Life & Health: Simulate Your Exam

All of the following are true regarding insurance policy loans EXCEPT

Policy loans can be made on policies that do not accumulate cash value

All of the following are characteristics of group life insurance EXCEPT

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

What is the civil penalty for the first violation of the Pennsylvania Insurance Fraud Prevention Act?

$5,000

An insured covered by a dread disease policy is confined to a hospital for 2 years as the result of a covered loss. In this situation, what is the minimum amount that the policy must pay?

$50,000

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to

10 years

COBRA applies to employers with at least

20 employees

What is the elimination period for Social Security disability benefits?

5 months

The minimum number of credits required for partially insured status for Social Security disability benefits is

6 credits

Most policies will pay the accident death benefits as long as the death is caused by the accident and occurs within

90 days

Naming a "trust" as the beneficiary of a life insurance policy can accomplish all of the following for the policy owner, EXCEPT

Allow the trustee to transfer the assets of the truth to their personal account

Which of the following hospice expense would NOT be covered in a cost-containment setting?

Antibiotics

The act of voluntarily giving up insurance by the insured is called

Cancellation

Which of the following will NOT be an appropriate use of a deferred annuity?

Creating an estate

What type of care is Respite care?

Relief for a major care giver

Equity indexed annuities

Seek higher returns

Which of the following statements about group life is correct?

The cost of coverage is based on the ratio of men and women in the group

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customer's associates, friends, and neighbors provide the report's data.

If a policy is rated-up, which of the following is true?

The premium increases

What types of services may NOT be provided under the long-term care's assisted living care?

Visits by a registered nurse

An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?

When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health

If an insured receives accelerated death benefits, what is the least amount of the original death benefit that the beneficiary would receive after the insured's death?

0%

According to OBRA, what is the minimum number of employees required to constitute a large group?

100

A producer has successfully completed 52 hours of CE. How many hours can the producer apply to her current reporting period, and how many hours can she carry forward to the next report period?

24 hours will be applied to the current reporting period, and 24 can be applied to the period immediately following. The excess 4 hours may not be carried over

Within how many days of requesting an Investigative Consumer Report must an insurer notify the consumer in writing that the report will be obtained?

3 days

According to the Time Limit on Certain Defenses provision, the insurer cannot void the policy for any misstatements on the application (except for fraud) if the policy was in force for what time period?

3 years

An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?

Common Disaster

A long stretch of national economic hardship causes a 7% rate of inflation. A policy owner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change

Cost of Living Rider

A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?

Deferred interest annuity

Which of the following authorities monitors the financial strength of insurers?

Department of Insurance

In the Executive Bonus plan, who is the owner of the policy, and who pays the premium?

Executive is the owner, and the executive pays the premium

How many pints of blood will be paid for by Medicare Supplement core benefits?

First 3

All of the following are dividend options EXCEPT

Fixed-period installments

Events or conditions that increase the chances of an insured loss occurring are referred to as

Hazards

A Return of Premium term life policy is written as what type of term coverage

Increasing

A life insurance policy has a legal purpose if both of which f the following elements exist?

Insurable interest and consent

The policy owner wants to make sure that upon his death, the life policy will pay a portion of the policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policy owner choose?

Interest only option

The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as

Legal actions

Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insured's death?

Life insurance proceeds

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

When an applicant purchased a life insurance policy, the agent dated the application 4 months prior. When asked by the applicant, the agent said he was allowed to backdate policies up to 6 months if it would

Lower the insured's premium

What type of beneficiary designation allows the benefit to pass from a deceased primary beneficiary to the beneficiary's heirs, instead of splitting the benefit among surviving primary beneficiaries?

Per stirpes

Which of the following provisions is mandatory for health insurance policies?

Physical examination and autopsy

A guaranteed renewable heath insurance policy allows the

Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class

Which of the following do the Standard and Preferred risk categories share?

Premiums are not elevated

Which of the following is NOT among the goals of a Medicare Supplement application?

Presuming the applicant is eligible for Medicaid, based on the nature of the policy

Under a disability income policy, the insurer does not pay a month benefit that is equal to the insured's previous income. The reason for paying a benefit amount that is less than the insured's income is to

Prevent overutizilation and malingering

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

A policy owner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policy owner should have her husband named as the

Revocable beneficiary

When the insured initiates the cancellation of a policy, the unearned premium will be refunded on a

Short rate basis

Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?

Size of each installment

Which of the following groups would most likely be covered under a blanket accident policy

Students at a public school

Which of the following is an example of apparent authority of an agent appointed by an insurer?

The agent accepts a premium payment after the end of the grace period

Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner

If a licensee wants to transact insurance under a different name than that listed on his or her producer's license, which of the following must occur?

The change must be reported to the Commissioner

Which of the following is true regarding waiver of a surrender charge on an annuity contract?

The charge may be waived if the annuitant is confined to a long-term care facility for at least 30 days

According to the privacy of consumer financial information regulation, if a consumer decides to opt out, this means

The consumer directs the licensee not to disclose the consumer's nonpublic personal financial information to a third party

Which of the following is NOT a feature of a guaranteed renewable provision?

The insurer can increase the policy premium on an individual basis

An applicant is considered to be high-risk, but not so much that the insurer wants to deny coverage. Which of the following is NOT true?

The insurer will issue a conditional coverage

An agent tries to sell insurance over the phone to an applicant who appears to be confused, but is eventually able to give enough information for the application to be completed. After the policy was issued, the agent talked to the insured's family, and they explained that the insured was recovering a from a surgery and might have been under the influence of medication at the time of application. Which of the following is true?

The policy may be voiced if it can be proven that the applicant was not capable of making a buying decision at the time of application

Which of the following is NOT the purpose of HIPAA?

To provide immediate coverage to new employees who had been previously covered for 18 months

Which of the following types of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?

Universal life

Which of the following are the people/entities who effectuate a viatical settlement contract?

Viatical settlement providers

In a replacement situation, all of the following must be considered EXCEPT

Assets

A producer has become disabled. In order to keep his business going, what may his designee do?

Obtain a temporary license

An insured pays her Major Medical Insurance premium annually on March 1. Last March she forgot to mail her premium to the company. On March 19, she had an accident and broke her leg. The insurance company would

Pay the claim

Underwriting is a major consideration when an insured wishes to replace current policy for all of the following reasons EXCEPT

Premiums always stay the same

Which of the following factors determines the amount of each installment paid in a Life Income Option arrangement?

Recipient's life expectancy and amount of principal

When a producer holding a certificate or a broker's license has a change in his/her residence or business address, he/she must notify the Department of Insurance and any company for which the producer holds an appointment within

30 days

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's

Ancestry

An agent accepts the premium payment 35 days after it is due, telling the insured that there will not be a problem keeping the policy in force. This is an example of what type of agent authority?

Apparent

What document describes an insured's medical history, including diagnoses and treatments?

Attending Physician's Statement

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be

Authorized

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

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid

For 20 years or until death, whichever occurs first

An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?

Foreign

When doing business in this state an insurance company that is formed under the laws of another state is known as which type of insurer?

Foreign

An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?

Fraud

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check form the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

Mutual

Which of the following best defines target premium in a universal life policy?

The recommended amount to keep the policy in force throughout its lifetime

A deferred annuity is surrendered prior to annuitization. Which of the following best describes the nonforfeiture value of the annuity?

The surrender value should be equal to 100% of the premium paid, minus any prior withdrawals and surrender charges

Which provision states that the insurance company must pay Medial Expense claims immediately?

Time of Payment of Claims

Which is true about a spouse term rider?

The rider is usually level term insurance

All of the following are characteristics of a group life insurance plan EXCEPT

There is a requirement to prove insurability on the part of the participants

How are employer contributions to Health Reimbursement Accounts treated in regards to taxation?

They are tax deductible

When employees are actively at work on the date coverage can be transferred to another insurance carrier, what happens to coinsurance and and deductibles?

They carry over from the old plan to the new plan.

All of the following statements about Medicare supplement insurance policies are correct EXCEPT

They cover the cost of extended nursing home care

Which of the following employees insured under a group life plan would be allowed to convert individual insurance of the same coverage once the plan is terminated?

Those who have been insured under the plan for at least 5 years

Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

Those who have been insured under the plan for at least 5 years

An insured notifies the insurance company that he has become disabled. What provision states that claims must be paid immediately upon written proof of loss?

Time of Payment of Claims

Which provision states that the insurance company must pay Medical Expense claims immediately?

Time of Payment of Claims

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

An insured owes his insurer a premium payment. Since then, he incurs medical expenses. The insurer deducts the unpaid premium amount from the claim amount and pay the insured the difference. What is the name of this provision?

Unpaid premium

How long will the beneficiary receive payments under the single life settlement option?

Until the beneficiary's death

The insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pay valid claims. In the forming of an insurance contract, this is referred to as

Utmost good faith

If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?

A full death benefit

Which statement best defines a Multiple Employer Welfare Arrangement (MEWA)?

A joining together by employers to provide health benefits for employee

What is a material misrepresentation?

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor Benefit

If a license person is moving to Pennsylvania, he or she may become licensed as a resident if they submit a completed application within how many days of establishing residence in Pennsylvania with proof of licensing from their prior home state?

90

The most Insurance Guaranty Association will pay for net cash surrender values is

$100,000

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?

$200,000

Before he died, an annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity. He was also the insured under a $50,000 paid-up whole life policy that named his wife as primary beneficiary. Considering both contracts, how much will the annuitant's spouse receive in benefits?

$50,000

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within

90 days of a loss

Which of the following would NOT cause the Death Benefit to increase?

Payor Benefit Rider

What is the maximum period that an insurer would pay benefits in accordance with an Additional Monthly Benefit rider?

1 year

Any licensed person whose activities affect interstate commerce and knowingly makes false material statements related to the business of insurance may be imprisoned for up to

10 years

For how many days of skilled nursing facility care will Medicare pay benefits?

100

When a group health insurance plan is terminated, how long is an extension of benefits provided for any totally disabled employee or dependent?

12 months

HIPAA applies to groups of

2 or more

The relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over what period of time?

2 years

Following hospitalization because of an accident, Bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many days?

20

Terminally ill patients are expected to survive how many months or less?

24

An insurance company forwards fixed annuity premiums to their general account, where the money is invested. The guaranteed minimum interest is set at 3%. During an economic downswing, the investments only drew 2.5%. What interest rate will the insurer pay to its policyholders?

3%

A producer license in Pennsylvania must notify the Insurance Department of any change of address in his or her residence or business address within how many days?

30

If an insurer terminates a producer's appointment, the Commissioner must be notified within how many days?

30

Licensees must make a report of any action taken against them in another jurisdiction or by another governmental agency in Pennsylvania within how many days of the final disposition of the matter?

30

What is the duration of the free-look period for Medicare supplement policies?

30 days

If a consumer requests additional information concerning an Investigative Consumer Report, how long does the insurer or reporting agency have to comply?

5 days

An insured has Medicare Part D coverage. He has reached his initial benefit limit and must now pay 50% of his prescription drug costs. What is the term for this gap in coverage?

Donut hole

What kind of LTC benefit would provide coverage for care for functionally impaired adults on a less than 24-hour basis?

Adult Day Care

What documentation grants express authority to an agent?

Agent's contract with the principal

A producer sold an insurance policy. Subsequently, his license was suspended. In this case, how much of the commission will the producer receive?

All

In which Medicare supplemental policies are the core benefits found?

All plans

Rebating is an unfair trade practice and is regulated by law. All of the following would be considered to be rebating EXCEPT

An agent misrepresentation to convince a person to cancel an existing policy and take a new policy from him

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?

Any form of life insurance

Employer contributions made to a qualified plan

Are subject to vesting requirements

An employee quits his job and coverts his group policy to an individual policy; the premium for the individual policy will be based on his

Attained age

An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefit for at least 30 days. This indicates that his policy is written with a 30-day

Elimination period

Which of the following is TRUE about a class designation?

Beneficiaries are not identified by name

Which of the following is a feature of a variable annuity?

Benefit payment amounts are not guaranteed

Which of the following is NOT true regarding an annuity certain?

Benefits stop at the annuitant's death

Which of the following statements concerning buy-sell agreements is true?

Buy-sell agreements pay in the event of a medical emergency

How are variable annuities regulated?

By state and federal agencies

Concerning group Medical and Dental insurance, which of the following statements in INCORRECT?

Employee benefits are tax deductible the year in which they were received

The policy, in combination with the application, is joined together into one entity called the

Entire Contract

If an applicant for a health insurance policy is found to be a substandard risk, the insurance company is most likely to

Charge an extra premium

Which of the following would be considered an illegal inducement to purchase insurance?

Confirming future dividends in a life insurance proposal

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?

Consideration

Which component increases in the increasing term insurance?

Death benefit

What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan?

Diagnostic and preventative care

Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled?

Disability Buy-Sell

Which of the following statements about occupational vs. nonoccupational coverage is TRUE?

Disability insurance can be written as occupational or nonoccupational

All of the following statements concerning dividends are true EXCEPT

Dividend amounts are guaranteed in the policy

When a life insurance policy is cancelled an the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount

Equal to the original policy for as long a period of time that the cash values will purchase

An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)

Equity Indexed Annuity

An annuity owner is funding an annuity that will supplement retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like an return that will equal the performance of the Standard Poor's 500 Index. She would likely purchase a(n)

Equity Indexed Annuity

Which of the following is NOT a way to determine the interest rate in a Universal Life Policy?

Estimate market conditions for the life of the policy

How often must the Commissioner examine rating organizations?

Every 5 years

Which of the following statements is true regarding LTC insurance?

Every policy must offer nonforfeiture benefits to the applicant

Which of the following are the authorities that an agent can hold?

Express and implied

An agent selling variable annuities must be registered with

FINRA

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?

False advertising

What is the average of having a qualified annuity

Favorable tax treatment

Producers are responsible to collect and disperse premiums, and return premiums or other funds. Which insurance term is associated with this?

Fiduciary capacity

Which of the following is an example of an agent's fiduciary responsibilities?

Forwarding premiums to the insurer

The automatic premium loan provision is activated at the end of the

Grace period

As it pertains to group health insurance, COBRA stipulates that

Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense

A Universal Life insurance policy has two types of interest rate that are called

Guaranteed and Current

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the 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

If a life policy allows the policy owner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

Guaranteed insurability rider

Under which of the following circumstances can financial institutions share insurance coverage information with third parties, for the purpose of soliciting the purchase of insurance?

If a consumer does not sign and return the notice of disclosure within 30 days

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

Implied

After a hearing, if the Commissioner finds that a licensee is in violation of the state insurance laws, the Commissioner can do any of the following EXCEPT

Imprison the licensee

Which of the following statements regarding HIV testing for life insurance purposes is NOT true?

Insurers are barred from requesting HIV testing

All of the following are nonforfeiture options EXCEPT

Interest only

Which of the following best describes the MIB?

It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance

Which of the following is true regarding a term health policy?

It is nonrenewable

Which of the following is true regarding a single life settlement option?

It provides income the beneficiary cannot outlive

Which of the following statements is NOT correct concerning the COBRA Act of 1985?

It requires all employers, regardless of the number or age of employees, to provide extended group heath coverage

Which of the following statements about the reinstatement provision is true?

It requires the policy owner to pay all over premiums with interest before the policy is reinstated

Which statement is NOT true regarding Straight Life policy?

Its premium steadily decreases over time, in response to its growing cash value

An insured purchases a policy in 2008 and died in 2013. The insurance company discovers at that time that the insured concealed information during the application process. What can they do?

Pay the death benefit

Julie must have orthodontic work performed on her incisors. Which type of service would this be called, under a nonscheduled plan?

Major service

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

Maximum benefits for a major medical plan are usually lifetime

Maximums

An insured severely burns her hand, but is not classified as disabled. Which of the following types of coverage would cover at least a portion of the insured's medical expenses?

Medical Reimbursement Benefit

Which of the following statements pertaining to Medicare A is correct?

Medicare Part A is automatically provided when an individual qualifies for Social Security benefits ate age 65

Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs?

Metal level classification

During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes

Misrepresentation

When is the annual open enrollment for state Insurance exchanges?

November 1 through January 31

An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company obligated to do?

Offer the supplement policy on a guaranteed issue basis

Which of the following can surrender a deferred annuity contract?

Only annuity owner

Which renewal option does NOT guarantee renewal and allows the insurance company to refuse renewal of a policy at any premium due date?

Optionally renewable

Medicare Part A services do NOT include which of the following?

Outpatient hospital treatment

When an individual is covered under two health insurance policies that have duplicate benefits which could make a claim for benefits because of an injury or illness profitable, it is called

Overinsurance

A medical insurance plan in which the health care provider is paid a regular fixed amount for providing care to the insured and does not receive additional amounts of compensation dependent upon the procedure performed is called

Prepaid plan

The insurance company underwriter could find information concerning the personal activities and character of an applicant from which of the following reports?

Producer's report

An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?

Profit sharing plan

A Medicare SELECT policy does all of the following EXCEPT

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

In respect to the consideration clause, which of the following is consideration on the part of the insurer?

Promising to pay in accordance with the contract terms

Which of the following best describes a pure life annuity settlement option?

Pure life provides payments for as long as both the annuitant and the spouse are living

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 is provided. Which policy provision allows this?

Reinstatement provision

What provision can reduce the disability benefit based upon the insured's current income?

Relation of earnings to insurance

Insurance producers that do not have company appointments are considered a/an

Representative of the consumer

Disability income policies can provide coverage for a loss of income when returning to work only part-time after recovering from total disability. What is the benefit that is based on the insured's loss of earnings after recovery from a disability?

Residual disability

Which of the following dental insurance categories would cover the filling of cavities?

Routine and major restorative care

Which of the following is NOT covered under Part B of a Medicare policy?

Routine dental care

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT

Signed waiver of premium

All of the following are unfair claims settlement practices EXCEPT

Suggesting negotiations in settling the claim

Which of the following would help prevent universal life policy from lapsing?

Target premium

Which of the following may NOT be included in an insurance company's advertisement?

That its policies are covered by a state Guaranty Association

With regards to premium rates, which of the following statements is NOT true?

The Commissioner sets all insurance premium rates used in Pennsylvania

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

The Fair Credit Reporting Act

Which of the following does NOT have to be disclosed in a long-term care (LTC) policy?

The aggregate amount of premiums due

Which of the following is TRUE regarding variable annuities?

The annuitant assumes the risks on investment

All of the following statements are equity index annuities are correct EXCEPT

The annuitant receives a fixed amount of return

In insurance, an offer is usually made when

The application is submitted

An insured is covered by a high-deductible health plan and makes regular contributions to this HSA. How are those contributions treated in regards to taxation?

The contributions are tax deductible

When a life insurance policy was issued, the policyowner designated a primary and a contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?

The insured's contingent beneficiary

Which of the following factors does an insurer use the most to determine the extent of disability benefits that it will promise in a contract?

The insured's income

Which of the following statements is true regarding the cash value in a Universal life policy?

The insurer credits the cash value in the policy with a current interest rate

When Linda suffered a broken hip, she notified her agent, in writing, within 12 days of the loss. However, her agent did not notify the insurance company until 60 days after the loss. Which of the following statements correctly explains how this claim would be handled?

The insurer is considered to be notified since the notification to agent equals notification to the insurer

Which of the following is true regarding elimination periods and the cost of coverage?

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

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

The policy is owned

In an insured continually uses the automatic premium loan option to pay the policy premium,

The policy will terminate when the cash value is reduced to nothing

How does a member of an HMO see a specialist?

The primary care physician refers the member

When is the insurability conditional receipt given?

When the premium is paid at the time of application

How soon after the due date should the insurer pay the agent appointment fees?

Within 30 days

Federal law makes it illegal for an individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

Without receiving written consent from an insurance regulatory authority

The Probationary Period is

a specified period of time that a person joining a group has to be wait before becoming eligible for coverage