insurance

Reasonable

1. When a discontinued policy contained a death benefit, what term is used in the CIC to describe the length of the applicable extension of benefits?

Medical Savings Account (MSA) & Dependent care Account

11. What are the 2 types of Flexible Spending Accounts?

At the time of the application

18. To comply with Fair Credit Reporting Act, when must a producer notify an applicant that a credit report may be requested?

Comprehensive major medical

2 Maurice's health insurance plan covers practically all types of medical expensesMaurice's insure provides first-dollar coverage for basic benefits, but applies a deductible for major benefits and then pays 80/20 coinsurance . What type of coverage does Maurice have ?

Sales of LTC policies.

34. HICAP offers services in the following areas EXCEPT

Legal Hazard

38. The growing tendency of individuals to file lawsuits and to claim tremendous amounts for alleged damages is known as

It would not occur in a deferred annuity

43 Which of the following is NOT true regarding the accumulation period of an annuity?

Employees receive individual policies

44 Which of the following is INCORRECT concerning a noncontributory group plan

Insured 60 years or older

53 Which of the following insureds have a right to cancel an individual life policy for a full refund within 30 days of policy delivery ?

Guaranteed Renewable

58 A Medicare supplement plan must have at least which of the following renewal provisions?

Risks with higher probability of loss seeking insurance more often than other risks.

62 Adverse selection is a concept best described as

Pure risk

70 A situation in which a person can only lose or have no change represents

Estate Creation

71. All of the following are personal uses of life insurance EXCEPT

Coverage is unlimited

73 Which of the following is NOT true regarding Basic Surgical Expense coverage?

60 days

76 What is the period of coverage for events such as death or divorce under COBRA?

Divorce

80 Which of the following is considered a qualifying event under COBRA?

100 days

82 For how many days of skilled nursing facility care will Medicare pay benefits?

The applicant must give prior information written consent

84 Which of the following is true about the requirements regarding HIV exams?

Insured is unable to perform duties of the occupation for which he/she was educated and trained.

85. Which of the following refers to "own occupation" disability

Plan A

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

12 point bold print

88. The notice to senior consumers regarding their right to cancel a policy must be printed on the cover or policy jacket in at least what type of print?

Purchase a single premium policy for a reduced face amount

90. When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

Family Dependency Period

A family's need for income is greatest during the

blanket policy

A group policy used to provide accident and health coverage on a group of persons being transported by a common carrier, without naming the insured persons individually is called

Automatic Premium Loan

A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?

Cash to the owner's business partner to accomplish a buyout

A small business owner is the insured under a disability policy that funds a buy-sell agreement the owner dies or becomes disabled, the policy would provide which of the following?

The PPO will pay reduced benefits

An employee becomes insured under a PPO plan provided by his employer. If the insured decides to go to a physician who is not a PPO provider, which of the following will happen?

Reinstatement Provision

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within certain period of time, and proof of insurability is provided. Which policy provision allows this?

Misdemeanor

Any person who transacts insurance without a license

Needs Approach

Attempting to determine how much insurance a family would require based upon their financial objectives is known as

A Modified Life policy would be bestIt charges a lower premium for the first few policy years and then a higher level premium for the remainder of the life of the policy. These policies were developed to make the purchase of whole life insurance more attractive for individuals who have limited financial resources but will be able to afford higher premiums in the near future.

B just bought a new car, which he anticipates will be paid for 4 years from nowHe also wants to buy a life insurance policy, but is financially limited until the car is paid off. Which of the following types of policies would be best for B?

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

Correct! Annually renewable term is the purest form of term insurance. The death benefit remains level , but the premium increases each year with the insured's attained age. In decreasing policies, while the face amount decreases, the premium remains constant throughout the life of the contracts. In level term and increasing term policies, the premium also remains level for the term of the policy. Therefore , in the other types of level policies, the first-year premium would not be different from any other year.

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

Cost of training a replacement

Which of the following is NOT a type of information that needs to be gathered in order to determine the value of someone's life when using the needs approach?

Estimated longevity You need outstanding debt, mortgages, and expenses

8 hours each reporting period

For senior agents, the requirement for continuing education for California Partnership for long term care policies is

Trained and registered volunteers.

HICAP counselors are primarily ( Choose from the following options ) Trained and registered volunteers . . Licensed Life Agents . Licensed Life & Disability Analysts . 4. HICAP counselors may be any of the above .

Not included

How do employer contributions to a Health Savings Account affect the insured's taxes?

Loss of the owner's income It will pay for rent, utilities, and employees payroll

If a business owner becomes totally disabled, a Business Overhead Expense policy will pay all of the following EXCEPT

Nothing

If one takes Social Security retirement benefits at age 62, what needs to be done at age 65 to qualify for Medicare?

Executive is the owner, and the executive pays the premium

In the Executive Bonus plan, who is the owner of the policy, and who pays the premium?

whole life insurance

Incorrect! Whole life policies offer level premium based on the issue age, guaranteed, level death benefit, cash value that is scheduled to equal the face amount at the insured's age 100, and living benefits, which include policy loans .

Kayla's husband died in a plane crashShe needs a new source of funding that will help put her child through daycare. Which of the following would be the best source?

Life insurance proceeds

guaranteed renewability

Most LTC plans have which of the following features ?

illustration life insurance

Needs to clearly state it's not apart of the contract

The loss may be intentional

Not all losses are insurable, and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT

The agent is known as the "Field Underwriter" because of the information he / s * he gathers for the insurer . This helps the insurer

Pre-select applicants that would present the lowest risk of loss for the insurer

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

Predicted needs of the family after the insured's death.

Notice Regarding Replacement

Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision appliesThe insured could find that information in the

Insurable Interest

Stranger-originated life insurance policies are in direct opposition to the principle of

What happens if a non- member physician is utilized under the Point-Of-Service plan?

The attending physician will be paid a fee for service, but the member patient will have to pay a higher coinsurance amount.

A corporation is the owner and beneficiary of the key person life policyIf the corporation collects the policy benefit, then

The benefit is received tax free

Which of the following is an example of liquidity in a life insurance contract

The cash value available to the policy owner

Gradually increases each year by the amount that the cash value increases

The death benefit under the Universal Life Option B

All of the following are true of key person insurance except

The plan is funded by permanent insurance only

Reduction of premium

The policyowner pays for her life insurance annually Until now, she has collected a nontaxable dividend check each yearShe has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

The annuitant must be a natural person

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

Coinsurance

The provision that provides for the sharing of expenses between the insured and the insurance company is

Pure risk and speculative risk

The risk of loss may be classified as (Choose from the following options) High risk and low risk 2. Pure risk and speculative risk. 3. Certain risk and uncertain risk. 4. Named risk and un-named risk

Principal Sum

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

Metal level classification

Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs?

Policy Summary

What describes the specific information about a policy?

Cash values can be borrowed at any time

What does "liquidity " refer to in a life insurance policy ?

Conditional renewable

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

To allow the consumer to compare the costs of different policies

What is the purpose of the buyers guide

Liquidation

What is the term used when a person sells his assets as a way to gain money ?

Group Insurance

What kind of policy does NOT typically require proof of insurability?

Source and amount of income, health history off the job activities

When applying for a disability insurance policy, the insurer is entitled to inquire about and verify the insured's

Distribution are taxable

When contributions to an immediate annuity are made with before-tax dollars, which of the Following is true of the distributions?

Option A

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

Trusts can be valid beneficiaries, the beneficiary may be a natural person, and the policy does not have to have a beneficiary named in order to be valid

Which is NOT true about beneficiary designations?

Guaranteed lifetime withdrawal benefit

Which of the following annuity riders ensures that the owner will receive from an annuity at least the amount paid for the annuity?

The insureds medical history

Which of the following are generally NOT considered when underwriting group insurance?

aleatory

Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?

Vanishing premium information

Which of the following cannot be included along with illustrations used to sell life insurance

Cash value

Which of the following elements in an Indexed Universal Life policy is tied to an index

race

Which of the following factors is NOT considered by an underwriter when determining the premium rates for an individual seeking insurance?

Creating a tax shelter

Which of the following is NOT a legitimate use of annuities by businesses?

Creditor requiring that a debtor buys insurance from a certain insurer

Which of the following is NOT allowed in credit life insurance?

It has a tax benefit for both employer and employee

Which of the following is TRUE of a qualified plan?

Benefit payment amount are not guaranteed

Which of the following is a feature of a variable annuity?

The cash value available to the policy owner

Which of the following is an example of liquidity in a life insurance contract?

Loss of two limbs

Which of the following is considered a presumptive disability under a disability income policy?

Policy Delivery

Which of the following is the most common time for errors and omissions to occur on the part of an insurer ?

Blackout approach

Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages , years until retirement , and inflation?

It will decrease the benefits paid to the beneficiaries

Which of the following statements best describes the effect the Accelerated Benefit provision would have on the benefits paid to the beneficiary?

Term insurance provides a death benefit only cost per 1000 of coverage is less than other policies

Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources ?

Premium amounts and surrender values

Which of the following will be included in a policy summary

Vacation travel expenses it's a luxury not a need

Which of the following would be least likely to be considered a legitimate need that would be paid by insurance proceeds?

The extent of benefits is determined by the insureds income

Which statement accurately describes group disability income insurance?

The employer is the owner and beneficiary

Who is the owner and who is the beneficiary on a Key Person Life Insurance policy?

Which of the following is not an example of a business use of life insurance

Workers compensation

Limited Pay Whole Life

Your wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this ?

Erase the incorrect answer and record the correct answer

a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT

Peril

causes of loss insured against in an insurance policy

Morale Hazard

person who does not lock the doors or does not repair leaks shows an indifferent attitude. This person presents what type of hazard?