Insurance Exam

The commissioner of insurance issues a cease and desist order and immediately receives a request for the charges to be reviewed in a hearing within what number of days must the hearing be held?

10 days

The commissioner of the insurance issued a cease and desist order to an agent of the agent wishes to contest the charges in court, how many days after the order was issued does the agent have to make the request?

30 days

For how long is an insurance company allowed to defer policy loan request?

6 months

How soon from the termination of debt under a credit life insurance policy must a creditor provide notice to the insurer?

60 days

To which of the following situations does the replacement regulation apply?

A whole life policy reissued with reduction in cash value

All of the following statements concerning worker's compensation are correct except

A worker receives benefits only if the work related injury was not their fault

All of the following are examples of third party ownership of life insurance policy except

An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.

The insurers are allowed to disclose the HIV related test results to all of the following except

Another insurer

An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. What did he forget to do?

Ask her to sign a statement of good health

Which of the following protect the insured from unintentional policy lapses due to nonpayment of premiums?

Automatic premium loan

Which of the provides coverage on a first dollar basis?

Basic expense

Which of the following is NOT required to be stated in the outline of coverage provided with long term care policy

Basic info about supplementary policies

Which of the following statements regarding business overhead expense policies is NOT true?

Benefits are usually limited to six months.

HMOs that contract with outside physicians to provide health care service to their subscribers compensate those providers on a

Capitation basis

When delivering a policy, which of the following is an agent's responsibility

Collect payment at time of delivery

What is an important feature of a dental expense insurance plan that is not typically found in a medical expense plan?

Diagnostic and preventive care

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

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

If the annuitant dies during the accumulation period, what will the beneficiary receive

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

When the insured selects the extended nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash value will purchase

What does "level" refer to?

Face amount

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

Family term rider

All of the following are dividend options except

Fixed period installments

The type of dental plan which is incorporated into a major medical expense plan is a/an

Integrated dental plan

What is the benefit of choosing extended term as a nonforfeiture option?

It has the highest amount of insurance protection

What is the purpose of a conditional receipt?

It is intended to provide coverage on a date prior to the policy issue.

Which of the following is NOT true regarding a certificate of authority

It is issued to group insurance participants.

Which of the following best describes annually renewable term insurance?

It is level term insurance

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

Level term

Which of the following settlement options in life insurance is known as straight life?

Life income

Which of the following is NOT true regarding policy loans?

Money borrowed from the cash value is taxable.

An insured is covered by a disability income policy that contains an accidental means clause. The insured exits a bus by jumping down the steps and breaks an ankle. What coverage will apply?

No coverage will apply, since the injury could have been foreseen.

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

Other-insured rider

Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?

Parts A and B of Medicare

If an insurance company offers Medicare policies it must offer

Plan A

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

Policy owner

In which of the following instances would the premium be tax deductible

Premiums paid by an employer on a $30,000 group term life insurance plan for employees

Insurers may change which of the following on a guaranteed renewable health insurance policy?

Rates by class

All of the following are to be included in an application for a certificate of authority to act as an HMO except

Records of previous insurers

Which nonforfeiture option provides coverage for the longest period of time?

Reduced Paid-Up

What type of care is Respite care?

Relief for a major care giver

The regulations regarding replacement apply to which of the following?

Renewable term

I'm the event of a loss, business overhead insurance will at for

Rent

All of the following statements concerning the use of life insurance as an executive bonus are correct except

The policy is owned by the company

If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?

The policy will be interpreted as if the insurer waived its right to have an answer on the application

If an insured continually uses the automatic premium loan option to pay the policy premium,

The policy will terminate when the cash value is reduced to nothing

Under extended term nonforfeiture option the policy cash value is converted to

The same face amount as in the whole life policy

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.

An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?

They are tax deductible

Which of the following is not true regarding equity indexed annuities?

They earn lower interest rates than fixed annuities.

Which of the following is TRUE for both equity indexes annuities and fixed annuities?

They have a guaranteed minimum interest rate

Why should the producer personally deliver the policy when the first premium has already been paid?

To help the insured understand all aspects of the contract

An insurance agent wants for a client to replace her current annuities plan with another one. He presents the new one in an incomplete and dishonest way, which makes the new contract seem far more appealing than the original one. The policyowner ends up surrendering her original policy and replacing it with the new one. Which best describes what the agent did?

Twisting

Which of the following is a key distinction between variable whole life and variable universal life products?

Variable whole life has a guaranteed death benefit

Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?

attending physician

All of the following are true regarding tax qualified annuities except

employer contributions are not tax deductible

Which of the following occupations would NOT directly help qualify someone for the office of commissioner in insurance

insurance agent

In a life settlement contract whom does the life settlement broker represent?

owner

Which of the following riders would NOT cause the death benefit to increase?

payor benefit rider

If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may

require evidence of insurability

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?

the insured's premiums will be waived until she is 21.

Which of the following is TRUE regarding the premium in term policies?

the premium is level

In the event that a policy lapses due to nonpayment of premium within how many days will the policy be reinstated

45days

An insured and his wife are in a head on collision. The husband dies instantly and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. Which provision is this?

Common disaster

A lucky person wins the lottery, the state will be sending them a check each month for the next 25 years. What type of annuity product are they most likely to use to provide the benefit?

Immediate Annuity

The life insurance policy clauses that prevents an insurance company from denying payment of a death claim after a specified period of time is known as

Incontestability clauses

Issue age policy premiums increase in response to which of the following factors?

Increased benefits

Annually renewable term policy provides a level death benefit for a premium that

Increases annually

What type of insurance would be used for a Return of Premium rider?

Increasing Term

The policy owner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse. But that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?

Interest only option

When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will

Issue the policy anyway and pay the face value to the beneficiary

Which of the following is TRUE regarding the accumulation period of an annuity?

It is a period during which the payments into the annuity grow tax deferred.

An insured buys a 5 year level premium term policy with a face amount of $10,000. The policy also contains a renewability & convertibility option. When the insured renews the policy in 5 years, What will happen to the premium?

It will be increase because the insured will be 5 year older than when the policy was originally purchased.

Which of the following explains the policy owners right to change beneficiaries, choose options, and receive the proceeds of a policy?

Owner's Rights

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

Paid up option

Which type of retirement account does not require the owner to start taking distributions at age 72?

Roth IRA

Equity Annuities

Seek higher returns

Which two terms are associated directly with the way an annuity is funded?

Single payment or periodic payments

An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured and matures when insured is age 100 is called

Single premium whole life

Company Y has 20 employees on staff last year, which insurance group do they fall under?

Small employer

The premiums paid by the employer in a business life insurance policy are

Tax deductible by the employer

The interests earned on policy dividends is

Taxable

Children's riders attached to a whole life policy are usually issued as what type of insurance?

Term

Which of the following when attached to a permanent life insurance policy allows policyowners to customize the policy to provide additional amount of temporary insurance on the insured of their family memebers?

Term rider

All of the following entities regulate variable life policies except

The Guaranty Association

The president of the company is starting an annuity and decides that the corporation will be the annuitant. Which of the following statements are true?

The annuitant must be a natural person

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

The annuitant receives a fixed amount of return

Under the ACA, health insurance can no longer be underwritten based on which of the following factors?

The applicant's health condition

An applicant signs an application for $25,000 life insurance policy, pays the following day, which of the following is true?

The beneficiary will receive the full death benefit if it is determined that the applicant qualified for the policy.

Which of the following is TRUE regarding the insurance amount in a credit life policy?

The creditor can only insure the debtor for the amount owed

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?

The insured may renew the policy for another 10 years, but at a higher premium rate.

All of the following are TRUE statements regarding the accumulation at interest option except

The interest is not taxable since it remains inside the insurance policy.

Which is true regarding elimination periods and the cost of coverage

The longer the elimination period the lower the cost In coverage

Which of the following would provide an underwriter with information concerning an applicants heath history?

The medical information burea

When would a 20 year pay whole life policy endow

When the insured reaches age 100

A guaranteed renewable health insurance policy allows the policyholder to renew the policy to a stated age

With the company having the right to increase premium on the entire class

The least expensive first year premium is found in which of the following policies?

annually renewable term

An insurer must acknowledge receipt of a notice of claim without how many days?

15 days

Viatical Settlement may be rescinding with in what time period after the visitor receive the proceeds?

15 days

An employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage?

$102

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

$50,000