Exam FX - Life & Health

A group policy used to provide accident and health coverage on a group of persons being transported by a common carrier, without naming the insured persons individually is called

blanket policy

Which of the following is INCORRECT concerning Medicaid?

It is solely a federally administered program.

Which of the following applies to the 10-day free-look privilege?

It permits the insured to return the policy for a full refund of premiums paid.

Which of the following types of risk will result in the highest premium?

substandard risk

If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?

the death benefit will be smaller

Which of the following is NOT a factor in determining qualifications for Social Security disability benefits?

worker's occupation

An employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage?

$102

Once the person meets the stringent requirements for disability benefits under Social Security, how long is the waiting period before any benefits will be paid?

5 months

A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?

60

In order to maintain coverage under COBRA, how soon from termination of employment must an employee exercise extension of benefits?

60 days

Which of the following individuals is eligible for a Health Savings Account?

Allison is insured by a High Deductible Health Plan (HDHP)

An individual is insured under his employer's group Disability Income policy. The insured suffered an accident while on vacation that left him unable to work for 4 months. If the disability income policy pays the benefit, which of the following would be true?

Benefits that are attributable to employer contributions are fully taxable to the employee as income.

Which of the following best describes fixed-period settlement option?

Both the principal and interest will be liquidated over a selected period of time.

When delivering a policy, which of the following is an agent's responsibility?

Collect payment at time of delivery

A key person insurance policy can pay for which of the following?

Costs of training a replacement

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

The requirement that agents not commingle insurance monies with their own funds is known as

Fiduciary responsibility.

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

Guaranteed insurability rider.

Which of the following is an eligibility requirement for all Social Security Disability Income benefits?

Have attained fully insured status

Which of the following would NOT be considered a purpose of life insurance solicitation regulations in Georgia?

Help buyers choose most qualified insurance producers

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?

Illegal under any circumstances

All of the following are differences between individual and group health insurance EXCEPT

Individual insurance does not require medical examinations, while group insurance does require medical examinations.

Which of the following is NOT true regarding a Certificate of Authority?

It is issued to group insurance participants.

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?

It is only taxable if the cash value exceeds the amount paid for premiums.

The premium charged for exercising the Guaranteed Insurability Rider is based upon the insured's

attained age

Which of the following is an example of a limited-pay life policy?

Life Paid-up at Age 65

After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive?

Monthly premium waiver and monthly income

To sell variable life insurance policies, an agent must receive all of the following EXCEPT

SEC registration.

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?

The insured may renew the policy for another 10 years, but at a higher premium rate.

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

The insured's premiums will be waived until she is 21.

Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?

attending physician

Which of the following is TRUE regarding the premium in term policies?

The premium is level for the term of the policy.

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.

Which of the following is an example of a producer's fiduciary duty?

The trust that a client places in the producer in regard to handling premiums.

Why should the producer personally deliver the policy when the first premium has already been paid?

To help the insured understand all aspects of the contract

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

an unfair trade practice

An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the

consideration clause

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

dividends from a mutual insurer

The provision in a health insurance policy that ensures that the insurer cannot refer to any document that is not contained in the contract is the

entire contract clause

What does "level" refer to in level term insurance?

face amount

Most LTC plans have which of the following features?

guaranteed renewability

A typical Accidental Death & Dismemberment policy covers all of the following losses EXCEPT

income

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?

interest only option

The premium of a survivorship life policy compared with that of a joint life policy would be

lower

What is the other term for the cash payment settlement option?

lump sum

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

mutual

An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident, and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?

pay a reduced death benefit

What is the initial period of time specified in a disability income policy that must pass, after the policy is in force, before a loss can be covered?

probationary period

In the event of a loss, business overhead insurance will pay for

rent

An insurance agent's responsibilities include all of the following EXCEPT

represent the client

An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?

revocable

Methods used to pay the death benefits to a beneficiary upon the insured's death are called

settlement option