined as: - correct answers Exchanging an existing life policy for a new policy. Dependent children must be provided coverage under a group health plan up to age: - correct answers 26. Life settlement proceeds may be subject to the claims of: - correct answers Creditors. A life insurance applicant in North Dakota may backdate the application for up to _____ month(s). - correct answers 6. An insured may return their accident and health policy within _____ days of policy delivery. - correct answers 10. The open enrollment period for Medicare Supplement coverage typically starts at age: - correct answers 65. Each insurer issuing credit life or credit accident and health insurance shall file its rates with the: - correct answers Department of Insurance _____ life is designed to pay the balance of a loan if the insured dies before repayment of the loan. - correct answers Credit.