EXAM 6!!

Under the Indiana Long-Term Care Partnership Program (LTCP), producers are required to have an additional______hours of education after they receive their license in order to sell policies under this program.

15

According to Indiana Law, how long can statements made by an Applicant on a Health insurance policy be contested?

2 years

S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies , the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations ?

36

How long does an individual have to "rollover " funds from an IRA or qualified plan ?

60 days

Which of the following is NOT a required provision in a group life policy?

ADD

K, age 45, and his wife, age 43, have three children . They purchase a Family Policy that covers K's wife to age 65. of these situations will pay a death benefit EXCEPT

K's wife dies at age 66

Under which of the following circumstances will the benefits under COBRA continuation coverage end?

all group health plans are terminated by the employer

Which of the following statements is CORRECT regarding the tax treatment of a lump -sum payment paid to a life insurance policy's primary beneficiary ?

all proceeds are income tax free in the year they are received

An example of false advertising would be:

an insurer exaggerating its dividends in a magazine advertisement

Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company?

annuity

____sells insurance advice for a fee

consultant

Which of these actions does NOT constitute life insurance policy replacement ?

convert term coverage to a whole life policy

How are surrender charges deducted in a life policy with a rear-end loaded provision ?

deducted when the policy is discontinued

What type of policy would only provide coverage for specific types of illnesses (cancer, stroke, etc)?

dread disease insurance

Two partners own equal shares in a business worth a total of $ 1, 00 . If they both commit to the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is TRUE ?

each partner owns a $500,000 policy on their partners life

What provision in a life insurance policy states that the application is considered part of the contract ?

entire contract provision

How often must the Commissioner examine each domestic insurance company ?

every 5 years

Which of the following is NOT included in the policy face?

exclusions

A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered, EXCEPT for :

experimental and investigative services

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?

full benefits are payable under the Master contract

A Nonforfeiture clause gives the policyowner

garunteed values even if the policy has lapsed

A life insurance application may be rejected on the basis of all of these factors EXCEPT

gender

A hearing must be held before a producer's license can be suspended or revoked . Prior to the hearing , the Insurance Commissioner is required to:

give written notice to the producer

The Commissioner is appointed by the

governer

Which type of renewability best describes a Disability Income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate for the overall risk class?

guaranteed renewable

W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices, EXCEPT a(n) :

immediate annuity

Medicare Part B does NOT cover:

inpatient hospital services

The conversion provision in a group health insurance policy :

is mandated by state requirements

Which of these are NOT an example of a Nonforfeiture option ?

life Income

The Accelerated Death Benefit provision in a life insurance policy is also known as a(n)

living benefit

Which of these is an element of a Single Premium annuity ?

lump-sum payment

Which of the following provides funding for the Indiana Life and Health Insurance Guaranty Association ?

member company assessments

Which of these life products is NOT considered interest-sensitive?

modified whole life

Which of the following is TRUE about a qualified retirement that is "top heavy"?

more than 60% of plan assets are in key employee accounts

Tis covered by a group major medical policy with his employer. He leaves his employer and converts the coverage to an individual policy. All of these statements about the new policy are true EXCEPT :

new policy pays the same benefits as the group policy

T is an insurance license applicant who intends to primarily engage in insurance transactions on himself and his family. If the Insurance Department is made aware of this , T will most likely

not be an issued license

With Optionally Renewable Health policies, the insurer may:

review the policy annually and determine whether or not to renew it

Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant ?

risk classification

Which of these terms accurately defines an underwriter's assessment of information on a life insurance application ?

risk classification

Typically a life insurance death benefit is paid by a lump-sum payment. A(n)________option is a method of distributing a Life Insurance policy's death benefit OTHER than by a lump sum payment .

settlement

P is an employee who quits her job and wants to convert her group health coverage to an individual policy. After the expiration of COBRA benefits, which of the following statements is TRUE?

she DOES need to provide evidence of insurability

Under a Renewable Term policy

the renewal premium is calculated on the basis of the insured's attained age

Medicare is intended for all of the following groups, EXCEPT :

those enrolled as a full-time student

The Insurance Commissioner is authorized:

to enforce state laws relating to insurance

A life insurance policy that provides a policyowner with cash value along with a level face amount is called:

whole life