Exam FX
Whose responsibility is it to determine if all of the questions on a an application have been answered?
the agent
which nonforeiture option has the highest amount of insurance protection?
Extended Term
An applicant for health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. which of the following has the insured done by this point
Neither approve the application nor issued the policy.
The gatekeeper of an HMO helps
control specialist costs
which of the following is term for the specific dollar amount that must be paid by HMO member for service
copayment
the insurance policy, together with the policy application and any added riders form what is known as
entire contract
the provision that states that both the printed contract and copy of the application form between the policy owner and the insured is called the
entire contract
which is True about the cash surrender nonforfeiture option ?
funds exceeding the premium paid are taxable as ordinary income
which of the following statement is NOT true concerning Medicaid?
it Consists of 3 parts: Part A: hospitalization, Part B: doctor's services, Part C: disability income ( which is false so it doesn't consist of 3 parts)
which of the following statement is NOT correct concerning the COBRA act of 1985
it requires all employers, regardless of the number or age of employees, to provide extended group health coverage
which of the following Not be considered a limited coverage policy?
major medical expense insurance
a domestic insurer issuing variable contracts must establish one or more
separate accounts
If an insurer issued based on the application that had unanswered questions, which of the following will be true?
the policy will be interpreted as if the insurer waived its right to have an answer on the application
if an insured receives accelerated death benefits, what is the least amount of original death benefit that the beneficiary would receive after the insured's death
0%
A business owner was trying to obtain a bank loan to fund the purchase of new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her 250,000 life insurance policy to secured the loan. which provision make this possible
Collateral assignment
which of the following is NOT a term the period of time during which the annuitant or beneficiary receives income?
Depreciation period
If an insured worked has earned 40 quarters of coverage, the workers' status under social security disability is
Fully insured
in a group health policy, a probationary period is intended for people who ?
Join the group after the effective date
the type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called
Joint and Survivor
an insured who has been an accidental death and dismemberment policy losses her left arm in an accident. what type of benefit will she most likely received from this policy?
The capital amounts in a lump sum
A hospital indemnity policy will pay ?
a benefit for each day the insured is in a hospital
who is a third- party owner?
a policy owner who is not the insured
stranger- originated life insurance policies are in direct opposition to the principle of
insurable interested
A policy will pay the death benefit if the insured dies during the 20- year period and nothing if death occures after the 20- year period. what type of policy is this?
level term
in long term care insurance, what type of care is provided with intermediate care?
occasional nursing or rehabilitative care
if an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a ?
settlement option
An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called
single premium whole life
what is the advantage of reinstating a policy instead of applying for a new one?
the orginal age is used for premium determination
all of the following are true regarding a decreasing term policy EXCEPT
the payable premium amount steadily declines throughout the duration of the contract
which is true about a spouse term rider?
the rider is usually level term insurance
which of the following is true about nonforteiture value?
they are required by state to included in the policy.
All of the following are requirements for life insurance illustrations EXCEPT?
they must be part of the contact
which provision state that the insurance company must pay medical expense claims immediately
time of payment of claims
when an insured issues an individual health insurance policy that is guaranteed renewable, the insured agrees
to renew the policy until the insured has reached age 65
which of the following products requires a securities license?
variable annuity
when would a 20-pay whole life policy endow?
when the insured reaches age 100
group life insurance is a single policy written to provide coverage to members of a group. which of the following statements concerning group
100% participation of members is required in noncontributory plans.
what is the period of coverage for events such as death or divorce under COBRA
36 months
If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of death benefit will be paid to the beneficiary?
A full death benefit
A fathers purchases a life insurance policy on his teenage daughter and adds the payor benefits rider. in which of the following scenarios will the rider waive the payment of premium?
If the father is disable for more than 6 months
An insured stated on her application for life insurance that she has never had a heart attack, when in fact she has series of minor heart attacks last year for which she sought medical attention. which of the following will explain the reason a death benefit claim is denied?
Material misrepresentation
under the affordable care act, which classification applies to health plans based on the amount of covered cost
Metal level classification
Which of the following, when attached to a permanent life insurance policy, allows the policy to provide an additional amount of term insurance on the insured or allows amount of temporary to cover other family members?
Term rider
which of the following will vary length of the grace period in health insurance policies
The mode of the premium payment
which of the following will vary the length of the grace period in health insurance policies?
The mode of the premium payment
in which of the following locations would skilled care most likely be provided?
in a institutional setting
Which of the following types of insurance policies would perform the function cash accumulation?
whole life
If a policy includes a free-look period of at least 10 day, the buyer's guided maybe be delivered to the applicant
with the policy
which of the following is not a factor is determining qualifications for social security disability benefits
workers occupation
An insured pays a monthly premium of 100 for her health insurance. what would be the duration of the grace under her policy?
10 days
Ray has an individual major medical policy that requires a coinsurance payment. Ray very visits his physician and would perfer to pay the lowest premium possible. which coinsurance arrangement would be best for Ray?
50/50
under the uniform required provision, proof of loss under a health insurance policy normally should be filled within
90 days of loss
when an insured purchased her disability income policy, she misstated her age to the agent. She told the agent that 30 years old when in fact she was 37. if the policy contains the optional misstatement of age provision
Amounts payable under the policy under the policy will reflect the insured's correct age
When an annuity is written, whose life expectancy is taken into account.
Annuitant
which of the following protects the insured from an unintentional policy lapse due to nonpaymemt of premium
Automatic premium loan
And individual is purchasing a permanent life insurance with a face value of 25,000. while this is the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the
Guaranteed insurability option
an insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. the dividends option that the insured has chose is called?
Paid up additions
an insured will be allowed to reactive her lapsed life insurance policy if action is taken within a certain period of time and proof of insurability is provided. which policy provision allow this?
Reinstatement provision
which is true regarding obtaining underwriting sources?
The applicant must be informed of the sources contacted and how information is being gathered.
an insured submitted a notice of claim to the insured, but never received claim forms. He later submits proof of loss, and explains the nature and extent of loss in a hand- written letter to the insured. which of the following would be true
The insured was in a compliance with the police requirements with the policy requirements regarding claims.
which is NOT a characteristic of group health insurance?
a policy is issued to each insured individual
under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health must contain
a statement that is sufficiently clear to identify the insured and nature of the claim
which of the following entities can legally blind coverage
insured
which of the following is TRUE of a qualified plan?
its has a tax benefit for both employers and employee
The divided option in which the policyowner uses dividends to purchase a term policy for one year is referred as the
one year term option
An insured pays her major medical insurance premium annuall on March 1. last march she forgot to mail her premium to the company. on march 19, she had an accident and broke her leg. the insurance company would.
pay the claim
A prospective insured recieves a conditional receipt but die before the policy is issued. the insurer will?
pay the policy proceeds only if it would have issued the policy.
The policyowner pays for her life insurance annually. Until now she collect a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay
reduction premium
when an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy as well a refund of all the premium paid. which rider is attached to the policy
return of premium
Benefit periods for individual short- term disability policies will usually continue from
six month to 2 years
Benefit periods for individual short term disability will usually continue from
six months to years
which of the following determines the length of time that benefits will received under the fixed- amount settlement option?
size of each installment
Which of following is a risk classification used by underwriters for life insurance?
standard
what is the best way to change an application?
start over with a fresh application
which of the following terms describes the specified dollar amount beyond which the insured no longer participates in the sharing of expenses?
stop-loss limit
which of the following is NOT a feature of a noncancellable conditions
the insured may terminate the contract only a renewal for certain conditions?
which of the following is NOT a feature of a guaranteed renewable provision?
the insurer can increase the policy premium on a individual basis.
A policyowner has health insurance policy with his wife listed as the primary beneficiary. He would like to change the primary beneficiary to his sister. which of the following is true
unless the policy designated the current beneficiary as irrevocable, the policyowner can make the change at any time.
An agent and an applicant for a life insurance policy fill out and sign the application. However the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. when will coverage begin?
when the agent delivers the policy, collect the initial premium, and the applicant completes an acceptable statement of good health
which of the following determines whether disability insurance benefits are taxed?
whether the premiums were tax deductible
A medicare SELECT policy does all the following EXCEPT
prohibit payment for regularly covered services if provided by non-network providers
A medicare SELECT policy does all the following expect
prohitbit payment for regularly covered services if provided by non- network providers
Which of the following riders is often used in business life insurance policies when the policyowner needs to change the insured under the policy?
Substitute insured rider
According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT
Unearned premiums are retained by the insurance company
which two terms are associated directly with the premium?
level or flexible
what is the term used for an applicant's written request to an insured for the company to issue a contract, based on the information provided?
application
when reduced paid up nonforfeiture option is chose, what happens to the face amount of the policy
its reduced to the amount of what the cash value would buy as a single premium.
An insured receives an annual life insurance dividends check. what term best describes this arrangement
cash option
an applicant for an individual health policy failed complete the application properly. Before being able to complete the application an pay the initial premium, she is confined to a hospital. This will not be covered by insurance she has not met the conditions specified in the
consideration clause
which of the following is Not an exclusion in medical expense insurance policies?
coverage for dependents
All of the following would be qualified as a dependent under a dependent under a dependent care flexaible spending account EXCEPY
jeremy had to have both legs amputated, but has learned how to take care of himself and to get around in a wheelchair.
The provision in a health insurance policy that ensures that the insured cannot refer to any document that is not contained in the contained in the contract is the
entire contract clause
which of the following is INCORRECT concerning taxation of disability income benefits ?
if paid by the individual the premium are tax deductible ( because you cannot tax disability income)
A typical accidental death& dismemberment policy covers all the following losses Except
income
which type hospital policy pays fixed amount each day that the insured is in the hospital?
indemity
which of the following statements regarding HIV testing for insurance purpose is NOT true?
insurers are barred from requesting HIV testing
which provision of lief insurance policy states the insures's duty to pay benefits upon the death of the insured, an to whom the benefits will be paid
insuring clause
the section of a health policy that states the causes of eligible loss under which an insured is assumed to be disable is the
insuring clauses
An insured buys a 5 year level premium term policy with a face amount of 10,000. the policy also contains renewability and convertibility options. when the insured renews the policy in 5 years, what will happen to the next premium
it will increase beacuse the insured will be 5 years older than when the policy was orginally purchased
which of the following is TRUE regarding the accumulation period of annuity
its is a period during which the payment into the annuity grow tax deferred.
