Chapter Exam - Virginia Laws and Rules. Questions with accurate answers. 100% verified.

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Chapter Exam - Virginia Laws and Rules. Questions with accurate answers. 100% verified. Question 1Select the appropriate response Under the Health Insurance Portability and Accountability Ac ... t (HIPAA), all of the following qualify as creditable coverage EXCEPT accident only individual major medical Medicare group major medical - ✔✔accident only Select the appropriate response An agency has moved the office to a commercial office complex less than 5 miles from the current office location. The agency must notify the Bureau of Insurance within how many calendar days of such change in office location? 10 days 20 days 30 days No requirement since the new office is less than 5 miles from the prior office location - ✔✔30 days Insurance agents MUST maintain premiums in a fiduciary capacity and remit them at any time the agent deems appropriate in the ordinary course of business within 1 year within 6 months of receipt - ✔✔in the ordinary course of business Select the appropriate response An insurer may pay commissions directly to any person for services as an agent provided the agent is licensed is licensed and appointed works for a licensed agency even if the agent is unlicensed has applied to take the licensing examination - ✔✔is licensed and appointed An Accident & Health policy must provide Essential Benefits without annual and lifetime limits when purchased individually from commercial providers through Medicare in a group plan from commercial providers individually or with group coverage through the Federal Marketplace - ✔✔individually or with group coverage through the Federal Marketplace In Virginia, an insurance agent is BEST defined as a person appointed by more than one insurance company to issue policies a person who sells, solicits, or negotiates contracts of insurance or annuity a person who places insurance with nonadmitted companies an employee of an insurance company who has the authority to underwrite insurance - ✔✔a person who sells, solicits, or negotiates contracts of insurance or annuity If a licensed resident insurance agent moves out of state, which of the following will occur? The agent will lose commissions The agent's license shall terminate immediately The agent will automatically receive a license in the new home state The Bureau of Insurance will contact all the agent's policyholders - ✔✔The agent's license shall terminate immediately An agent must maintain records of insurance transactions for a MINIMUM of how many previous calendar years? 1 2 3 5 - ✔✔3 The Virginia Commissioner of Insurance has the authority to examine the business records of all of the following entities EXCEPT insurance agents insurance companies insurance consultants life insurance master policyholders - ✔✔life insurance master policyholders A Long Term Care insurance contract shall provide coverage for a minimum of how many months? 6 12 15 18 - ✔✔12 After a hearing, the State Corporation Commission may order an agent who willfully violates any provision of the insurance code to pay a MAXIMUM penalty per violation of $2,000 $3,000 $5,000 $15,000 - ✔✔$5,000 A person who issues false written or oral statements that are maliciously critical of the financial condition of an insurance company may be found guilty of defamation coercion fraud misrepresentation - ✔✔defamation A Qualified Long Term Care policy requires the Free Look provision to refund 100% of premiums paid within how many days of policy delivery? 20 days 30 days 45 days 60 days - ✔✔30 days Testimonials used in Accident & Health insurance must meet all of the following requirements EXCEPT They must represent the current opinion of the person giving the testimonial They must be accurately reproduced They must be applicable to the advertised policy They must be approved by the Virginia Commissioner of Insurance - ✔✔They must be approved by the Virginia Commissioner of Insurance Insurance companies and agents must implement an information security program to accomplish each of the following EXCEPT provide policyholder lists to the Commissioner of Insurance protect against any anticipated threats or hazards to the security or integrity of the information ensure the security and confidentiality of policyholder information protect against unauthorized access to or use of the information that could result in substantial harm to a policyholder - ✔✔provide policyholder lists to the Commissioner of Insurance Insurance agents who must maintain premiums in a fiduciary account may withdraw funds from the account to pay all of the following expenses EXCEPT commissions due other licensees personal medical expenses return premiums due insureds premiums due insurers - ✔✔personal medical expenses Which of the following is NOT a defined group for purchasing group insurance? Employer Association Labor union Nonprofit organization - ✔✔Nonprofit organization Each applicant for an agent's license in Virginia MUST have at least 2 years experience in the insurance industry be at least 21 years of age be of good character and have a good reputation for honesty have been a resident of Virginia for 90 days or more - ✔✔be of good character and have a good reputation for honesty An insurer may pay commissions directly to any person for services as an agent provided the agent is licensed is licensed and appointed works for a licensed agency even if the agent is unlicensed has applied to take the licensing examination - ✔✔is licensed and appointed An insurance agent's license may be suspended or revoked if the agent has a poor credit score been convicted of a misdemeanor engaged in twisting filed for personal bankruptcy within the last two years - ✔✔engaged in twisting An applicant MUST obtain the appropriate license within how many calendar days from the date of passing the exam? 30 90 183 365 - ✔✔183 To renew an insurance license, the agent holding 2 types of licenses must complete how many continuing education credits by December 31 in even numbered years? 16 credits 24 credits 32 credits 48 credits - ✔✔24 credits The Commission in Virginia has the power to Issue policies Set premium rates Examine insurer solvency Make insurance law - ✔✔Examine insurer solvency When must a written disclosure be given to the applicant or policy holder regarding administrative fees charged by the agent? Prior to any services being rendered Within 10 days after delivery of the policy Within 30 days after delivery of the policy Annually - ✔✔Prior to any services being rendered Licensed agents are NOT required by the Virginia Code to keep records of premium quotations that are not accepted by the insured application records once the policy has been issued an accounting of premiums paid on the policy the insured's files if the policy cancels mid-term - ✔✔records of premium quotations that are not accepted by the insured Select the appropriate response Which of the following is NOT considered an insurance advertisement? A direct mail brochure announcing free insurance advice A newspaper notice announcing specific Accident and Health insurance plans A billboard announcing an insurance company's new Accident and health policy type An employer bulletin announcing the availability of coverage for employee - ✔✔An employer bulletin announcing the availability of coverage for employee Which of the following actions is considered an Adverse Underwriting Decision? Terminating insurance coverage Rebating [Show More]

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