Insurance Study

If the insurer does not pay the proceeds within ______ days, the insurer must pay interest on the proceeds.

30 days

The required free-look period in a Medicare Supplement policy is ___ days.

30 days

When does a probationary period provision become effective in a health insurance contract?

At the policy's inception

An individual who purchases a life annuity is given protection against what?

The risk of living longer than expected

The Legal Actions provision of an insurance contract is designed to do all of the following, EXCEPT:

protect the producer

Insurers may request a hearing within ______ if their policy is rejected.

20 days

An insurer may normally delay the payment of a cash value loan or surrender value for up to ___ months.

6 months

What does a medicare supplement policy cover?

Allowable amounts under Medicare Part B

Medicare Part B does NOT cover:

inpatient hospital services

A disability income policy that only the policyowner can terminate and which the rates will never go up is considered to be:

noncancellable

A life insurance policyowner may sell their policy to a _____ in order to receive a percentage of the policy's face value.

Viatical settlement provider

A return of premium life insurance policy is:

Whole life and Increasing term

In order to terminate a producer's appointment, the insurer MUST:

send notice of the termination to the Commissioner

A producer that intentionally violates an insurance law can face up to what!

$5000 penalty

Grace Period

- A grace period provision is an insurance policy that allows a policyholder to delay payment for a set amount of time without losing coverage. - The grace period is defined in the policy's contract and allows the policyholder to make a late payment without their coverage lapsing. - During the grace period, coverage remains intact, allowing policyholders to avoid immediate cancellations and legal penalties. - Grace periods vary by card issuer, but must be at least 21 days from the end of a billing cycle. For example, if your billing cycle ends on the first of each month and your bill is due on the 22nd of the month, your grace period is 21 days. Depending on the issuer, you may even receive a grace period lasting up to 30 days.

Noncancelable

- A noncancellable policy is a type of insurance policy that cannot be canceled, have its benefits reduced, or have its premiums increased by the insurance company during the policy's life. - This type of insurance is often associated with disability, health, or life insurance. - Noncancellable policies guarantee that the policy terms cannot be changed until a specific age, typically retirement age, or until the policyholder voluntarily terminates the policy.

Coordination of Benefits (COB)

- A transaction that determines which health plan is responsible for paying for health care claims or payment information when someone has more than one health plan. - COB uses data from various sources, including: Federal and state programs, Health insurance and prescription coverage plans, Pharmacy networks, and Assistance programs.

Graded Life Insurance

- A type of permanent life insurance that offers a lower death benefit at the start of the policy, then gradually increases to the full amount over a period of time. - Typically 3-5 years. This is called a "graded" death benefit.

Variable Annuity

- A variable annuity pays benefits based on units rather than stated dollar amounts. - A variable annuity is a contract between you and an insurance company. - With a variable annuity, the insurance company agrees to make periodic payments to you in the future. - You can purchase a variable annuity contract by making either a single purchase payment or a series of purchase payments.

Activities Daily Living

- Activities related to personal care. - They include bathing or showering, dressing, getting in and out of bed or a chair, walking, using the toilet, and eating. - Unable to perform 2 activities.

Policy Loan Provision

- Allows the policyholder to borrow against the cash value of a permanent life insurance policy. - The policyholder can use the cash value as collateral for the loan, which can accumulate interest. - The policyholder can borrow without taxation as long as they keep the policy in force. - If the policy is canceled or lapses, the loan is considered a withdrawal, and the policyholder will owe income tax on any cash value received beyond what they paid in premiums

Entire Contact Provision

- Also known as an entire agreement clause - A standard insurance contract provision that states that the policy and application represent the entire contract. - This means that the insurer cannot make changes to the policy without the policyholder's consent. - The policy is essentially "written in stone" when it is issued, and the policyholder must agree to any changes.

Level Premium

- Also known as level term life insurance - A type of life insurance where the premium remains the same throughout the policy's life. - Level premium policies can be permanent or term life, and typically last for 10, 15, 20, or 30 years.

Elimination Period

- An elimination period, also known as a waiting period, is the time between when a disability begins and when benefits are available. - It's similar to a deductible for car insurance, but measured in time rather than dollars. - Elimination periods can range from 30 days to two years, and start on the date of diagnosis or injury, not the date of claim.

Health Reimbursement Arrangements (HRAs)

- An employer-funded group health plans from which employees are reimbursed tax-free for qualified medical expenses up to a fixed dollar amount per year.

Guaranteed Insurability Rider (GI)

- An optional feature that allows policyholders to purchase additional insurance at specific times in the future without undergoing medical exams or re-qualification.

Additional coverage can be added to a Whole Life policy by adding a(n)

- Decreasing term rider - A decreasing term rider can add additional coverage to a whole life policy.

Medicare Supplement Insurance (Medigap)

- Extra insurance you can buy from a private health insurance company to help pay your share of out-of-pocket costs in. - Original Medicare

Inspection Report

- Insurance companies will request an inspection report in order to get a deeper understanding of the risk they are taking on. - Identifying potential risk factors, and, in some cases, coming up with recommendations on how to manage the risk factors identified. - Can use over the phone information.

Medicare Part B

- Medicare Part B, also known as Medical Insurance, is an optional program that helps cover medical services and items that are medically necessary. - Part B covers services like: Doctors' services, Outpatient care, Preventive services like exams, lab tests, and screening shots, Medical supplies, Durable medical equipment (DME), Mental health.

Temporary Insurance License

- The commissioner may issue a temporary insurance producer license for a period not to exceed 180 days without requiring an examination. - If the commissioner deems that the temporary license is necessary for the servicing of an insurance business in the following cases: - To the surviving spouse or court-appointed personal representative of a licensed insurance producer who dies or becomes mentally or physically disabled - To allow adequate time for the sale of the insurance business owned by the insurance producer - For the recovery - Return of the insurance producer to the business - For the training and licensing of new personnel to operate the insurance producer's business

Free Look Period

- The free look period for life insurance is a legally mandated period of time when policyholders can cancel their policy without penalty and receive a full refund of premiums paid. - The free look period usually lasts 10-30 days, but the minimum length varies by state. It typically begins on the day the policy is delivered.

Rebating

- The practice of offering customers something of value in exchange for purchasing an insurance policy, such as cash, gifts, discounts, or special favors.

Coercion

- The practice of persuading someone to do something by using force or threats

Time Limit on Certain Defenses

- The time limit on certain defenses provision is a health insurance policy provision that limits the time an insurance company can deny a claim based on a preexisting condition. - It's usually found in accident and health insurance policies, and is similar to the incontestability clause in life insurance policies. usually two years. - This means that fraudulent statements made on a health application can be contested at any time before the contestable period ends.

Universal Life Insurance

- Universal life is a form of permanent life insurance that gives policyholders flexibility in paying premiums, a cash savings component, and a death benefit. - Universal life insurance allows you to borrow against or cash in their savings portion, which grows tax-deferred over your lifetime. - May fluctuate to reflect changing assumptions regarding morality cost, interest, and expense factors.

Commingling

- When an insurer mixes funds from different sources, such as policyholder premiums, with their own funds.

A commissioner must give ____ days notice prior to holding a hearing regarding a producers violation of an unfair trade practice.

10 days

Once the insurance company receives a notice of claims , they have ____ days to send the claim form.

15 days

Inflation protection is not required in a partnership long-term care policy if the individual is at least how old at issue?

76

Which of the statements are true regarding variable whole life insurance?

A minimum guaranteed death benefit is provided

A policyowner may generate taxable income from which of the following dividend option?

Accumulation of Interest

Which of these is a requirement for obtaining a resident insurance producer license in the state?

Complete a pre licensing examination

How often must an insurance producer's license in iowa be renewed?

Every 3 years; producers must complete 36 hours of continued education every 3 years.

Which of the following is not included in the policy face?

Exclusions

A stranger owned life insurance (STOLI) is when a person purchases life insurance only to sell to a:

Third party with no insurance interest