Insurance MCQ

The insurance Director may perform all of the following duties EXCEPT develop rates for the insurers institute a criminal suit for injunctive relief conduct examinations of South Carolina licensed insurers enforce the provisions of the South Carolina Insurance Code Answer: Develop rates for the insurers

The Director MUST give a MINIMUM of how many days' notice of a disciplinary hearing? 10 days 30 days 60 days 90 days Answer: 30 days

According to the Affordable Care Act, what is the maximum amount an individual can contribute to a Flexible Savings Account? $500 $1,500 $2,500 $3,500 Answer: 2500

How long can an insurer exclude coverage for a preexisting condition on a Medicare Supplement Policy? 6 months 12 months 18 months 24 months Answer: 6 months

The Director is empowered to write policy forms for insurance coverages enforce state laws relating to insurance pass state laws relating to insurance set rates for insurance coverages Answer: Enforce state laws relating to insurance

When selling an insurance policy the agent must do all of the following EXCEPT emphasize the benefits of the Guaranty Association protect any privileged or personal information about the applicant submit premiums within the normal course of business provide a notice of information practices to applicants Answer: emphasize the benefits of the Guaranty Association

A deliberate lie by an insured to the insurer to obtain a lower premium is an example of misrepresentation concealment estoppel fraud Answer: fraud

In South Carolina, which of the following statements is TRUE regarding a licensed individual changing his or her legal name? Change of marital status has a direct impact on the status as a producer The producer is required to file a name change form on the next license renewal The producer must notify the Department upon changing his or her legal name Name changes for the purpose of marketing insurance products is prohibited Answer: The producer must notify the Dept upon changing his or her legal name

A false written or oral statement made by a producer for the purpose of replacing an existing policy to the detriment of the insured is twisting illegal inducement discrimination defamation Answer: twisting

The PRIMARY purpose of the Fair Credit and Reporting Act is to forewarn an insurer about an applicant's recent bankruptcy protect consumers from insurers who have filed for bankruptcy protect consumers with guidelines regarding credit reporting and distribution alert insurers regarding applicants who may have poor credit histories and may be adverse risks to the company Answer: protect consumers with guidelines regarding credit reporting and distribution

An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called a managed plan stop loss coinsurance a deductible Answer: coinsurance

As of January 1, 2014, an employer with up to 25 full time equivalent (FTE's) with average annual wages of less than $50,000 may be eligible for a tax credit of ___ of the premiums paid by the employer. 30% 40% 50% 60% Answer: 50%

Which of the following is illegal discrimination? Refusing an applicant because of marital status Refusing an applicant because he or she is HIV positive Refusing an applicant because he or she is rated as a substandard risk Refusing an applicant because he or she has diabetes Answer: Refusing an applicant because of marital status

Under the Time Limit on Certain Defenses Provision, a disability policy is incontestable after it has been in force for a period of 1 year 2 years 3 years 4 years Answer: 2 years

With a scheduled dental policy, how are covered expenses paid? A coinsurance is normally applied to benefits paid A deductible must be met by the insured before benefits are paid Benefits are limited to a specific maximum dollar amount per procedure Covered expenses are fully reimbursed to the insured Answer: Benefits are limited to a specific maximum dollar amount per procedure

What are the levels of coverage as defined by the Affordable Care Act? 1st, 2nd, 3rd, and 4th Bronze, Silver, Gold, and Platinum Substandard, Standard, Preferred, and Premium PPO, HMO, POS, and MET Answer: Bronze, Silver, Gold, and Platinum

A producer offers a $50.00 handbag in exchange for the purchase of an insurance policy. The producer would be considered to have committed which prohibited sales practice? Twisting Rebating Coercion Replacement Answer: Rebatin

According to the Fair Credit Reporting Act, an insurer does NOT need to inform the applicant that an investigation is being conducted discuss any credit history inconsistencies with the applicant inform the applicant about the scope of an investigation notify the applicant if an application is denied Answer: Discuss any credit history inconsistencies with the applicant

How are health plans classified according to the Affordable Care Act? 1st Tier, 2nd Tier, 3rd Tier, 4th Tier Bronze, Silver, Gold, Platinum Standard, Above Average, Good, Superior Plan A, Plan B, Plan C, Plan D Answer: Bronze, Silver, Gold, Platinum

Under South Carolina law, what may the insurer REQUIRE to determine the exact cause of death if death appears accidental? Interview with the medical examiner Hospital examination Medical records Autopsy Answer: Autopsy