Insurance test
Any criminal charges taken against a producer must be reported to the commissioner of insurance by the producer within how many days of the final disposition?
30 days
The producer must notify the Commissioner of any administrative action taken or criminal prosecution against the producer within ____ days
30 days
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?
$0
Under a Long Term Care policy, which benefit would be typically excluded or limited?
Alcohol rehabilitation
In Mississippi an insurance company formed under the laws of Mexico is called an
Alien companyb
how do Life insurance companies handle cases where the insured commit suicide within the contractors stated Contestable period
Claims are denied under the suicide policy
K applies for a life insurance policies on herself and submits the initial premium with the application. she is given A receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used
Conditional
Which of the following nonforfeiture options offer the highest death benefit
Extended term
Which of these is considered a true statement regarding Medicaid
Funded by both state and federal governments
A life insurance application may be rejected on the basis of all these factors ?
Gender
J has a Disability Income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this?
Nonoccupational coverage
Who has the right to change a revocable beneficiary?
Policy owner
How does group insurance differ from individual insurance?
Premiums are lower
what is considered to be a characteristic of a conditionally renewable health insurance ?
Premiums may increase at time of renewal
K is the insured and P is the sole beneficiary on accidental death and dismemberment insurance policy. both are involved in a fatal accident where K does before P. Under the common disaster provision which of these statements is true
Proceeds will be paid to P's estate
An insured covered by accident death and dismemberment insurance has just died. What will happen if the primary beneficiary had already died before the insured and contingent beneficiary
Proceeds will go to the contingent beneficiary
an insurance company appoints —- To transact insurance
Producer
P received Disability income benefits for 3 months then returns to work. She is able to work one month before her condition returns, leaving her disabled once again. What would the insurance company most likely regard this second period of disability as?
Recurrent Disability
Upon delivery of a rated life insurance policy, the producer must obtain each of the following EXCEPT
Signed HIPAA disclosure
When does life insurance contract become effective if the initial premium is not collected during the application process
When the producer delivers policy in collects initial premium
Additional coverage can be added to a Whole Life policy by adding a(n)
decreasing term rider
A ___ contained in a life insurance policy states that the policy will not cover certain risk
exclusion
When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)
exclusiona
A comprehensive major medical health insurance policy contains an eligible expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered EXCEPT for
experimental and investigative services
Taking receipt of premiums and holding them for the insurance company is an example of
fiduciary responsibility
Any changes made on insurance application requires the initials of whom
Applicant
An incomplete life insurance application submitted to an insurer will result in which of these actions?
Application will be returned to the writing agent
Which of the following medical expenses does cancer not cover
Arthritis
What action can a policy owner take if an application for a bank loan requires collateral?
Assigns policy ownership to the bank
When does a probationary period provision becomes effective in health insurance contract
At the policies inception
All of the following statements about major medical benefits are true EXCEPT
Benefits have no maximum limit
Accidental death coverage is provided to commercial airline passengers in which of the following types of the following types of policies
Blanket accident policy
Which type of policy would pay an employee's salary if the employer was injured in a bicycle accident and out of work for six weeks?
Business overhead expense
whole life insurance does not have the right to
Change the grace period
Which of the following best defines unfair discrimination?
Charging different rates for individuals in the same risk class
a disability income Policy owner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taking five years prior. The neck injury was never disclosed and then sure at the time of application. How will the insurer handle this claim
Claim will be paid in coverage will remain in force
B is a producer who primarily writes insurance business on his family? Which of the following is B engaged in?
Controlled business
Which statement is true regarding a group accident & health issued to an employer?
The employer receives the policy and each employee is issued a certificate.
In ordered for coverage on a non medical insurance application to take effect the same day, the producer must collect a signed application and
The initial premium
Which of the following would be a valid reason for suspending or revoking an insurance producers license ?
The producer has misappropriated money held in fiduciary capacity
J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy?
$25,000
J's major medical policy has $2000 deductible and an 80/20 coinsurance clause. If J is hospitalized and receives a bill for $10,000, j would pay for:
$3,600
The commission of insurance must give days notice before holding a hearing regarding a producers unfair practice?
10 days
Which of the following types of term life policies most likely contain a renewability feature?
10 year convertible term
a long term care policy sold in Mississippi
12 months
And ensure must provide an insured with claim forms within how many days after receiving notice of a loss
15
An insured must notify an insurer of a medical claim within how many days after an accident?
20 days
Insurers may request a hearing within there policy is rejected
20 days
An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?
20% is withheld for income taxes
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct?
20-Pay Life accumulates cash value faster than Straight Life
all long-term care policies purchased in Mississippi must contain a free look period of
30 days
what is the maximum amount of time after the premium due date during Which policy remains in force even though the premiums have not been paid
31 days
M's insurance company denied a reinstatement application for her lapsed health insurance policy. The company did not notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically placed back in force?
45 days
Long term care policies sold in Mississippi may exclude coverage for pre existing conditions for
6 months
ABC insurance company is replacing an existing life policy from XYZ insurance company. ABC insurance company must provide which of the following documents to XYZ insurance company
A policy summary
A producer is attempting to replace an existing life insurance policy with a new one. What must this producer submit as part of the application
A signed statement by the applicant regarding the replacement
Which of the following types of policies pays a benefit if the insured goes blind ?
AD&D
Which of the following is not included in an annuity contract ?
AD&D rider
Which of the following actions must be taken by an insurance company that wishes to conduct business in Mississippi
Acquire a certificate of authority
What is responsibility of the commissioner of insurance?
Administering insurance laws
Who would be given an exemption from licensing requirements in Mississippi?
An employee of a licensed producer who only answers the phone and schedules appointments
Which of the following correctly explains the actions of an agent should take if a customer wants to apply for an insurance policy
Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company
Which of the following features a group of term life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability
Conversion privilege
how are surrender charges deducted in a life policy with a rear ended loaded provision
Deducted when the policy is discontinued
Which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy
Entire Contract
A producer does not have the authority to change a policy or waive any of its provisions. The health provision that best describes this statement is called
Entire contract
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase?
Equity index insurance
How often must an insurance producers license be renewed?
Every two years
Which of these statements about a guaranteed insurability option rider is not true?
Evidence of insurability is required when the option is exercised
Which of the following is not included in the policy face
Exclusions
All of these characteristics of an adjustable life policy except
Face amount can be adjusted using policy dividends
After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?
File written proof of loss
What is considered a valid reason for a small business to insure the lives of its major shareholders ?
Find a buy sell agreement
What action should be a producer take if the initial premium is not submitted with the application
Forward the application to the insurer without the initial premium
An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period?
Full face amount minus any past due premiums
A hearing must be held before a producers license can be suspended or revoked. Prior to hearing the commissioner of insurance is required to
Give written notice to the producer
With Accidental Death and Dismemberment policies, what is the purpose of the Grace Period?
Gives the policyowner additional time to pay past due premiums
Upon policy delivery,a signed good health statement is requested from the applicant. Why would this be necessary?
Group was formed for a purpose other than acquaint insurance
K has a health policy that must be renewed by the insurer and the premiums can only be increased if applied to the entire class of insureds. This type of policy is considered
Guaranteed renewable
Which type of provider is known for stressing preventative medical care?
Health Maintenance Organizations (HMO's
A 66 year-old is covered under a group health plan while employed with a business that has 40 employees. If she injures herself while walking in the park, what coverage would be considered primary?
Her group health plan
T sends proof of loss to her insurer for an acceptable medical expense claim under her individual health insurance policy. Upon receipt the insurer must pay benefits
Immediately
T owns an Accident & Health policy and notifies her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take?
Increase her policy's coverage amount
How does an indexed annuity differ from a fixed annuity?
Indexed annuity owners receive credit interest tied to the fluctuations of the linked index
The accidental death and dismemberment provision in life insurance policy would pay additional benefits if the insured is
Is blinded by an accident
Which of the following actions will an income company most likely not take if an applicant, who has diabetes, applies for a disability income policy?
Issue the policy with an altered time of payment of claims provision
Stranger-Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual
Legal purpose
With whom may a producer share commissions with
Licensed producer
Which of these are not an example a nonforfeiture option?
Life Income
Which of these would be considered a limited pay life policy
Life Paid-Up at Age 70
which of the following is not a limited benefit plan
Life insurance policies
whole life insurance policy owner does not wish to continue making premium payments. Which of the following enables the policy maker to sell the policy for more than its cash value?
Life settlement contract
Life insurance that covers an insured whole life with level premiums paid over a limited time called
Limited pay life
If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses?
Medicare Supplement
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this?
Modified Whole Life
Which of these is not considered to be an element of insurance contract
Negotiating
S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance company did not respond to the claim. S can take legal action against the insurer beginning
November 1
Long term care policies sold in Mississippi are required to contain cost disclosure information in bold print. When does the law require this information be located?
Outline coverage
M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take?
Pay face amount minus the past due premium
Which of the these is considered a mandatory provision?
Payment of Claims
Which of these does not constitute policy delivery
Policy issued with rating
Life insurance replacement regulation is designed to protect the interest of the
Policy owner
What is the purpose of the time of payment of claims provision
Prevents delayed claim payments made by the insurer
K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment which the insurer subsequently accepts. Which policy provision specifies that coverage may be restored in this situation?
Reinstatement
Beneficiary may be changed by policy owner without the consent of the beneficiary
Revocable
Which of the following statements about accumulatated interest earned on dividends from an insurance policy is true?
Taxed as ordinary income
What kind of life insurance product covers children under their parent's policy?
Term rider
T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the time period during which the company may dispute a claim's validity is called
Time Limit on Certain Defenses
A variable annuity has which of the following characteristics?
Underlying equity investments
K purchased a life insurance policy 1986 which paid to 10% interest in the early years of the policy. Twenty years after the purchase, she received a notice from the insurer stating that the policy will soon terminate unless a much higher premium is paid because of failing intrest rates. This type of policy is known as
Universal
R becomes disabled and owns a disability income policy. When is R eligible to receive disability benefits?
Upon satisfying the elimination period of requirement
Which of the following best describes how pre admission certification is used?
Used to prevent nonessential medical cost
In order to sell a ——- life policy a producer is required to register with the financial industry regulatory authority (FINRA)
Variable
The provision in a health insurance policy that suspends premiums being paid to the insurer while the insured is disabled called the
Waiver of premium
Which part of life insurance policy are guaranteed to be true
Warranty
at what point does the life and health insurance guaranty association become involved with an insurers affair
When the insure becomes insolvent
T is a producer who forgot to renew her license. She may reapply for a license without examination?
Within one year after no renewal
when can a policy owner change a revocable beneficiary ?
anytime
What action will an insurer take if an interest payment on a policy loan is not made on time?
automatically add the amount of interest due to the loan balance
An example of a life insurance policy replacement would be which of the following
cash surrender in an existing life policy and purchasing a new life
Kompany XYZ offers a group term life insurance plan to its employees. What does each employee covered under this plan receive
certificate of insurance
Key Employee is taken out by company X on its vice president. 10 years later this company leaves comany x and begins working for a company y . This individual were to die in the policy is still in force and unchanged where would the death proceed be directed
company x
Which of the following correctly explains the action on an agent should take if a customer wants to apply for insurance policy
complete the application and review the information with the customer prior to obtaining the customer signature then send the application off to the insurance company
What is requirement for maintaining an individual Mississippi producer license
completing 24 hours of continuing education for every two years
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?
deferred
Acme Insurance Company Conducts business in Mississippi and was incorporated in Mississippi. This company is considered to be
domestic insurer
Non-occupational disability coverage is designed for
employees who suffer non-work related disabilities, since work-related disabilities are covered by Workers' Compensation
A medical care provider which typically delivers health services at its own local medical facility is known as a
health maintenance organization
G is involved in an automobile accident as a result of driving while intoxicated and suffers numerous injuries. According to the Intoxicants and Narcotics exclusion in G's policy, who is responsible for paying the medical bills?
insured
What is the initial requirement for an insured to become eligible for benefits under the waiver of premium provisions
insured must be under a physician care
The —- clause identifies which losses resulting from an accident or sickness are insured by the policy
insuring
The life and health insurance guaranty association
is funded by insurance companies through assessments
A trustee transfer of roll over funds in a qualified plan allows a participant to avoid
mandatory income tax withholding on the transfer amount
Which of these factors do not play role in underwriting life insurance policy
marital status
What type of renewability guarantees premium rates and renewability?
noncancellable
Which of the following best describes a short term medical expense policy ?
nonrenewable
insurance policies are considered aleatory contracts because
performance is conditioned upon a future occurrence
Which long term insurance statement is true
pre-existing conditions must be covered after the coverage has been in force for six months
What benefit does the pay your claws on juvenile life policy provides
premiums are waived if the payer becomes disabled
A producer has returned part of his commission to the insured as an in deuce meant to purchase the insurance. This illegal action is called
rebating
j is a producer who is recommending that an insured surrender and existing life insurance policy and purchase a new one. Which provision would be this producer be subject to
replacement provision
What is Old Age and Survivors Health Insurance (OASDHI) also known as?
social security
Which of these life insurance riders allow the applicant to have excessive coverage
term rider
health policies sold in Mississippi are required to begin medical coverage of a newborn begginijg at
the moment of birth
C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?
to cost
ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has
waived one of its legal rights
When is the face amount of a whole life policy said
when the insured dies or at the policies maturity date
A policy that becomes a Modified Endowment Contract (MEC)
will lose many of its tax advantages
