Life Ins

A producer's license is revoked for a violation of the insurance producers licensing act. The producer may also be required to pay a fine of up to

$1000

A situation in which a person can only lose or have no change represents

Hazard

Variable Whole Life Insurance is based on what type of premium

Level Premium

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

They cover the cost of extended nursing home care

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

$2500

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

Cash surrender

Most vision expense insurance plans restrict benefits to one exam and one pair of glasses in what time period?

12 months

If an insurer believes that inaccurate or misleading information was provided in the policy's application, it may contest a claim within how many years?

2 years

What is a penalty tax for nonqualified distributions from a health savings account?

20%

An insured has a major medical policy with a $500 deductible and a coinsurance clause of 80/20. If he incurs medical expenses of $4000, the insurer would pay

2800

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

3 Days

If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following?

Adjust the benefit in accordance with the increased risk

What limits the amount that a policyowner may borrow from a whole life insurance policy?

Cash value

All of the following are true about group disability income insurance except?

Coverage applies both on and off the job

Health coverage becomes effective when the

First premium has been paid and the application has been approved.

Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits?

Fixed amount

Which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producer's license?

Forgery

An insured has a life insurance policy that requires him to pay only premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Limited-pay Life

How does the cost of a basic coverage benefit plan compare with the cost of a standard benefit plan?

Lower

If a dental plan is intergrated, it is combined with what type

Medical

Which of the following is NOT true regarding the needs approach method of determining the value of an individual's life?

Need is predicted using the number of years until the insured's retirement

Any occupation disability typically means that individuals are unable to perform the duties of the occupation for which they are suited by all of the following except

Preference

What is the initial period of time specified in a disability income policy that must pass, after the policy is in force, before a loss can be covered?

Probationary Period

In what way can an agent demonstrate a high standard of ethics?

Putting the client's best interests before their own

Events in which a person has both the chance of winning or losing are classified as

Speculative risk

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 statements is true concerning the creditors of the deceased insured?

The creditors have rights to the proceeds if they can show evidence of valid assignment

Which of the following statements concerning group health insurance is CORRECT?

The employer is the policyholder

Which statement accurately describes group disability income insurance?

The extent of benefits is determined by the insured's income

All of the following are true of an annuity owner EXCEPT

The owner must be the party to recieve benefits

All of the following are true regarding a decreasing term policy except

The payable premium amount steadily declines throughout the duration of the contract

Which of the following is true regarding benefits paid to disabled employees?

They may be subject to taxation if the premium was paid by the employer

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

Which renewability provision allows an insurer to terminate a policy for any reason, and to increase the premiums for any class of insureds?

Guaranteed Renewable Health

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

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

In order for an insured under Medicare Part A to receive benefits for care in a skilled nursing facility, which of the following conditions must be met?

The insured must have a Medicare supplement insurance policy

What happens if a deferred annuity is surrendered before the annuitization period

The owner will receive the surrender value of the annuity

How long is the open-enrollment period under an employer group health insurance plan?

30 days

What is the maximum number of employees that a company can have before it is too large to be labeled as a "small employer" ?

50