Harrisburg, PA – Insurance Commissioner Jessica Altman announced today that the insurance department submitted to the Pennsylvania Bulletin a notice to all state insurance companies and agencies. The notice outlines the process for the issuance of temporary producer licenses to those
qualifying individuals desiring to become Pennsylvania resident insurance producers during the COVID-19 pandemic.
"The COVID-19 pandemic is impacting the operations of businesses in every industry, which has created an increased need for flexibility, digital options and thoughtful guidance from regulators and state agencies," said Altman. "All producer examination testing centers are closed in Pennsylvania, creating a hurdle for those seeking an insurance producer license, so the department was tasked with creating a temporary pathway to licensure in order to assure the continuity of certain vital insurance services and address the disruption caused by the virus."
Temporary licenses will only be permitted for individuals who are sponsored by an insurance company holding an active certificate of authority in Pennsylvania and authorized to write the lines of insurance for which the individual is applying. All applicants are required to complete the 24 credit hours of pre-licensing education before the sponsoring insurer can submit their application and must complete the fingerprinting and background check process through the department.
Guidance details include:
- An application fee of $55 must be paid to the department. If a temporary licensee takes and passes the appropriate producer licensing exam prior to the expiration of the temporary license, the department will waive the application fee to become a fully-licensed resident producer without requiring an additional application or fingerprinting/background check.
- The temporary license is valid for no more than 180 days from the date of issuance. This temporary license is nontransferable and cannot be renewed.
- Any active temporary producer license issued by the department may be converted to a regular producer license by completion of all prerequisites of a license for the desired lines of authority, including meeting all examination and fingerprint requirements pursuant to Pennsylvania statute.
- In response to the COVID-19 pandemic, the department is currently working with its examination vendor to make remote electronic testing available and anticipates possible implementation in late summer or early fall.
Last month, a notice was issued to insurance licensees to temporarily suspend all in-person classroom education approved by the Pennsylvania Insurance Department and encourage all classroom courses to be offered via internet-based webinar format instead.
The department has submitted various notices to the Pennsylvania Bulletin to help ease the hardships that are being felt by Pennsylvanians during this crisis and ensure minimum disruption to the department and commonwealth-regulated operations.
The Insurance Department, in partnership with the departments of Health and Human Services, developed an FAQ that provides information and answers to common questions related to insurance coverage and COVID-19.
If a consumer has any questions or concerns related to their insurance coverage, whether COVID-19 related or not, they are encouraged to contact the department at 1-877-881-6388.
Visit the commonwealth's Responding to COVID-19 guide for the latest guidance and resources for Pennsylvanians or the Pennsylvania Department of Health's dedicated coronavirus webpage for the most up-to-date information regarding COVID-19.
A policyowner is prohibited from making any changes to the policy without the beneficiary's written consent under which beneficiary designation?
A common exclusion with Vision plans is
If an insured's age on a life insurance policy has been misstated, what is the insurer's liability if the insured dies?
A prorated death benefit based on the amount of insurance the insured's premiums would have been if purchased at the correct age
What is an insurer required to do when faced with an error made under the Misstatement of Age provision?
Pay age-corrected benefits
A resident producer license requires
- Applicant receiving a passing score on state exam
- Satisfied prelicensing education requirements
- Fingerprint submission
Ambiguities in an insurance policy are always resolved in favor of the
In Pennsylvania, the definition of total disability changes from one's "own occupation" to "any occupation" by reason of one's education, training, and experience after what period of time?
A Roth IRA owner must be at least what age in order to make tax-free withdrawals?
59 1/2 and owned account for a minimum of 5 years
The purpose of the Coordination of Benefits provision in group accident and health plans is to
avoid overpayment of claims
A temporary license may be issued without state examination to all of the following?
- Producer's spouse
- Executor of producer's estate
- Employee of the producer
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits must
be the same and the premium cannot exceed 102%
The authority granted to a licensed producer is provided via the
Fixed annuities provide each of the following?
- Guaranteed interest
- Retirement funds
- Tax advantage
Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested?
Variable universal policy
what is a requirement for ANY change in an insurance application?
Change must be initialed by the applicant
Which of the following statements is TRUE about Medicaid?
It is funded by federal, state, and local taxes
The gatekeeper's role, when used by an HMO, is?
obtaining referrals to specialists from primary care physicians
An individual most likely will have an insurable interest in insuring a person's life if?
an economic interest exists for the continuance of the insured's life
Violations of US Code Title 18 section 1033, may result in
A life insurance policy that has premiums fully paid up within a stated time period is called?
limited payment insurance
All of these are settlement options for life insurance policies?
- Life income
-
Lump sum
- Fixed period
What is considered to be the primary reason for buying life insurance?
What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day?
Claim will be paid if application is approved
Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because
the MEC tends to be an investment vehicle
What amount will be paid under a policy where the insured misstated his/her age?
An amount the premium would have purchased at the correct age
The premium payments for a Universal life policy are used for?
- Death benefits
- Cash value
- Loading costs
For licensing purposes, if an applicant has a home or office located in the state of Pennsylvania, this would be consistent with which of the following?
What is considered to be a common life insurance nonforfeiture option?
- Cash surrender
- Extended term insurance
- Reduced paid-up insurance
What does Coordination of Benefits allow?
Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid
A partial surrender is allowed in which of the following life policies?
How are premiums paid by the insured for personally owned disability income insurance treated for tax purposes?
In Pennsylvania, HIPAA laws require that an individual's prior creditable coverage may reduce the maximum pre-existing condition exclusion period that a new group health plan can apply. This rule is applicable as long as there has been no gap in creditable coverage for a period greater than?
How many months can a
life insurance policy normally be backdated from the date of application?
What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus?
participating life insurance policy
Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Which military service exclusion clause would pay upon his death?
All statements in an insurance application, in the absence of fraud, are considered?
Which scenario would most life insurance policies exclude coverage for?
An individual who has a hobby racing cars once a month
Violating Pennsylvania insurance law may result in which of the following Insurance Department actions?
Issuance of a cease and desist order after a hearing
Major Medical expense plans provide coverage for each of the following EXCEPT?
For Pennsylvania Insurance Code violations, the Commissioner may assess a(n)?
Legal purpose is a term used in contract law meaning?
there must be legal reasons for entering into the contract
What is an annuity that is linked to a market-related index?
A dread disease policy is considered to be a type of?
limited health insurance policy
Within how many days must a rollover be completed in order to avoid being taxed as current income?
An example of elective cosmetic surgery would be?
removing excess fat from an insured's waistline
How are annuities given favorable tax treatment?
Gains are taxed at distribution
A proposed insured for a health insurance policy was treated for heart disease within the past year. When applying for health insurance, the heart disease treatment?
indicates a preexisting condition
A nonparticipating company is sometimes called a(n)?
What type of injury would NOT be covered under a health insurance policy?
Continuous 24-hour care
provided by licensed medical professionals under the direct supervision of a physician is called?
Which disability policy provision would address any concerns of the value of the benefits decreasing over time?
XYZ Corp pays the tax-deductible insurance premiums for a key employee disability policy. Which of the following would be the appropriate tax consequence?
Benefits are fully taxable
Who assumes the investment risk with a fixed annuity contract?
What is a method of determining the level of funds required for ongoing support in the event of the breadwinner's death?
A Renewable Term Life insurance policy can be renewed?
at a predetermined date or age, regardless of the insured's health
Craig submits a $500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. Which of the Uniform Optional Provisions covers this situation?
Producers must complete a total of ___ Continuing Education credits for each two-year licensing period.
Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them?
What would be an expense factor in an insurance program?
A securities license is required for a life insurance producer to sell?
An insurer has the right to recover payment made to the insured from the negligent party. These rights are called?
A producer who sells insurance in Pennsylvania but resides in another state is called a(n)
A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called
Matt is applying for life insurance and requests a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary if Matt?
dies instantly from a car accident
What is the difference between a Long-Term Care Partnership Plan and a Non-Partnership Plan?
No Long-Term Care policy may exclude pre-existing conditions for a period of more than?
All of these are considered a form of advertising?
- an insurer's billboard
- a formal sales presentation by the producer
- an insurer's direct mailing to a target audience
The waiver of premium does NOT include what provision?
All future premiums are waived if the insured recovers from the disability
If an employee contributes 50% toward the disability plan premium provided by an employer, what would be considered the taxable income of a $1,000 monthly disability benefit?
The elimination period under a hospital indemnity plan is?
the specified number of days an insured must wait before becoming eligible to receive benefits for each hospitalization
An insured was injured as an innocent bystander when someone committed a felony. The insurer is?
The least expensive option to pay off a 30-year mortgage balance would be?
Which of the following statements is CORRECT regarding an individual applying for life or health insurance?
The applicant's medical history may be analyzed and reported
Index whole life insurance contains a securities component that acts as a(n)?
Field underwriting performed by the producer involves?
Completing the application and collecting initial premium
An error was made on Mary's life insurance application. Which of the following areas do errors commonly occur on applications and for which the incontestable clause does NOT apply?
An insured individual and the policy's beneficiary die from the same accident. The common disaster provision states the insurer will continue as if?
the insured outlived the beneficiary
A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing?
A waiver of premium rider allows an insured to waive premium payments if the insured is?
completely and permanently disabled
what are the elements of a valid contract?
- Legal
- Consideration
- Competent parties
When are group disability benefits considered to be tax-free to the insured?
When the recipient pays the premiums
What would limit a company's liability to provide insurance coverage?
In Pennsylvania, what's the requirement for a minor to receive proceeds from a death benefit?
A guardian must be appointed
People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. This is called?
A limited payment whole life policy provides?
David submits a $500 claim for medical expenses. There is a past-due amount owed for insurance premiums of $200. As a result, the insurer only pays $300 for the claim. This deduction came as a result of which provision?
A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the?
A 70-year old insured individual has suffered from kidney failure for the past 24 months. She is covered by her spouse's large-group employer plan. How will Medicare be utilized in this situation?
Will be the secondary insurer and pay for claims not fully covered by the group plan
How soon can the benefit payments begin with a deferred annuity?
A minimum of 12 months after date of purchase
A Medicare supplement plan can be canceled by the insurer?
for nonpayment of premiums
Level premium term life insurance policies?
have premiums that are averaged over the policy period
What is the purpose of a Disability Income Benefit?
Provide money for living expenses
What is the primary feature of a viatical settlement?
Reduced death benefit prepayment
Which of these riders will pay a death benefit if the insured's spouse dies?
Family term insurance rider
The Fair Credit and Reporting Act's main purpose is to?
protect consumers with guidelines regarding credit reporting and distribution
An example of naming a beneficiary by class would be?
"To the children born of my union with Ned Jackson"
An Accelerated Death Benefit in Pennsylvania must be at least what percentage of the total death benefit?
A field underwriter's main task is
to approve or decline an applicant
Within how many days must a producer report to the Commissioner any charges made against him/her?
A licensee may only sell, solicit, and negotiate insurance contracts on behalf of the?
Group health plans may deny participation based upon the?
member' part-time employment status
The Medicare Supplement open enrollment period is the?
6 month period that begins with the month in which enrollment in Part B Medicare occurred, typically at age 65
According to life insurance contract law, insurable interest exists?
at the time of application
What is the purpose of the Pennsylvania Life and Health Insurance Guaranty Association?
Provide policy owner protection if an insurer becomes insolvent
Medicaid is intended for?
Every Pennsylvania insurer, upon receiving notification of a claim, must acknowledge receipt of the notice within?
In Pennsylvania, completion of continuing education is required upon license renewal for which of the following?
Licensed individuals qualified in major lines of insurance
Typically, Long-Term Disability benefits are coordinated with which benefit plan?
What happens when an insurance policy is backdated?
The policy's effective date is earlier than the present
Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. What kind of policy is this?
Insurance companies determine risk exposure by which of the following?
Law of large numbers and risk pooling
A hospital or medical expense policy will typically cover dental treatment expenses under which circumstance?
Dental treatment is needed to repair an injury
The type of policy where the insurer can send a notice to the insured that the policy has been cancelled in the middle of the term is called?
Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of?
Lorenzo is self employed with an S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year?
100% of his health insurance costs can be deducted from his gross income
Health insurance involves two perils, accident and ____?
Sharing 50% of a producer's commission with the insured is an example of?
Under the Affordable Care Act, which of these plans is designed to provide coverage that is actuarially equivalent to 80% of the full actuarial value of the benefits provided under the plan?
A life insurance policy becomes incontestable after it has been in force for
Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake?
A producer who offers 10% of his commission to a potential client as an inducement to purchase an insurance policy is committing the act of?
A life insurance illustration showing future premiums being paid out of nonguaranteed values must disclose that?
The policy owner may need to resume premium payments depending on actual results
An employer is issued a group medical insurance policy. This single contract is known as a(n)?
In Pennsylvania, a producer may have their license revoked for which of the following acts?
Signing a prospect's name without their knowledge or presence
Claims payable to a Disability Income insured, even when the insured can continue to work, are the result of a?
Distributions from a Health Savings Account (HSA) for qualified medical expenses are?
A whole life insurance policy accumulates cash value that becomes?
The policy loan value which the insured may borrow against
In a Long-Term Care policy, the right-to-examine period is
characteristics of a major medical expense policy?
- large benefit maximums
- deductibles
- coinsurance
The Federal Employees Benefit Program consists of two types of health plans for federal civilian employees. The two plans are fee-for-service and?
What is Medicare Part B also known as?
Supplementary medical insurance
Which of the following signatures is not required on an individual insurance application?
Under a disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental?
accidental bodily injury provision
Which of the following would be considered a possible applicant and contract policyholder for group health benefits?
When the principal gives the agent authority in writing, it's referred to as
Proceeds of the viatical settlement contract could be subject to the claims of
The purpose of Medicare Supplement Insurance is to address gaps in Medicare coverage, which can include?
Medicare in-hospital deductible
What is required before an insurance producer can act as a representative of an insurer?
The producer needs to be appointed by that insurer
Variable life insurance and Universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance?
Policyowner has the right to select the investment which will provide the greatest return
Policyowner has the right to select the investment which will provide the greatest return
Certificate of coverage and benefits
Which contract element is insurable interest a component of?
Which type of coverage pays an amount per day for hospitalization directly to the insured regardless of the insured's other health insurance?
A disability elimination period is best described as a
An example of a tax-qualified retirement plan would be a(n)?
defined contribution plan
A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n)?
What is created after policy proceeds are obtained in a lump sum and then immediately invested?
The role of the federal government was expanded when Medicaid was established by allowing the state to
receive matching funds to expand public assistance programs
The premium for a Modified whole life policy is?
lower than the typical whole life policy during the first few years and then higher than typical for the remainder
An employee under a group insurance policy has the right to name a beneficiary and the right to?
convert to an individual policy in the event of employment termination
Medicare Part A does not pay for medical benefits provided for treatment in a skilled nursing facility beyond?