guarantee exam
an agent received some inaccurate info and as a result he publicly misstated the financial condition of another entity over 12 times over a period of 3 months. if this fact is revealed the agent may face a fine up to
$10,000
all of the following are excluded from coverage in an individual health insurance policy EXCEPT
mental illness
regarding health insurance, all of the following are tax deductible EXCEPT
EE paid group disability income
what does an annuity protect the annuitant against
living longer than expected
Under the mandatory uniform provision Notice of Claim, written notice of a claim must be submitted to the insurer within what time parameters
20 days
which best describes life annuity w/ period certain option
guarantees benefit payment for life of annuitant and for a specified period for the benficiary
a jumping juvenile policy is unique in that the death benefit automatically
increases at predetermined age
a whole life policy that will generate immediate cash value is a..
single prem policy
an insured purchased a health insurance with a renewability clause that states the policy is guaranteed renewable. this means that as long as the required prems are paid, the policy will continue until the insured
reaches age 65
what type of insurer uses a formal sharing agreement
reciprocal insurers
if an individual willfully violates provisions of the Fair Credit Reporting Act, what is the max civil penalty
$2500
a person receives his medicare supplement policy and is not satisfied with the provisions. he can return the policy for a full prem refund if he does so within how many days
30
cash value guarantees in a whole life policy are called
nonforfeiture values
in a group policy, all of the following can be the policyowner except
insurance company
carlo's health insurance policy pays benefits according to a list which indicates the amount that is payable under each type of covered treatment of procedure. Carlo's policy provides benefits on a
scheduled basis
what guarantees that info explained in insurance contract is true?
warranty
what is the purpose of a disability buy sell agreement
allow business buyout in case of owner's disability
which is NOT a personal use of life insurance?
an individual buys insurance to fund a buy sell agreement
what is the cost of coverage based on group life insurance?
average age and ratio of men to women
If a person qualifies for Social Security disability benefits after the 5 months elimination period, when will benefits begin?
benefits begin at beginning of 6th month and are not retroactive to beginning of disability
insurers CANNOT transact insurance in this state w/o a
certificate of authority
An EE dies having 6 quarters of coverage during the previous 13 quarter period. what status of coverage does the EE have under social security
currently insured
which of the following best describes life annuity with period certain option
it guarantees benefit payments for life of annuitant and for specified period for beneficiary
which of the following riders provides for the payment of part of the policy death benefit if the insured is diagnosed w/ a terminal illness that will result in death within 2 years
living needs rider
a married couple purchase a life insurance policy on their newborn baby. they are concerned about what would happen to the policy if either one of them were unable to continue making prem payments due to death or disability. which policy rider should their agent recommend
payor benefit
health insurance rates may be based upon all of the following except
religion
which of the following types of products would be appropriate for an individual with a low income and high insurance needs
term insurance
the owner of a whole life policy w/ an accidental death rider intentionally kills himself after having the policy for 18 months. what is the insurance company's course of action?
deny any payment of death benefit
a producers licensed must be renewed
every 2 years
what happens to the face amount of a whole life policy if the insured reaches the age of 100?
face amount is paid to insured
all of the following are changes to health insurance plans introduced by ACA EXCEPT
full cost coverage for all medical expenses
With a conditionally renewable policy, the premiums are more likely to be
increased
an insured's hospital policy states that it will pay him a flat fee per day for each day he is hospitalized. the policy pays benefits on what basis?
indemnity
an applicant completes an application for a disability policy and pays the initial prem. the producer gives the applicant a conditional receipt. insurance coverage for the applicant will become effective when
insurance company accepts the risk
what is not true regarding a noncancellable policy
insurer can increase the prem above what is stated in policy if claims experience is greater than expected
with respect to the entire contract clause health policies, who has the authority to make changes to an existing policy
only an executive officer of the company
what is NOT true regarding term health coverage
owner may renew policy for specified term
which of the following is consideration on part of an insurer
paying a claim
which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insureds death was caused by an accident as defined in the policy
an accidental death rider
all of the following could qualify as a group for purpose of purchasing group insurance EXCEPT
an association of 35 people
which of the following must be listed by producers during replacement
policies still in force and sold during past 5 years
The family term rider incorporates
Spouse term and children's term
all of the following are true of survivorship life policy EXCEPT
prem based on age of insured
if a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of procedure?
prior to performance of test
once an insurer receives a claim, within how many days must the insurer provide claim forms to the insured?
10 working days
which of the following types of care could be provided at a community center?
adult day care
which of the following statements is true of a combination dental plan
it is combined of a scheduled and nonscheduled dental plan
what is true regarding an Agent's Report during policy application process?
it provides the agent's personal observation concerning the proposed insured
your client wants to provide a retirement income for his elderly parents in case something happens to him. he wants to make sure that both beneficiaries are guaranteed an income for life. which settlement option should this policyowner select?
joint and survivor
an insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days?
3
in the event of lapse, long term care insurance policies should include a provision that provides for reinstatement of coverage. This option is available within...
5 months of termination
An insurer can decide not to renew an optionally renewable policy
on prem due dates
all other factors being =, what prem mode would result in lowest overall prem?
annual
what does not need to be included on 1st page of medicare supplement policy
prem rates
what is true regarding pure life annuity settlement option?
provides highest monthly benefit
what best describes pure life annuity?
provides highest monthly benefits
an applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no the ? pertaining to heart problems on their application. This answer is considered to be a
representation
an insured recently underwent surgery related to a specified disease. how much can her specified (dread) disease policy pay for this expense
$3,500
what is the max civil penalty per violation of regulations of the Insurance Code that define acts that are subject to fines or license suspension or revocation?
$5000
Under the mandatory uniform provision proof of loss, the claimant must submit proof of loss within what time period after the loss
90 days
an insured's flexible prem is invested into a separate account. What type of insurance product did he purchase?
variable universal life
what is not a feature of catastrophic plan
high prems
under long term care marketing regulations, which of the following questions would a producer NOT have to ask the application in order to determine if the purchase is suitable
how much are you able to pay in prems
in a deferred annuity, the difference between the accumulation value and the surrender value is the
surrender charge
an individual acted as an exclusive general agent - even tho she was not licensed to do so. Since this offense occurred over a period of 60 days, what is the max penalty?
$60,000 and 3rd degree misdeanor
An equity indexed annuity will grow based upon
Performance of a recognized index
an insured has an individual disability income policy w/ 30 day elimination period. He becomes disabled on June 1st for 15 days. When will he collect on his disability income payments?
he won't collect anything
if an applicant submits the initial prem w/ an application, which action constitutes acceptance
underwriters approve application
what is not true regarding the fed Fair Credit Reporting Act
reports may be sent to anyone who requests one
when an insured terminates membership in the insured group, the insured can convert to
whole life w/o proof of insurability
all of the following health insurance disability benefits are income tax free EXCEPT
ER paid group disability
variable insurance and annuities are regulated by
SEC, FINRA and Departments of Insurance
contingent benefit on lapse will be triggers when an insurer increases an insured's prem rates to a certain level and the policy subsequently lapses within?
120 days
according to the Time Limit on Certain Defenses provision, no statement or misstatement (except fraud misstatements) made in the application at the time of issue will be used to deny a claim after the policy has been in force for
3 years
an agent is hand delivering an insurance policy to a policyowner. what must the agent obtain to complete the transaction
a signed delivery receipt
what is the latest point at which an outline of coverage may be presented
at time of policy delivery
an underwriter is reviewing an applicant w/ an extensive medical history. What would give the underwriter a better understanding of how the applicant has been treated for various illnesses?
attending physician's statement
what us an example of an insurer participating in the unfair trade practice of discrimination
charging the insured higher prems based on race
the policyowner has an option to pledge the life insurance policy as collateral for a bank loan. this is called
collateral assignment
an insured purchases a non-participating whole life policy. This policy includes all of the following EXCEPT
dividends
J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?
fixed amount
all of the following info needs to be included on an application for life insurance EXCEPT
health insurance policies in force
according to the Fair Credit Reporting Act, all of the following statements are true EXCEPT
if an applicant is declined for an insurance policy, he or she has no right to know what was in the report
under what condition would life insurance proceeds be taxable by the fed gov
if there is a transfer of value
which best describes the difference between joint life and joint and survivor annuity payment options
in joint life option, benefits stop after first death
what is the only difference between blanket and group health insurance
insured members are not named
which is not true regarding an optionally renewable policy
insurer can only cancel policy for reasons stipulated in contract
what is provided by skilled medical personnel to those who need occasional medical assistance or rehab care
intermediate care
a policyowner no longer needs a life insurance policy and agrees to sell it to a 3rd party for more than its cash value. this type of transaction is called
life settlement
which of the following used to be called medicare + choice plans
medicare advantage plans
dividends received on participating life insurance policies are
not taxable b/c they are return of prems
which is a characteristic of term life insurance
temporary protection, renewability, no cash value
what is not true about mutual insurance companies
policy dividends issued by mutual companies are guaranteed and not taxable
what is the purpose of the surrender charge in a deferred annutiy
to compensate the company for loss of investment value