ExamFX Missed Questions

An insured was involved in an accident and could not perform her current job for 3 years. If the insured could reasonably perform another job utilizing similar skills after 1 month, for how long would she be receiving benefits under an "own occupation" disability plan?

2 years. (Under an Own Occupation plan, if the insured cannot perform his/her current job for a period of up to two years, disability benefits will be issued, even if the insured would be capable of performing a similar job during that two-year period. After that, if the insured is capable of performing another job utilizing similar skills, benefits will not be paid.)

Assuming they are provided by a prescribed physician, which of the following claims is NOT covered under an association policy?

30 visits for the treatment of a mental condition each year

One of the differences between group underwriting and individual underwriting is that there is little or no medical information required regarding plan participants in groups of

50 or more.

At times, it is possible for a life insurance agent to affect a savings of premium rates by backdating an application for life insurance. What is the maximum amount of time that an application may be backdated?

6 months

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

A

All of the following may be exempt from the whole or part of the Indiana licensing examination EXCEPT

A candidate applying for a surplus lines producer license

A tornado that destroys property would be an example of which of the following?

A peril

Which of the following would NOT be eligible for a health insurance policy from the Indiana Comprehensive Health Insurance Association?

A person who applied for Medicaid 90 days prior to applying for the Association policy

All of the following are correct about the required provisions of a health insurance policy EXCEPT

A reinstated policy provides immediate coverage for an illness. (sickness is after 10 days)

Which of the following would be deducted from the death benefit paid to a beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive?

Amount paid with the accelerated benefit, plus the earnings lost by the insurance company in interest income from the accelerated benefit

Which of the following is NOT true regarding uniform mandatory provisions concerning claims?

An insured must notify the insurer of a claim on forms prescribed by the insurer.

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.

The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?

Conditional

What type of annuity can be purchased with a single premium and provides benefit payments immediately?

Immediate

Which of the following riders would NOT increase the premium for a policyowner?

Impairment rider

What type of insurance would be used for a Return of Premium rider?

Increasing Term

The Patient Protection and Affordable Care Act includes all of the following provisions EXCEPT

Individual tax deduction for premiums paid.

What is the term for how frequently a policyowner is required to pay the policy premium?

Mode

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

The gatekeeper of an HMO helps to

Control specialist costs.

A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as

Survivor protection

All of the following are beneficiary designations EXCEPT

Specified.

The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the

Spendthrift clause.

The Waiver of Cost of Insurance rider is found in what type of insurance?

Universal Life

After the elimination period, a totally disabled insured qualified and started receiving benefits from his disability income policy that has a waiver of premium rider. What will most likely happen to the premiums paid into the policy during the elimination period?

Premiums will be refunded.

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

Reduced paid-up

Which of the following are responsible for making premium payments in an HMO plan?

Subscribers

Which of the following is true regarding METs?

They allow several small employers purchase less expensive insurance together.

The paid-up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

An insurance company receives an application with some information missing and issues the policy anyway. What is this called?

Waiver

Which of the following determines whether disability insurance benefits are taxed?

Whether the premiums were tax deductible

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

Without receiving written consent from an insurance regulatory authority.

Which of the following losses will be covered by a group medical expense policy?

A pre-existing condition

Which of the following is NOT required to be stated in the outline of coverage provided with a long-term care policy?

Basic information about supplementary policies

A Universal Life insurance policy has two types of interest rate that are called

Guaranteed and Current

Cameron is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he feels he can afford at this time, he wants to be sure that additional coverage will be available in the future. He should include in this policy a

Guaranteed insurability option.

An association could buy group insurance for its members if it meets all of the following requirements EXCEPT

Has at least 50 members. (needs at least 100 members)

Which of the following statements is true about a policy assignment?

It transfers rights of ownership from the owner to another person.

Every insurer marketing Long-Term Care insurance must establish marketing procedures to ensure all of the following EXCEPT

LTC policies are marketed effectively to prospective insureds

Which of the following statements is an accurate comparison between private and government insurers?

Private insurers may be authorized to transact insurance by state insurance departments.

Which of the following best describes the "first-dollar coverage" principle in basic medical insurance?

The insured is not required to pay a deductible

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.

A man is enrolled in Part A of Medicare and not Part B. Three months into coverage, he applies for a Medicare supplement policy. Which of the following is true?

The insurer can deny coverage.

Under the Replacement Regulation, Rule 16.1, which of the following statements would best describe the producer's duties?

The producer must conduct a reasonable investigation to determine if a replacement will take place.

Social Security is funded by a payroll tax imposed on a percentage of an employee's income. This percentage is called

The taxable wage base.

According to the provisions of the Patient Protection and Affordable Care Act, all of the following are required preventive care services EXCEPT

Cervical cancer exams for all women starting at age 40. (Cervical cancer exams as a preventive service will only be available for women at higher risk.)

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. (The incontestability clause prevents an insurer from denying a claim due to statements in an application after the policy has been in force for 2 years. However, it does not apply to statements relating to age, sex and identity.)

A long-term care shopper's guide must be presented at what point?

Prior to the time of application

An insured committed suicide one year after his life insurance policy was issued. The insurer will

Refund the premiums paid.

Employer contributions made to a qualified plan

Are subject to vesting requirements.

An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

Decreasing term