Life And Health
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
What is the maximum allowed rate of interest on policy loans from life insurance?
8%
A hospital indemnity will pay?
A benefit for each day the insured is in a hospital.
According to the Entire Contract provision, a policy must contain
A copy of the original application for insurance
A guaranteed renewable disability insurance policy
Is renewable at the insureds option to a specified age
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?
Joint Life policy
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
Limited pay whole life
what is a rider that allows a terminally ill person to access at least a portion of the death benefit proceeds prior to death?
Living benefit
Which program expands individual public assistance programs for people with insufficient income and resources?
Medicaid
To sign up for a Medicare prescription Drug plan, individuals must first be enrolled in?
Medicare Part A
What term describes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses?
Nonforfeiture values
In long term care insurance, what type of care is provided with intermediate care?
Occasional nursing or rehabilitative care
Health Insurance contracts are unilateral. What does that mean?
Only one party makes a legally enforceable promise
If a health care plan has characteristics of an HMO and PPO, what type of plan is it?
POS (point of service)
An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?
Paid - up option
A participating insurance policy may do?
Pay dividends to the policyowner
What is another term for the accumulation period of an annuity?
Pay-in period
Which of the following allows the insurer to relieve a minor insured from premium payments if the minors parents have died or become disabled?
Payor benefit
Who might receive dividends from a mutual insurer?
Policyholders
Which of the following individuals must have insurable interest in the insured?
Policyowner
When health care insurers negotiate contracts with health care providers or physicians to provide health care services for subscribers at a favorable cost, it is called?
Preferred provider organization
Which of the following will be included in a policy summary?
Premium amounts and surrender values
Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?
Principal Sum
In respect to the consideration clause, what is consideration on the part of the insurer?
Promising to pay in accordance with the contract terms
When an insurer combines two periods of disability into one, the insured must have suffered a?
Recurrent disability
An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability. which policy provision allow this?
Reinstatement Provision
In the event of a loss, business overhead insurance will pay for
Rent
Whenever agents submit applications to insurers, they must also submit statements signed by the applicant and agent disclosing the involvement or lack of involvement of
Replacement
What is the main responsibility of a company's underwriting unit?
Risk selection
What would be considered a nonqualified retirement plan?
Split dollar plan
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as?
Survivor protection
Children's riders attached to whole life policies are usually issued as what type of insurance?
Term
Who chooses a primary care physician in an HMO plan?
The individual member
What is the advantage of reinstating a policy instead of applying for a new one?
The original age is used for premium determination
In a life settlement contract, who does the life settlement broker represent?
The owner
In a life settlement contract, whom does the life settlement broker represent?
The owner
A policy with a 31-day grace period implies
The policy will not lapse for 31 days if the premium is not paid when due
What is generally true regarding insureds who have been classified as preferred risk?
Their premiums are lower
What is the purpose of coinsurance provisions?
To help the insurance company to prevent overutilization of the policy
What is the purpose of COBRA?
To provide continuation of coverage for terminated employees
When an insurer issues an individual health insurance policy that is guaranteed renewable, the insurer agrees
To renew the policy until the insured has reached age 65
Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of
Twisting
What kind of policy allows withdrawals or partial surrenders?
Universal Life
What happens when a policy is surrendered for its cash value?
coverage ends and the policy cannot be reinstated
The maximum penalty that may be assessed for a single non-willful violation of the insurance code is
$1,000
How soon from the reinstatement of a health insurance policy would a loss be covered?
10 days
Most vision expense insurance plans restrict benefits to one exam and one pair of glasses in what time period?
12 months
What is the period of coverage for events such as death or divorce under COBRA?
36 months
Insurers must keep files of all advertisements used in Georgia for the minimum of how many years?
4
Authorized insurance companies are examined by the commissioner at least once every
5 years
Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray?
50/50
The minimum number of credits required for partially insured status for social security disability benefits is?
6 credits
A straight life policy has what type of premium?
A level annual premium for the life of the insured
What is a feature of a disability buyout plan?
A lump-sum benefit payment option
Which of the following long term care benefits would provide coverage for care for functionally impaired adults on a less than 24 - hour basis?
Adult day care
Who is a field underwriter?
Agent/Producer
In which Medicare supplemental policies are the core benefits found?
All plans
A Universal Life insurance policy is best described as an?
Annually Renewable Term policy with a cash value account
A short term annuity that limits the amounts paid to a certain fixed period or until a certain fixed amount is liquidated?
Annuity Certain
Which statement accurately describes the Change of Beneficiary provision?
Any policy that has a death benefit must have a change of Beneficiary provision
A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?
Automatic Premium loan
What term is used for replacing insurance policies for the sole purpose of making commissions?
Churning
If more than one family member covered under the same major medical policy is injured in the same accident, the family only has to pay one deductible. This is due to the
Common accident provision
Health contracts are prepared by insurers and must be accepted by the insured on an 'as is' basis. This describes what aspect of a health insurance contract?
Contracts of adhesion
The purpose of managed care health insurance plans is t?
Control health insurance claims expenses
In a basic expense policy, after the limits of the basic policy are exhausted, the insured must pay what kind of deductible?
Corridor
A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as?
Critical illness
What is another name for interest sensitive whole life insurance?
Current assumption life
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
Decreasing Term
In disability income insurance, the time between the onset of an injury and sickness and when the benefits begin is known as the?
Elimination period
What best describes the aleatory nature of an insurance contract?
Exchange of unequal values
How many pints of blood will be paid for by Medicare supplement care benefits?
First 3
When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?
Fixed amount
What is an eligibility requirement for social security disability income benefits?
Fully insured status
Life insurance death proceeds are
Generally not taxed as income
What required provision protects against unintentional policy lapse?
Grace period
If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a
Guaranteed insurability rider
What are 2 types of flexible spending accounts?
Health care accounts and dependent care accounts
What are three basic coverages for medical expense insurance?
Hospital, surgical, medical
Which type of riders would NOT increase the premium for a policyowner?
Impairment rider
Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?
Indemnity
What two elements are necessary for a life insurance contract to have a legal purpose?
Insurable interest and consent
Which of the following entities can legally bind coverage?
Insurer
Who makes up the Medical Information Bureau?
Insurers
The type of dental plan which is incorporated into a major medical expense plan is a/an
Integrated dental plan
Any references to policy dividends must include a statement of what?
That dividends are not guaranteed
If an applicant does nit receive a copy of the new insurance policy, who would be held responsible?
The agent
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?
The capital amount in a lump sum
Which of the following is an example of liquidity in a life insurance contract?
The cash value available to the policyowner
An adjustable life policyowner can change which of the following policy features?
The coverage period
What law protects consumers from the circulation of inaccurate or obsolete information?
The fair credit reporting act
What is true regarding the elimination periods and the cost of coverage?
The longer the elimination period, the lower the cost of coverage
What is insurance underwriting?
The process of risk selection and classification
What type of Insurance arrangement would be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?
Third- party ownership
Which term will be permissible in describing a life insurance policy in company advertisements?
Variable plan
When would a 20-pay whole life policy endow?
When the insured reaches age 100
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than
With the policy
What is the time frame for filing suspicious activity reports?
Within 30 days of initial discovery
Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled?
disability buy- sell
Who bears the investment risk in a fixed annuity?
insurance company
