Missed Questions
insurance companies may be classified according to legal form of their ownership. the type of company organized to return any surplus money to their policyholder is
a mutual insurer
according to the life insurance replacement regulations, which of the following would be an example of policy replacement
a policy is reissued with a reduction in cash value
The term "illustration" in a life insurance policy refers to
a presentation of non guaranteed elements of a policy
all of the following are the general qualifications for an agents license except
have a high school diploma
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
a policy will pay the death benefit if the insured dies during the 20-year-premium paying period, and nothing If death occurs after the 20-year-period. what type of policy is this
level term
which of the following settlement options in life insurance is known as straight life
life income
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
life income with period certain
An annuity would normally be purchased by an individual who wants to
provide income for retirement
an insured who has an accident death and dismemberment policy loses her left arm in an accident. what type of benefit will she most likely receive from this policy
the capital amount in a lump sum
Who examines the books and records of insurance companies in Florida?
the chief financial officer
what type of information is not included in a certificate of insurance
the cost of the company is paying for monthly premiums
which of the following dates must be contained in a policy summary
the date the summary was prepared
which of the following is an agreement between an insured and an insurer, where the insurer agrees to indemnify the insured for specific losses in exchange for a premium
the insurance contract
A man works for Company A and his wife works for Company B. The spouses are covered by health plans through their respective companies that also cover the other spouse. If the husband files a claim,
the insurance through his company is primary
Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain
a statement that is sufficiently clear to identify the insured and the nature of the claim
what guarantees that the info explained in the insurance contract is true
a warranty
all of the following statements concerning workers compensation are correct EXCEPT
a worker receives benefits only if the work related injury was not his/her fault
an insured has a primary group health plan and an excess plan, each covering losses up to 10,000. the insured suffered a loss 15,000, disregarding any copayments or deductibles how much will the excess plan pay
5,000
When would a 20-pay whole life policy endow?
When the insured reaches age 100
HMOs that contract with outside physicians to provide health care service to their subscribers compensate those providers on a
capitation basis
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
cash option
In a basic expense policy, after the limits of the basic policy are exhausted, the insured must pay what kind of deductible?
corridor
Bethany studies in England for a semester. While she is there, she is involved in a train accident that leaves her disabled. If Bethany owns a general disability policy, what will be the extent of benefits that she receives?
none
premium payments for personally-owned disability income policies are
not tax deductible
on a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are
not taxable since the IRS treats them as a return of a portion of the premium paid
the dividend option in which the Policyowner uses dividend to purchase a term policy for one year is referred to as the
one-year term option
The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?
reduction of premium
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
the interest earned on policy dividends is
taxable
which is true regarding obtaining underwriting sources
the applicant must be informed of the sources contacted and how the info is being gathered
which of the following is true about the requirements regarding HIV exams?
the applicant musty give prior informed written consent
How will a life insurance beneficiary designation naming a spouse be changed by divorce?
the beneficiary designation will be voided
which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information
the fair credit reporting act
an individual applies for a life policy. two years ago he suffered a head injury from an accident, so he cannot remember parts of his past but is otherwise competent. he has also been hospitalized for drug abuse, but does not remember this when applying for insurance. the insurer issues the policy and learns of his history one year later. what will probably happen
the policy will not be affected
an annuity has accumulated the cash value of $70k of which $30k is from premium payments, the annuitant dies during the accumulation phase. the beneficiary will receive
$70k
L has a major medical policy with a $500 ded and 80/20 coinsurance. L is hospitalized and sustains a $2,500 loss. what is the maximum amount that L will have to pay
$900 (ded + 20% of the bill after the ded)
If a parent would like to enroll a child over the ane of 5 into the Florida Healthy Kids Program, their family income must be under what percentage of the federal proverty level?
200%
who is a third party owner
A policyowner who is not the insured
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
the presumptive disability provision assumes that the insured is totally disabled upon loss of all of the following except
feeling
if an insured is not required to pay a deductible, what kind of coverage does he/she have
first dollar
J is receiving feed amount benefit payments from his late wife's insurance policy. he was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. which settlement option did J choose
fixed amount
who regulates the min standards for coverage in health insurance
florida law
how long must insurers maintain records of the information collected from senior consumers and other information used in making recommendations that were the basis for insurance transactions?
for 5 years after the insurance transaction is completed by the insurer
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
what does the guaranty association guard against
insurer insolvency
During partial withdrawal from a universal life policy, which portion will be taxed?
interest
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 health coverage
a married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. which policy is that
joint life policy
A woman's health insurance policy dictates which doctors she is allowed to see. Her health providers share an assumed risk for their patients and encourage preventative care. What best describes the health system that the woman is using?
managed care
Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is
monthly
Regarding the free-look provision, the insurance company
must allow the Policyowner to return the policy for a full refund
under the fair credit reporting act individuals rejected for insurance due to info contained in a. consumer report
must be informed of the source of the report
which of the following determines the length of time that benefits will be received under the fixed-amount settlement option
size of each installment
traditional IRA contributions are
tax deductible
a man is an attorney when he applies for a health policy. he decides to become a professionalisms bungee jumper. he files a claim. what should happen
the insurance company will pay the claim according to benefits available if the correct premium had been paid
what is the only difference between blanket insurance and group health insurance
the insured members are not named
who does the secondary addressee provision protect
the insured over the age of 64
which of the following is not a typical type of long term coverage
child day care
what is the typical deductible for basic surgical expense insurance
$0
which of the following is not normally an excluded cause of disability in an invidividual disability income policy
complications from pregnancy
Most LTC plans have which of the following features?
guaranteed renewability
which of the following does NOT describe hospice care
it provides care to people with life expectancies of 1 to 2 years
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?
10 days
within how many days after receiving a written communication of replacement must an existing insurer provide a policyowner with a policy summary
10 days
an annuity contract is issued to a senior consumer over age 65. what is the max surrender charge for a withdrawal of money allowed on this annuity
10%
the min, age for purchasing life insurance policy in Florida is
15
An agent has been convicted of a crime punishable by a 1-year imprisonment. Within how many days must the agent notify the department of insurance?
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
what is the statute of limitations on lawsuits for health insurance policies
5 years
A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?
60
assuming that all of the following people are covered by a high deductible health plan and are not claimed as dependents on anyones tax returns which would not be eligiblee for a health savings account
Amanda is 67 and is covered by a basic medical expense policy
the equity in an equity index annuity is linked to
An index like Standard & Poors 500.
what is a foreign insurer
An insurer with a home office in another state
An agent selling variable annuities must be registered with
FINRA
all of the following are dividend options EXCEPT
Fixed period installments
which of the following was designed to ensure continued access to affordable health insurance coverage for employees of small employers, their dependents, and other qualified beneficiaries not currently protected by COBRA
Florida health insurance coverage continuation act
under which of the following organizations are the practicing providers compensated on a fee-for-service basis
PPO
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
SEC registration
two types of assignment
absolute and collateral
HMO contracts may only be sold by a licensed and appointed health insurance agent or a full-time salaried employee or officer of an HMO who devotes most of his or her services to
activities other than soliciting HMO contracts from the public and who receives no commissions or compensation for procuring such contracts
which of the following is NOT covered under a long term care policy
acute care in a hospital
which of the following is true regarding branch agency licensing
agent in charge must be licensed
an insurer who transacts insurance in this state but whose articles of incorporation are registered in Canada is considered what type of insurer
alien
group life policies are usually issued as what type of coverage
annually renewable term
which of the following types of policies would not be subject ton Florida regulations on life insurance solicitation
annuities
The type of policy that can be changed from one that does not accumulate cash value to the one that does, is a
convertible term policy
the term "fixed" in a fixed annuity refers to all of the following EXCEPT
death benefit
a 70 year old who bought a Part B Medicare policy 2 months ago just began kidney dialysis treatments this week. the individual is now applying for a medicare supplement policy, which would begin in 8 months. which of the following could the insurer do to avoid paying for the dialysis
declare a pre-existing condition
which of the following is not a standard exclusion in life insurance policies
disability
which of the following terms is used to name the non taxed return of unused premiums
dividend
Fixed annuities provide all of the following EXCEPT
hedge against inflation
which of the following types of LTC is NOT provided in an institutional setting
home health care
the policyowner wants to make sure that upon his death, 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 policyowner choose
interest only option
in a health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable the extra cost
is not covered
a guaranteed renewable disability insurance policy
is renewable at there insured's option to a specified age
which of the following best describes a misrepresentation
issuing sales material with exaggerated statements about policy benefits
Why is an equity indexed annuity considered to be a fixed annuity?
it has a guaranteed minimum interest rate
all of the following statements concerning medicaid are correct except
medicaid is a state funded program that provides health care to person over age 65 only
An insured purchased a life policy in 2010 and died in 2017. the insurance company discovers at that time that the insured had concealed information during the application process. what can they do
pay the death benefit
what is the difference between a straight life policy and a 20-pay-whole life policy
premium payment period
the guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all fo the following except
purchase of a new home
an insured has endured multiple surgeries and hospitalizations for an illness during the summer months. Her insurer no longer bills her or medical expenses. What term best describes the condition she has met
stop loss limit
which of the following would help prevent a universal life policy from lapsing
target premium
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
the surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive
all of the following are correct about life insurance policy loan interest rate except
there are no restrictions or limitations on policy loan rates
which of the following is TRUE about nonforfeiture values
they are required by state law to be included in the policy
when an inured terminates membership in the insured group, the insured can convert to
whole life without proof of insurability
When do HMOs file reports of their activities to the Department?
within 3 months of the end of each fiscal year
in individual health insurance coverage the insurer must cover a newborn from the moment of birth and if additional premium payment is required how many days should be allowed for payment
within 30 days of birth
Under special circumstances, continuing education requirements may be extended beyond the 2-year period for a maximum period of
12 months
how long must an insurer retain advertisement for its long-term care policies
3 years
when an individual obtains an insurance license for the primary purpose of writing insurance on him or herself or for members of his or her immediate family or business this is called
controlled business
annually renewable term policies provide a level death benefit for a premium that
increases annually
a corp has 41 members. which classification would the employer receive
small grou-p
life insurance creates an immediate estate. which of the following best explains this statement
the face value of the policy is payable to the beneficiary upon the death of the insured
in a survivorship life policy, when does the insurer pay the death benefit
upon the last death
what is the maximum penalty for habitual willful noncompliance with the fair credit reporting act
$2,500
In order for debtor group to qualify for group life insurance what is the minimum number of participants joining the plan each year be?
100
if a person disabled at age 27 and meets social security definition of total disability, how many work credits must he/she have earned to received benefits
12
An agent delivers a life insurance policy to the proposed insured. The insured makes a decision not to accept the policy. The insured may return the policy for a full refund of premium within how many days?
14 days
core benefits are included in all medicare supplemental policies. what percentage of part b coinsurance is required
20%
disability income coverage specifies that the policy covers the insured if he is unable to perform any job for which he is qualified. in this case total disability is defined as
any occupation- more restrictive than other definitions
All of the following qualify for Medicare Part A EXCEPT
anyone who is willing to pay a premium
When must the Medicare Supplement Buyer's Guide be presented?
at the time of application
an applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. this will not be covered by insurance because she has not met the conditions specified in the
consideration clause
If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT
erase the incorrect answer and record the correct answer
when life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is known as
estate conservation
When would a misrepresentation on an insurance application be considered fraud?
if it Is international material
which of the following riders would not increase the premium for a policyowner
impairment rider
which of the following is the primary source of info that an insurer uses to evaluate an insureds risk for life insurance
insurance application
when may an insurer require an insured to provide genetic info
never
if an insured is injured while committing an illegal act and his health policy contains the illegal occupation provision, what percentage of the claim will be paid
nothing
When may HIV-related test results be provided to the MIB?
only if the individual is not identified
which of the following is a daily nursing and rehabilitate care that an only be provided by medical personnel, under the direction of a physician
skilled care
which of the following terms describes the specified the dollar amount beyond which the insured no longer participates in the sharing of expenses
stop loss limit
If a life insurer holds the proceeds of any policy it issues, which of the following is true?
the proceeds may be exempt from any credits claims against a beneficiary other than the policy owner
how many consecutive months of coverage(other than in acute care not of a hospital) must LTC insurance provide in this state
12
in order to maintain an insurance license, an agent will need to satisfy Florida's continuing education requirement of
24 hours of continuing education in every 2 year period
in a disability policy, the probationary period refer to the time
during which an illness-related disabilities are excluded from coverage
the guaranteed purchase option is also referred to as the
future increase option
all of the following are required for HIV testing except
if HIV is present, the person may be rated. but they cannot be declined
under what conditions will proof of insurability not be required of an employee wanting to enroll in a group insurance plan
if the employee enrolls within a certain time period
in which of the following scenarios would a producer be allowed to obtain insurance through an authorized insurer
if there are no authorized insurers for a specific type of coverage in this state
a typical accidental death & dismemberment policy covers all of the following losses except
income
During replacement of life insurance, a replacing insurer must do which of the following?
obtain a list of all life insurance policies that will be replaced
another name for a substandard risk classification is
rated
the federal fair credit reporting act
regulates consumer reports
in the event of a loss, business overhead insurance will pay for
rent
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy
required a premium increase each renewal
An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?
revocable
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 insureds contingent beneficary
which of the following is NOT a feature of a guaranteed renewable provision?
the insurer can increase the policy premium on an individual basis
which of the following is not a feature of a noncancellable policy
the insurer mat terminate the contract only at renewal for certain conditions
An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This indicates that his policy is written with a 30-day
elimination period
an insured cancelable health insurance policy is being cancelled. one day before the policy is scheduled to end, he is involved in a major accident and is hospitalized for a week. which of the following best describes the coverage that he would receive
full benefits, as if the policy were still completely in effect
which of the following is correct regarding the taxation of group medical expense premiums and benefits
premiums are tax deductible and benefits are not taxed
an insured had a heart attack while jogging, but is expected to return to work in approx. 6 weeks. the insureds disability income policy will
replace a percentage of his lost income
an insurance agent X has been found guilty of a felony and was sentenced to 3 years in prison. what would be the appropriate plan of action
send a written notification to the dept of insurance
all of the following are true of a multiple employer trust (MET) except
the employee has a right of conversion upon leaving the group coverage
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 insureds death he chose the life income settlement option. the amount of payments will be determined by taking into account all fo the following except
the insureds age at death
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
according to the common disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed
the primary beneficiary died before the insured
the life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the
incontestability clause
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 statements regarding the change of beneficiaries provision is false
the policywoner has the right to change beneficiaries in any case
An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize?
vatical settlement
which of the following statements about HMOs in Florida is false
HMOs can engage in selling insurance contracts
which statement below is incorrect regarding the type of term insurance that fits best with the applicants needs
applicants who may require a larger death benefit in the future should buy convertible term insurance
social security disability definition includes all of the following except
disability expected to last for at least 6 months
when the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount
equal to the original policy for as long as the cash values will purchase
Underwriting a group health insurance plan that is paid for by the employer requires all of the following EXCEPT
individual members of the group may select the level of benefits for their own coverage
If a retirement plan or annuity is "qualified", this means
it is approved by the IRS
what does the app of contract adhesion mean
since the insured does not participate in preparing the contract any ambiguities would be resolved in favor of the insured
why do health maintenance organizations offer prepaid services
to encourage preventive medicine for individual members
what is the purpose of the impairment rider in a health insurance policy
to exclude coverage for a specific impariment
in life policies issued in this state, insurers are permitted to charge interest during the policy grace period for the number of days elapsing before the premium is paid. what is the max annual interest rate
8%
Most HMOs operate through what type of system?
A group enrollment system either at their place of employment or as a member of an association
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
conditions
the agent in charge of an agency must hold which of the following licenses
general lines
what provision in an insurance policy extends coverage beyond the premium due date
grace period
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
the death benefit can be increased by providing evidence own insurability
which of the following statements is true concerning irrevocable beneficiaries
they can be changed only with the written consent of that beneficiary
all of the following are true regarding the guaranteed insurability rider except
this rider is available to all insureds with no additional premium
which of the following is not required to be states in the outline of coverage provided with a long term care policy
basic info about supplementary policies
How are state Insurance Guaranty Associations funded?
by their members-authorized insurers
agents in this state are required to promptly report all of the following to the Dept except
change in marital status
to be valid, an insurance policy must have all of the following except
countersignature
when filling out an app for insurance, the applicant makes a mistake. if a fresh app were not available, what could the applicant do to properly correct the mistake
cross the incorrect answer out, write the correct one beside it and initial the answer
the uniform provision law that prevents an insurance company from a altering its agreement with a policyholder by referring to documents or other items not contained in the policy is called the
entire contract provision
Under the Payment of Claims provision, to whom will the insureds benefits be paid if the insured is deceased
the insureds primary beneficiary
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
what is the advantage of reinstating a policy instead of applying for a new one
the original age is used for premium determination
which of the following would not be eligible for coverage under key person
the owner of a shop
all of the following are characteristics of group health insurance plans except
the parties that hold a group health insurance contract are the employees and the employer
all of the following are true of key person insurance except
the plan is funded by permanent insurance only
which of the following is required in order for a plan to be qualified
the plan must be formally written and communicated to the employees
which of the following best defines the "owner" as it pertains to life settlement contracts
the policyowner of the life insurance policy
an individual purchased a medicare supplement policy in march and decided to replace it 2 months later. his history of coronary artery disease is considered a pre-existing condition. which of the following is true
the pre-existing condition waiting period fulfilled in the old policy will be transferred to the new policy the new one picking up where the old one left off
all of the following are true of the survivorship life policy except
the premium is based non the age of each insured
which is true about a spouse term ider
the rider is usually level term insurance
what is the max age that a disabled insured worker may receive social security disability benefits
65
how does a member of an HMO see a specialist
The primary care physician refers the member
Which nonforfeiture option has the highest amount of insurance protection?
extended term
which of the following is correct regarding business overhead expense insurance
premiums are tax deductible
all of the following long-term care coverages would allow an insured to receive care at home except
skilled care
a provision found in insurance policies which prevents the insured from collecting twice for the same loss is called
subrogation
which of the following is incorrect regarding the definition of total disability
total disability is the inability to perform partial duties of any occupation for which a person is suited by reason of education, training or experince
which of the following is INCORRECT concerning medicaid?
it is solely a federally administered program
which statement is NOT true regarding a policy summary
it must be combined with a sales illustration
Every insurer marketing Long-Term Care insurance must establish marketing procedures to ensure all of the following EXCEPT
ltc policies are marketed effectively to prospective insureds
THe full premium was submitted with the app for life insurance, and the policy was issued two weeks later as requested. When does coverage become effective?
as of the application date
To comply with Fair Credit Reporting Act, when must a producer notify an applicant that a credit report may be requested?
at the time of application
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
it is reduced to the amount of what the cash value would buy as a single premium
insureds have the right to do which of the following if they have not received their proper claim forms within 15 days of their notice to the insurer of a covered loss under a major medical policy
submit the description in their own words on a plain sheet of paper
if a basic medical insurance plans benefits are exhausted, what type of plan will then begin covering those losses
supplementary major medical
which of the following, when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members
term rider
which statement is NOT true regarding underwriting group health insurance
the group is assessed individually for insurability
Who chooses a primary care physician in an HMO plan?
the individual member
when an insurer issues an individual health insurance policy that is guaranteed renewable the insurer agrees
to renew the policy until the insured has reached age 65
the Florida health insurance coverage continuation act requires that sell health plans to small employers to offer in those plans a right to elect to continue coverage, without providing evidence of insurability, to employees who lose their coverage and are unable to replace it. the premium rate for this coverage may not exceed
115% of the regular group rate
all of the following are correct about the required provisions of a health insurance policy except
a reinstated policy provides immediate coverage for an illness
Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?
attending physician
what document describes an insureds medical history, including diagnoses and treatments
attending physicians statement
the automatic premium loan provision is activated at the end of the
grace period
what kind of policy does not typically require proof of insurability
group insurance
in the event of loss, after a notice of claim is submitted to the insurer, who is responsible for providing claims forms and to which party
insurer to the insured
The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the
insuring clause
In a group health policy, a probationary period is intended for people
join the group after the effective date
a married couple owns a permanent life policy which covers both of their lives and pays the death benefit only upon the death own the first insured. which policy is that?
joint life policy
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
level term
Which two terms are associated directly with the way an annuity is funded?
single payment of periodic payments
Who bears all of the investment risk in a fixed annuity?
the insurance company
all of the following are true regarding the convertibility option under a term life insurance policy EXCEPT
upon conversion the death benefit of the permanent policy will be reduced by 50%
a medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as
usual, customary and reasonable
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
waiver of premium
can an individual who belongs to a POS plan use an out-of-network physician
yes, and they may use any preferred physician, even if not part of the HMO
which of the following riders would not cause the death benefit to increase
payor benefit rider
which option for universal life allows the beneficiary to collect both the death benefit and cash value upon the death benefit of the insured?
option B
An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued?
adjust the claim benefit to reflect the insured's true age
Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be
adjusted to the insureds age at the time of renewal
which type of life insurance policy generates immediate cash value
single premium
Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to
the insured
a 40-year old man buys a whole life policy and names his wife as his only beneficiary. his wife dies 10 years later. he never remarries and dies at age 61, leaving 2 grown-up children. assuming he never changed the beneficiary, the policy proceeds will go to
the insured's estate