Insurance

The insureds estate

A 40-year old man buys a whole life policy and names his wife as his only beneficiary. His wife dies 10 years later. He never remarries and dies at age 61, leaving 2 grown-up children. Assuming he never changed the beneficiary, the policy proceeds will go to

Certificate of authority

A California insurer wants to transact business in Louisiana. What document must it first receive?

Joint and survivor

A couple near retirement is planning for their golden years. They want to make sure that their retirement annuity provides monthly benefits for the rest of their lives. Should one of them die, the other would still like to continue receiving benefits. Which settlement option should they choose?

The insured's premium will be waived until she is 21

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

Immediately

A health insurance policy lapses but is reinstated within an acceptable timeframe. How soon from the reinstatement date will coverage for accidents become effective?

Multiple Employer Welfare Association (MEWA)

A joining together by employees to provide health benefits for employee

Obtain a certificate of authority

ABC Insurance Company wishes to begin transacting business in Louisiana. Before it can do so, it must do which of the following?

Insurance company

According to agency law, the producer always represents the

Guaranteed surrender value

According to the non forfeiture law, if the owner decides to surrender a deferred annuity prior to annunciation, the owner is entitled to which of the following?

Monthly premium waiver and monthly income

After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive?

Up to 1000 for each violation

After a hearing, if the Commissioner finds that a licensee is using Unfair Methods of Competition, the Commissioner may issue a Cease and Desist order against that person and levy a fine of how much?

A reinstated policy provides immediate coverage for an illness.

All of the following are correct about the required provisions of a health insurance policy EXCEPT

Premiums

All of the following are examples of risk retention EXCEPT

Coverage applies both on and off the job.

All of the following are true about group disability Income insurance EXCEPT

skilled care

All of the following long-term care coverages would allow an insured to receive care at home EXCEPT

The annuitant receives a fixed amount of return.

All of the following statements about equity index annuities are correct EXCEPT

Medicaid is a state funded program that provides health care to persons over age 65, only.

All of the following statements concerning Medicaid are correct EXCEPT

The policy is owned by the company

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.

All of the following violations may result in an agent's imprisonment EXCEPT

hospital blankets

All of the following would fall under the definition of Durable Medical Equipment except

Equity Indexed Annuity

An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 index. She would likely purchase a(n)?

Specified coverage

An applicant has a history of heart disease in his family, so he would like to buy a health insurance policy that strictly covers heart disease. What type of policy is this?

Fair credit reporting act

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?

Attained age

An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his

Decreasing term

An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

Paid up additions

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called

No benefits

An insured is involved in a car accident. In addition to general, less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will he receive Presumptive Disability benefits?

Universal life

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

Pay the death benefit

An insured purchased a life policy in 2010 and died in 2020. The insurance company discovers at that time that the insured had misstated information about her insurance history on the application. What will the insurer do?

50000

An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the policy, stock performance declined and the cash value fell to $10,000. If the insured dies, how much will be paid out?

2 years

An insured was involved in an accident and could not perform her current job for 3 years. If the insured could reasonably perform another job utilizing similar skills after 1 month, for how long would the insured be receiving benefits under an "own occupation" disability plan?

inspection report

An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that?

Guaranteed insurability

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called

Predicted needs of the family after the insured's death

Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?

End stage renal failure

COBRA requires which disease to be covered by an employer for 30 months before Medicare becomes the primary mode of coverage?

Contracts of adhesion

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as

Are subject to vesting requirements

Employer contributions made to a qualified plan

5 years

Existing and replacing life insurers are required to keep copies of all summaries, notices, and statements used in sales transactions until the conclusion of their next examination by the Insurance Department, or for a period of at least

20 days

Following hospitalization because of an accident, Bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many days?

By their members - authorized insurers

How are state Insurance Guaranty Associations funded?

Every 2 years

How often must producer licenses renew in Louisiana?

5 days

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

withthepolicy

If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than

The premium increases

If a policy is rated-up, which of the following is true?

Return the application to the applicant for a signature

If an agent fails to obtain an applicant's signature on the application, the agent must

Securities

If an agent wishes to sell variable life policies, what license must the agent obtain?

Commissioner must be notified within 30 days.

If an insurance company cancels a producer's appointment, the

An unfair trade practice

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

A

If an insurance company offers Medicare supplement policies, it must offer which of the following plans?

Ancestry

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's

24

If authorized to write life and property and casualty insurance, how many hours of continuing education instruction are producers required to complete every 2 years

At the time of policy delivery

If during the underwriting process an insurer obtains personal information about an applicant from the applicant, when must the insurer provide notice of its information practices?

Policyowner

If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?

From trustee to trustee

In a direct transfer, how is money transferred from one retirement plan to a traditional IRA?

The individual insured

In a group policy, who is issued a certificate of insurance?

Elimination period

In disability income insurance, the time between the onset of an injury or sickness and when benefits begin is known as the

master policy

In group insurance, what is the name of the policy?

Promising to pay in accordance with the contract terms

In respect to the consideration clause, which of the following is consideration on the part of the insurer?

Exclusion clause

Items stipulated in the contract that the insurer will not provide coverage for are found in the

February 28th, or 10 days after the time the policy is delivered

J applied for a life insurance policy on January 10. The policy was issued on January 31. J's agent was vacationing at the time the policy was issued, so J did not receive the policy until February 18. J decides that he does not want the policy. When would J need to return the policy to the insurer in order to receive a full refund of premium paid?

Not tax deductible

Premium payments for personally-owned disability income policies are

Life income with period certain

The form of life annuity which pays benefits throughout the lifetime of the annuitant and also guarantees payment for a minimum number of years is called

$100,000

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?

The death benefit can be increased by providing evidence of insurability.

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

Joint and survivor

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

Increasing term

The type of term insurance that provides increasing death benefits as the insured ages is called

Monthly

Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is

resond to the consumer's complaint

Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information contained in a consumer or investigative report, the reporting agency must

Conditionally renewable

What is the contract provision that allows the insurer to nonrenew health coverage if certain events occur?

Excess charge

What is the difference between the Medicare approved amount for a service or supply and the actual charge?

$250

What is the fine for using an unapproved assumed name by a producer?

Ownership

What is the major difference between a stock company and a mutual company?

3

What is the minimum required number of continuing education credits in ethics every licensing period?

It allows the insured to return the policy within 10 days for a full refund of premiums if dissatisfied for any reason.

What statement best describes the free look provision?

Immediate

What type of annuity can be purchased with a single premium and provides benefit payments immediately?

National do not call registry

What was created to keep telemarketers from calling consumers who do not wish contacted?

The insurance company's general account

When a fixed annuity owner pays pays a monthly annuity premium to the insurance company, where is this money placed?

Spendthrift provision

When a life insurance policy stipulates that the beneficiary will receive payments in specified installments or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments?

Cease and desist order

When a producer could be in violation of an insurance law or regulation, the Commissioner will issue a

Return of premium

When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy, as well as a refund of all of the premiums paid. Which rider is attached to the policy?

Discrimination

When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered

Option a

Which Universal Life option has a gradually increasing cash value and a level death benefit?

Investigative consumer report

Which document is used to assess risk associated with an applicant's lifestyle and character?

Payor benefit

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Both the principal and interest will be liquidated over a selected period of time.

Which of the following best describes fixed-period settlement option?

Insurance commissioner or director

Which of the following entities must approve all Medicare supplement advertisements?

Funeral

Which of the following expenses is NOT covered by a health insurance policy?

Income

Which of the following factors about the insured determines the amount of disability benefit that the insured will receive?

They off guaranteed stock performance

Which of the following is NOT a characteristic of variable annuities?

Debtor in the life of a creditor

Which of the following is NOT an example of a valid insurable interest?

To provide immediate coverage to new employees who had been previously covered for 18 months

Which of the following is NOT the purpose of HIPAA

Pay in period

Which of the following is another term for the accumulation period of an annuity?

The commissioner

Which of the following is in charge of deciding when a license should be suspended or revoked?

Copayment

Which of the following is the term for the specific dollar amount that must be paid by an HMO member for a service?

It is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age.

Which of the following is true of a children's rider added to an insured's permanent life insurance policy?

A person who negotiates insurance contracts

Which of the following persons would be required to hold a license?

Straight life

Which of the following policies would be classified as a traditional level premium contract?

Automatic premium loan

Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?

A debtor has an insurable interest in the life of a lender.

Which of the following statements is NOT true concerning insurable interest as it applies to life insurance?

They can be changed only with the written conscience of that of a beneficiary

Which of the following statements is TRUE concerning irrevocable beneficiaries?

Defamation

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?

Apparent authority

Which of the following types of agent authority is also called "perceived authority"?

Insurer's guaranteed minimum rate of interest

Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?

Discriminating in benefits and coverages based on the insured's habits and lifestyle

Which of the following will NOT be considered unfair discrimination by insurers?

Free look period

Which provision allows the policyholder a period of time, while coverage is in force, to examine a health insurance policy and determine whether or not to keep it?

Indemnity

Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?

univeral life

Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?

The lending institution

Who is the beneficiary in a credit disability income policy?

income payments start within one year

a feature of a single premium immediate annuity

Reciprocity

a producer in another state wants to become a producer in Louisiana. The other state gives the same privileges to Louisiana producers wanting to be licensed in that state as it does to its own producers. Louisiana, therefore, extends the licensing privileges to the prospective producer of the other state. What is this called?

180 days

a temporary license is good for

a peril

a tornado that destroys property would be an example of

2 years

continuing education requirements insurance every

the uncertainty of loss

for the purpose of insurance risk is defined as

5 years

insurer examinations must occur no less frequently than

4 years

insurers must keep files of all advertisements used in Louisiana for how many years?

cease and desist order

the insurance department has recieved complaints about a particular producer regarding conduct. What can be issued that would legally for the producer to stop the acts in violation

The policy owner can specify the way proceeds are split in the policy

the owner of a life insurance policy wishes to name two beneficiaries for the policy proceeds. What will the soliciting insurance producer say?

Costs of training a replacement

A key person insurance policy can pay for which of the following?

Required a premium increase each renewal

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

Both group health and medicare

A man is still employed at age 65 and is now eligible for Medicare. He wants to know what health insurance coverage he is eligible to receive. Which of the following options are available to him?

Prepaid plan

A medical insurance plan in which the health care provider is paid a regular fixed amount for providing care to the insured and does not receive additional amounts of compensation dependent upon the procedure performed is called

Pay dividends to the policyowner

A participating insurance policy may do which of the following?

The policy remains in force without penalty for 31 days even though the premium due has not been paid.

A policy with a 31-day grace period implies

1000

A producer didn't realize that he had committed an act in violation of the Insurance Code. How much would he probably be penalized?

the producer

A producer is charged with committing several crimes in Louisiana. Who is required to report the charges to the Commissioner?

Within 1 year of the revocation

A producer's license has been revoked for a violation of the Insurance Code. When can the producer apply for a new license?

Apparent

Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe?

Dread disease

Because of the history of cancer in her family, Julie purchased a policy that specifically covers the expense of treating cancer. Her policy would be classified as what type of policy?

Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Whether an insurable interest exists between the individuals

If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about

At time of application

If during the underwriting process an insurer obtains personal information about an applicant from the applicant, when must the insurer provide notice of its information practices?

Adjust the benefit in accordance with the increased risk

If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following?

90 days

Most policies will pay the accidental death benefits as long as the death is caused by the accident and occurs within

Their regular job

On a disability income policy that contains the "own occupation" definition of total disability, the insured will be entitled to benefits if they cannot perform

The spouse of the policyowner?

On a health insurance application, a signature is required from all of the following individuals EXCEPT

50 or more

One of the differences between group underwriting and individual underwriting is that there is little or no medical information required regarding plan participants in groups of

Entire contract clause

The provision in a health insurance policy that ensures that the insurer cannot refer to any document that is not contained in the contract is the

90 days of a loss

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within

Executive bonus

When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n)

Implied

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

Income lost by the insured's inability to work

Which benefits would a disability plan most likely pay?

Subscribers

Which of the following are responsible for making premium payments in an HMO plan?

domestic

Which of the following best describes an insurance company that has been formed under the laws of this state?

It is level term isnurance

Which of the following best describes annually renewable term insurance?

Denial of coverage

Which of the following is NOT a cost-saving service in a medical plan?

Program is divided into 4 parts a-d ?

Which of the following is correct about Medicare?

Plan A

Which of the following must be present in all Medicare supplement plans?

Life insurance proceeds

Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insured's death?

to reduce expenses and improve cash flow to increase control of claim reserving and claims settlements to fund losses that cannot be insured

goals of risk retention