Guarantee Exam Missed Questions

How long is the free-look period of a Medicare supplement policy?

30 days

An adjustable life policy can assume the form

either term insurance or permanent insurance.

Which of the following would be considered a peril?

Fire, fire is a peril (cause of loss). Hazards increase the chance a peril could occur.

An individual acted as an exclusive general agent --even though she was not licensed to do so. Since this offense ocurred over a period of 60 days, what is the maximum penalty she faces?

In Pennsylvania, acting as a manager or exclusive general agent--without proper licensing - is punishable by a third degree misdemeanor charge and a fine of up to $1,000 for each day of their offense. $60,000 and a third degree misdemeanor

Which statement is required to be printed on the first page of a health insurance policy, which signals to the insured that the policy's benefits are limited?

Limited Policy Notice, by law the Limited Policy Notice must be printed on teh first page of insurance policies.

Jordon purchased a "core policy" Plan A to supplement her Medicare coverage. Following a stay in the hospital, Jordan found that her supplemental coverage paid for all of the followign Except

Part A deductible, Plan A is the core benefits only and does not include coverage for Part A deductibles

When may HIV related test results be provided to the MIB?

Only if the individual is not identified.

Who is required to inform applicants about information gathering practices

The agent

All of the following can be changed by the owner of a Universal Life Policy Except

The guaranteed rate of interest, the guaranteed rate of interest in a universal life policy is set by the insurance company. the owner has no control over it.

What guarantees that the information explained in the insurance contract is true?

A warranty is considered a statement of fact or something guaranteed to be true. Breach of warranties can be considered grounds for voiding the policy

Which of the following would not be a characteristic of a Managed Care Plan?

Risk retention, they do not retain risk, but have contracted with a provider to serve their members

If the insurance premiums were not tax deductible, what other taxation will this affect?

Taxation of benefits, the taxation status of benefits is often determined by whether the premiums had been taxed.

Medicare and Medigap

These policies do not provdie for long-term custodial or nursing home care. Medicare will cover nursing home care if it is part of the treatment for a covered injury or illness. Medicare and Medicare supplements pay for skilled nursing care, but the coverage is limited. Medicaid does pay for nursing home care, but it provides coverage only for those that qulify with low income and low assets.

A whole life policy is surrendered for a reduced-paid up. The cash value in the new policy will

Continue to increase, the new reduced policy continues to build its own cash value and will remain in force until death or maturity.

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended term,

A distrubution from an employer-sponsored retirement plan or from an IRA is eligible for a tax-free rollover if it is reinvested in an IRA withing

60 days

With Adjustable Life, the owner can change all of the followign EXCEPT

The mortality charge, the mortality charge is determined by the actuary in the home office. The owner of the policy has no control over this mortality cost.

What is the cost of coverage based on for group life insurance

Another aspect of group underwriting that differs from individual insurance is that the cost of the coverage is based on the average age of the group and ratio of men to women.

All of the following health insurance disability benefits are income tax free EXCEPT

Employer-paid group disability, employer-paid group disability benefits are income taxable.

Flexible premium deferred annuity

In a flexible premium deferred annuity, multiple premiums are paid over time and annuity payments do not begin for at least 1 year.

HMO's are known as what type of plans?

Service, HMO provides benefits in the form of services rather than in the form of reimbursement for the services of the physician or hospital.

What is the only difference between blanket insurance and group health insurance

The insured members are not named.

Because of the imposed blackout period, the surviving spouse will not receive social security benefits until

He or she qualifies for retirement benefits, blackout period begins when the youngest child raches the age of 16, and ends when the surviving spouse qualifies for retirement benefits, as early as age 60.

Which of the followign describes pure life annuity?

It provides the highest monthly benerfits, the pure life annuity, also known as Life Only or Straight LIfe, pays the most since it only guarantees to pay for the rest of one's life without a minimum guarantee.