Kentucky Life & Health

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? $1,000,000 $500,000 $250,000 $0

$0

K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary? Return of premiums paid Cash value plus interest $20,000 death benefit Face amount plus interest

$20,000 death benefit

What is the maximum face amount of an Industrial Life Insurance policy? $3,000 $10,000 $5,000 these policies can be written for any face amount

$3,000

A school teacher has contributed $80,000 into a Tax Sheltered Annuity. At the time she surrendered the contract, the account value was $180,000 and her tax bracket was 30%. The resultant tax amounts to? $180,000 Proceeds received tax free $24,000 $54,000

$54,000

All of the following statements about traditional individual retirement accounts are false, EXCEPT: 10% penalty is applied to withdrawals after age 59 1/2 Withdrawals are normally tax-free to the recipient 10% penalty is applied to withdrawals before age 59 1/2 Contributions are not tax deductible

10% penalty is applied to withdrawals before age 59 1/2 Because an IRA is a qualified plan, it has the same rules for early withdrawal.

The maximum period for which a group health plan may exclude benefits for preexisting conditions for a participant who is not a late enrollee is: 30 days 90 days 12 months 24 months

12 months

An insurer who receives notice of a life or health insurance claim must provide the necessary claim forms and instructions to the claimant within how many days after the notice? 15 21 30 60

15

Upon receipt of proof of loss from a claimant, a life or health insurer must begin any necessary investigation within: 15 days 21 days 30 days 45 days

15 days

Upon receipt of proof of loss from a claimant, a life or health insurer must begin any necessary investigation within: 15 days 21 days 30 days 45 days

15 days

An applicant for a resident agent license must be at least? 16 years old. 18 years old. 21 years old. 25 years old.

18 years old.

When a material misstatement is discovered on an application for health insurance, the insurer may contest the claim payment during what period of time following the issuance of the policy? 1 year 2 years 3 years 4 years

2 years

Mary has a Health Savings Account (HSA). Distributions that have been made for anything other than qualified medical expenses are considered taxable and subject to a penalty of: 10% 20% 30% 50%

20% Distributions from an HSA toward anything other than qualified medical expenses are subject to income tax and a 20% penalty tax.

The first year commission for selling a Medicare supplement policy may not be more than what percentage of the commission for servicing the policy in the second year? 150% 200% 300% 400%

200%

The Kentucky continuing education requirement for each continuing education biennium is: 6 hours of courses. 18 hours of courses. 24 hours of courses. 30 hours of courses.

24 hours of courses.

A person who wants to convert a group life insurance policy to an individual policy because of termination of employment must pay the first premium to the insurer within how many days of termination? 10 20 31 60

31

An insured pays premiums on an annual basis for an individual health insurance policy. What is the MINIMUM number of days for the Grace Period provision? 7 10 20 31

31

How long is the Insurance Commissioner in office? 4 years 2 years 10 years 1 years

4 years

Which of these is NOT a reason for a business to buy key person life insurance? The reduction in sales as a direct result from death of the key employee A void in leadership if the key person were to die The loss of company revenues while a replacement is being sought A pension deficiency if the key employee dies

A pension deficiency if the key employee dies

Twisting is a form is misrepresentation. Which of the following is considered a form of twisting? A producer offers something of value not listed in the policy A producer makes an illegal inducement to influence the surrender of a policy Failing to provide claim forms in a timely fashion Representing oneself as a producer when in fact he or she is not

A producer makes an illegal inducement to influence the surrender of a policy

Which of the following provisions may properly be contained in a Medicare supplement policy? A provision imposing a probationary period A provision duplicating benefits provided by Medicare A provision indemnifying against losses from a sickness on the same basis than losses from accident None of the choices are correct

A provision indemnifying against losses from a sickness on the same basis than losses from accident

A policyowner who permanently changes the ownership of a life insurance policy is exercising which contractual option? Unconditional assignment Absolute assignment Collateral assignment Irrevocable assignment

Absolute assignment

Mike had both of his legs amputated after a boulder fell on them. He has a policy that pays a lump sum benefit for this injury. What type of insurance does Mike have? Catastrophic Accidental death and dismemberment Major medical Hospital expense

Accidental death and dismemberment An accidental death and dismemberment policy pays a benefit in the event of accidental dismemberment or loss of vision/hearing.

What is the reason that insurance companies require a minimum number of employees participating in a group insurance plan? Efficiency is maximized Adverse selection is minimized Profits are maximized Claims are minimized

Adverse selection is minimized

Defamation occurs in which of the following circumstances? Making false, misleading or deceptive statements as to policy benefits or terms Denigrating another Agent for advising that "buy term and invest the difference" is a flawed concept Offering an inducement in the sale of an insurance contract not specified in the Policy Agent making exaggerated claims that the company is unsound financially

Agent making exaggerated claims that the company is unsound financially

Which of the following actions may the Commissioner take if an applicant provides misleading information in the application for a license? Refuse to issue the license. Suspend the license if it has already been issued. Impose a civil penalty. All of the choices are correct.

All of the choices are correct

If the applicant for a Medicare supplement policy is an eligible person, which of the following statements is true? Coverage must be made available on a guaranteed issue basis The insurer may impose an exclusion for preexisting conditions All Medicare supplement policies must be guaranteed renewable All of the choices are correct

All of these are corrrect

The life insurance provision which allows the policyowner to change the policy's beneficiary designation is called the: Beneficiary clause Assignment clause Ownership clause Irrevocable clause

Assignment clause

P died five years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take? Beneficiary will be denied the claim Beneficiary will be denied the claim and refunded all paid premiums Beneficiary will be paid the Death Benefit Beneficiary will be paid a partial Death Benefit

Beneficiary will be paid the Death Benefit

The difference between group insurance and blanket health policies is: Blanket health policies do not issue certificates Group health policies do not issue certificates Group health plans may be issued to an airline to cover its passengers Blanket health policies are sometimes called wholesale plans

Blanket health policies do not issue certificates

Medicaid is funded by which entity (entities)? Federal government State government Both Federal and Local governments Both Federal and State governments

Both Federal and State governments

Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a business? Company becoming insolvent Death of the business owner Business owner becoming disabled Key employee becoming disabled

Business owner becoming disabled

Which of the following policy features allows an insured to defer current health charges to the following year's deductible instead of the current year's deductible? Deferral provision Carryover provision Stop Loss provision Corridor provision

Carryover provision

What is issued to each employee of an employer health plan? Provision Receipt Policy Certificate

Certificate

A complaint was lodged against a producer. The producer began explaining whole life insurance, then swayed the client to a term policy, without explaining the difference, and offered the client a cell phone if she bought insurance. Which would NOT pertain? Commissioner can subpoena client & producer to hearing. Producer may be liable for a penalty up to $5,000 for the first offense & $10,000 for each subsequent offense. Commissioner may revoke the producer's license before the hearing (only upon notice and opportunity for the hearing), if in the public interest. Charge the producer with a felony

Charge the producer with a felony

Which of these is NOT considered the responsibility of a producer in the underwriting process? Collecting additional medical information if needed Promptly sending the completed application to the insurance company Forwarding any material personal observations to the insurer Choosing the final approval date

Choosing the final approval date

Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? Revocable assignment Beneficiary change Irrevocable assignment Collateral assignment

Collateral assignment

Which of the following reimburses its insureds for covered medical expenses? Health maintenance organizations Preferred provider organizations Commercial insurers Service providers

Commercial insurers Commercial insurance companies function on the reimbursement approach. Policyowners obtain medical treatment from whatever source they feel is most appropriate and submit their charges to their insurer for reimbursement.

Sexual orientation, religious preference, and geographical location are not allowed to be used in the underwriting process. Why is this so? Considered unfair discrimination Too burdensome to prove Prohibited by the MIB Subject to change

Considered unfair discrimination

Which report contains information regarding an individual's general reputation and credit standing? Credit report Consumer report MIB report Agent's report

Consumer report

The main objective of the examination of insurers by state insurance departments is to determine which of the following: How many licensees are selling their products How many consumers are buying their products Continued solvency of the insurers Commission percent comparisons

Continued solvency of the insurers

In a family plan, a child born after issuance of the policy would require which of the following? Immediate coverage with additional premium Coverage begins after 30 days with additional premium Coverage after 30 no additional premium Coverage begins immediately at birth no additional premium

Coverage begins immediately at birth no additional premium

Michelle purchased a Long Term Care policy 12 months after suffering a stroke. Any future claims she will have related to this stroke will be: denied covered covered only if additional premiums are paid denied only if she was experiencing problems from the stroke at the time of application

Covered Most LTC policies do not cover conditions that existed during the 6 months before the policy effective date. In this situation, the event occurred 12 months prior.

K has an Accidental Death and Dismemberment (AD&D) insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? Daughter Husband's estate K's estate Trust fund

Daughter

Mortgage protection is usually covered by what type of insurance? Level Term Modified Life Increasing Term Decreasing Term

Decreasing Term

Two agencies are competing for a new client. Agency A mentions to the prospective client that all of the companies with which it does business are licensed in all U.S. States. It also mentions that Agency B may not be dependable since it is only licensed in 42 States. Therefore, Agency A may have engaged in: Perjury Fraud Defamation Larceny

Defamation

B is a teacher who was injured in a car accident and cannot work. She is now receiving monthly benefits as a result of this accident. Which type of policy does B have? Major Medical Blanket Disability Income Indemnity

Disability Income

K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would cover her loss of income? Indemnity Major Medical Travel Disability Income

Disability income

Which of the following statements BEST describes the intent of a Coinsurance clause in a Major Medical policy? Discourages overutilization of the insurance coverage Minimizes the need for deductibles Discourages adverse selection Minimizes the waiting period

Discourages overutilization of the insurance coverage

What type of policy would only provide coverage for specific types of illnesses (cancer, stroke, etc)? MEWA Blanket insurance Dread disease insurance Disability insurance

Dread disease insurance

Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance? Premiums are normally not tax deductible Cash dividends are normally not taxed Entire cash surrender value is taxable Proceeds are received tax-free if there is a named beneficiary

Entire cash surrender value is taxable

When an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve? Establishes the needs of the individual and his dependents Takes into account the present value of future income earned by the breadwinner Places a dollar value on the life of the individual Establishes the investment risk level acceptable to the individual

Establishes the needs of the individual and his dependents

D is the policyowner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to? Ex-wife Current wife Estate Split equally between the ex-wife and current wife

Ex-wife

Which of the following exclusions may NOT be contained in a long-term care policy in Kentucky? Preexisting conditions exclusion Exclusion for services covered by Medicare Exclusion for alcoholism Exclusion for certain types of dementia

Exclusion for certain types of dementia A long-term care policy cannot be delivered or issued for delivery if it excludes coverage for certain types of dementia (such as Alzheimer's disease).

Which of the following provisions specifies how long a policyowner's health coverage will remain in effect if the policyowner does not pay the premium when it is due? Grace Period Consideration Waiver of Premium Reinstatement

Grace Period

When a premium payment for a life insurance policy is missed, what provision will dictate the actions taken by the insurer? Reinstatement clause Grace Period clause Premium Mode clause Incontestable clause

Grace period clause

A medical care provider which typically delivers health services at its own local medical facility is known as a: Health Maintenance Organization Regional Provider Multiple Employer Trust Preferred Provider Organization

Health Maintenance Organization Health Maintenance Organizations (HMO's) traditionally provide services to its members at its own local health care facilities.

For which of the following expenses does a Basic Hospital policy pay? Hospital room and board Prescription medication Surgical fees Physician's fees

Hospital room and board

A single premium deferred annuity sometimes contains a bailout feature. Which statement regarding this feature is correct? If the interest rate falls below a certain level, the surrender charge is waived If the interest rate rises above a certain level, the surrender charge is waived It allows the Life and Health Guaranty Association to bailout the insolvent insurer A reinsurer will make the remainder of the annuity payments if the original insurance company becomes insolvent

If the interest rate falls below a certain level, the surrender charge is waived

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act? Primary beneficiary's estate Primary beneficiary's next of kin Insured's estate Insured's contingent beneficiary

Insured's contingent beneficiary

Which parties are directly involved in a group accident and health insurance contract? Insurer and employees Insurer, employees, and employer Insurer and employer Employer and employees

Insurer and employer The contract for coverage in a group health plan is between the insurance company and the employer.

A policyowner's rights are limited under which beneficiary designation? Revocable Tertiary Contingent Irrevocable

Irrevocable

Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE? It is not taxable It is tax deductible It is taxed as capital gains It is taxed as ordinary income

It is taxed as ordinary income

Which type of life insurance is characterized as having two insureds and matures when the first insured dies? Joint Life Family Maintenance Survivorship Life Graded Life

Joint Life A joint life policy covers two or more people. Using some type of permanent insurance (as opposed to term), it pays the death benefit when one of the insureds dies.

A producer failing to remit premiums collected to an insurer, and commingles them with his or her personal funds, has engaged in: Larceny Misrepresentation Twisting Fiduciary capitalization

Larceny

T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect? $5,000 per month benefit $10,000 per month benefit if the cause was accidental More than $5,000 per month benefit if cause was work-related Less than $5,000 per month benefit regardless of the cause

Less than $5,000 per month benefit regardless of the cause

What kind of premium does a Whole Life policy have? decreasing adjustable level deferred

Level

All of the following are proper funding vehicles in a qualified plan, EXCEPT? Annuity Mutual Fund Stock Life Insurance

Life insurance

Which of these is NOT relevant when determining the amount of personal life insurance needed? Existing life insurance coverage Local unemployment rate Household income Household debt

Local unemployment rate

Life insurance underwriting would consider which of these factors as unimportant? Age of the applicant Weight of the applicant Marital status of the applicant Gender of the applicant

Marital status of the applicant

Under what circumstances can an insurer contest a life insurance policy according to the Incontestable clause? Material and deliberate misrepresentations submitted on the application Accidental death Natural death The insurance company is considered a foreign insurer in the state where policy was sold

Material and deliberate misrepresentations submitted on the application

The health insurance program which is administered by each state and funded by both the federal and state governments is called: Long-term care Medicaid Medicare Supplemental Program Medicare

Medicaid

Medicare Part B excess charges are covered by: long-term care policies respite care Medicare Part A Medicare Supplements

Medicare Supplements

Who would be most qualified for Medicare Supplement insurance? Medicare enrollee Medicaid enrollee Social Security recipient HMO subscriber

Medicare enrollee

All of these insurance products require an agent to have proper FINRA securities registration in order to sell them, EXCEPT for: Variable Life Modified Whole Life Universal Variable life Variable Annuity

Modified Whole Life

Dividends are usually paid out by what kind of insurance companies? Admitted Mutual Domestic Stock

Mutual

Which of these is NOT a factor in the underwriting process of a life insurance application? Credit report National origin Age of applicant Sex of applicant

National origin

If a person's license has been revoked twice, when may the person be issued a new license? Never After the person waits 2 years and passes another licensing exam After the person posts a $100,000 bond After the person completes a remedial prelicensing course and obtains written permission from the Commissioner

Never

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: September 21 October 16 November 1 December 1

November 1 The insured must wait 60 days after written proof of loss before legal action can be brought against the company.

When an annuity is surrendered, who must sign the authorization to do so? Owner Annuitant and beneficiary Annuitant All parties involved

Owner

The agreement in which hospitals and physician groups in a specific area contract with an insurance company to provide medical care at predetermined costs is: Preferred Provider Organization (PPO) Health Maintenance Organization (HMO) Designated Provider Organization (DPO) Professional Service Organization (PSO)

PPO

Which of these statements is INCORRECT regarding a Preferred Provider Organization (PPO)? PPO's normally have more providers to chose from as compared to an HMO Prices are negotiated in advance for PPO providers In-network PPO providers offer members better coverage of incurred expenses PPO's are NOT a type of managed care systems

PPO's are NOT a type of managed care systems

Which statement most accurately describes a single premium whole life policy? Premiums that can only be paid from a single source A single premium that is due annually Paid-up policy that offers lifetime protection Paid-up policy that offers limited protection

Paid-up policy that offers lifetime protection

A rider that is normally associated with a Juvenile Life policy is called a: Child Term Waiver of Premium Family Maintenance Payor Benefit

Payor Benefit The Payor Benefit is typically used for a Juvenile Life policy and waives the premiums if the adult premium-payor becomes disabled or dies.

An owner has a life annuity which provides benefit payments for a minimum time period, no matter when the annuitant dies. The feature of this annuity is called: fixed period period certain installment refund straight life

Period Certain An annuity with period certain provides a life annuity with an extra guarantee for a certain period of time. If the annuitant dies it will still guarantee payments to the survivor for another 10,15, 20 years.

On a life insurance policy, who is qualified to change the beneficiary designation? Payer Primary beneficiary Policyowner Insurer

Policyowner

How does group insurance differ from individual insurance? Evidence of insurability is required Premiums are higher Premiums are lower Pre-existing conditions not covered

Premiums are lower

What is considered to be a characteristic of a Conditionally Renewable Health Insurance policy? Premiums may increase at time of renewal Premiums may increase at any time Policy may be renewed at the discretion of the insured Policy may be amended by insurer at any time

Premiums may increase at time of renewal

Statements contained in advertisements with respect to the business of insurance which are untrue, deceptive, or misleading are: Regulated only if placed directly before the public Not regulated Allowable under state law Prohibited under state law

Prohibited under state law

What type of risk involves the potential for loss with no possibility for gain? Speculative Pure Adverse Guaranteed

Pure

Which of these Nonforfeiture Options continue a build-up of cash value? Waiver of Premium Extended Term Reduced Paid-Up Cash Surrender

Reduced paid up A Reduced Paid-Up option would provide continuing cash value build-up.

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? Free-look Reinstatement Grace Period Consideration

Reinstatement

M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son? Tertiary Irrevocable Revocable Contingent

Revocable

What is Old Age and Survivors Health Insurance (OASDHI) also known as? Medicare Social Security Medicaid FICA

Social Security

Which one of these is NOT considered to be an element of an insurable risk? Speculative risk Pure risk Loss cannot be catastrophic Loss must be due to chance

Speculative risk

Which of the following statements describes the purpose of the Insuring clause in Health and Accident policies? Specifies the additional time given to pay past due premiums States the scope and limits of the coverage Specifies a claim will be paid immediately upon receipt of proof of loss Prohibits the insured from suing the insurer for at least 60 days after filing a written proof of loss

States the scope and limits of the coverage

Which of the following incidents would NOT be covered by an Accidental Death and Dismemberment policy? Deafness in one ear as a result of an accident Loss of vision as a result of a hunting incident Suicide Killed from an accident while being a passenger in a taxicab

Suicide

What type of life policy covers two people and pays upon the death of the last insured? Shared Survivorship Adjustable Joint

Survivorship

How much will be taxable if a policyowner, age 55, relinquishes a Universal Life policy? No taxes are owed on a Universal Life policy cash surrender Taxes are owed on the entire cash value Taxes are owed on the entire cash value plus a 10% penalty for early withdrawal Taxes are owed on the amount of cash value that exceeds the premiums paid

Taxes are owed on the amount of cash value that exceeds the premiums paid

The initial amount of credit life and health insurance may NOT exceed: The total amount repayable under the contract of indebtedness The insured's individual salary The total Life insurance already in place on the insured's life. An amount to be determined by the Commissioner on a case-by-case basis

The total amount repayable under the contract of indebtedness

Which of the following statements is true about most Blue Cross/Blue Shield organizations? They are the same as private insurance companies They are federally sponsored They are nonprofit organizations They are owned by hospitals and physicians

They are nonprofit organizations

Which Accident and Health policy provision addresses preexisting conditions? Proof of Loss Legal Actions Time Limit on Certain Defenses Payment of Claims

Time Limit on Certain Defenses

The inducement of an insured to lapse, forfeit, or surrender an insurance policy by misrepresentation or misleading comparisons, in order to write a new policy, is known as: Rebating Twisting Commingling Churning

Twisting

What kind of life insurance offers the policyowner a cash value that is invested in a separate account? Universal Life Graded Premium Life Modified Life Variable Life

Variable Life

Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? Joint Life Adjustable Life Variable Universal Life Universal Life

Variable Universal Life

When does interest income in a deferred annuity get reported for federal income taxes? Never After the principal has been exhausted When the distributions are received During the accumulation phase

When the distributions are received

When does the producer give a premium receipt for a life insurance application? When the application has been approved When the initial premium has been collected with the application During the medical exam When the completed application has been collected

When the initial premium has been collected with the application

Which of the following questions may an insurer properly ask an applicant for insurance? Whether the applicant has ever tested positive for the HIV infection Whether the applicant has ever been tested for the HIV infection Whether the applicant has ever tested negative for the HIV infection None of the above

Whether the applicant has ever tested positive for the HIV infection

Benefit limits in a Disability Income policy are calculated based on: a percentage of the insured's earnings the insured's monthly expenditures an amount deemed sufficient by the insurance company previous claim history

a percentage of the insured's earnings

Which of the following investigates or settles claims arising under insurance contracts on behalf of wither the insurer or the insured? adjuster producer agent broker

adjuster

Medicare bases its eligibility requirements on: an individual's assets an individual's age an individual's need an individual's employment status

age

Group life insurance policies are generally written as: a term rider annually renewable term increasing term group whole life

annually renewable term

A product which can offer its owner a lifetime income stream is called an _______. accumulation annuity ordinary life insurance policy endowment

annuity

To be eligible for Social Security Disability benefits, an employee must be unable to perform: any occupation his/her current occupation any occupation that reflects the employee's education level any occupation that the employee is qualified and willing to do

any occupation

In a qualified retirement plan, the yearly contributions to an employee's account: are not tax-deductible are restricted to minimum levels set by the IRS are restricted to maximum levels set by the IRS must be matched dollar-for-dollar by the employer

are restricted to maximum levels set by the IRS

At what point is insurable interest required for life insurance? at policy approval at the time of death at the time of application at policy delivery

at the time of application

All of the following statements about Major Medical benefits are true, EXCEPT: The deductible can be expressed as a fixed dollar amount The benefit period begins only after a specified amount of expenses have accrued Benefits are generally expressed as a percentage of eligible expenses Benefits have no maximum limit

benefits have no maximum limit

Which of these is NOT considered to be a cost connected with an individual's death? Funeral expense Tax liability Business expenses Probate costs

business expenses

A Health Reimbursement Arrangement MUST be established: with employee funding with other employer-sponsored benefit plans by the employer only during specific open enrollment periods

by the employer

The insurance business is regulated mainly: by the federal government by the individual states by the National Association of Insurance Commissioners by agent and broker associations

by the individual states

A Dread Disease policy is characterized by: low deductibles limited enrollment high deductibles limited coverage

limited coverage

Failure to keep premiums collected separate from the agent's personal funds is an illegal practice known as: misrepresentation estoppel commingling concealment

commingling

The Fair Credit Reporting Act is intended to give: assistance to insurers when underwriting insurance applications consumers the right to protect their own credit information access to consumer's medical information assistance to insurers when handling claims

consumers the right to protect their own credit information The primary purpose of the Fair Credit Reporting Act is to give consumers the right to review and protect their own credit information.

A type of insurance company that is established as a lodge or charitable organization is: participating fraternal stock mutual

fraternal

Inpatient psychiatric care is covered under Part A Medicare for 190 days per: admission year benefit period lifetime

lifetime

A life insurance policy that fails the 7-Pay Test is considered to be a Modified Endowment Contract. This type of policy will: lose certain tax advantages gain certain tax advantages experience tax-free gains no longer pay dividends

lose certain tax advantages When a contract does not pass the 7-pay test, it will be deemed a MEC. The 7-pay test is a limitation on the total amount that can be paid into a policy in the first 7 years.

A producer who guarantees the payment of dividends by a policy of insurance has engaged in: Twisting Misrepresentation Defamation Rebating

misrepresentation

The Notice of Claims provision requires a policyowner to: provide proof of loss to an insurer within a specified time notify an insurer of a claim within a specified time wait 60 days after filing a claim to initiate a lawsuit against an insurer notify their physician of a claim within a specified time

notify an insurer of a claim within a specified time

A contingent beneficiary is described as the: primary person who receives the death benefits if the insured dies person who receives the death benefits if the primary beneficiary dies before the insured person who receives the death benefits if there is no named beneficiary person whose approval is needed before a beneficiary designation is changed

person who receives the death benefits if the primary beneficiary dies before the insured

A signed good health statement would be collected by a life producer at the time of: policy issue application policy delivery physical examination

policy delivery

A policyowner is able to choose the frequency of premium payments through what policy feature? Consideration Payor benefit Premium Mode Assignment provision

premium mode

The annuitant in a single premium deferred annuity (SPDA): receives immediate benefit payments makes only one premium payment receives deferred benefit payments is also the beneficiary

receives deferred benefit payments

ABC Company is attempting to minimize the severity of potential losses within its company. The company is engaged in risk: transfer retention reduction avoidance

reduction

Which term can be described as the elimination of a hazard? Risk avoidance Risk retention Risk transference Risk pooling

risk avoidance

To be eligible for Medicaid benefits, an individual must: be enrolled in Medicare be employed be totally disabled satisfy income and asset standards

satisfy income and asset standards

What should an insured do if the insurer does not send claims forms within the time period set forth in a health policy's Claims Forms provision? File a lawsuit Submit the claim in any form Wait for the claim form to arrive Resubmit the request for a claim form

submit the claim in any form If forms are not furnished, the insured should submit the claim in any form, which must be accepted by the company as adequate proof of loss.

A husband and wife own a life insurance policy with their son named as beneficiary. The wife dies first, followed by the husband 5 years later. Their son receives the policy's face amount after his father dies. What type of policy was owned? Family Maintenance Dual Life Joint Life Survivorship Life

survivorship life

A producer's license is not required for an office employee who: initiates sales over the telephone takes factual information relative to a claim signs binders, endorsements and policies adds or deletes coverage

takes factual information relative to a claim

An insurable risk requires: that the chance for both a loss or gain exists the loss must be catastrophic that the chance of loss be measurable that the loss must be incalculable

that the chance of loss be measurable

A level premium indicates: the premium is fixed for a period stated in the contract, then becomes variable the premium can only be changed with the consent of the insurer the premium stays level until the policy's renewal date the premium is fixed for the entire duration of the contract

the premium is fixed for the entire duration of the contract

Misrepresenting an insurance policy, or making incomplete comparisons of policies, for the purpose of inducing someone to change or replace an existing insurance policy, is an illegal practice known as: defamation coercion rebating twisting

twisting

The only party in an insurance contract that makes a legally enforceable promise is the insurance company. Because of this, insurance contracts are considered to be: conditional aleatory unilateral contracts of adhesion

unilateral Insurance contracts are unilateral. This means that only one party (the insurer) makes any kind of enforceable promise.