Guarantee Exam

A licensee who has moved to Pennsylvania from out of state must provide which of the following before becoming licensed as a resident in this state?

proof of licensing or a letter of clearance from the previous home state

An insured wants to cancel her health insurance policy. Which portion of the contract would explain cancellation rights?

renewability provision

Carlos's health insurance policy pays benefits according to a list which indicates the amount that is payable under each type of covered treatment or procedure. Carlos's policy provides benefits on a

scheduled basis

When acting as a field underwriter, a producer is

seeking creditable information about about an applicant for health insurance

what is the cost of coverage based on for group life insurance?

the average age and ratio of men to women

who determines if a particular group of employees can be excluded from group health coverage?

the employer

An agent received some inaccurate information, and, as a result, he publicly misstated the financial condition of another entity 12 times over a period of 3 months. If the fact is revealed, the agent may face a fine up to

$10,000

An insured recently underwent surgery related to a specified disease. How much can her specified (dread) disease policy pay for this expense?

$3,500

In some cases, in order for an insured to legally disclose privileged info to appropriate sources, the insured must sign an authorization form. What is the maximum amount of time that can legally pass between the completion of the form and the disclosure of info?

1 year

Under a long term care policy, the commissioner or other compensation provided for a minimum of 5 subsequent years CANNOT exceed what percentage of the renewal premium?

10 %

A person received his medicare supplement policy and is not satisfied with provisions. He can return the policy for a full premium refund if he does so within how many days?

30

With adjustable life, the owner can change all of the following EXCEPT a. the length of time the coverage will last b. the insured c. the death benefit d. the premium

B

which of the following is NOT a Medicaid qualifier? a. residency b. insurability c. income level d. age

B

which of the following is true regarding pure life annuity settlement option? a. it guarantees income for a specified period of time b. it provides the highest monthly benefit c. it guarantees that all the proceeds will be paid out d. the beneficiary will receive a refund of the principal

B

All of the following are true of the Survivorship Life policy EXCEPT a. the premium would be lower than in a joint life policy b. it can insure more than 2 lives c. the premium is based on the age of each insured d. the death benefit is not paid until the last death

C

In health insurance, what is coinsurance?

a percentage of the cost of service that the insured and the insurer share

Which rider pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy?

an accidental death rider

An underwriter is reviewing an applicant with an extensive medical history. Which of the following would give the underwriter a better understanding of how the applicant has been treated for various illnesses?

attending physician's statement

Which of the following describes the relationship between a capital sum and a principal sum?

capital sums are percentages of principal sums

In a variable life insurance policy, all of the following assets are held in the insurance company's general account except

cash surrender values

which of the following elements of an insurance contract requires paying premium and providing a statement of good health?

consideration

what type of an interest rate is guaranteed in universal life policies?

contract interest rate

decreasing term insurance is often used to

cover a mortgage

Which of the following meets the insured's personal needs, and is provided by nonmedical personnel?

custodial care

Which type of authority is found in the agent's contract

express

where are premiums from fixed annuities invested?

general account

Ordinary (straight) life policy does not have a

guaranteed death benefit

Under which of the following conditions would life insurance proceeds be taxable by the federal government?

if there is a transfer for value

To purchase insurance the policy owner must face the possibility of losing money or something of value in the event of loss. what is this concept called?

insurable interest

who makes up the medical information bureau?

insurance companies

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

Medicare Part B does not cover

long term care services

cash value guarantees in a whole life policy are called

nonforfeiture values

All group health insurance policies must cover mammographic examinations. the minimum coverage requires must include all costs associated with a mammogram every year for women at least

40 years old

Under the mandatory uniform provision Proof of Loss, the claimant must submit proof of loss within what period of time after the loss?

90 days

which of the following is NOT true regarding a deferred annuity? a. income payments begin within 1 year from the date of purchase b. it can be used to accumulate retirement funds c. it can be purchased with a single lump sum d. the annuity grows tax-deferred

A

With the respect to the entire contract clause in health policies, who has the authority to make changes to an existing policy?

only an executive officer of the company

under a group medical policy, prescription drug plans are

optional benefits

Which of the following is consideration on the part of an insurer?

paying a claim

An employer is no longer able to afford the group health insurance plan and the plan terminates. However, one of the employees continues to receive coverage under the plan. Which of the following explains the reason for the continued coverage?

the employee is totally disabled

According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

the primary beneficiary died before the insured

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