IA Life and Health

An unintentional violation of Iowa insurance law could lead a producer to a fine of up to ____ per violation

$1,000

If an insurer receives a cash payment in excess of________, it must report this act as stated by the USA Patriot Act

$10,000

Before a life policy is issued, which of these contract elements is necessary?

A signed application is necessary by the prospective

Which of the following types of policies pays a benefit if the insured goes blind

AD&D

The option that provides an additional death for a limited amount of time at the lowest possible cost is called a (n)

Accidental Death and Dismemberment + Rider (AD&D)

In an insurance contract, the insurer is the only way who makes a legally enforceable promise. What kind of contract is this

Adhesion

When an insurance application is taken by a producer, which of these statements is true?

Any changes made on the application required the applicant's initials

To be eligible for social security disability benefits an employee must be unable to perform

Any occupation

Which of the following is a requirement to attain an Iowa resident producer license

At least 18 years old

When is a group health policy required to provided coverage for a newborn child

At the moment of Birth

Which of the following types of health coverage frequently uses a deductible

Basic surgical policy

All of the following statements about major medical benefits are true except

Benefits have no maximum limit

Each life insurance applicant in Iowa is expected to be

Buyer's guide and policy summary

A policy loan is made possible by which of these insurance policy features

Cash value provision

Which of the actions is taken when a policyowner uses a life insurance policy as collateral for a bank loan

Collateral assignemnt

Which of the following reimbursements its insureds for covered medical expenses?

Commercial insurers

Insurance contracts are known as ____ because certain future conditions or acts must occur before any claims can be paid.

Conditional

Which of the following consists of an offer, acceptance, and consideration

Contract

A universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned, expense charges and the

Cost of insurance

Which of these statement is not true regarding health coverage for a newborn

Coverage is limited to only congenital defects

Dividends payable to a policyowner are

Declared by the insurance company

A(n) ____ term life policy is normally used when covering an insured's mortgage balance

Decreasing

Which of the following is NOT included in the policy face

Exclusions

Long term care policies will usually pay for eligible benefits using which of the following methods

Expense incured

All of these are characteristics of an Adjustable Life policy EXCEPT

Face amount can be adjusted using policy dividends

An insurance application MUST be informed of an investigation regarding his/her reputation and character according to the:

Fair Credit Reporting Act

What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained

Fair Credit Reporting Act

Which of the following id a requirement to be eligible for a group life policy in Iowa

Group must be formed for purpose other than obtaining insurance

What is the required renewability status of all medicare supplement policies

Guaranteed renewable

In regard to representations or warranties, which of these statements is TRUE?

If material to the risk, false representation will void a policy

All of the following statements regarding a tax-sheltered annuity (TSA) are true except

Income derived from the TSA is received income tax-free

A policy if adhesion can only be modified by whom

Insurance company

Who makes the legally enforceable promises in a unilateral contract?

Insurance company

If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of?

Insured

All of these statements about the Waiver of Premium provision are correct EXCEPT

Insured must be eligible for social security disability for claim to be accepted

Which of these arrangements allows one to bypass insurable interest laws?

Investor-Originated Life Insurance

Strange originated life insurance (STOL I )has been found to be in violation of which of the following contractual elements?

Legal Purpose (Insurance Interest)

Under Iowa, which of the following provisions is NOT required in a medicare supplement policy

Limitation on prexisting conditions for up to 12 months

____ can be defined as "making an unfair comparison of two insurance policies"

Misrepresentation

A policyowner is allowed to pay premiums more than once a year under which provision

Mode of premium

Which of these is NOT to be a right given to a policyowner

Modify a provision in the insurance contract

Which of the following statement is correct about accelerated death benefits

Must have a terminal illness to qualify

What does Medicare part A &B cover

Part Acovers: Hospitalization, Part B covers: Doctor's services,

The insured and insurance company will share the cost of covered losses under which health policy feature

Payment of claims provision

The underwriting process involves all of these except for

Policy loan

Which of these describe a participating insurance policy

Policyowners are entitled to receive dividends

What is the purpose of the time of payment of claims provision

Prevent delayed claim payments made by the insurer

___ is the act of offering application something of an inducement to purchase and insurance policy

Rebating

Group life policies in Iowa Are required to contain a conversion privilege that allows for conversion

To individual policy for a stated period time

Replacement can be defined as

exchanging an existing policy for a new policy

After an isnured gives notice of loss, what must he/she do if the insurer does not furnish forms

file written proof of loss

Medicare part B does NOT cover

inpatient hospital services

Dividends paid from a life insurance policy are

issued by the insurer

Which type of plan normally includes hospice benefits?

managed care plans

Which of the following is true about a qualified retirement that is "top heavy"

more than 60% of plan assets are in key employee accounts

Which of these is NOT considered to be an element of an insurance contract?

negotiating

An example of rebating would be

offering a client something of value not stated in the contract in exchange for their business

When a policy pays dividends to its policyholders, it is said to be

participating

Insurance policies are considered aleatory contracts because

performance is conditioned upon a future occurrence

Who elects the governing body of a mutual insurance company?

policyholders

What is the consideration given by an insurer in the consideration clause of a life policy

promise to pay a death benefit to an named beneficiary.

A major medical policy typically

provides benefits for reasonable and necessary medical expenses, subject to policy limits

A major medical policy typically:

provides benefits for reasonable and necessary medical expenses, subject to policy limits

An example of misrepresentation is

providing incorrect, misleading, incomplete, or materially untrue information in the license application

Statement made on an insurance application that are believed to be true to the best of the applicant's knowledge is called

representation

The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called

reserves

A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as

risk retention group

A long-term care lapse notice most be delivered to both the applicant and

secondary addresses

Which of the following services is NOT included under hospitalization expenses coverage

surgical fees

Before holding a hearing regarding an agent's unfair or deceptive practice, the Insurance Commissioner MUST give how many days notice?

10 days

A non-contributory plan requires _______ participation of all eligible employees

100%

What is the maximum social Securities Disability benefit amount an insured can receive?

100% of the insured's primary Insurance (PIA)

An insurer must provided an insured with claim forms within ____ days after receiving notice of a loss

15 days

What year was the McCarran-Ferguson Act enacted?

1945

Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated

1970- Fair Reporting Act

A life policy loan in Iowa cannot charge a fixed rate of interest higher than

8%

Which of the following is considered to be a misrepresentation

A producer guaranteeing a policy's dividends

Which of theses individuals would require continuing education

Resident producer

Which of theses factors does not influence an applicant's need for life insurance

Self-maintenance expenses

Which of the following is NOT considered rebating

Sharing commission with an agent licensed in the same line of business

Which of the following BEST describe a warranty?

Statement believe to be true to the best of one's knowledge

What type of life policy covers two people and pays upon the death of the last insured

Survivorship

Which of these situations is NOT considered to be a replacement?

Term coverage is converted to an individual permanent plan with the same insurer

Which of the following statements correct regarding an employer/employee group health plan

The employer receives a master policy and the employee receive certificates

All of these statements about Equity Indexed Life Insurance are correct EXCEPT

The premiums can be lowered or raised based on investment performance

Medicare is intended for all of the following groups EXCEPT

Those enrolled as a full-time student.

How does a typical Variable Life Policy investment account grow?

Through mutual funds, stocks and bonds

Which accident and health policy provision addresses preexisting conditions

Time limit on certain defenses

What is the elimination period of an individual disability policy?

Time period a disabled person must wait before benefits are paid

What type of reinsurance contract involves two companies automatically sharing their risk exposure?

Treaty

ABC Insurance Company failed to accept a void proof of loss statement, this is considered to be a(n)

Unfair Claim practices

All of the following are considered to be typical characteristics describing the nature of an insurance contracts, EXCEPT

Unilaterally

At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act?

Upon completion of the application

Which of these is considered a statement that is assured to be true in every respect

Warranty

Which situation does NOT require a producer to provide assuitability statement to the annuity company?

When a producer discusses annuities in general with a client, but no specific recommendations is made

At what point does an informal agreement become a binding contract

When consideration is provided by one of the parties to the contract

A nonprofit incorporated society that does not have capital stock and operated for the sole benefit of its members is known as

a fraternal benefit society

A contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of

adhesion

Medicaid was designed to assist individuals who are

below a specific income limit

Life and health insurance policies are

unilateral contracts