insurance life simulated test questions
30 days of a loss
.Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within
Actual charge
.What is the difference between the Medicare approved amount for a service or supply and the actual charge?
Disclose commissions earned from the sale of the policy
.A producer agent must do all of the following when delivering a new policy to the insured EXCEPT
Gold
.According to the PPACA metal levels classification, if a health plan is expected to cover 90% of the cost for an average population, and the participants would cover the remaining 10%, what type of plan is that?
Insurer
.All advertisements are the responsibility of the
Benefits are considered taxable income to the busines
.All of the following are true of the Key Person disability income policy EXCEPT
The insurer determines the amount for each payment.
.All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT
The insurer can rate-up the policy
.An applicant is considered to be high-risk, but not so much that the insurer wants to deny coverage. Which of the following is NOT true?
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
$120 a day
.An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged $100 per day. How much will the insurance company pay?
. $25,000
.Andy the producer violates the Insurance Code very intentionally, in order to substantially increase his commissions. How much would he likely be penalized?
individual states design and administer the Medicaid program under broad guidelines established by the federal government.
All of the following statements concerning Medicaid are correct EXCEPT
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
The Commissioner
.If a producer is suspected of acting in violation of the Insurance Code, what authority would preside over a legal hearing regarding the matter?
Guaranteed and nonguaranteed
.Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs?
Commingling.
A producer who fails to separate premium monies from his own personal funds is guilty of
Other-insured rider.
A rider attached to a life insurance policy that provides coverage on the insured's family members is called the
Certificate of authority
A state-issued document empowering an insurance company to become an admitted insurer is called
180 days
A temporary license is good for
Interest only
All of the following are Nonforfeiture options EXCEPT
Sharing commissions.
All of the following are considered unfair trade practices in the business of insurance EXCEPT
No benefits
An insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. The insured is still able to perform his current job. To what extent will he receive Presumptive Disability benefits?
Reduction of Premium
An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's premium, thus reducing it to $900. What option does this describe?
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?
Inspection report.
An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n)
Express
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?
3 days
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
Single premium policy
If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this?
Within 30 days
If a resident producer or solicitor has a change of residential or business address, how soon must the licensee notify the Commissioner?
. Fully insured.
If an insured worker has earned 40 quarters of coverage, the worker's status under Social Security disability is
.If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights
If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?
Elected by the voters of the State for a period of four years.
In Louisiana, the Commissioner of Insurance is
The annuitant will receive the higher of either the guaranteed minimum rate or current rate.
In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the investment?
The individual insured
In a group policy, who is issued a certificate of insurance
10
In all health care plans under the Affordable Care Act (ACA), how many essential benefit categories are there?
Annuitization period
In an annuity, the accumulated money is converted into a stream of income during which time period?
. Must be a full-time employee
In order to be eligible for group health insurance, all of these are conditions an employee must meet EXCEPT
Coverage
Insurers may change which of the following on a guaranteed renewable health insurance policy?
Income for 2 or more recipients until they die
Life income joint and survivor settlement option guarantees
12 months
Most vision expense insurance plans restrict benefits to one exam and one pair of glasses in what time period?
Misrepresentation.
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
Copies of medical records.
Prior to issuance of a Long-Term Care policy to an applicant age 80 or older, the insurer must obtain all of the following EXCEPT
All four parts of Medicare
Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?
Blanket
The First Street Church plans to sponsor a summer camp for the youth of their congregation. They would like to purchase insurance that would pay benefits should one of the youth get injured while participating in the camp activities. The type of policy they would likely need is a/an
Telemarketers.
The National Do Not Call Registry was created to regulate
. Entire contract.
The insurance policy, together with the policy application and any added riders form what is known as
Face amount of the policy.
The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT
The method of premium payment.
The insuring clause of a disability policy usually states all of the following EXCEPT
$1,000
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?
Blackout period
What is the time period called during which the surviving spouse of the insured does not receive Social Security income benefits?
Both a life insurance license and a securities license
What license or licenses are required to sell variable annuities?
Grace period
What provision in an insurance policy extends coverage beyond the premium due date?
National Do Not Call Registry
What was created to keep telemarketers from calling consumers who do not wish contacted?
. It is reduced to the amount of what the cash value would buy as a single premium.
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
Indemnity
Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?
It is divided based on the average tax bracket of a family.
Which is true regarding HMO coverage?
Joint and survivor
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
It allows the insured 10 days to pay the initial premium.
Which of the following applies to the 10-day free-look privilege
Producers
Which of the following are responsible for making premium payments in an HMO plan?
. Cosmetic dentistry
Which of the following components of dental insurance does NOT require the payment of a deductible?
Permanent coverage
Which of the following do the Standard and Preferred risk categories share?
The Federal Trade Commission
Which of the following entities established the Do-Not-Call Registry?
. Insurance Guaranty Association
Which of the following entities protects policyowners, insureds, and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment?
Counteroffer
Which of the following is NOT an essential element of an insurance contract?
The creditor may insure the debtor for an unlimited amount of coverage
Which of the following is TRUE regarding the insurance amount in a credit life policy?
Standard
Which of the following is a risk classification used by underwriters for life insurance?
Both annuities and life insurance use mortality tables.
Which of the following is a true comparison between annuities and life insurance?
The death benefit paid to the beneficiary
Which of the following is an example of liquidity in a life insurance contract?
The Fair Credit Reporting Act
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
Physical examination and autopsy
Which of the following provisions is mandatory for health insurance policies?
Inspection report
Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?
. It provides for reinstatement of a policy regardless of the insured's health.
Which of the following statements about the reinstatement provision is true?
Prepayment clause
Which of the following stipulates that life insurance premiums can be paid in advance of policy issuance?
Whole life
Which of the following types of insurance policies is most commonly used in credit life insurance?
Variable whole life insurance
Which of the following types of policies allows for a flexible premium and a variable investment component?
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?
Marital status
Which of the following would NOT be considered a primary risk factor in underwriting individual health insurance policies?
Calls for which the consumer has given prior written permission
Which of the following would NOT be considered an exception to the National Do Not Call List?
Chemotherapy
Which of the following would NOT be used in preventive care?
Dividend
Which policy component decreases in decreasing term insurance?
An independent examination as often as reasonably required
While a claim is pending, an insurance company may require
. An individual not covered by an employer-sponsored plan who has earned income
Who can make a fully deductible contribution to a traditional IRA?
. Payment of premium
With respect to the Consideration Clause, which of the following would be considered consideration on the part of the applicant for insurance?
3 days
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
Basic information about supplementary policies
which of the following is NOT required to be stated in the outline of coverage provided with a long-term care policy?
Age 65 who are retired.
The Omnibus Budget Reconciliation Act of 1990 (OBRA) requires that large group health plans must provide primary coverage for disabled individuals unde
Premium payments are not deductible to the business.
Which of the following is not true of Disability Buy-Sell coverage?
Paid-Up Option
Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
Determining whether or not the policy will replace another accident and health policy
.Which of the following is NOT among the goals of a Medicare supplement application?
Permanently exclude coverage for dialysis
A 70-year-old individual who bought a Part B Medicare policy 2 months ago just began kidney dialysis treatments this week. The individual is now applying for a Medicare supplement policy, which would begin in 8 months. Which of the following could the insurer do to avoid paying for the dialysis?
12
A licensed life producer has completed 12 of his continuing education hours for this period. How many more will he have to finish?
$1,000
A producer didn't realize that he had committed an act in violation of the Insurance Code. How much would he probably be penalized?
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?
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
Insurers may not refuse to accept an application solely due to information in an MIB report
All of the following are true regarding the Medical Information Bureau (MIB) EXCEPT
Birth certificate
All of the following are utilized by an underwriter in order to underwrite an applicant EXCEPT
. Benefits are paid to the creditor
All of the following statements are correct regarding credit life insurance EXCEPT
The payments will stop when the annuitant dies
All of the following statements are true regarding installments for a fixed amount EXCEPT
When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health
An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?
Department of Insurance
An agent selling variable annuities must be registered with
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?
25%
An insured has Medicare Part D coverage. Upon reaching the initial benefit limit, what percentage of the prescription drug cost is the insured responsible for paying?
. The insured will need a written consent of the insurer.
An insured wants to transfer his personal insurance policy to a friend. Under what conditions would this be possible?
Illegal
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?
12 months.
In order to collect Social Security disability benefits, the claimant must be able to demonstrate that the disability will last at least
The cash value will be paid to the annuitant's estate.
The annuity owner dies during the accumulation period without naming a beneficiary. Annuity's cash value exceeds premiums paid. Which of the following is TRUE?
40 credits.
The minimum number of credits required for partially insured status for Social Security disability benefits is
. Make insurance statutes uniform between states.
The purpose of insurance regulation is to
Discrimination
Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?
Must be advised that a copy of the report is available to anyone who requests it.
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report
. Naming each beneficiary by his or her name.
Using a class designation for beneficiaries means
Because the misstatement occurred more than 2 years ago, it has no effect
When an insured purchased her disability income policy, she misstated her age to the agent. She told the agent that she was 30 years old, when in fact, she was 37. If the policy contains the optional misstatement of age provision
Accidental death
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?
At the time of application
When must insurable interest exist in a life insurance policy?
It allows the owner to surrender the annuity without a charge
Which of the following best describes a bail-out provision?
Disability
Which of the following expenses is NOT covered by a health insurance policy
The loss exposure must be large
Which of the following is NOT a characteristic of an insurable risk?
. The contract owner bears the investment risk.
Which of the following is NOT a characteristic of variable annuities?
the insurer can increase the policy premium on an individual basis
Which of the following is NOT a feature of a guaranteed renewable provision?
Creditor requiring that a debtor has a life insurance
Which of the following is NOT allowed in credit life insurance?
. Only written statements can be considered fraud.
Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance?
. The company guarantees a minimum interest rate
Which of the following is TRUE regarding variable annuities?
Premiums are tax deductible by the key employee.
Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy
A pre-existing condition
Which of the following losses will be covered by a group medical expense policy
That its policies are covered by a state Guaranty Association
Which of the following may NOT be included in an insurance company's advertisement
Certificate of authority
Which of the following must an insurer obtain in order to transact insurance within a given state?
It will increase the benefits paid to the beneficiary
Which of the following statements best describes the effect the Accelerated Benefit provision would have on the benefits paid to the beneficiary?
Guaranteed insurability rider
Which rider, when added to a disability income policy, provides for changes in the benefits payable based on changes in the consumer price index?
Disclosure 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?
No benefits
an insured is involved in a car accident. After the accident is determined to be her fault, the police give her a breathalyzer test to determine whether or not she had been drinking alcohol before the accident. Her blood alcohol level is over the legal limit. What type of health benefits will her health insurance policy pay for her injuries if the policy includes the narcotics and intoxicants provision?
Free-look period
what phase begins after a new policy is delivered?
12
What is the minimum required number of continuing education credits in ethics every licensing period?
