Free Georgia Accident & Health practice questions

Answer: C. Sixty days

Ga. Comp. R. & Regs. 120-2-3-.09(3) sets two retake waiting periods. After a single failing attempt the wait is fourteen days, but a person who has failed after taking the examination three times must wait sixty days before retaking it. Fourteen days is the wait for an ordinary failure, not for a third failure. Neither thirty nor ninety days is a retake waiting period under this rule.

Answer: B. The Commissioner may grant a temporary license upon an insurer's written request.

The examination rule allows the Commissioner to grant a temporary license to an applicant who scores 60 percent and has a currently licensed agent sponsor, but only upon the written request of an insurer. Sixty percent is below the 70 percent passing grade, so the applicant is not treated as passing. The license is granted by the Commissioner, not by the sponsoring agent. A failing candidate must also wait before retaking the examination, so an immediate retake is not available.

Answer: B. Only nonpayment of premium or material misrepresentation

Georgia's Medicare supplement benefit standards require each policy to be guaranteed renewable, and they limit the issuer to two grounds for cancellation or nonrenewal: nonpayment of premium and material misrepresentation. A decline in health is expressly ruled out, because the issuer may not cancel or nonrenew solely because of the insured's health status. Heavy claims and an issuer's business decision to stop selling the plan are not among the two permitted grounds, so neither supports canceling or nonrenewing an existing policy.

Answer: B. Property is unavailable there, since agency lines cannot exceed those held by the agent based at that location.

Under the agency licensing rule, an agency's lines of authority may be no broader than the lines held by the agent or agents whose primary place of business is that location. Because the only agent based there holds life and accident and sickness, the location cannot carry property. The rule measures lines against the agents at the location, not against the principal office. It provides no waiver that lets a location exceed its agents' lines, and an application alone does not create a line the location's agents lack.

Answer: B. With the outline of coverage the applicant is required to receive

An insurer or agent offering a policy meant to qualify as a partnership policy must give every prospective applicant the Partnership Program Notice, which outlines what a partnership policy requires and the benefits it offers, and the notice must be provided with the required outline of coverage. Waiting until after the application is approved, or until the applicant asks for it, does not meet that timing. The document that accompanies an issued partnership policy is a different one, the Partnership Disclosure Notice (Form LTCP 200-B).

Answer: D. July 1

The open enrollment period lasts six months and starts on the first day of the first month in which the person is both age 65 or older and enrolled for benefits under Medicare Part B. In April Ruth reaches 65 but is not yet enrolled in Part B, so neither April 1 nor her April 14 birthday starts the period. July is the first month in which both conditions are met, so the period begins July 1. October 1 has no basis in the rule as a start date.

Answer: D. 75%

A group Medicare supplement policy form may not be delivered or issued for delivery unless it can be expected, over the whole period its rates are computed to cover, to return at least 75% of aggregate earned premium to policyholders and certificate holders as aggregate benefits. The 65% figure is the minimum for individual policy forms, not group forms. Neither 60% nor 85% is the group standard in the Medicare supplement loss ratio rule.

Answer: D. Compound annual inflation protection, since the buyer is under 61

A Georgia partnership policy sold to someone who has not reached age 61 on the date of purchase must provide compound annual inflation protection. Some level of protection is the requirement only for buyers who are 61 through 75 at purchase, and protection becomes optional only for buyers who are 76 or older. An offer the buyer can turn down does not satisfy the partnership rule, which requires the policy itself to provide the protection.

Answer: B. Only a guaranteed renewable provision or a noncancellable provision

Georgia limits an individual long-term care policy to two kinds of renewal provision: guaranteed renewable or noncancellable. Conditionally renewable and optionally renewable terms are neither of those two, so they are not permitted wherever they are printed. Explaining a different renewal term in the outline of coverage does not make it one of the two permitted provisions.

Answer: C. 5 percent per year

One inflation protection design an insurer may offer at the time of purchase increases benefit levels each year, compounded annually, at a rate of not less than five percent. A three or four percent compound rate falls below that floor. Ten percent is not the minimum the rule names.