examfx life and health test questions

level term

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

skilled care

All of the following long-term coverages would allow an insured to receive care at home EXCEPT..

FINRA

An agent selling variable annuities must be registered with

Consideration Clause

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 had not met the conditions specified in the

$50,000

An employee will be taxed on the cost of the group life insurance paid by the employer if the amount of coverage exceeds

regulates consumer reports

Federal Fair Credit Reporting Act

Becomes terminally ill

The accelerated benefits provision will provide for an early payment of the death benefit when the insured

90 days of a loss.

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within

face amount

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

early detection through regular checkups

What is the goal of the HMO?

Universal Life

What kind of policy allows withdrawals or partial surrenders?

Funds exceeding the premium paid are taxable as ordinary income.

Which is true about the cash surrender nonforfeiture option?

extended term

Which nonforfeiture option has the highest amount of insurance protection?

reduced paid-up

Which nonforfeiture option provides coverage for the longest period of time?

Payment is limited to a certain period of time

Which of the following applies to partial disability benefits?

the performance of the policy portfolio

Which of the following determines the cash value of a variable life policy?

Notice Regarding Replacement

Which of the following documents must be provided to the policyowner or applicant during policy replacement?

The amount of premium payment

Which of the following information will be stated in the consideration clause of a life insurance policy?

admitted

Which of the following is the closest term to an authorized insurer?

it may last for the lifetime of the annuitant

Which of the following is true regarding the annuity period?

payment of claims

Which of the following provisions would prevent an insurance company from paying a reimbursement clean to someone other than the policyholder?

Payor Benefit Rider

Which of the following riders would NOT cause the Death Benefit to increase?

the insured's premiums will be waived until she is 21

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

policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class

a guaranteed renewable policy allows the

60

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

The interest is not taxable since it remains inside the insurance policy

all of the following are TRUE statements regarding the accumulation at interest option EXCEPT

This rider is available to all insureds with no additional premium

all of the following are true regarding the guaranteed insurability rider EXCEPT

30 days

an agent has been convicted of a crime punishable by a 1-year imprisonment. within how many days must the agent notify the department of insurance?

aleatory

an insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?

mutual

an insured purchased a 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 form the insurer. from what type of insurer did the insured purchase the policy?

seek higher returns

equity indexed annuities

LTC policies are marketed effectively to prospective insureds

every insurer marketing long-term care must establish marketing procedures to ensure all of the following EXCEPT

6 months

for how long is an insurance company allowed to defer policy loan requests

12

how many consecutive months of coverage (other than in acute care unit of a hospital) must LTC insurance provide in this state?

A

if an insurance company offers Medicare supplement policies, it must offer which if the following plans?

loss of one eye

in a disability income policy, all of the following are considered presumptive disabilities EXCEPT

during which illness-related disabilities are excluded from coverage

in a disability policy, the probationary period refers to the time

elimination period

in disability income insurance, the time between the onset of an injury or sickness and when benefits begin is known as the

45 days

in the event a policy lapses due to nonpayment, within how many days would the policy be automatically reinstated once the outstanding premium is paid?

COBRA

in the event of a divorce, which of the following would allow a divorcee to continue receiving group health coverage for an additional 36 months?

rent

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

all plans

in which Medicare supplemental policies are the core benefits found?

Adhesion

insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe?

30 days

medicare supplement policies by law must provide a free-look provision of

first-dollar basis

no deductible

115%

the Florida health insurance coverage continuation act requires insurers that sell health plans to small employers to offer in those plans a right to elect to continue coverage, without providing evidence of insurability. the premium rate of this coverage may NOT exceed

issue of securities

the office of insurance regulation is responsible for all of the following EXCEPT

the policy contains sufficient cash value to cover the cost of the insurance

the policyowner of a Universal life policy may skip paying the premium and the policy will not laps as long as

an agreement between a ceding insurer and assuming insurer

what is reinsurance?

to explain features and benefits of a proposed policy to the consumer

what is the purpose of a disclosure statement in life insurance policies?

Reinsurance

what method do insurers use to protect themselves against catastrophic losses

5 years

when a group policy terminates, how long must an employee have been insured by the group policy to be entitled to convert to an individual policy

Insurer

when a person applies for Medicare supplement insurance, whose responsibility is it to confirm that the applicant does not already have accident or sickness insurance in force?

Purchase a single premium policy for a reduced face amount

when a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

when the application is signed and a check is given to the agent

when is the earliest a policy can go into effect

Renewal Provision

which health insurance provision describes the insured's right to cancel coverage?

department of financial services

which of the following authorities grants and revokes licenses

the date the summary was prepared

which of the following dates must be contained in a policy summary

the aggregate amount of premiums due

which of the following does NOT have to be disclosed in a long-term care (LTC) policy

insurance guaranty association

which of the following entities protects policyowners, insureds, and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment

a person negotiates insurance contracts

which of the following persons is required to hold a producer license

Universal Life Option A

which of the following policies would have an IRS required corridor between the cash value and the death benefit

basic expense

which of the following provides coverage on a first-dollar basis?

SEPs are suitable for large companies

which of the following statements concerning a Simplified Employee Pension plan (SEP) is INCORRECT

benefits are usually limited to six months

which of the following statements regarding business overhead expense is NOT true

dividend

which of the following terms is used to name the nontaxed return of unused premiums?

target premium

which of the following would help prevent a universal life policy from lapsing

it must be combined with a sales illustration

which statement is NOT true regarding a policy summary?

nonforfeiture values

which term describes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses?

the insurance company

who bears all of the investment risk in a fixed annuity?

to receive notice of policy laps or termination

why must there be another person at the time of application signing?

31 days

within how many days of the termination of the insured's group coverage must the insured notify the insurer of the decision to convert to individual coverage