Missed Questions
Which of the following actions is NOT in violation of the Unfair Claims Settlement Practices Act?
Denying an unsubstantiated claim
Concerning group Medical and Dental insurance, which of the following statements is INCORRECT?
Employee benefits are tax deductible the year in which they were received.
In the executive Bonus plan, who is the owner of the policy, and who pays the premium?
Executive is the owner, and the executive pays the premium
Which policy component decreases in decreasing term insurance?
Face amount
All of the following are dividends options except
Fixed-Period Installments
Life Insurance death proceeds are
Generally not taxed as income
As it pertains to group health insurance. COBRA stipulates that
Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense.
What is the minimum renewability standard for long-term care policies issued in this state?
Guaranteed renewable Allong-term care policies or certificates issued in this state must be guaranteed renewable or noncancellable
Which of the following insurance plans do not require an insured to pay a deductible
HMO
Which of the following statements is CORRECT concerning the relationship between Medicare and HMOS?
HMOS may pay for services not covered by Medicare
Which of the following is available to employers of all sizes?
HRAS
An insured has a Modified Endowment Contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true?
He will have to pay a penalty if he is younger than 59 1/2
What are the two types of flexible spending accounts?
Health Care Accounts and Dependent Care Accounts
What are the 2 types of Flexible Spending Accounts?
Health Care Accounts and Dependent Care Accounts There are 2 types of Flexible Spending Accounts: a Health Care Account for out-of-pocket health care expenses, and a Dependent Care Account to help pay for dependent care expenses which make it possible for an employee and his or her spouse, if applicable, to work.
Under the Affordable Care Act. health insurance cannot be underwritten based on which of the following factors about the applicant
Health Conditions
Which of the following is INCORRECT concerning taxation of disability income benefits?
If paid by the individual, the premiums are tax deductible
Issue age policy premiums increase in response to which of the following factors?
Increased benefits
The Medical information Bureau (MIB) was created to protect
Insurance companies from adverse selection by high risk persons.
Which of the following entities has the authority to make changes to a insurance policy
Insurer's executive office
All of the following are nonforfeiture options EXCEPT
Interest only it's a settlement option
The policyowner wants to make sure that upon his death, the life 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 health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary, and reasonable, the extra cost
Is not covered
Which of the folowing best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits. Misrepresentation is issuing. publishing or circulating any illustration or sales material that is false, misleading or deceptive as to policy benefits or terms, the payment of dividends, etc. This includes oral statements.
Which of the following is NOT true regarding the Life with guaranteed minimum annuity settlement option
It does not guarantee that the entire principal amount will be paid out.
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate.
Concerning Medicare Part B, which statement is INCORRECT?
It is fully funded by social security taxes (FICA)
Which of the following is NOT true regarding a Certificate of Authority?
It is issued to group insurance participants
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
Variable Whole Life insurance is based on what type of premium?
Level fixed
Which of the following settlement options in life insurance is known as straight life?
Life Income
In a disability income policy, all of the following are considered presumptive disabilities EXCEPT
Loss of one eye
If a dental plan is integrated, it is combined with what type of plan?
Medical
Which of the following statements is NOT correct regarding Medicare?focc
Medical Advantage must be provided through HMOs
Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is
Monthly
In long-term care insurance, what type of care is provided with intermediate care?
Occasional nursing or rehab care
Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT
Other insurance coverages
Medicare Part A services do NOT include which of the following?
Outpatient Hospital Treatment
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 actually 45 years old, and not 43 as stated on the application What will the company do?
Pay reduced death benefit
Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner?
Payment of Claims
All of the following are characteristics of group life insurance EXCEPT
Premiums are determined by the age, sex and occupation of each individual certificate holder.
Which of the following describes taxation of individual disability income insurance premiums and benefits?
Premiums are not tax deductible, and benefits are not taxable
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single premium policy for a reduced face amount
The regulations regarding replacement apply to which of the following
Renewable term
Which health insurance provision describes the insured's right to cancel coverage?
Renewal Provision
Which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments
Company Y has 20 employees on staff last year. Which of the following terms most precisely labels the compnay's group insurance classification?
Small employer
Which of the following would be considered a nonqualified plan?
Split-Dollar Plan
Which of the following types of insurers is owned by stockholders?
Stock
Which of the following types of annuities will generally provide the highest monthly income
Straight Life
Your client is planning to retire. She has accumulated $100,000 in a retirement annuity, and now wants to select the benefit option which will pay the largest monthly income for the longest period of time. As her agent what should you recommend
Straight Life
Which of the following statements about a suicide clause in a life insurance policy is TRUE
Suicide is excluded for a specific period of years and covered thereafter.
All of the following would be different between qualified and nonqualified retirement plans EXCEPT
Taxation on accumulation
The annual contribution limit of a Dependent Care Flexible Spending Account is set by
The IRS
Who do the agents represent?
The Insurance Company
Which of the following is NOT covered under Plan A in Medigap Insurance
The Medicare Part A deductible
What happens if a non-member physician is utilized under the Point-Of-Service plan?
The attending physician will be paid a fee for service, but the member patient will have to pay a higher coinsurance amount.
The primary beneficiary of her husband's life policy found that no settlement ootion was stated in the policy on the date of her husband's death. Who will select the settlement option in this case?
The beneficiary
Which of the following is NOT a licensing requirement for a corporation of the state of Texas
The business must be able to pay up to $50,000 in the event that it is proven to be negligent.
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?
The capital amount in a lump sum
Which of the following is INCORRECT concerning a noncontributory group plan?
The employees receive individual policies
An agent receives an Emergency Cease and Desist Order for chronically misrepresenting his insurance policies. The agent knows that he did not commit the violations stated in the Emergency Cease and Desist Order, He wants to contest the charges in a court hearing. Which of the following is true?
The hearing must be held within 30 days of receiving a request, unless both parties agree to a later date.
An insured has $500 left in his Health Reimbursement Account when he quit his job. What happens to that money?
The insured can have access to the $500 at his previous employer's discretion
An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?
They are tax deductible
How are employer contributions to Health Reimbursement Accounts treated in regards to taxation?
They are tax deductible
Which of the following is true regarding Medicare supplement policies?
They must be at least guaranteed renewable
What is the purpose of a disclosure statement in life insurance policies?
To explain features and benefits of a proposed policy to the consumer
Social security was created to provide all of the following benefits EXCEPT
Unemployment Income
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%
All of the following benefits are available under social security EXCEPT
Welfare Benefits
All of the following benefits are available under Social Security EXCEPT
Welfare benefits Social Security is an entitlement program, not a welfare program.
Social Security Supplement (SIS) or Social Security Riders would provide for the payment of income benefits in each of the situations below EXCEPT
When the amount payable under Social Security is more than the amount payable under the rider
Upon the submission of a death claim under a life insurance policy, when should the insurer pay the policy benefit?
Within 2 months
How soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company?
Within 90 days or as soon as reasonably possible, but not exceed 1 year
Which of the following is another term for an authorized insurer
admitted
Which of the following best describes a pure life annuity settlement option? a)Benefits are paid for a fixed period of time specified when the policy begins to pay b) Pure life provides payments for as long as both the annuitant and the spouse are living c) Pure life provides payments for as long as the annuitant is alive. d)Pure life guarantees that all the proceeds will be paid out.
c) Pure life provides payments for as long as the annuitant is alive
The term "fixed" in a fixed annuity refers to all of the following EXCEPT
death benefit
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
Who bears all the risk in a fixed annuity?
insurance company
All advertisements are the responsibility of the
insurer
Which of the following statements is NOT true concerning Medicaid?
it consists of 3 parts: Part A: hospitalization, Part B: doctor's services, Part C: disability income
The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as
legal actions
Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
paid up option
An insured committed suicide one year after his life insurance policy was issued. The insurer will
refund the premiums paid
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?
replacement rule
It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability?
sexual orientation
Hospice care is intended for
terminally ill
All of the following statements about Medicare supplement insurance policies are correct EXCEPT
they cover the cost of extended nursing home care
What is the purpose of settlement options?
they determine how death proceeds will be paid
An insured has a $1,000 HRA account through his emolover He incurred $750 in medical exoenses the first wear of the plan. How much, if anything, will the insured be able to roll over toward the next year's expenses?
$250
In all health care plans under the Affordable Care Act (ACA), how many essential benefit categories are there?
10
How many consecutive months of coverage must LTC insurance provide in this state?
12
An insurer must acknowledge receipt of a Notice of Claim within how many days?
15 days
Following hospitalization because of an accident, Bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many days?
20 days
COBRA applies to employers with at least
20 employees
The relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over the last
24 months
Within in how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained
3 days
How long is the grace period in group policies?
31 days
With in how many days must an insured notify the insurer of a child's birth and pay any required fees?
31 days
What percentage of continuing education hours must be in a classroom setting?
50%
How long is an open enrollment period for Medicare supplement policies?
6 months
How soon from the termination of debt under a credit life insurance policy must a creditor provide notice to the insurer?
60 days
In order to maintain coverage under COBRA how soon from termination of employment must an employee exercise extension of benefits
60 days
The commissioner of Insurance issues a Cease and Desist order to an agent. If the agent wishes to contest the charges in court, how many days after the order was issued does the agent have to make the request?
60 days
An agent's license will terminate within how many days from the due date of obligatory fees and continuing education requirements?
90
Most policies will pay the accident death benefits as long as the death is caused by the accident and occurs within
90 days
Under the uniform reauired orovisions proof of loss under a health insurance policy should be filled within
90 days
The benefits for individual disability plans are based on
A flat amount
According to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following nonforfeiture options EXCEPT a) Reduction of premium b) Reduced paid-up c) extended term d) Shortened benefit period
A) reduction of premium
Which of the following statements concerning group health insurance is CORRECT? A. The employer is the policy holder B. Only the employer receives a certificate of insurance C. Each employee receives a policy D. Under group insurance, the insurer may reject certain individuals from coverage
A. The employer is the policy holder
which of the following is NOT covered under a long-term care policy?
Acute care in a hospital
If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following?
Adjust the benefit in accordance with the increased risk
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 insured's age at the time of renewal
How can a new physician be added to the PPO's approved list?
Agree to follow the PPO standards and charge the appropriate fees
All of the following statements about the continuing education requirement in this state are true EXCEPT
All licensed agents must comply by Jan 1 of even-numbered years
All of the following statements about the continuing education requirement in this state are true EXCEPT
All licensed agents must comply by January 1 of even-numbered years
Assuming that all of the following people are covered by a High Deductible Health Plan and are not claimed as dependents on anyone's tax returns, which would NOT be eligible of Health Savings Account?
Amanda is 67 and is covered by a basic medical expense policy
Who can make a fully deductible contribution to a traditional IRA?
An individual not covered by an employer-sponsored plan who has earned income
All of the following are examples of third-party ownership of a life insurance policy EXCEPT
An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan
The death protection of Universal Life is always
Annually Renewable Term
Which of the following is a short-term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated?
Annuity certain
Which of the following statements is CORRECT concerning the relationship between Medicare and HMOs? a) All HMOs and PPOs charge premiums beyond what is paid by Medicare. b) HMOs may pay for services not covered by Medicare, c HMOs do not pay for services covered by Medicare & Medicare Advantage is Medicare provided by an approved HMO only
B. HMOs may pay for services not covered by Medicare,
All of the following are correct regarding credit life insurance EXCEPT
Benefits are paid to the borrowers beneficiary
All of the following are true regarding Key Employee Disability Income Insurance Except
Benefits are taxable to the employer
Which of the following statements regarding Business Overhead Expense policies is NOT true?
Benefits are usually limited to six months
Which of the following is NOT true regarding a annuity certain?
Benefits stop at the annuitants death
According to the provisions of the Patient Protection and Affordable Care Act, all of the following are required preventive care services EXCEPT
Cervical cancer exams for all women starting at age 40
Which of the following provisions states the insurers right to change the premium amounts
Continuation Provision
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