Missed

#16. Certain conditions, such as dismemberment or total and permanent blindness, will automatically qualify the insured for full disability benefits. Which disability policy provision does this describe? a) Presumptive disability b) Dismemberment disability c) Partial disability d) Residual disability

A

#19. An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called a) Paid-up additions. b) One-year term purchase. c) Accumulation at interest. d) Reduction of premiums.

A

#20. An employee becomes insured under a PPO plan provided by his employer. If the insured decides to go to a physician who is not a PPO provider, which of the following will happen? a) The PPO will pay reduced benefits. b) The PPO will not pay any benefits at all. c) The insured will be required to pay a higher deductible. d) The PPO will pay the same benefits as if the insured had seen a PPO physician.

A

#3. A hospital indemnity policy will pay a) A benefit for each day the insured is in a hospital. b) Income lost while the insured is in the hospital. c) All expenses incurred by the stay in the hospital. d) Any expenses incurred by the stay in the hospital, minus coinsurance payments and deductibles.

A

#31. If an employee terminates her employment, which of the following provisions would allow her to continue health coverage under an individual policy, if requested within 31 days? a) Conversion b) Replacement c) Grace period d) Renewability

A

#37. Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within a) 90 days of a loss. b) 20 days of a loss. c) 30 days of a loss. d) 60 days of a loss.

A

#46. Which of the following statements is NOT correct regarding Medicare? a) Medicare Advantage must be provided through HMOs. b) Medicare Advantage may include prescription drug coverage at no cost c) Medicare Part A provides hospital care. d) Medicare Part B provides physician services.

A

#53. 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 a) For 20 years or until death, whichever occurs first. b) Until the policyowner reaches age 65. c) For at least 20 years. d) Until the policyowner's age 100, when the policy matures.

A

#62. An insurer is attempting to determine the insurability of an applicant and decides to obtain medical information from several different sources. Which entity must be notified of the investigation? a) The applicant b) The Commissioner of Insurance c) The medical examiner d) The State Department of Insurance

A

#65. Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled? a) Disability Buy-Sell b) Proprietary Transfer c) Absolute assignment d) Transfer of Ownership

A

#78. Which of the following is an example of a limited-pay life policy? a) Life Paid-up at Age 65 b) Renewable Term to Age 70 c) Level Term Life d) Straight Life

A

#86. All of the following are true of key person insurance EXCEPT a) The plan is funded by permanent insurance only. b) There is no limitation on the number of key employee plans in force at any one time. c) The employer is the owner, payor and beneficiary of the policy. d) The key employee is the insured.

A

#96. Which of the following is NOT a feature of a noncancellable policy? a) The insurer may terminate the contract only at renewal for certain conditions. b) The premiums cannot be increased beyond the amount stated in the policy. c) The guarantee to renew coverage usually applies until the insured reaches certain age. d) The insured has the right to renew the policy for the life of the contract.

A

#14. An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident, and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do? a) Pay the full death benefit and refund excess premium b) Pay a reduced death benefit c) Pay the full death benefit d) Pay nothing; there was a misrepresentation on the application

B

#21. What is the purpose of a disclosure statement in life insurance policies? a) To protect agents and insurers against lawsuits b) To explain features and benefits of a proposed policy to the consumer c) To obtain important underwriting information from the applicant d) To help consumers compare policy prices

B

#33. What characteristic makes whole life permanent protection? a) Living benefits b) Coverage until death or age 100 c) Guaranteed death benefit d) Guaranteed level premium

B

#44. Which of the following would provide an underwriter with information concerning an applicant's health history? a) The inspection report b) The Medical Information Bureau c) A medical examination d) The agent's report

B

#45. Upon policy delivery, the producer may be required to obtain any of the following EXCEPT a) Delivery receipt. b) Signed waiver of premium. c) Statement of good health. d) Payment of premium.

B

#54. In a group health policy, a probationary period is intended for people who a) Want lower premiums. b) Join the group after the effective date. c) Have a pre-existing condition at the time they join the group. d) Have additional coverage through a spouse.

B

#57. 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 a) Proof of loss. b) Legal actions. c) Time limit on certain defenses. d) Payment of claims.

B

#59. A policyowner has a health insurance policy with his wife listed as the primary beneficiary. He would like to change the primary beneficiary to his sister. Which of the following is true? a) The policyowner will have to cancel this policy and apply for a new one with a new primary beneficiary. b) Unless the policy designated the current beneficiary as irrevocable, the policyowner can make the change at any time. c) The policyowner can only change the primary beneficiary with the current beneficiary's consent. d) The beneficiary may only be changed if a court deems the change acceptable.

B

#69. Most LTC plans have which of the following features? a) Open enrollment b) Guaranteed renewability c) No elimination period d) Variable premiums

B

#85. All of the following apply to short-term disability plans EXCEPT a) A benefit period of 26 weeks is most common for group plans. b) Both group and individual plans are renewable. c) Group plans can provide benefit periods of up to 52 weeks. d) Individual plans can provide benefit periods of up to 2 years. Short-term disability plans are not renewable.

B

#12. The annuitant dies while the annuity is still in the accumulation stage. Which of the following is TRUE? a) The insurance company will retain the cash value and pay back the premiums to the owner's estate. b) The money will continue to grow tax-deferred until the liquidation period, and then will be paid to the beneficiary. c) The beneficiary will receive the greater of the money paid into the annuity or the cash value. d) The owner's estate will receive the money paid into the annuity.

C

#2. Which of the following is CORRECT regarding Business Overhead Expense insurance? a) Benefits received are taxable income to the employee. b) Premiums are not tax deductible. c) Premiums are tax deductible. d) Benefits received are received tax free.

C

#22. All of the following are personal uses of life insurance EXCEPT a) Estate creation. b) Cash accumulation. c) Buy-sell agreement. d) Survivor protection.

C

#27. What is the benefit of choosing extended term as a nonforfeiture option? a) It allows for coverage to continue beyond maturity date. b) It can be converted to a fixed annuity. c) It has the highest amount of insurance protection. d) It matures at age 100.

C

#34. An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point? a) Approved the application b) Issued the policy c) Neither approved the application nor issued the policy d) Both approved the application and issued the policy

C

#36. The premiums paid by the employer in a business life insurance policy are a) Always taxable to the employee. b) Never taxable to the employee. c) Tax deductible by the employer. d) Tax deductible by the employee.

C

#41. If more than one family member covered under the same major medical policy is injured in the same accident, the family only has to pay one deductible. This is due to the a) Carry-over provision. b) Elimination period. c) Common accident provision. d) Integrated deductible

C

#48. What is a material misrepresentation? a) Any misstatement by the producer b) Concealment c) A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company d) Any misstatement made by an applicant for insurance

C

#49. Which of the following is NOT a feature of a guaranteed renewable provision? a) Coverage is not renewable beyond the insured's age 65. b) The insured's benefits cannot be reduced. c) The insurer can increase the policy premium on an individual basis. d) The insured has a unilateral right to renew the policy for the life of the contract.

C

#50. What happens when a policy is surrendered for its cash value? a) The policy can be reinstated by paying back all policy loans and premiums. b) The policy can be converted to term coverage. c) Coverage ends and the policy cannot be reinstated. d) Coverage ends but the policy can be reinstated at any time.

C

#56. The provision that provides for the sharing of expenses between the insured and the insurance company is a) Deductible. b) Divided cost. c) Coinsurance. d) Stop-loss.

C

#58. Which is NOT true about beneficiary designations? a) The policy does not have to have a beneficiary named in order to be valid. b) Trusts can be valid beneficiaries. c) The beneficiary must have insurable interest in the insured. d) The beneficiary may be a natural person.

C

#60. All of the following statements concerning Medicaid are correct EXCEPT a) Individuals claiming benefits must prove they do not have the ability or means to pay for their own medical care. b) Persons, at least 65 years of age, who are blind or disabled and financially unable to pay, may qualify for Medicaid Nursing Home Benefits. c) Medicaid is a state funded program that provides health care to persons over age 65, only. d) Individual states design and administer the Medicaid program under broad guidelines established by the federal government

C

#70. Why is an equity indexed annuity considered to be a fixed annuity? a) It has a fixed rate of return. b) It is not tied to an index like the S&P 500. c) It has a guaranteed minimum interest rate. d) It has modest investment potential

C

#72. A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as a) Survivorship insurance. b) Juvenile protection provision. c) Survivor protection. d) Life planning

C

#89. For a retirement plan to be qualified, it must be designed for the benefit of a) Employer. b) IRS. c) Employees. d) Key employee.

C

#91. Which of the following information will be stated in the consideration clause of a life insurance policy? a) The time period allowed for the payment of premium b) The conditions for insurability c) The amount of premium payment d) The parties to the contract

C

#98. An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy? a) The capital amount in monthly installments b) The principal amount in monthly installments c) The capital amount in a lump sum d) The principal amount in a lump sum

C

#32. How soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company? a) As soon as possible b) Within 20 days c) Within 60 days d) Within 90 days or as soon as reasonably possible, but not to exceed 1 year

D

#39. The insurance policy, together with the policy application and any added riders form what is known as a(n) a) Certificate of coverage. b) Contract of adhesion. c) Blanket policy. d) Entire contract.

D

#40. The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called a) Fixed period. b) Fixed amount. c) Joint life. d) Joint and survivor. A joint and survivor option pays while either beneficiary is still living.

D

#6. Which of the following is NOT an exclusion in medical expense insurance policies? a) Military duty b) Self-inflicted injuries c) Routine dental care d) Coverage for dependents

D

#61. Most agents try to collect the initial premium for submission with the application. When an agent collects the initial premium from the applicant, the agent should issue the applicant a a) Statement of good health. b) Backdated receipt. c) Warranty. d) Premium receipt.

D

#63. For group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense? a) 50% b) 60% c) 90% d) 100%

D

#64. Methods used to pay the death benefits to a beneficiary upon the insured's death are called a) Designation options. b) Beneficiary provisions. c) Death benefit options. d) Settlement options.

D

#73. Which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home? a) Accidental death b) Guaranteed insurability c) Payor benefit d) Long-term care

D

#76. All of the following are correct about the required provisions of a health insurance policy EXCEPT a) Proof-of-loss forms must be sent to the insured within 15 days of notice of claim. b) A grace period of 31 days is found in an annual pay policy. c) The entire contract clause means the signed application, policy, endorsements, and attachments constitute the entire contract. d) A reinstated policy provides immediate coverage for an illness.

D

#79. A waiver of premium provision may be included with which kind of health insurance policy? a) Basic medical b) Hospital indemnity c) Dread disease d) Disability income

D

#87. Which is true about a spouse term rider? a) Coverage is allowed for an unlimited time. b) The rider is decreasing term insurance. c) Coverage is allowed up to age 75. d) The rider is usually level term insurance.

D

#93. The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT a) The beneficiary's life expectancy. b) Projected interest rates. c) Face amount of the policy. d) The insured's age at death.

D

#97. If a business wants to buy a disability income policy on a key employee, which of the following is considered the beneficiary? a) The insurer b) The employee c) The producer d) The employer

D