Insurance.
Which is the typical deductible for a basic surgical expense insurance?
0 bucks
The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?
2 Years
Following hospitilization because of an accident bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many years?
20 years
To qualify for conversion From a group life policy that has been terminated to an individual policy (same coverage). A person must have been Insured under a group plan for how many years?
5 years
How long is an open enrollment period for medicare suppliment policies?
6 months
What type of policy allows the insurance company to cancel a policy at any time?
A Cancellable Policy.
When both parties to a contract must preform certain duties and follow rules of conduct to make the contact enforceable the contract is?
A Conditional contract.
Employers can reduce health plan costs by coupling a health reimbursment account (HRA) with?
A High deductible health plan
An insured purchased a non-cancellable health insurance policy one year ago. Which circumstances would not be a reason for the company to cancel?
A nonpayment of the premium
The term "illustration" in a life insurance policy refers to?
A presentation of non-guaranteed elements of a policy
The two types of assignments are?
Absolute and Collateral
Long term care insurance policies must cover?
Alzheimers..
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 i fact she was 37. If the policy contains the optional misstatement of age provision.
Amounts payable under the policy will reflect the insureds correct age.
A universal life insurance policy is described best as?
Annually renewable term policy with a cash value amount
In annuity the accumulated money is converted into a stream of income during which period?
Annuitization period
In classifying a risk, the home office underwriting department will look at all EXCEPT?
Applicants past Income.
An agent is ready to deliver a policy to an applicant but has not received payment upon delivery. The agent collects the premium check answers questions and leaves. What did they forget to do?
Ask her to sign a statement of good heath
In a replacement situation all must be considered except?
Assets
Which statements is most correct concerning the changing of an irrevocable beneficiary?
Can only be changed by written consent of the beneficiary
Under which nonforfeiture option does the company pay the surrender value and have no other obligations to the policyowner?
Cash surrender
An insured is admitted into the hospital for surgery on a herniated disk. The company monitors to make sure everything goes smoothly according to insurers sceduele.
Concurrent review
Representations are written or oral statements made by the applicant that are?
Considered to be true to the best of the applicants knowledge.
When a policy is surrendered for its cash value?
Coverage ends and the policy cannot be reinstated.
Which is NOT typically EXCLUDED from life policies?
Death due to plane crash for a fare paying passenger
An individual has just borrowed $10000 from his bank account on a 5 year installment loan. Requiring monthly payments. What life insurance would be best?
Decreasing term
Which is considered a qualifying event under COBRA?
Divorce. Vaulentary termination. or Death.
Under which installment option does the annuitant of each payment, and the insurer determines how long they will pay benefits?
Fixed amount
When the policy owner specifies a dollar bill amount, in which installments are to be paid, they have chosen which settlement option?
Fixed amount
When the policyowner specifies a dollar amount in which installments are to be paid, they have chosen which settlement option?
Fixed amount
If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?
Fixed period
Which is an eligibility requirement for all social disability income benefits?
Fully insured status
An individual is purchasing a permanent life insurance that he can afford at this time he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?
Guaranteed Insurability option
An insured becomes disabled at age 22 and can no longer work. She meets the definition of total disability under social security. What other requirement must the insured have met to receive social security disability benefits?
Have accumulated 6 work credits in the past 3 years.
What type of hospital policy pays a fixed amount each day that the insured is in a hospital?
Indemnity
Who makes up THE MIB!?!
Insurers...
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 principle will be paid to their children when they reach a certain age. Which option should the policyowner choose?
Intrest only Option
All are non-forfeiture options Except?
Intrest only non-forfetures
An insured purchased a life insurance policy. That agents says depending upon the company's investments and expense factors the cash values could?
Intrest sensitive whole life policy
Which is true about the mandatory free look in a life insurance policy?
It commences when the policy is delivered
What is an advantage to naming a contingent or secondary beneficiary in a life insurance policy?
It determines who recieves benefits if the primary beneficiary is dead.
All statements are true regarding installments for a fixed amount except?
It is a life contingency option
Which is true regarding the accumulation period of an annuity?
It is a period during which the payments into the annuity grow tax deferred
Which is not true regarding a nonqualified retirement plan?
It needs IRA approval
Which statements concerning Medicare part b is correct?
It pays for physicians services, diagnostic tests, and physical therapy.
Which is true about a policy assignment?
It transfers rights of ownership from the owner to another person
Which best describes annually renewable term insurance?
Its just level term insurance.
What health insurance policy provides an employer with funds to train a replacement if a valued employee becomes disabled?
Key person disability
What are the living benefits of whole life insurance?
Loan values and retirement income
Insurance is a contract by which one seeks to protect another from?
Loss...
If a settlement option is not chosen by the policy owner or the beneficiary which option will be used?
Lump-sum payment
If one takes social security retirement benefits at age 62 what needs to be done at age 65 to qualify for Medicare?
Nothing.
Which provision concerns the insureds duty to provide the insurer with reasonable notice in the event of a loss?
Notice of claims.
Another name for social security benefits?
Old age, survivors, and disability insurance (OASDI)
Which riders would not cause the death benefit to increase?
Payor benefit rider
All are true regarding insurance policy loans EXCEPT?
Policy loans can be made on policied that do not accumulate cash value
What does key person insurance do?
Provides protection for the business in case an employee passs away
What are 2 types of flexible spending accounts?
Qualified medical expense account and Dependent care expense account
When an insurer combines two periodd of disability into one the insured must have suffered
Recurrent disability
In the event of a loss business overhead insurance will pay for?
Rent.
The legal process that gives the insurer after payment of a loss the right to seek recovery from a third party that was responsible for the loss is known as?
Still Subrogation
A provision found in insurance policies which prevents the insured from collecting twice for the same loss is called?
Subrogation
Which would basic medical expense coverage not cover?
Surgeons devices
What attached to a permanant life insurance policy, allows the policy owner to customize the policy to provide an additional amount of temporary insurance on the insured or allows amounts of temporary insurance to cover other family members?
Term rider
All of the following entities regulate variable Life policies except?
The Guaranty Association
If the policy owner the insured and the beneficiary under a life insurance policy are three different people who has the ownership rights?
The Policyowner
Before an agent delivers a policy the insurer makes a last Minute change to the policy. The agent informs the insured of this change and accepts it. What does the agent respond with?
The agent should ask the insured to sign a statement saying they are aware of the change.
A 60 year old in a 401k plan takes a distibution and rolls it over to an ira with 60 days. Which is true?
The amount of distribution is reduced by a 20% withholding tax
Which is true about the requirments regarding HIV exams?
The applicant must give prior informed written consent
An agent makes a mistake on yhe application and then correct it by physically entering the information who must initial on that change?
The applicant.
Which is NOT the consideration in a policy?
The application given to a prospective insured.
If a policy has an automatic premium loan prevision, what happens if the insured dies befote the loan is paid?
The balance will be taken from the death benefit
If an insurer withdraws a portion of the face amount on the form of accelerated benefits because of a terminal illness how will that affect the payable death benefit from the policy?
The death benefit will be smaller
An insured purchased a noncancellable health insurance policy 1 year ago. Which circumstances would NOT be a reason for the insurance company to cancel the policy?
The insured is in an accident and incurs a large claim
A father owns a life insurance policy on his 15 year old daughter. Includes payor benefit rider. If the father becomes disabled what happens to the premiums?
The insured's premiums will be waived until she is 21
Who must pay for the cost of a medical examination required in the process of underwriting?
The insurer
Which is not a feature of a noncancellable policy?
The insurer may terminate the contract only at renewal under certain conditions
All of the following are true of the key person disability income policy EXCEPT?
The key person owns the policy, but the business pays the premiums and receives the benefits
Which will vary the length of the grace period in health insurance policies?
The mode of the premium payment
What is NOT! Required on an illustration used in the sale of a life insurance policy?
The names of the Primary and Secondary Beneficiaries
Hospital idemnity/ confinement idemnity policy will provide payment based on?
The number of days confined in the hospital.
An agent is in the process of replacing the insureds current health insurance policy with a new one. Which would be the proper action?
The old policy should stay enforced until the new policy is issued.
An agent is in the process of replacing the insureds current health insurance policy with a new one. Which of the following would be a proper action?
The old policy should stay in force until the new policy is issued.
Which is true regarding the premium in term policies?
The premium is usually level in any term policies. Usually...
All would be eligible to establish a Keogh retirement plan EXCEPT?
The president and employee of a family corporation
Under an extended term non forfeiture option the policy cash value is converted to?
The same face amount as in the whole life policy
On a health insurance application, a signature is required from all of the following individuals EXCEPT?
The spouse of the policyowner.
An insured had 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
Which best describes what the annuity period is?
The time during which accumulated money is converted into an income stream
Which statements regarding qualifications For social security disability benefits is not true?
They must be at least 65
Which is generally true regarding insureds who have been classified as preferred risks?
Thier premiums are lower
All of the following are guaranteed insurability rider EXCEPT?
This rider is available to all insureds with no additional premiums.
A gramm-leach-bliley act was passed to?
To protect the privacy of customers and their personal information.
According to the rights of renewability rider for cancelable policies, all of the following are correct about the cancelation of an individual insurance policy EXCEPT?
Unearned premiums are retained by the insurance company
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
Universal Life.
All are true regarding the convertability option under a term life insurance policy EXCEPT?
Upon conversion, the death benefit of the permenant policy will be reduced 50%.
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
When may an insured deduct unreimbursed medical expenses paid under a long term care policy?
When the expenses exceed a certain percentage of the insureds adjusted gross income
Workers comp insurance covers a worker's medical expenses resulting from Work related sickness or injuries and covers loss of income from?
Work related disabilities
In which Medicare supplimental policies are the core benefits found?
all plans A-N
Under workers comp which benefits are not included?
legal benefits
