life and health 2

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? a)1 year b)2 years c)5 years d)7 years

2 years

All of the following statements concerning workers compensation are correct EXCEPT a)Benefits include medical, disability income, and rehabilitation coverage. b)A worker receives benefits only if the work related injury was not his/her fault. c)Workers compensation laws are established by each state. d)All states have workers compensation.

A worker receives benefits only if the work related injury was not his/her fault.

All of the following are examples of third-party ownership of a life insurance policy EXCEPT a)An insured couple purchases a life insurance policy insuring the life of their grandson. b)A company purchases a life insurance policy on their manager, who is an important part of the operation. c)When an insured purchased a new home, the insured made an absolute assignment of a life insurance policy to the mortgage company. d)An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.

An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.

What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided? a)Application b)Policy Request c)Insurance Request Form d)Request for Insurance

Application

In the event of a divorce, which of the following would allow a divorcee to continue receiving group health coverage under an insured spouse's plan for an additional 36 months? a)Social Security b)COBRA c)MSA d)HIPAA

COBRA

What does "level" refer to in level term insurance? a)Cash value b)Interest rate c)Face amount d)Premium

Face amount

When an employee terminates coverage under a group insurance policy, coverage continues in force a)Until the employee notifies the group insurance provider that coverage conversion policy is issued. b)For 31 days. c)For 60 days. d)Until the employee can obtain coverage under a new group plan.

For 31 days.

Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid? a)Insuring clause b)Entire contract clause c)Beneficiary clause d)Consideration clause

Insuring clause

The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the a)Consideration clause. b)Probationary period. c)Insuring clause. d)Incontestability clause.

Insuring clause.

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy? a)It is only taxable if the cash value exceeds the amount paid for premiums. b)It is not considered to be taxable. c)It is taxable only if it exceeds the amounts paid for premiums by 50%. d)It is automatically taxable.

It is only taxable if the cash value exceeds the amount paid for premiums.

Which of the following programs expands individual public assistance programs for people with insufficient income and resources? a)Social Security b)Unemployment compensation c)Medicaid d)Medicare

Medicaid

Which of the following entities is responsible for determining whether an advertisement might mislead or deceive a person of average education and intelligence? a)The Guaranty Association b)The Commissioner c)NAIC d)Consumer Protection Agency

The Commissioner

All of the following are characteristics of group life insurance EXCEPT a)Amount of coverage is determined according to nondiscriminatory rules .b)Individuals covered under the policy receive a certificate of insurance. c)Certificate holders may convert coverage to an individual policy without evidence of insurability .d)Premiums are determined by the age, sex and occupation of each individual certificate holder.

Premiums are determined by the age, sex and occupation of each individual certificate holder.

A Medicare SELECT policy does all of the following EXCEPT a)Provide for continuation of coverage in the event that Medicare SELECT policies are discontinued due to the failure of the Medicare SELECT program. b)Prohibit payment for regularly covered services if provided by non-network providers. c)Make full and fair disclosure in writing of the provisions, restrictions, and limitations of the Medicare SELECT policy to each applicant. d)Provide payment for full coverage under the policy for covered services not available through network providers.

Prohibit payment for regularly covered services if provided by non-network providers.

An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary? a)Primary b)Contingent c)Irrevocable d)Revocable

Revocable

An insured has endured multiple surgeries and hospitalizations for an illness during the summer months. Her insurer no longer bills her for medical expenses. What term best describes the condition she has met? a)Maximum Loss Threshold b)Maximum Loss c)Stop-Loss Limit d)Out-of-Pocket Limit

Stop-Loss Limit

Which of the following would be a qualifying event as it relates to COBRA? a)Eligibility for Medicare b)Termination of employment due to downsizing c)Termination of employment for stealing d)Eligibility for coverage under another group plan

Termination of employment due to downsizing

An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy? a)The principal amount in a lump sum b)The capital amount in monthly installments c)The principal amount in monthly installments d)The capital amount in a lump sum

The capital amount in a lump sum

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT a)The policyholder has the right to withdraw the accumulations at any time. b)The interest is not taxable since it remains inside the insurance policy. c)The annual dividend is retained by the company. d)The interest is credited at a rate specified by the policy.

The interest is not taxable since it remains inside the insurance policy.

Which of the following is true regarding elimination periods and the cost of coverage? a)The longer the elimination period, the higher the cost of coverage b)Elimination periods have no effect on the cost of coverage. c)The longer the elimination period, the lower the cost of coverage d)The shorter the elimination period, the lower the cost of coverage

The longer the elimination period, the lower the cost of coverage

Which of the following is TRUE about nonforfeiture values? a)A table showing nonforfeiture values for the next 10 years must be included in the policy. b)Policyowners do not have the authority to decide how to exercise nonforfeiture values. c)They are required by state law to be included in the policy. d)They are optional provisions.

They are required by state law to be included in the policy.

Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner? a)Third-party ownership b)An irrevocable beneficiary c)A buy-sell agreement d)Family term rider

Third-party ownership

According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT a)The insurer must provide the insured a written notice of the cancellation. b)Claims incurred before cancellation must be honored. c)An insurance company may cancel the policy at any time. d)Unearned premiums are retained by the insurance company.

Unearned premiums are retained by the insurance company.

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it? a)Conditional b)A legal (but unethical) contract c)Unilateral d)Adhesion

Unilateral

If a person is compensated for a testimonial in an advertisement, which of the following statements should be included in the advertisement? a)"Paid endorsement" b)"Commissioned advertisement" c)"Insurer is not responsible for the contents of the testimonial" d)"The author is the employee of the insurer"

"Paid endorsement"