Guaranteed Exam

life insurance can provide which of the following

survivor protection

which of the following statements is INCORRECT regarding group health insurance

each individual must be accepted into or rejected by a group policy

an employee has a flexible spending account with a $5,000 annual benefit this years the employee used $3,000 what would be the amount of the benefit available to the employee next year

$5,000

an annuity has accumulated the cash value of $70,000 of which $30,000 is from premium payments, the annuitant dies during the accumulation phase, the beneficiary will receive

$70,000

S set up an individual retirement account that her employer is now contributing to her employers contributions are not included in her gross income what kind of retirement plan does S have

SEP (simplified employee pension)

all of the following are true regarding the federal fair credit reporting act EXCEPT

reports may be sent to anyone who requests one

what is another term for a health insurance policy subscriber

participant

with adjustable life, the owner can change all of the following EXCEPT

the insured

an insurer must notify the consumer in writing that an investigative consumer report has been requested within how many days of the initial request

3 days

policy loan requests except for loan requests for payments of due premiums may be deferred for a period of up to

6 months

which policy rider added to a disability income policy may requires that a benefit be paid as a "capital" sum

accidental death and dismemberment

what is it called when a doctor accepts the Medicare approved amount

assignment

what must insurance institutions agents and insurancee-dipport organizations implement to ensure the security and confidentiality of policyholder information

comprehensive written information security programs

what advantage does the "recurrent disability" provision provide to the insured under a disability income policy

it eliminates the imposition of a second elimination period for the same disability

what is the difference between a straight life policy and a 20-pay whole life policy

premium payment period

the Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT

purchase of a new home

who must keep the records pertaining to insurance transaction for a mandated period of time

the agent or broker

who does the spendthrift clause in a life insurance policy protect

the beneficiary

what happens to the face amount of a whole life policy if the insured reaches the age 100

the face amount is paid to the insured

outlines of coverage delivered upon a Medicare supplement policy application must include all of the following EXCEPT

copy of the insurability clause

which of the following meets the insured's personal needs, and is provided by nonmusical personnel

custodial care

when a whole life policy is surrendered for its nonforfeiture value what is the automatic option

extended term

a married couple wants to include the entire family in their whole life policy under one rider which of the following riders will help them achieve that goal

family term

an insured has a routine exam, blood work, and a follow-up appointment with a specialist. the insured received a bill for each service provided. what type of plan does the insured have

fee of service

which of the following is a correct statement about annuities?

fixed annuities do not provide protection against inflation

an agent holding which of the following types of license will be requires to complete 24 hours of continuing education

health and casualty

which of the following is NOT a component of an insurance policy premium

number of beneficiaries

which dividend option will increase the death benefit

paid-up additions

annuities certain limit the amount paid by the annuity to a certain fixed

period or fixed amount

an employee is covered under COBRA. his previous premium payment was $100 per month. His employer now collect $102 each month. why does the employer collect an extra $2

to cover the employer's administration costs

what is the purpose of a benefit schedule

to state what and how much is covered in the plan

an insurer moved into a new house 10 days ago how many more days does he have to report the address change to the Commission

20

all of the following are reasons for group insurance termination for dependents EXCEPT

the dependent reaches age 21

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 addition

if the policy summary for a life insurance policy is not given when the application is taken when must the policy summary be given to the policyowner

when the policy is delivered

an insurance agent visits a potential client and explains various types of policies. the customer displays a lack of interest so the agent guarantees higher dividends than he knows would be possible. which term describes what the agent has done

misrepresentation

which of the following is an agreement by a charitable organization to make period payments in fixed dollar amounts payable over one or two lives

charitable gift annuity

an insured bought an insurance policy that requires him to pay $150 in premium on the 15th of each month he then takes an extended vacation and forgets to pay the premium ten days later his policy is still in effect and has not lapsed which policy provision allowed for this

grace period

if the annuitant dies before the annuity start date which of the following is true

the interest is taxable

how often must a vatical settlement broker's license be renewed?

annually

an adjustable life policy can assume the from of

either term or permanent insurance

medicare part B covers all of the following EXCEPT

long-term care services

the human life value approach to determining life insurance needs is based upon which of the following ideas

loss of the breadwinner's income

a new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home should he die before the mortgage was paid. the most inexpensive type of policy that would accomplish this need would be

decreasing term

the Commission may examine all of the following EXCEPT

a life insurance applicant who at any time held a product's license

a whole life policy is surrender for a reduce-paid up policy the cash value in the new policy will

continue to increase

an individual buys a disability policy May 1 with a waiver or premium rider the insured becomes disabled june 1 it is determined the insured is permanently totally disabled on july 1 and he receives his first benefit payment on july 15 when does the waiver of premium provision start

june 1

in order to reinstate a life insurance policy the insured must do all of the following EXCEPT

pay next year's premium in advance

once the initial benefit limit in Medicare Part D is reached how is the beneficiary affected

the beneficiary is then responsible for a portion of prescription drug cost

which of the following is NOT a characteristic of a managed care plan

risk retention

what does the application of contract of adhesion mean

since the insured does not participate in preparing the contract any ambiguities would be resolved in favor of the insured

a limited health insurance policy that will pay a lump sum to an insured diagnosed with a heart attack stroke or renal failure is known as

critical illness insurance

regarding health insurance all of the following are tax-deductible EXCEPT

employee paid group disability income

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

contract interest rate

all of the following are true of a non qualified deferred compensation plan EXCEPT

contributions are tax deductible

all of the following statements are goals of TRICARE EXCEPT

create a more limited system of health care

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

employer-paid group disability

which of the following used to be called Medicare + Choice plans

medicare advantage plans

cash value guarantees in a whole life policy are called

nonforfeiture values

which entity has the option of including optional provisions in a health insurance policy

the insurer

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

an employee dies having 6 quarters of coverage during the previous 13-quarter period. what status of coverage does the employee have under Social Security

currently insured

which of the following statement is incorrect

Medicare and Medigap policies provide coverage for long-term custodial or nursing home care

Medicare Part A service do NOT include which of the following

Private duty nursing

which of the following statements is NOT true regarding health insurance policy provisions

all additional provisions written by insurers are cataloged by their respective states

life insurance creates an immediate estate. which of the following best explains this statement

the face value of the policy is payable to beneficiary upon the death of the insured

an employee that becomes ineligible for group coverage because of termination of employment or change in status must exercise extension of benefits under COBRA

within 60 days