Life Insurance PT:1

A contributory group life insurance policy is one in which an employer contributes to the total cost of the policy for their employees. In order for the employer to be able to purchase a contributory group life insurance policy, how many of their employees must be signed up for the plan? A. 75% B. 50% C. 25% D. 100%

A. 75%

Decreasing Term Life Insurance is one type of life insurance policy available to potential insureds. What is an example of an insured to whom a Decreasing Term Life Insurance policy is marketed? A. A 60-year-old whose grown children have moved out of the house and has the home almost paid off B. A 27-year-old newlywed couple C. A single 40-year-old D. A 45-year-old who just purchased a second house

A. A 60-year-old whose grown children have moved out of the house and has the home almost paid off.

What expenses, of the following types, can be decreased through the use of a flexible spending account? A. Eligible medical expenses B. Care expenses C. Business attire expenses D. Vacation expenses

A. Eligible medical expenses

All of the following are subject to the laws of HIPAA regarding patient confidentiality, EXCEPT: A. Employers B. Dentist C. IT workers servicing a hospital D. Medical records storage workers

A. Employers

Insurance is a contract between two parties spelled out in a document known as the insurance policy. What three clauses are found on the first page of every insurance policy? A. The insuring clause, free-look clause and the consideration clause B. The insuring clause, free-look clause and the reinstatement clause C. The free-look clause, the reinstatement clause and the cancellation clause D. The consideration clause, the free-look clause and the cancellation clause

A. The insuring clause, free-look clause and the consideration clause

What type of insurance policy is generally not a good idea to purchase due to the inflation rate, which affects all individuals in society? A. Traditional Life B. Level Premium insurance C. Convertible term insurance D. Decreasing term insurance

A. Traditional Life

Geroge has a life insurance policy through ABC Insurance. Geroge's primary beneficiary listed on the policy is his sister Margaret and his secondary beneficiary listed is his brother Frank. George passed away in March of natural causes and a month later Margaret also passed away due to natural causes. George's policy paid out to Frank and technically viewed Margaret as passing before Geroge due to what clause included in George's life insurance policy? A. Primary beneficiary death clause B. Common disaster clause C. Common illness clause D. Secondary beneficiary clause

B. Common disaster clause

If an Insured is solely looking for a policy to cover the remaining cost of his or her mortgage in the event of death, what type of insurance policy should he or she obtain? A. Variable annuity B. Decreasing term insurance C. Level premium insurance D. Convertible term insurance

B. Decreasing term insurance

What type of qualified retirement plans will provide the employees a guaranteed payout amount? A. Defined Contribution B. Defined Benefit C. Both Defined Contribution and Defined Benefit D. Neither Defined Contribution or Defined Benefit

B. Defined Benefit

All of the following are non-forfeiture options available on some insurance policies EXCEPT: A. Cash surrender option B. Increased paid-up option C. Extended term option D. Reduced paid-up option

B. Increased paid-up option

What type of life insurance policy can guarantee that each year the policy is renewed, the premium will never change? A. Annual Renewable Term B. Level Premium Term C. Universal Variable D. Definite Life

B. Level Premium Term

Peter was a mortgage lender for ABC Mortgage Company. He was collecting information about the Smith's to put together a pre-approval statement required by their realtor. Peter knew that Mrs. Smith had some outstanding medical bills but he was not sure of the amount or what for. Peter called Mrs. Smith's physician's statement to ask for a copy of Mrs. Smith billing statement. Is the office staff allowed to give Peter this information? A. Yes, because it is being used for a specific purpose B. No, because billing information is protected by HIPPA C. No, because billing information is protected by COBRA D. No, because billing information is protected by Patient's First Law

B. No, because billing information is protected by HIPPA.

Carol was diagnosed with Diabetes and told she would need multiple medical supplies each week to administer her required medicine. Under what part of Medicare might these medical supplies be covered? A. Part A B. Part B C. Part C D. Part D

B. Part B

Rodger is a married 65-year-old who also has 2 children still living in his household. Rodger purchased a Medicare Supplement Insurance policy to cover his personal needs. This Medigap Policy covers which members of Rodger's household? A. Rodger and his wife B. Rodger C. Rodger and both his children D. Rodger, his wife and both his children

B. Rodger

Each life insurance policy will state the maximum amount the policy will pay out to the beneficiary. What part of the life insurance policy would the insured be able to find this pay out amount listed? A. The Declarations B. The Insuring Agreement C. The Conditions D. The application

B. The Insuring Agreement

All of the following are benefits for a renewable term life insurance policy EXCEPT: A. The insured can automatically renew his or her policy after the term is over. B. The policy is typically more expensive than an annual renewable term life insurance policy C. The insured is able to renew even if he or she has experienced health issues since the policy was first issued D. The policy is written in terms longer than the usual annual policy

B. The policy is typically more expensive than an annual renewable term life insurance policy

The consideration clause is found on the front page of every life insurance policy. What information does the consideration clause give to the Insured? A. The date the policy will end B. The premium payment amounts C. The reasons the policy will cancel D. The exposures which are not covered by the policy

B. The premium payment amounts

An insurance policy is a written contract between two parties. Is an insurance policy a unilateral or a bilateral contract? A. Bilateral B. Unilateral C. It will depend on the specific policy D. It will depend on the claim submitted

B. Unilateral

The federal government pays about what percentage of all Medicaid expenses? A. 50% B. 75% C. 60% D. 100%

C. 60%

The accelerated death benefit is an important benefit to have as it provides protection int he event a policyholder becomes terminally ill. The value of the policy is usually limited to what percentage if the accelerated death benefit is used? A. 50% B. 60% C. 75% D. 90%

C. 75%

What type of contract will specify the method of determining the price to buy part of a business as well as oversees the transfer of the business? A. A Business Buy-out Agreement B. A Business Sell Agreement C. A Buy-sell Agreement D. A Business Transfer Agreement

C. A Buy-sell Agreement

A Variable Life insurance policy allows Insureds the option of using their premium dollars and doing what with the premium dollars? A. Whatever the Insured chooses to do with the money B. Purchase higher limits C. Invest the money D. Variable Life policies do not allow for premium dollars to be used elsewhere

C. Invest the money

Medicare is a great source of health care protection for millions of people. Medicare, however, does not assist in covering co-pays or deductibles. What may an Insured with Medicare purchase to offset the costs of co-payments and deductibles? A. Medicaid B. Medicare plus an HMO policy C. Medicare Supplement Insurance D. Medicare plus a PPO policy

C. Medicare Supplement Insurance

What health care insurance plan provides coverage when the Insured travels outside of the United States? A. All parts of Medicare Coverage B. Part A of Medicare Coverage C. Medicare Supplement Insurance coverage D. Part C of Medicare coverage

C. Medicare Supplement Insurance coverage

What provision may be found on a life insurance policy that will increase the payout amount if the Insured's death is caused by a specified accident? A. Multiple Payout B. Accidental Death Increase C. Multiple Indemnity D. Accidental Payout Benefit

C. Multiple Indemnity

All of the following are advantages of term life insurance EXCEPT: A. Covers the full amount of insurance you selected B. Can provide a lump sum for your beneficiaries C. Provides a cash value account for retirement D. Can cover the Insured's final expenses

C. Provides a cash value account for retirement

What clause may be part of a Traditional Whole Life Insurance Policy that would allow for the Insured to request coverage cancelled? A. The Cancellation Clause B. The Buy-Out Clause C. The Cash Surrender Clause D. The Insured Buy-Out Clause

C. The Cash Surrender Clause

Keeping in mind the HIPPA Law, under what scenario would a patient's records be allowed to be shared? A. A financial representative looking for billing information B. A potential employer as part of their background check C. A patient's son who is requesting the information without the patient's consent D. A police officer who is investigating an incident involving the injured patient

D. A police officer who is investigating an incident involving the injured patient

Long-Term Care Insurance plans exclude all of the following EXCEPT: A. Medicare care provided by a family member B. Free health services C. Services needed after a suicide attempt D. All services provided outside of the United States, with no exceptions

D. All services provided outside of the United States, with no exceptions

Annuities are a means of investment to secure a cash flow once the individual reaches retirement. Are annuities paid out over a specified period of time or as long as the individual is living? A. As long as the individual who purchased the annuity is living B. Over a specified period of time C. As long as the spouse of the owner of the annuity is living D. Both options are available - over a specified period of time or as long as the annuity owner or spouse is living

D. Both options are available- over a specified period of time or as long as the annuity owner or spouse is living

Chris was in the process of looking for a life insurance policy. He is young and able to take some risks with his investment. One of Chris' hobbies is to follow the stock market and invest where he sees potentially good stock options. Keeping in mind Chris' stock market hobby, what type of life insurance policy might Chris look to purchase? A. Indexed Universal Life B. Equity-Indexed Term Life C. Indexed Term Life D. Equity-Indexed Universal Life

D. Equity-Indexed Universal Life

Robert and Catherine were first time parents to their newborn daughter. Robert and Catherine wanted to purchase life insurance for their daughter as a lifelong gift to her. The parents wanted to make sure the policy would last the lifetime of their daughter and also wanted a policy whose premium would never increase. What type of policy might Robert and Catherine's insurance agent sell them? A. Term Life insurance B. Equity-term Universal Life Insurance C. Equity-term Whole Life Insurance D. Interest-sensitive Whole Life Insurance

D. Interest-Sensitive Whole Life Insurance

What type of life insurance policy is intended to provide coverage in the event that a person vital to a company suddenly passes away? A. Prime Employee Coverage B. Executive Coverage C. Primary Contributory Life Insurance D. Key Person Life Insurance

D. Key Person Life Insurance

Under a Guaranteed Renewable Policy, while the Insured is guaranteed that coverage will be renewed, is the Insured also guaranteed that the premiums will remain the same? A. Yes, in all cases B. Yes, if the policy is paid in full upfront C. No, the premium is guaranteed to increase each year D. No, the premium is subject to change based on claims or other factors which occurred during the current policy term.

D. No, the premium is subject to change based on claims or other factors which occurred during the current policy term.

What part of Medicare adds on prescription drug coverage to the original plan? A. Part A B. Part B C. Part C D. Part D

D. Part D

Name one important benefit of having a whole life insurance policy? A. The premiums decrease over time B. Cash value accrues over time C. If you borrow money from the policy, you do not have to pay back the amount borrowed. D. The Insured receives a discount if he or she renews the policy earlier than the expiration date.

B. Cash value accrues over time

Jillian submitted a request to her health insurance carrier to renew her current policy. The health insurance carrier released a notice stating that Jillian's policy could be renewed but she had to first provide a new application and copy of a physician statement. The notice that Jillian's health insurance carrier sent is know as what? A. A Conditional Receipt B. An Intent to Renew C. A Renewal Application D. A Renewal Notice Requirement

A. A Conditional Receipt

Under which type of insurance plan can an insured defer taxes until retirement? A. A non-qualified retirement plan B. A tax deferent retirement plan C. A tax benefit trust retirement plan D. A qualified retirement plan

A. A non-qualified retirement plan

Life Insurance policies can be standalone policies or can also contain what addition to the policy to provide additional coverage? A. A rider B. An additional coverage amendment C. A life term endorsement D. Life insurance policies are standard and not open to additional forms of coverage.

A. A rider

What type of disease is covered under Medicare benefits despite the age of the patient? A. End-Stage Renal Disease B. Celiac's Disease C. Skin Cancer D. Dementia

A. End-Stage Renal Disease

How does a Hospital Indemnity Plan pay out its benefits to the insured? A. In a lump sum for the Insured to use as they choose B. By reimbursing the Insured each time they submit a receipt from a covered expense C. In a lump sum payment to the doctor's office the Insured is most seen at D. By issuing a "debit card" to be used whenever the Insured needs

A. In a lump sum for the Insured to use as they choose

When does a whole life policy end? A. On the policy expiration date B. When the Insured turns 65 years of age C. When the policy holder passes away D. After a 20-year term

C. When the policy holder passes away

Theresa was researching the best type of life insurance policy to suite her needs. She would like the lifelong coverage to provide by a Traditional Whole Life Insurance Policy but does not want to have to continue to pay premiums for the rest of her life. What type of policy might best suite this want of Theresa? A. Limited-Pay Life Insurance B. Adjustable Life Insurance C. Limited Source Life Insurance D. Adjustable Traditional Whole Life Insurance

A. Limited-Pay Life Insurance

Can COBRA decline coverage due to a pre-existing condition? A. No, COBRA does not decline due to a pre-existing condition. B. Yes, COBRA will always decline if a pre-existing condition is present C. Yes, COBRA may decline depending on the pre-existing condition. D. No, but COBRA may decline household members with pre-existing conditions

A. No, COBRA does not decline due to a pre-existing condition.

Erin has a standard life insurance policy through her local insurance agent. Once her policy approaches its expiration date, will Erin's agent automatically renew her coverage for another year? A. No, Erin would need to apply for an additional term B. Yes, Erin's insurance would renew each year C. Yes, but for an increase in premium each year the policy renews D. No, there are currently no life insurance plans available for automatic renewal due to the medical exam requirement

A. No, Erin would need to apply for an additional term

If an Insured has a Modified Endowment Contract, is the death payout benefit subject to income tax? A. No, in all cases B. Yes, in all cases C. No, unless it is endorsed D. Yes, unless the Insured dies of accidental death

A. No, in all cases

Under an Adjustable Life Policy, does the insurance carrier need to cancel a policy if the Insured has a life change? A. No, the policy can be adjusted if the Insured wishes, but the carrier will not enforce a change in limits or a cancellation. B. Yes, in all situations, the policy must be cancelled and rewritten C. Yes, the policy must be cancelled if the Insured will not adjust the policy limits in the event of a life change D. No, the carrier will not force a cancellation unless the Insured has a job change

A. No, the policy can be adjusted if the Insured wishes, but the carrier will not enforce a change in limits or a cancellation

Under the guaranteed insurability rider, can the Insured purchase any additional amount of coverage he or she needs on the dates the policy allows for additional coverage to be purchased? A. No, there is an option amount specified by the policy which is the maximum amount of extra coverage the Insured is eligible to purchase. B. Yes, the Insured can purchase any amount of coverage they wish C. No, the Insured can only purchase up to 50% of the current policy limits D. Yes, if the Insured can provide evidence of insurability

A. No, there is an option amount specified by the policy which is maximum amount of extra coverage the insured is eilgible to purchase.

Regina is an 87-year-old who lives financially off of her social security benefits after having worked for over thirty years. How often does Regina receive benefits form her Social Security? A. On a monthly basis B. By a lump Sum C. Once every six months D. Once a year

A. On a monthly basis

Under Managed Care Plans, how often are providers required to pay a fee? A. Once a month B. Once a quarter C. Once a year D. A one-time fee when they

A. Once a month

Margret is 84 years of age and is suffering from Dementia. Margret's doctor strongly suggested to her family that they place her into a nursing home to receive around-the-clock care. What part of Medicare may be used to help pay Margaret's nursing home care? A. Part A B. Part B C. Part C D. Part D

A. Part A

What parts of the Medicare health insurance plan must an insured have in order to purchase Medicare Supplement Insurance coverage? A. Parts A and B B. Parts B and D C. Parts A and C D. Parts B and C

A. Parts A and B

All of the following are conditions that must be met before an Insurer has to pay out according to a health insurance policy EXCEPT: A. Proof of residency B. Proof of loss C. Proof of insurable interest D. Premium payments up to date

A. Proof of residency

What provision, found on some life insurance policies, gives the Insured control over how the cash payments will be issued while the policy is in force? A. Settlement options B. Cash payment options C. Dividend options D. Beneficiary options

A. Settlement options

What type of life insurance policy is bought with the Insured knowing that, in the future, he or she will transfer ownership of the policy to a third party? A. Stranger-Owned Life Insurance B. Third Party Life Insurance C. Stranger Invested Life Insurance D. Third Party Invested Life Insurance

A. Stranger-owned life insurance

All of the following are examples of permanent life insurance policies EXCEPT: A. Term life insurance B. Interest-sensitive whole life C. Universal life D. Traditional whole life

A. Term Life insurance

No providing a cash value account for retirement and not providing permanent insurance protection are two disadvantages of what type of life insurance policy? A. Term life insurance B. Traditional life insurance C. Whole life insurance D. Annual Renewable Term

A. Term Life insurance

In 1970, an Act was passed to give citizens more ownership of their credit. What was this act known as? A. The Fair Credit Reporting Act B. The Citizen's Right to Fair Credit Act C. The 1970 Fair Credit Score Act D. The 1970 Credit Security Act

A. The Fair Credit Reporting Act

In a contract of adhesion, what party does not have the right to negotiate terms of the contract? A. The Insured B. The Insurer C. The Reinsurer D. Both the Insured and The Insurer

A. The Insured

Of the following, what is a requirement for a completed application for a life insurance policy? A. The Insured's signature B. The Insured's verified weight C. Physician's statement D. Proof of residency

A. The Insured's Signature

A Cancelable Insurance Policy is designed to protect what party in an insurance contract? A. The insurer B. The Insured C. A third party D. The reinsurer

A. The Insurer

Under a Term Life-Critical Illness Plan, how are the plan's benefits paid out in the event of the Insured's death? A. The family of the Insured will receive a term life benefit B. The family will receive the critical illness benefit C. The policy will pay out half of the benefit to the family and the other half will be paid back to the insurer if the critical illness benefit is not used D. The family will receive a whole life benefit payout minus a deduction for income tax

A. The family of the Insured will receive a term of life benefit

Which party to an insurance contract is responsible for payments due after the coinsurance and deductible amounts are satisfied? A. The insurer B. The insured C. Cost is split equally among the insurer and insured D. Cost is split 60% to the insurer and 40% to the insured

A. The insurer

What is one benefit of an annual renewable term life insurance policy? A. The policy will automatically renew each year B. The premium stays the same each year the policy is renewed C. The insurance carrier can never deny the insured from renewing each year D. There is no age limit for an Insured who wishes to purchase this type of policy

A. The policy will automatically renew each year

Under the accidental death benefit rider, how long does the benefit typically extend after the accident occurs? A. Up to a year B. Up to 3 years C. The accident and death both must occur during the policy period D. There is no time frame after the accident for the benefits to apply if the insured passes away as a result of the accident.

A. Up to a year

What is the insurance term for charges that do not exceed the pre-determined fee usually associated with specific medical services in a specific geographic area? A. Usual, customary, and reasonable charges B. Reasonable and mandatory charges C. Customary and reasonable charges D. Mandatory and usual charges

A. Usual, customary, and reasonable charges

Trent was scheduled for his 6-month dental cleaning next week. He called the office ahead of time to see how much his payment would be for the visit. The receptionist told Trent he would be responsible for $30 at this visit. Trent's $30 payment is known as what type of payment? A. Dental service payment B. Copayment C. Insurance reimbursement D. Patient Payment

B. Copayment

What two parts of Medicare health insurance are offered by private companies that have been approved by Medicare? A. Parts A and C B. Parts B and C C. Parts C and D D. Parts A and D

C. Parts C and D

Terrence was in the market for a life insurance plan. He wanted a policy which would benefit his son, Trent, after Terrence's death. Terrence also did not need a plan in which he would take money from during the policy term. What type of policy might meet Terrence's needs? A. A Modified Benefit Contract B. A Modified Endowment Contract C. A Modified Tax Beneficiary Contract D. A Modified Term Policy

B. A Modified Endowment Contract

Henry owns a mid-sized manufacturing company. He was shopping around for different types or retirement plans to offer his employees. What type or retirement plan is best for attracting good employees? A. A Non-Qualified Retirement Plan B. A Qualified Retirement Plan C. A Buy-out Retirement Plan D. A Retention Retirement Plan

B. A Qualified Retirement Plan

Investors who are still conservative, but willing to take on a little more risk than Fixed Annuity, may be interested in what type of investment? A. A Constant Annuity B. A Variable Annuity C. An Amended Fixed Annuity D. A Mid-Market Account

B. A Variable Annuity

Increasing Term Life Insurance is one type of life insurance policy available to potential insureds. What is an example of an insured to whom an Increasing Term Life Insurance policy is marketed? A. An elderly couple moving into an assisted living facility B. A newly married couple C. A person approaching retirement age D. A teenager getting ready for college

B. A newly married couple

Lisa was experiencing severe pain in her jaw and her friends encouraged her to see a specialist as this issue was only getting worse. Lisa called a specialist in the area, but the specialist said he could not see Lisa without getting what type of notice from her primary dentist? A. You never need approval to see a specialist regardless of your insurance B. A pre-certification due to her insurance carrier's requirements C. A pre-visit approval notice D. A documentation that the primary dentist could not fix her mouth issue and that she needed specialized care.

B. A pre-certification due to her insurance carrier's requirements

An insured is diagnosed with a terminal illness and is in need of extensive medical care. What rider, if attached to their life insurance policy, would help the insured pay for the necessary medical expenses? A. Term Rider B. Accelerated Death Benefit Rider C. Medically Necessary Rider D. Other Insured Rider

B. Accelerated Death Benefit Rider

Which type of life insurance policy allows the Insured the flexibility of being able to amend the premiums due, the coverage amounts and the length of their policy? A. A Flex-Account Policy B. An Adjustable Life Policy C. An Account Adjustable Policy D. A Flexible Benefits Policy

B. An Adjustable Life Policy

Why is term life insurance sometimes referred to as "pure" insurance? A. Because it has a financial investment value B. Because it has no financial investment value C. Because a large portion of premium is collected to pay the insurance company's operational costs D. Because very little of the premium is used to pay for coverage

B. Because it has no financial investment vlaue

Why do insurance carriers work to closely monitor life insurance policies to avoid Stranger-Owned Life Insurance policies? A. Because they are illegal in all cases B. Because the third party has no insurable interest in the policy and therefore should not benefit from the policy C. Because they promote fraud D. Insurance carriers, on the contrary, actually encourage Stranger-Owned Life Insurance policies

B. Because the third party has no insurable interest in the policy and therefore should not benefit from the policy

Victor was just notified that he was being laid off from the company for which he has worked for the past 15 years. Victor was most concerned about losing his health insurance benefits provided through his company. What type of health insurance policy should Victor consider until he is able to find a new job? A. Medicare B. COBRA C. Medicaid D. Medicare Advantage Plan

B. COBRA

Brenda was starting a new job, and part of the hiring process consisted of selecting an optional Life Insurance plan. While Brenda knew the policy was optional, she felt pressure from her office to select a policy. After her policy was issued, Brenda was talking to a local agent and realized there was a much better plan available which she should have purchased. What provision would need to be on Brenda's original policy not cancel without be penalized? A. Grace Period Provision B. Free-Look Provision C. Trial Run Provision D. There is always a penalty when the Insured cancels due to wanting a different policy.

B. Free-Look Provision

Under a Hosptial Indemnity Plan, all of the following expenses may be covered EXCEPT: A. Childcare while the Insured is sick B. Missed work income C. Transportation to required hospital or doctor visits D. Co-pays

B. Missed work income

Jen has a critical illness plan in addition to her life insurance policy. Is Jen subject to a list of network doctors which she must stick to in order for coverage to apply? A. Yes, in all cases B. No, there are no network restrictions C. No, unless endorsed D. Yes, unless Jen wishes to pay extra co-pays, she must stick to in-network doctors.

B. No, there are no network restricitons

Does a critical illness plan pay out its benefits in a lump sum or spread it's payments out over a specified time period? A. Spread out over 3 years B. One lump sum C. Spread out over 2 years D. Spread out over a year

B. One lump sum

Brent injured his shoulder shoveling snow and required surgery. Brent was out of work for a month and when he returned, his shoulder was still not physically back to 100%. What term is given to the state of Brent's injury since returning to work? A. Remaining injury B. Residual Disability C. Residual Injury D. Remaining Disaiblity

B. Residual Disability

How can an insured save money on premium with a whole life insurance policy as opposed to other insurance policies available? A. The insured can select lower rates B. The insured can pay premium sonly to be applied to the insurance component of the policy C. The insured can select a shorter policy period D. the insured can submit to a medical exam each year

B. The insured can pay premiums only to be applied to the insurance component of the policy

A Payor Benefit Rider is usually found attached to what type of life insurance policy? A. This rider attached to all Whole Life policies. B. This rider is attached to all Term Life policies C. Policies written for Insured's under 18 years of age D. policies for households with young children

C. Policies written for Insured's under 18 years of age

Although each state has different rules regardless waiting periods, what is the general waiting period for coverage to apply under a Hospital Indemnity Policy for childbirth? A. No waiting period B. Three months C. Ten Months D. One year

C. Ten Months

Yolanda has an insurance policy through ABC Insurance. Her policy states that Yolanda's medical bills must reach $1,500 before ABC will begin paying for covered medical bills. The amount of $1,500 is known as what, in insurance terms? A. The copayment B. The insured payment C. The deductible D. The premium due

C. The deductible

What type of investment opportunity guarantees a fixed payment to the owner of the investment? A. A Variable Annuity B. A Constant Annuity C. A Fixed Annuity D. A Deferred Annuity

C. A Fixed Annuity

Utmost Good Faith, Unilateral, Conditional and Adhesion are all characteristics of what? A. An application process B. A claims investigation C. An insurance policy D. An insurance ednorsement

C. An insurance policy

Why is it important for a life insurance applicant, who has young children, to arrange a legal representative to manage the payouts in the event of the applicant's death? A. Because the law requires a legal representative B. Because the insurance carrier will deny the payout if there is no legal representative C. Because if the application does not name a legal representative, the court system will assign a property guardian. D. It is not necessary to appoint a legal representative as the children will automatically receive a lump sum benefit

C. Because if the application does not name a legal representative, the court system will assign a property guardian.

Stop-loss coverage is a way to prevent employers from being responsible for excessive costs associated with their employee's medical bills. Does stop-loss coverage limit costs for an individual employee or does it limit costs for all employees as a group? A. The individual employee B. All of the employees as a group limit C. Both a limit for individual employees and all employees as a group limit D. There is no limit for the amount of medical costs an employer may be responsible for

C. Both a limit for individual employees and all employees as a group limit

Term life insurance policies offer what type of provision that allows the policy to be renewed despite a decline in the Insured's health? A. Renewable Guarantee Provision B. Renewable Provision C. Conversion Privilege D. Guaranteed Provision

C. Conversion Privilege

Medicare is a form of health care insurance regulated by what brand of government? A. State B. Local C. Federal D. Private corporations funded by State Taxes

C. Federal

Physicians, nursing homes, companies that work with medical record keeping, dentists and IT specialists for hospitals must all abide by what law to protect patient safety and confidentiality? A. Patient Care Act B. Patient Security Act C. HIPAA D. COBRA

C. HIPAA

Why should an Insured make sure he or she has a new insurance policy confirmed before notifying the current insurance carrier that he or she wishes to cancel? A. An Insured always needs proof of coverage before cancelling a current policy B. An Insured will avoid being penalized if he can prove he has other coverage secured when cancelling the current term C. In the unfortunate event that he or she becomes sick or develops a condition that could be considered a "pre-existing condition" and declined coverage from potential insurance carriers D. There is no real benefit to having a new policy secured before cancelling your current policy.

C. In the unfortunate event that he or she becomes sick or develops a condition that could be considered a "pre-existing condition" and declined coverage from potential insurance carriers.

What provision found in life insurance policies will prevent an insurance company from denying a claim during a specified time period? A. No Contest Period B. Free Period C. Incontestable Clause D. No Contest Clause

C. Incontestable Clause

What type of potential policy holders may purchase a Modified Endowment Contract? A. Individuals who want little investment opportunity B. Individuals who do not care about the tax benefits C. Individuals who do not intend to withdraw from the policy before the policy ends D. Individuals who intend to withdraw from the policy before the policy ends

C. Individuals who do not intend to withdraw from the policy before the policy ends

Dorothy had a term life insurance policy through ABC Insurance Company. Dorothy forgot to renew her policy in June and passed away suddenly in October. Would Dorothy's term life policy pay out cash to the beneficiaries listed on her policy? A. Yes, the policy extends until death B. Yes, because it was within a year of the policy ending C. No, term life insurance is temporary coverage D. No, term life insurance only provides coverage in the form of bonds and not cash payouts

C. No, term life insurance is temporary coverage

Teresa has a life insurance policy ad lists her sister as the beneficiary in the event of Teresa's death. A couple years later Teresa gave birth to a baby girl and wanted to transfer her policy over to her daughter. If Teresa fails to notify her insurance carrier of the change in beneficiaries, will the carrier still recognize her daughter as the new beneficiary in the event of Teresa's death? A. Yes, in all cases B. Yes, but they will need written approval from Teresa's sister C. No, the insurance company would recognize the original beneficiary listed on the policy D. No, Teresa would have needed a notarized letter confirming the change

C. No, the insurance company would recognize the original beneficiary listed on the policy

Under the guaranteed insurability rider, can the Insured purchase additional coverage at any time during the policy? A. Yes, the Insured can purchase additional coverage whenver B. No, this rider prevents additional coverage from being purchased C. No, the policy will outline specific dates in which additional coverage can be purchased D. Yes, but only for specific limits

C. No, the policy will outline specific dates in which additional coverage can be purchased.

Randy is a single, 28-year old who works forty hours a week at an Insurance Agency. Randy's annual income is $42,500. Will Randy be subject to Social Security tax? A. Yes, due to his age B. No, due to his age C. Yes, due to the fact that he makes over the minimum income requirement D. No, due to the fact that he does not make the minimum income requirement

C. Yes, due to the fact that he makes over the minimum income requirement

All of the following are ways to determine what risk classification a potential policyholder fits in EXCEPT: A. Call an agent B. Meet with local agent C. Submit a quote request online D. A policyholder can name their own risk category

D. A policyholder can name their own risk category

Of the following, what is covered under Medigap policies? A. Vision Care B. Hearing Aids C. Long-term Care D. Co-payments

D. Co-payments

Julie was 23 years of age and starting her first job where benefits were offered by her employer. Julie was a little overwhelmed by the different types of life insurance policies offered and was worried she may become locked into a policy that really does not suit her needs. What type of life insurance policy might Julie want to purchase for now? A. Decreasing Term Insurance B. Universal Variable C. Level Premium Term D. Convertible Term Insurance

D. Convertible Term Insurance

Grant and Leslie were new parents to a little boy. They were researching day cares int he area and quickly realizing how expensive it would be to send their son to day care. Which employer-offered benefit would help Grant and Leslie save some money while paying their son's day care bill? A. Day Care Benefit B. Child Care Benefit C. Children Account Assistant Benefit D. Flexible Spending Account

D. Flexible Spending Account

All of the following regarding a Flexible Spending Account are false EXCEPT: A. It can cover child care expenses under the medical accounts. B. It can cover medical expenses under the child care expense account C. There is no time frame in which a Flexible Spending Account's cash must be used D. Flexible Spending Account's cash must be used within a specified time period

D. Flexible Spending Account's cash must be used within a specified time period.

All of the following may raise the premium of a life insurance policy, EXCEPT: A. The age of the applicant B. If the applicant smokes C. If the applicant has a pre-existing condition D. If the applicant was not a US born Citizen

D. If the applicant was not a US born citizen

Irene was in need of cash to pay for unexpected medical bills. Irene asked her agent if she was able to borrow from her whole life insurance policy. What would Irene's agent request of her before approving she could borrow from her insurance policy? A. A documented list of all medical procedures that the money was going towards B. A signed application from Irene to present for approval by the office manager C. An insured cannot borrow against his or her whole life insurance plan D. Irene's agent may not need anything from Irene as there is no approval requirement to borrow against your own whole life policy

D. Irene's agent may not need anything from Irene as there is no approval requirement to borrow against your own whole life policy

Preferred, Standard Plus, Preferred Smoker, and Substandard are all different risk classifications of what type of insurance policy? A. Property and Casualty B. Workers Compensation C. Automobile D. Life

D. Life

Margaret and Matthew have been married for ten years. Each year, the couple files their income taxes as "married and filing jointly." Combined, Margaret and Matthew's annual income is $31,000. Are Margaret and Matthew required to pay taxes on social security? A. Yes, due to their filing jointly on their income taxes B. No, due to their filing jointly on their income taxes C. Yes, due to they make over the minimum income requirement D. No, due to they make less than the minimum income requirement

D. No, due to they make less than the minimum income requirement

Every state has different rules regarding waiting periods for a Hospital Indemnity policy. What is the general waiting period for coverage to apply for donating an organ? A. No waiting period B. Five months C. Nine months D. One Year

D. One year

Traditional Whole Life Insurance policies are meant to last the entire life of the Insured. What is the duty of the Insured to ensure the policy does not cancel earlier than intended? A. Pay the entire policy upfront B. Submit yearly medical exams signed by a physician C. Submit yearly medical exams as well as pay each premium payment due on time D. Pay each premium payment due on time

D. Pay each premium payment due on time

Life Insurance is designed to protect an Insured in all the following ways EXCEPT: A. Pay off home mortgage B. Security for family members C. Estate planning D. Provide easily accessible cash if needed

D. Provide easily accessible cash if needed.

When a person becomes disables or develops a disability, the person is often susceptible to additional health issues related to the disability. What provision helps protect the individual who has a disability which is not just a one-time illness? A. Disability Provision B. Disability Occurrence Provision C. Recurrent Illness Provision D. Recurrent Disability Provision

D. Recurrent Disability Provision

Irene has just purchased a life insurance policy through ABC Insurance Company. She was reading her policy to make sure she knew when each payment was due and the amount of each payment due. In what section of her policy would Irene find this information? A. The Insuring Agreement B. The Declarations C. The Conditions D. The Consideration Clause

D. The Consideration Clause

Noncancelable policy law is designed to protect what party in an insurance contract? A. The Insurer B. A Third Party C. The reinsurer D. The Insured

D. The Insured

Is a spouse eligible to be named as an insured on an individual's life insurance policy? A. Yes, the spouse is automatically insured B. No, the spouse would need their own policy C. Yes, through the Spouse Coverage Option D. Yes, if the Other Insured Option Rider is attached

D. Yes, if the Other Insured Option Rider is attached to the

Under the critical illness benefit plan, is there a waiting period before a benefit can be paid out for the disease of cancer? A. No, there is no waiting period B. Yes, 90 days in all states C. No, unless endorsed D. Yes, in all states except for three

D. Yes, in all states except for three

Kristy was recently laid off from the company she worked for over the past twenty years. Kristy was very upset and also worried about her health and life insurance policies. Kristy has always had a Hosptial Indemnity Plan and wished to continue to have one. Can she still carry a Hospital Indemnity Plan even if Kristy is no longer employed? A. No, this plan is only for employed individuals B. Yes, but only for 30 days past her last employment date C. Yes, but only for up to a year past her last employment date D. Yes, this plan is available regardless of a person's employment status

D. Yes, this plan is available regardless of a person's employment status

Under a Preferred Provider Organization (PPO) Plan, is a policyholder required to only see a physician listed on his or her carrier's network of preferred providers? A. Yes, in all cases B. Yes, unless the policyholder pays upfront for an endorsement to his or her health insurance policy. C. No, but the policyholder will have to pay a higher co-pay, deductible or co-insurance amount D. No, under a PPO, the policyholder can see whichever physician he or she chooses

No, but the policyholder will have to pay a higher co-pay, deductible or co-insurance amount