gurantee exam

maximus civil penalty for willfully violating the Fair Credit and Reporting act

$2500

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

Which statement accurately describes group disability income insurance?

The extent of benefits is determined by the insured's income

When would a 20-pay whole life policy endow?

When the insured reaches age 100

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

continue to increase

what does an annuity protect the owner against

living longer than expected

insureds have the right to do which of the following if they have not received the proper claims form within 15 days of their notice to the insurer of a covered loss under a major medical policy?

submit the description in their own words on a plain sheet of paper

an elimination period may not have to be satisfied for a disability in which of the following

an insured suffers a relapse of a prior disability within 6 months of the initial covered disability

a distribution from an employer sponsored retirement plan from an IRA is eligible for a tax free rollover if it is reinvested in an IRA within

60 days

Most LTC plans have which of the following features?

Guaranteed renewability

long term care insurance is designed to provide coverage for at least

12 months

under notice of claim provision, written notice of a claim may be submitted to the insurer within what time?

20 days

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Guaranteed insurability option

Which is NOT true about beneficiary designations?

The beneficiary must have insurable interest in the insured.

The paid-up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

what is true of both the fixed period and fixed amount settlement options

both guarantee that the principal and interest will be fully paid out

an employee is covered under COBRA. his former premium was 100, now its 102, what is the extra 2 dollars for

to cover the employers administrative costs. max 102%

when an insured terminated membership in a group policy , the insured can convert to

whole life without proof of insurability

in order for an alumni association to be eligible to purchase group health insurance for its members

- must be organized for reasons other than buying insurance -must have at least 100 members -must have a constitution, by laws and hold at least annual meetings -must be active for 2 years

under legal actions provision, an insured is prevented from bringing a lawsuit against the insurer to recover on a health policy prior to

60 days after written proof of loss has been submitted - not later than 3 years

the stop loss feature on a major medical policy is intended to

establish a maximum out of pocket expense that an insured will have to pay for medical expense in a calendar year

cash value guarantees in a whole life policy are called

nonforfeiture values

a core medicare supplement policy (plan A) will cover all but

part a deductible

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

the face amount is paid to the insured

What is the initial period of time specified in a disability income policy that must pass, after the policy is in force, before a loss can be covered?

Probationary period

Individual and group accident and sickness policies that cover family members of the insured must also provide for newborns, from the moment of birth, with all health insurance benefits applicable to

children until 31 days

Which of the following are the authorities that an agent can hold?

expressed and implied

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

extended term

the owner of a whole life policy with 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

the guaranteed purchase option is also known as

future increase option

all of the following could qualify as a group for group health insurance except

an association of 35 people

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?

paid up option

all of the following are true of annually renewable term insurance except

proof of insurability must be provided at each renewal

all of the following are true of survivorship life policy except

the premium is based on the age of each insured

If an agent changes his residence address, within how many days must the agent notify the Commissioner of the change?

30 days

all of the following exclude coverage in an individual health insurance policy except

mental illness

which statement is an accurate description of life insurance policy dividends?

they are not taxable and not guaranteed- since original premium was paid with after tax dollars

annually renewable term insurance

- premium increases each year -death benefit level -may be guaranteed renewable each year without proof of insurability

Group health insurance is characterized by

-A master contract. -Lower administrative costs. -Conversion privilege.

With the paid-up option, the insurer can accumulate dividends at interest and then use them, in addition to interest and the policy's cash value, to pay

the policy earlier than planned. This is different from paid-up additions, in which the dividends are used to buy additional policies that increase the face amount of the original policy.

according to the common disaster clause, if the insured and primary beneficiary are killed in the same accident at the same time what will be assumed

the primary beneficiary died before the insured

Which of the following entities is responsible for determining whether an advertisement might mislead or deceive a person of average education and intelligence?

The Commissioner

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

Which dividend option will increase the death benefit

paid up additions

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

Regarding the taxation of Business Overhead policies,

Premiums are deductible and benefits are taxed

When a policy is to be replaced, replacing insurers must maintain copies of the replacement notice, all required written communications, the applicant's signed statement regarding replacement and a replacement register in their home office for at least 3 years, or

until the conclusion of the next regular examination by the Insurance Department, whichever is later.

What is the advantage of reinstating a policy instead of applying for a new one?

The original age is used for premium determination

when the owner of a participating whole life policy uses the dividends to provide more life insurance coverage, which of the following dividend options is being used?

paid-up additions

advertisement does not include what

material prepared by the insurer for training new agents

when may HIV related tests be provided to the MIB?

only if the individual isn't identiified

Which of the following is NOT a feature of a noncancellable policy?

The insurer may terminate the contract only at renewal for certain conditions.

Probationary period is the period of time after a policy is in effect before claims arising out of an illness are covered. This is to prevent

adverse selection, persons waiting until they have been exposed to a cause of loss before purchasing coverage.

The premiums paid for BOE insurance are tax deductible to the business as a business expense. However,

the benefits received are taxable to the business as received.

a major medical policy would exclude coverage for all of the following except

drug addiction

what is the purpose of a benefit schedule

to state what and how much is covered by the plan

dividends received on participating life insurance policies are

not taxable because they are a return of unused premiums

What required provision protects against unintentional lapse of the policy?

Grace period

all of the following are required for HIV texting except

if HIV is present the person may be rated but they can't be declined

in which of the following scenarios would a producer be allowed to obtain insurance from an unauthorized user?

if there are no authorized users for a specific type of coverage in a state

The insurance company cannot cancel a noncancellable policy, nor can the premium

be increased beyond what is stated in the policy. The insured has the right to renew the policy for the life of the contract; however, the guarantee to renew coverage usually only applies until the insured reaches age 65.

Individual and group accident and sickness policies that cover what kinds of losses must also provide for newborns, from the moment of birth, with all health insurance benefits applicable to children?

losses that happen to family members

an equity indexed annuity will grow based upon

performance of a recognized index

which of the following terms relates to disability income insurance

residual benefit

which of the following is the primary source of information that an insurer uses to evaluate an insured's risk for life insurance?

insurance application

feature of a noncancellable policy

-The insured has the right to renew the policy for the life of the contract. -The premiums cannot be increased beyond the amount stated in the policy. -The guarantee to renew coverage usually applies until the insured reaches certain age.

an agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed the illegal practice of

twisting

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

within 60 days

To attain currently(partially) insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?

6

Group long-term plans provide monthly benefits usually limited to

60% of the individual's income

which of the following is not a medicaid qualifier?

insurability

Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?

Universal life

the benefits from a business overhead expense policy are

limited to covered expenses and taxable to the business