Insurance Exam

A benefit for each day the insured is in a hospital

A hospital indemnity policy will pay

level-term

A policy will pay the death benefit if the insured dies during the 20 year premium paying period and nothing if the death occurs after the 20 years. What type of policy is this?

The insured may choose to convert term or permanent individual coverage

An employee is insured under her employer's group life plan. If she terminates her group coverage, which statement is INCORRECT

collateral assignment

An individual borrowed money at the bank to send his daughter to college instead of purchasing credit life insurance. He used an existing life insurance policy to secure the debt. What is this called?

20% of cover charges above the deductible

Following an injury, Jill, age 66 and covered under Medicare Parts A&B was treated by her physician on an outpatient basis. How much of her doctor's bill will Jill be required out of pocket?

31 days

Group life insurance policies must be converted over after before how many days after leaving a job

The individual insured

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

You are operating under a name other than your own name.

In this state, an agency license must be obtained when

Source must be identified

Statistics used in an advertisement must what?

Peril

The cause of loss

She can appear in the advertisement under the condition that her connection to the company is disclosed.

The human resources director of an insurance company loves the policy she has with the company. She's personable and the company wants to use her in an advertisement. Which of the following statements pertain to this scenario is true?

Principal sum

Under the accidental death and dismemberment (AD&A) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?

1. Guaranteed insurability riders 2. Cost of living rider 3. Accidental death rider

What can cause the death benefit to increase? (3)

Income

What factor about the insured determines the amount of disability benefit that the insured will receive?

Per capita

What method to designate a beneficiary literally means "by the head?"

An index like Standard & Poor's 500

the equity in an equity indexed annuity is linked to?

1. The must differentiate between guaranteed and projected amounts 2. they may only be used as approved 3. they must identify non-guaranteed values

All of the following are requirements for life insurance illustrations (3)

variable

An insured receives a monthly summary for his life insurance policy. He notices that the cash value of the policy has significantly lowered this month than it was last month. What type of policy does the insured have?

it is used to lower premiums

An insurer invests the money it receives from premiums paid by its insureds. which of the following is true regarding the interest earned on these investments?

The Medical Information Bureau

An insurer wished to compare the information given in an insurance application with previous insurance applications of the same applicant, but for different companies. What organization can help the insurer accomplish this?

30

An nonresident producer moves to another state. The producer must notify the department of insurance of the address change within how many days?

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?

Expressed Authority

The authority granted to an agent through the agent's contract is referred to as?

expressed authority

The authority granted to an agent through the agent's contract is referred to as?

conditionally renewable

What is the contract prevision that allows the insurer to non renew health coverage if certain events occur?

A qualified plan for small business

IF a company has a simplified employee pension plan, what type of plan is it?

Application

Which is the primary source of information used for insurance underwriting?

it is level term insurance

Which of the following best describes an annually renewable term insurance?

Notice Regarding Replacement

Which of the following documents must be provided to the policy owner or applicant during policy replacement?

the insurers executive officer

Which of the following entities has the authority to make changes to an insurance policy

Consumer report

Which of the following includes information regarding a person's credit, character, reputation and habits?

Replacement Rule

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance

it has a guaranteed minimum interest rate

Why is an equity indexed annuity considered to be a fixed annuity?

Rebating

An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of what?

5 years

Insurer examinations must occur no less frequently than every

Per stirpes

What type of beneficiary designation allows the benefit to pass from a deceased primary beneficiary to the beneficiary's heirs, instead of splitting the benefit among surviving primary beneficiaries?

at the time the of application

When must an insurance company present an outline of coverage to an applicant for a medicare supplement policy?

It can be owned by an individual employee

Which of the following is not true about a group annuity?

they are required by state law to be included in the policy

Which of the following is true about nonforfeiture values?

They must be guaranteed renewable

Which of the following is true regarding Medicare supplement policies?

the change may be waived if the annuit is confined to a long term care facility for at least 30 days.

Which of the following is true regarding a waiver of a surrendered charge on an annuity contract?