Free Idaho insurance law practice questions

Correct answer: A. The Idaho director

• A. Correct. Idaho Code 41-210(4) gives the director power to specify the place and manner of filing, including electronic or paper filing.
• B. Incorrect. The statute gives this power to the director, not the governor.
• C. Incorrect. The secretary of state is not given this power in 41-210.
• D. Incorrect. The attorney general is not the official named in 41-210(4).

(4) For any document required to be filed with the director or the department of insurance under the laws of this state, the director may specify the place and manner of filing of the document, including whether an electronic or paper filing is required or acceptable.

Correct answer: D. $5,000

• A. Incorrect. $1,000 is the cap for an individual or natural person, not for other persons.
• B. Incorrect. $10,000 is not a figure in 41-117.
• C. Incorrect. $15,000 is the cap in 41-117A for transacting without proper licensing, not the general penalty.
• D. Correct. Idaho Code 41-117 sets an administrative penalty of not more than $1,000 for an individual or natural person and not more than $5,000 for any other person.

41-117. General penalty. Each violation of this code for which a greater penalty is not provided by another provision of this code or by other applicable laws of this state, shall in addition to any applicable prescribed denial, suspension, or revocation of certificate of authority or license be punishable by an administrative penalty of not more than one thousand dollars ($1,000) for any individual or natural person and not more than five thousand dollars ($5,000) for any other person, imposed by the director, and upon conviction by a fine of not more than one thousand dollars ($1,000) or by imprisonment in the county jail for a period not to exceed six (6) months, or by both such fine and imprisonment in the discretion of the court. Each instance of violation may be considered a separate offense.

Correct answer: D. Reinsurance by an insurer licensed for that line in its home state

• A. Incorrect. Selling new policies in Idaho is not among the 41-306 exceptions.
• B. Incorrect. 41-306(1) expressly leaves out collection of new premiums.
• C. Incorrect. Writing new business from an Idaho office is not an exception.
• D. Correct. Idaho Code 41-306(4) exempts reinsurance transacted by an insurer duly authorized by its state of domicile to transact the kind of insurance involved.

41-306. Exceptions to certificate of authority requirement. A certificate of authority and application therefor pursuant to section 41-319, Idaho Code, shall not be required of an insurer with respect to the following: (1) Investigation, settlement, or litigation of claims under its policies lawfully written in this state, or liquidation of assets and liabilities of the insurer (other than collection of new premiums), all as resulting from its former authorized operations in this state. (2) Transactions thereunder subsequent to issuance of a policy covering only subjects of insurance not resident, located or expressly to be performed in this state at time of issuance, and lawfully solicited, written and delivered outside this state. (3) Transactions pursuant to surplus lines coverages lawfully written under chapter 12, title 41, Idaho Code. (4) Reinsurance, when transacted by an insurer duly authorized by its state of domicile to transact the kind of insurance involved. (5) The continuation and servicing of life insurance or disability insurance policies or annuity contracts remaining in force as to residents of this state if the insurer has withdrawn from the state and is not transacting new insurance therein. (6) A foreign insurer licensed and authorized to sell individual or group accident and sickness insurance in another state as defined pursuant to section 41-306A, Idaho Code, and the insurer obtains a certificate of authority pursuant to that section.

Correct answer: A. 18

• A. Correct. Idaho Code 41-1007(1)(a) requires the applicant to be at least eighteen years of age.
• B. Incorrect. Sixteen is below the minimum age in 41-1007(1)(a).
• C. Incorrect. Nineteen is not the figure in the statute.
• D. Incorrect. Twenty-one is the adjuster age in 41-1104, not the producer age.

(1) A person applying for a resident insurance producer license shall make application to the director on the uniform application and declare under penalty of refusal, suspension or revocation of the license that the statements made in the application are true, correct and complete to the best of the applicant’s knowledge and belief. Before approving the application, the director shall find that the applicant: [...] (a) Is at least eighteen (18) years of age;

Correct answer: D. 4 hours

• A. Incorrect. Two hours is less than the four hours the rule allows.
• B. Incorrect. Eight hours is more than the four hour limit.
• C. Incorrect. Twelve hours is far more than the four hour limit.
• D. Correct. IDAPA 18.06.04 Section 012.01.a allows no more than four hours from courses approved for adjusters or public adjusters toward a producer license.

012. BASIC REQUIREMENTS. 01. Proof of Completion. As a condition for the continuation of a license, a licensee must complete a total of 24 hours of continuing education credits, including a minimum of 3 ethics credits on or before the licensing renewal date every two (2) years. Proof of satisfactory completion of approved subjects or courses will be downloaded to licensing records by the system vendor in a format acceptable to the Director. (3-31-22) [...] a. No more than four (4) hours of continuing education credit from courses approved for adjusters or public adjusters can apply toward the continuation of a producer license. (3-31-22)

Correct answer: D. It is a violation once the agent wilfully collects the premium

• A. Incorrect. The statute contains no refund safe harbor.
• B. Incorrect. Where the money is held does not cure collecting premium for coverage that will not be provided.
• C. Incorrect. The prohibition does not depend on a complaint.
• D. Correct. 41-1323(1) bars any person from wilfully collecting any sum as premium for insurance that is not provided and is not in due course to be provided.

(1) No person shall wilfully collect any sum as premium or charge for insurance, which insurance is not then provided or is not in due course to be provided (subject to acceptance of the risk by the insurer) by an insurance policy issued by an insurer as authorized by this code.

Correct answer: B. The first complaint filed and the order from the hearing

• A. Incorrect. Insurer reference letters are not required.
• B. Correct. 41-1021(2) requires a copy of the initial complaint filed, the order resulting from the hearing and other relevant legal documents.
• C. Incorrect. The statute does not call for fingerprints or a new application.
• D. Incorrect. No sworn statement of innocence is required.

(2) Within thirty (30) days of the initial pretrial hearing date, a producer shall report to the director any criminal prosecution of the producer taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing and any other relevant legal documents.

Correct answer: D. A prohibited misrepresentation of the policy

• A. Incorrect. The prohibition applies regardless of the insurer's form.
• B. Incorrect. Putting it in writing does not make the misrepresentation lawful.
• C. Incorrect. Nothing of value is being returned from the premium; the conduct is a misrepresentation, not a rebate.
• D. Correct. 41-1303(3) states no person shall misrepresent any insurance policy as being shares of stock.

(3) No person shall misrepresent any insurance policy as being shares of stock.

Correct answer: A. 15 days

• A. Correct. 41-2307 bars the term from extending more than fifteen days beyond scheduled maturity, except when extended without added cost.
• B. Incorrect. The statute sets 15 days.
• C. Incorrect. Thirty days relates to late evidence of insurability, not the maturity limit.
• D. Incorrect. The statute sets 15 days, not 31.

The term of such insurance shall not extend more than fifteen (15) days beyond the scheduled maturity date of the indebtedness except when extended without additional cost to the debtor.

Correct answer: A. $300,000

• A. Correct. 41-4303(3)(b)(i) sets $300,000 in life insurance death benefits (with $100,000 for net cash surrender and withdrawal values).
• B. Incorrect. $100,000 is the limit for net cash surrender and withdrawal values, not death benefits.
• C. Incorrect. $250,000 is the annuity benefit limit.
• D. Incorrect. $500,000 is the major medical limit.

(3) The benefits that the association may become obligated to cover shall in no event exceed the lesser of: (a) The contractual obligations for which the insurer is liable or would have been liable if it were not an impaired or insolvent insurer; or (b) Subject to the aggregate per life limitation in paragraph (c) of this subsection with respect to one (1) policy or contract: (i) Three hundred thousand dollars ($300,000) in life insurance death benefits, but not more than one hundred thousand dollars ($100,000) in net cash surrender and net cash withdrawal values for life insurance;

Correct answer: D. The contract together with the attached application

• A. Incorrect. When the application is attached at issue, it becomes part of the entire contract.
• B. Incorrect. Only the contract and the attached application make up the entire contract.
• C. Incorrect. The statute names the contract and the attached application, not rate manuals.
• D. Correct. If a copy of the application is endorsed upon or attached at issue, the contract and the application constitute the entire contract.

In an annuity or pure endowment contract, other than a reversionary, survivorship, or group annuity, there shall be a provision that the contract shall constitute the entire contract between the parties or, if a copy of the application is endorsed upon or attached to the contract when issued, a provision that the contract and the application therefor shall constitute the entire contract between the parties.

Correct answer: B. Verify the producer finished the required annuity training course

• A. Incorrect. The statute requires verifying completion of the training course, not an insurer exam.
• B. Correct. An insurer shall verify that a producer has completed the annuity training course before allowing the producer to sell its annuities.
• C. Incorrect. The statute requires verifying the training, not director approval of the appointment.
• D. Incorrect. The statute ties the requirement to the training course, not license tenure.

(i) An insurer shall verify that a producer has completed the annuity training course required under this subsection before allowing the producer to sell an annuity product for that insurer.

Correct answer: A. Within 3 years

• A. Correct. The policy will be reinstated at any time within three years from the date of premium default, if conditions are met.
• B. Incorrect. One year is the annuity reinstatement window (41-1923).
• C. Incorrect. Two years applies to industrial life policies; ordinary policies get three years.
• D. Incorrect. The statute sets three years for ordinary policies.

41-1911. Reinstatement. There shall be a provision that unless: (1) The policy has been surrendered for its cash surrender value, or (2) Its cash surrender value has been exhausted, or (3) The paid-up term insurance, if any, has expired, the policy will be reinstated at any time within three (3) years (or two (2) years in the case of industrial life insurance policies) from the date of premium default upon written application therefor, the production of evidence of insurability satisfactory to the insurer, the payment of all premiums in arrears with interest at a rate not exceeding eight per cent (8%) per annum compounded annually and the payment or reinstatement of any other policy indebtedness with interest at a rate not exceeding the applicable policy loan rate or rates determined in accordance with the policy’s provisions.

Correct answer: C. On or before March 1

• A. Incorrect. The filing date is on or before March 1.
• B. Incorrect. The filing date is on or before March 1.
• C. Correct. Each provider files an annual statement on or before March 1 of each year.
• D. Incorrect. The filing date is on or before March 1.

(1) Each life settlement provider shall file with the director, on or before March 1 of each year, an annual statement containing such information on a form prescribed by the director or as prescribed by rule.

Correct answer: D. Only if a copy of the instrument with it went to the person or beneficiary

• A. Incorrect. The statute's condition is furnishing a copy of the instrument to the person or beneficiary.
• B. Incorrect. Statements are deemed representations, not warranties, and need a furnished copy.
• C. Incorrect. The condition is that a copy was furnished to the person or beneficiary.
• D. Correct. No statement by an insured person may be used in a contest unless a copy of the instrument containing it is or has been furnished to the person or the beneficiary.

The group life insurance policy shall contain a provision that a copy of the application, if any, of the policyholder shall be attached to the policy when issued and become a part of the contract; that all statements made by the policyholder or by the persons insured shall be deemed representations and not warranties, and that no statement made by any person insured shall be used in any contest unless a copy of the instrument containing the statement is or has been furnished to such person or to his beneficiary.

Correct answer: D. From the moment of birth, including congenital anomalies

• A. Incorrect. Coverage starts at the moment of birth and must include congenital anomalies.
• B. Incorrect. The statute requires coverage from the moment of birth, not after a delay.
• C. Incorrect. The trigger is the moment of birth, not a physician's examination.
• D. Correct. 41-2140(1) requires coverage from and after the moment of birth, including coverage for congenital anomalies.

41-2140. Required provisions. (1) Any disability insurance contract delivered or issued for delivery in this state which provides coverage for injury or sickness for newborn dependent children of the insured, shall provide such coverage for such newborn children, including adopted newborn children that are placed with the adoptive insured within sixty (60) days of the adopted child’s date of birth, from and after the moment of birth. [...] Coverage provided in accord with this section shall include, but not be limited to, coverage for congenital anomalies.

Correct answer: B. 35 through 39

• A. Incorrect. The baseline range is 35 through 39.
• B. Correct. 41-2144(1)(a) requires one baseline mammogram for any woman 35 through 39.
• C. Incorrect. Women 40 through 49 get a mammogram every two years, not a baseline.
• D. Incorrect. The baseline range is 35 through 39.

41-2144. Mammography coverage. (1) From and after July 1, 1992, all disability contracts which provide coverage for the surgical procedure known as a mastectomy which are delivered, issued for delivery, continued or renewed in this state shall provide minimum mammography examination or equivalent examination coverage. Such coverage shall include at least the following benefits: (a) One (1) baseline mammogram for any woman who is thirty-five (35) through thirty-nine (39) years of age.

Correct answer: B. 10

• A. Incorrect. The statute uses 10 days.
• B. Correct. The reinstated policy covers sickness that begins more than ten (10) days after the reinstatement date.
• C. Incorrect. The statute uses 10 days.
• D. Incorrect. Forty-five days relates to the conditional receipt, not sickness coverage.

41-2108. Reinstatement. (1) There shall be a provision as follows: "Reinstatement: If any renewal premium be not paid within the time granted the insured for payment, a subsequent acceptance of premium by the insurer or by any agent duly authorized by the insurer to accept such premium, without requiring in connection therewith an application for reinstatement, shall reinstate the policy; provided, however, that if the insurer or such agent requires an application for reinstatement and issues a conditional receipt for the premium tendered, the policy will be reinstated upon approval of such application by the insurer or, lacking such approval, upon the forty-fifth day following the date of such conditional receipt unless the insurer has previously notified the insured in writing of its disapproval of such application. The reinstated policy shall cover only loss resulting from such accidental injury as may be sustained after the date of reinstatement and loss due to such sickness as may begin more than ten (10) days after such date.

Correct answer: B. 3

• A. Incorrect. The rule's limit is three.
• B. Correct. Section 033.01 bars requiring a deficiency in more than three (3) activities of daily living.
• C. Incorrect. The rule's limit is three.
• D. Incorrect. Requiring all six would be more restrictive than the rule allows.

033. STANDARDS FOR BENEFIT TRIGGERS. 01. Conditions of Benefits Payment. A long-term care insurance policy conditions the payment of benefits on a determination of the insured’s ability to perform activities of daily living and on cognitive impairment. Eligibility for the payment of benefits is not more restrictive than requiring either a deficiency in the ability to perform not more than three (3) of the activities of daily living or the presence of cognitive impairment. (3-31-22)

Correct answer: D. An unfair trade practice under Idaho law

• A. Incorrect. The section labels it an unfair trade practice.
• B. Incorrect. The section labels it an unfair trade practice.
• C. Incorrect. The section labels it an unfair trade practice.
• D. Correct. 41-4716(9)(a) makes a violation an unfair trade practice under 41-1302.

(9) (a) A violation of the provisions of this section by a small employer carrier or an agent shall be an unfair trade practice pursuant to the provisions of section 41-1302, Idaho Code.