Georgia Life and Health
Dividend Options
1. Cash 2. reduction of premiums 3. Accumulation at interest 4. One Year term
The corridor deductible applies between
Basic and major medical coverage
The "conservation effort" deals with
Discouraging policyholders from dropping existing policies
What does "level" refer to in level term insurance?
Face Amount
Which type of care is NOT covered by Medicare?
Long Term
Peril
The cause of loss
Once an individual is licensed as an insurance producer for life or accident and health insurance, how many hours of training must the producer complete initially to sell long-term care insurance partnership policy?
8 hours
How often must the Commissioner of insurance examine health maintenance organizations (HMOs) authorized to do business in this state
Every 3 Years
How long is a free look period on a Medicare supplement supply
30 days
When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?
Extended term
When may HIV-related test results be provided to the MIB?
Only if the individual is not identified
The family term rider incorporates
Spouse term and children's term
Which of the following definitions would make it easier to qualify for total disability benefits?
The more liberal "own occupation"
Insurable interest
financial interest in the life of another person or in a piece of property
indemnity
restoring the insured to the condition that existed before loss
Law of large numbers
the larger the number of people with the same exposure to loss, the more predictable the actual loss will be
Under the mandatory uniform provision Notice of Claim, written notice of a claim must be submitted to the insurer within what time parameters?
within 20 days
Nonforfeiture Options
1. Cash surrender 2. Extended Term 3. Reduced Paid-up insurance
Key features of whole life insurance
1. protection until the insureds age 100 2. level premium 3. Cash values and living benefits
An insured recently discovered that the interest rate on his policy loan once again increased. Which of the following is the shortest amount of time that could have passed since the last change in the insured's interest rate?
3 months
A life insurance policy qualifies as a Modified Endowment Contract if the amount of premium paid exceeds the amount that would have provided paid-up insurance in how many years?
7 years
What is the maximum allowed rate of interest on policy loans from life insurance?
8%
Workers Compensation types of benefits
medical income death rehabilitation
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?
10 Days
In replacement, an existing insurer must provide policy owners with a policy summary for existing life insurance within how many days of receiving the written communication and replacement?
10 days
For how many days of skilled nursing facility care will Medicare pay benefits?
100
When a policy is replaced, replacing insurers must maintain a replacement register regarding the policy for
3 Years
if an insureds cognitive impairment results in the lapse of a long-term care policy, how long from the policy lapse may the insured request reinstatement?
5 months
Authorized insurance companies are examined by the commissioner at least once every?
5 years
The inflation protection feature in long-term care policies issued in this state must provide protection for inflation at what percent annually?
5%
How long is an open enrollment period for Medicare supplement policies?
6 Months
How long is open enrollment period for Medicare supplement policies?
6 months
On an Accidental Death and Dismemberment (AD&D) policy, the death benefit payable is known as the
Principle Sum
How long is the waiting period for benefits to be paid in a long-term care policy or rider?
90 Days
A policy form is deemed to be approved by the commissioner if it has been on file for at least how many days?
90 days
In an individual long-term care insurance plan, the insured is able to deduct the premiums from taxes. What income taxation will be imposed on the benefits received?
No tax
When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?
Paid-up additions
Variable Life Insurance
Permanent Insurance Premium- fixed(whole life) flexible(if universal) Cash Value-not guaranteed/invested in separate accounts Regulated by- SEC, FINRA, Department of insurance
All of the following are true of the key person disability income policy except?
Premiums are not deductible to the business
Annutization period
income is paid to the annuitant
An insurer must supply claims forms to the insured within how many days of a notice of claim?
15 days
When a hearing regarding an insurance matter is requested, all parties must receive
15 days notice
Universal life insurance
2 death benefit options: Option A- Level benefit and Option B- Increasing Benefit
Following hospitalization because of an accident, Bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many days?
20
If an insured submits a written proof of loss, What is the maximum amount of time after submittal that the insured has to initiate legal action?
3 Years
When a policy is replaced, replacing insurers must maintain a replacement register regarding that policy until the conclusion of the next regular examination by the insurance department or for
3 years
If an agent changes his residence address, within how many days must the agent notify the Commissioner of the change?
30
A policy form is deemed to be approved by the commissioner if it has been on file for at least how many days?
30 Days
An insurance agent has received a request for a hearing from the commissioner, within how many days must the hearing be held?
30 days
Insurers must keep files of all advertisements used in Georgia for the minimum of how many years?
4 Years
Agents, subagents, and counselors are required to maintain records of all insurance transactions for what time period?
5 Years
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 Months
An agent must be a resident of the state and be present in the state for at least how many months each year?
6 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 premium in default?
60
Which of the following is a correct statement about annuities?
Fixed annuities do not provide protection against inflation
All of the following would be classified as "limited insurance coverage" except
Supplemental Social Security Coverage
Adjustable Life Insurance
can either be term or permanent; the policy owner can increase or decrease the premium, the face amount and the period of protection
An insurance producer just sold an insurance policy to his sister. What kind of business is this?
Controlled
Decreasing term insurance is often used to
Cover a mortgage
If an agent advises a policy holder to replace an insurance policy but only does so for the purpose of making commissions, the agent has committed an act of?
Churning
Which policy component decreases in decreasing term insurance?
Face amount
Levels of Care
Skilled Intermediate Custodial
The violation of a cease and desist order may result in a fine of
$10,000
