Life and health insurance

The type of dental plan which is incorporated into a major medical expense plan is a

Integrated dental plan

Health insurance that covers someone at work and at home is written on what basis?

Occupational

Traditional it's contributions are tax deductible based on what?

Owners income

What amount of care is provided in LTC intermediate care?

Daily care by medical personnel

Kansas maximum health benefit is?

100,000

Guaranteed Insurability Rider is based upon the insureds?

Attained age

#102 An insured purchased a health insurance policy with a renewability clause that states the policy is "Guaranteed Renewable This means that as long as the required premiums are paid, the policy will continue until the insured a) Reaches age 100. b) Becomes disabled. c) Reaches age 65 d) Dies

c) Reaches age 65

How long is the free- look period for REPLACEMENT POLICIES?

20 days

#70. In order for an alumni association to be eligible to purchase group health insurance for its members, all of these statements must be true EXCEPT when the association a) Has a constitution, by-laws, and must hold at least annual meetings. b) Is organized for reasons other than buying insurance. c) Has at least 100 members. d) Has been active for five years minimum.

. d) Has been active for five years minimum.

What does a short term disability plan NOT have

Group and individual plan renewable

Jis receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before al to the contingent beneficiary. Which settlement option did J choose?

Fixed Amount

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

Fixed amount

Another name for a primary care physician?

Gatekeeper

Another name for a substandard risk classification is

Rated

#79. Which of the following is NOT a standard exclusion life Insurance policies? a) Disability b) Hazardous occupation c) War and military service d) Aviation

a) Disability

#56. An annuity has accumulated the cash value of $70,000, of which $30,000 is from premium payments. The annuitant dies during the accumulation phase. The beneficiary will receive a) $30,000. b) $70,000. c) $100,000 (combination of the cash value and premiums paid). d) A survivor benefit determined by the insurance company.

a) b) $70,000.

# 68. If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penalty? a) $1,000 b) $2,500 c) $5,000 d) $10,000

b) $2,500

Advantage of a qualified retirement plan?

The earnings in the plan accumulate tax deferred

What provision reduces over-insurance?

Coordination of benefits

#78. An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request? a) 3 days b) 5 days c) 10 days d) 30 days

a) 3 days

#103. Aninsurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered a) Mailed, b) Issued. c) Relinquished. d) Delivered

Delivered

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

Level term

#99. All of the following statements about indexed whole life insurance are correct EXCEPT a) The premium is fixed b) There is a guaranteed minimum interest rate. c) The cash value depends on the performance of the equity index. d) The policy face amount remains level throughout the ife of the policy

. d) The policy face amount remains level throughout the ife of the policy

#81 Under the mandatory uniform provision "Notice of Claim", written notice of a claim must be submitted to the insurer within what time parameters? a) Within 10 days b) Within 20 days c) Within 30 days d) Within 60 days

b) Within 20 days

# 50, Which of the following individuals would be a likely candidate to purchase a deferred annuity? a) Somegne who wants to grow retirement funds tax deferred b) Someone who needs to start receiving benefit payments within 6 months of the annuity purchase c) Someone who wants to leave the death benefit to the beneficiaries d) Someone who cannot afford life insurance

a) Somegne who wants to grow retirement funds tax deferred b)

# 85 At what point would an automatic premium loan be generated? a) Upon the insured's death b) Once the policy is delivered c) Upon the surrender of the policy d) Following the grace period

) d) Following the grace period

#75. All of the following are true about key-person insurance EXCEPT a). The business is the beneficiary. b) The death benefit is taxable to the business c) The business is the applicant and owner. d) The employee must give written consent by signing the application.

. b) The death benefit is taxable to the business

# 27. Which of the following describes the relationship between the principal sum and a capital sum? a) A capital sum is a percentage of the principal sum b) The principal sum varies, while the capital sum does not. c) The capital sum varies, while the principal sum does not. d) The principal sum is a percentage of a capital sum

a) A capital sum is a percentage of the principal sum

# 103. An insurer mails an insurance policy to a new policyowner. When the insurer relinquishes control of the policy, the policy is considered a) Malled b) Issued c) Relinquished. di Delivered

Delivered

Which life insurance settlement option guarantees payments for a lifetime of the recipient, but also specifies a guaranteed period during which, the orginial recipient does, the payment will continue to a designated beneficiary?

Life income with period certain

Who manages the Kansas life and health insurance guaranty association?

The board of directors

#97. Which of the following is NOT a Medicald qualifier? a) Age b) Residency c) Insurability di Income level

Insurability

A policy lapses due to nonpayment, within how many days would the policy be automatically reinstated once the premium is paid?

45 days

#86. Which of the following is TRUE of level term insurance? a) The premium will increase or decrease based on current interest rates. b) The policy endows at age 100. c) The policy offers nonforfeiture values. d) Itis temporary protection

. d) Itis temporary protection

# 46, Dividends received on participating life insurance policies are a) Not taxable because they are a retum of unused premiums. b) Taxable because they are a return on your investment. c) Not taxable because they are a return on your investment. d) Taxable because they are a returh of unused premiums.

a) Not taxable because they are a retum of unused premiums.

# 53. All of the following must sign an application for health insurance EXCEPT the a) Producer. b) Insurer c) The proposed insured. di Applicant.

b) Insurer

# 59. Which of the following is guaranteed under a variable whole life insurance policy? a) Stock performance b) Minimum death benefit c) Interest rates d) Cash value

b) Minimum death benefit

The guaranteed purchase option is also referred to as the a) Multiple indemnity rider. b) Impairment rider. c) Evidence of insurability rider. d) Future Increase option

d) Future Increase option The guaranteed purchase option is also referred to as the future increase option.

What type of insurance would be used for a return of premium rider?

increasing term

Each willful violation regarding unfair methods of competition may result in fines up to?

5,000

# 12. Where are premiums from fixed annuities invested? a) Ageneral account b) A variable annuity c) A hedge fund d) A separate account

a) Ageneral account

# 48. What is the purpose of the impairment rider in a health insurance policy? a) To cover impalrments that otherwise be covered b) To provide disability coverage c) To identify pre-existing conditions d) To exclude coverage for a specific Impairment

d) To exclude coverage for a specific Impairment

Equity Indexed Annuities do not receive...

a fixed amount of return

# 41 A life insurance policy gualifies as a Modified Endowment Contract (MEC) if the amount of premium paid exceeds the amount that insurance in how many years? a) 3 years b) 5 years c) 7 years d) The life of the policy

c) 7 years

When an employee is terminates coverage under a group policy, how long does coverage continue in force?

31 days

#100. If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan? a) Immediately b) Within 10 days c) Within 30 days di Within 90 days

a) Immediately

#77. Under a group health insurance plan, benefits may be extended to all of the following dependents EXCEPT a) A dependent parent living with the primary certificate holder. b) A27-year-old married daughter who Is attending college and lves with her parents c) The spouse of the certificate holder. d) A 30-year-old mentally handicapped son of the primary certificate holder

b) A27-year-old married daughter who Is attending college and lves with her parents

#13. Which of the following meets the insured's personal needs, and is provided by nonmedical personnel? a) Intermediate care b) Custodial care c) Skilled care d) Assisted living

b) Custodial care

Under a health insurance policy, benefits, other than death benefits, that have not been assigned, will be paid to?

The insured

#21. Medicare Part A services do NOT include which of the following? a) Private Duty Nursing b) Posthospital Skilled Nursing Facilty Care c) Hospitalization d) Hospice Care

a) Private Duty Nursing

#110. The Uniform Provision Law that prevents an insurance company from altering its agreement with a policyholder by referring to documents or other items not contained in the policy is called the a) Legal Action Provision. b) Grace Period Provision c) Reinstatement Provision d) Entire Contract Provision

Entire Contract Provision

A woman's health insurance policy dictates which doctors she is allowed to see and health providers share an assumed risk for the patients. What health system is she using?

Managed care

Which nonforfeiture option provides coverage for the longest period of time?

Paid-up option

An insured who has accidental death and dismemberment policy loses her left arm. What benefit will she receive from this policy?

Capital amount in a lump sum

# 109 When filling out an application for Insurance, the appllcant makes a mistake. If a fresh application were not available, what could the applicant do to proerly correct the mistake? a) White out the incorrect answer and write the new one over it b) Cross the incorrect answer out, write the correct one beside it, and initial the answer c) Either white out the answer or cross it out and write the new answer beside it. d) Nothing. A fresh application must be obtained.

If a fresh write over it Cross the incorrect answer out, write the correct one beside it, and initial the answer beside

What is the benefit of choosing extended term as a nonforfeiture option

It has the highest amount of insurance protection

# 33. When may HIV-related test results be provided to the MIB? a) When given authorization by the patient b) Only when the test results are negative ci Only if the individual is not identified d) Under all circumstances

Only ci Only if the individual is not identified

# 29. In life insurance, which of the following is NOT required to have an insurable interest in the insured? a) The beneficiary b) The policyowner c) The insured d). The applicant

The beneficiary

# 44. Which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care? a) Intermediate care b) Custodial care c) Home health care d) Skilled care

a) Intermediate care

#106. A husband and wife both incur expenses that are attributed to a single major medical insurance deductible Which type of deductible do they have in their policy? al Per occurrence b) Family c) Flat d) Annual

b) Family

#74. Insureds have the right to do which of the following if they have NOT received the proper claim forms within 15 days of their notice to the insurer of a covered loss under a major medical policy? a) Demand full payment immediately for the claim b) Speak with a claims adjuster or another representative from the insurance company c) Submit the description in their own words on a plain sheet of paper, d) Be reimbursed any copayment or deductible on the claim

c) Submit the description in their own words on a plain sheet of paper,

# 85. At what point would an automatic premium loan be generated? a) Upon the insured's death b) Once the policy is delivered cl Upon the surrender of the policy d Following the grace period

d Following the grace period

#54. How many days notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans? a) 7 days b) 10 days c) 15 days d) 30 day

d) 30 day

A Universal Life Insurance policy is best describes as....

Annually renewable term with cash value

#15. Under the mandatory uniform provision Legal Actions, an insured is prevented from bringing a suit against the insurer to recover on a health policy prior to a) 60 days after written proof of loss has been submitted b) 90 days after written proof of loss has been submitted. c) One year after the occurrence of a disability. d) 30 days after the loss.

a) 60 days after written proof of loss has been submitted

#65. Variable insurance and variable annuities are regulated by a) SEC FINRA and Departments of Insurance b) Departments of Insurance only. c) NAIC. d) SEC and FINRA only.

a) SEC FINRA and Departments Insurance

# 35. Which of the following statements is NOT true regarding health insurance policy provisions? a) Insurers may add provisions that are not in conflict with uniform standards b) All additional provisions written by Insurers are cataloged by their respective states c) All individual policies contain Universal Mandatory Provisions. d) Insurers may only offer optional provisions that are allowed by the state where the policy is delivered.

b) All additional provisions written by Insurers are cataloged by their respective states

#92 In addition to participation requirements, how does an insurer guard against adverse selection when underwriting group health? a) By obtaining MIB reports on each enrollee b) By imposing case management provisions c) By requiring that the Insurance be incidental to the group d) By having each enrollee undergo a paramedical examination

b) By c) By requiring that the Insurance be incidental to the group a

#14. What does the application of contract of adhesion mean? a) Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the Insured, b) The holder of the contract has the ultimate power of promise. c) The insurer may go to another for representation. d) It makes sure that the insured does not get more than the value of the loss.

a) Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the Insured,

#55 Conrad receives $50.000 from a $100,000 Accidental Death and Dismemberment policy as a result of the loss of his left arm in an accident. Conrad has received the a) Principal Amount. b) Capital Amount c) Contributory Amount. d) Primary Amount

b) Capital Amount

#3106. A husband and wife both incur expenses that are attributed to a single major medical insurance deductible. Which type of deductible do they have in their policy? a) Per occurrence b) Family c) Flat d) Annual

b) Family

# 11 All of the following could qualify as a group for the purpose of purchasing group health insurance EXCEPT a) Multiple employer trust. b) Single employer with 14 employees. c) An association of 35 people. d) Labor union

c) An association of 35 people.

The "stop-loss" feature on a major medical policy is intended to a) Establish the number of claims that may be filed on a policy in a calendar year. b) Establish a maximum amount of out-of-pocket expense that an Insured will have to pay for medical expense in a calendar year c) Establisha maximum amount of out-of-pocket expense that an insured will have to pay for medical expense for the life of the policy. d) Discourage insured from making unnecessary appointments at the doctor's office. A stop-loss feature is a provision that gives the insured financial security by limiting the maximum amount that would have to be paid in deductibles and co-payments during calendar year.

calendar year. Establish a maximum amount of out-of-pocket expense that an Insured will have to pay for medical expense in a calendar year

# 23. Joe, age 63, was disabled and can no longer work. He meets the Social Security definition of total disability. How many work credits must Joe have accumulated to have the status of fully insured? a) 10 b) 6 c) 20 d) 40

d) 40

#62 An employee dies having 6 quarters of coverage during the previous 13-quarter period, What status of coverage does the employee have under Social Security? a) Fully insured b) Uninsured c) Conditionally insured d) Currently insured

d) Currently insured

#47. On an Accidental Death and Dismemberment (AD&D) policy, the death benefit payable is known as the a) Capital sum. b) Policy limit c) Principal sum d) Face amount

c) Principal sum

#24. What effect will the long-term care (LTC) rider have on the death benefit of a life insurance policy if LTC benefits were paid to the insured? a) Increase the death benefit by the amount paid into LTC b) Not affect the amount payable to the beneficiary c) Eliminate the death benefit d) Reduce the death benefit

d) Reduce the death benefit