missed questions pt 2
a producer may act as a consult if he/she
meets the compensation disclosure requirements
a producer may act as a consultant if he
meets the compensation disclosure requirements
insureds have the right to do which of the following if they have NOT received the 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
all of the following are true of the survivorship life policy except
the premium is based on the age of the insured
which of the following statements is not true
a licensed consultant may hold a producer's license
what do life insurance replacement (rule 16.1), advertising (rule 13) and solicitation (rule 24) rules all have in common
they are disclosure rules
what term is used for insurance companies that has a certificate of authority to transact insurance
admitted
conrad receives $50k from a $100k accidental death and dismemberment policy as a result of the loss of his left arm in an accident. conrad has received the
capital amount
a new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home, should he die before the mortgage was paid. the most inexpensive type of policy that would accomplish this need would be
decreasing term
which of the following statements describes one of the reasons indiv purchase life insurance
it creates an immediate estate
how many days from the delivery of a life insurance policy does an insured have to return the policy for a full refund
10 days
which of the following statements is not true regarding health insurance policy provisions?
all additional provisions written by insurers are cataloged by their respective status
a whole life policy is surrendered for a reduced paid-up policy. the cash value in this new policy will
continue to increase
what does an annuity protect the annuitant against
living longer than expected
hmos are known as what type of plans
service
if an individual willfully violates provisions of the fair credit reporting act, what is the max civil penalty
$2,500
a medicare supplement policy must have a free-look period of at least
30 days
what is the required free-look period for a viatical settlement
30 days from the contract execution
as the chief executive and administrative officer of the insurance department, what authority is the commissioner given
enforcing laws
what would the insurance company do if an insured under a whole life policy with an accidental death rider intentionally kills himself a couple of months after purchasing the policy
deny the death benefit, but refund the premium
all of the following health insurance disability benefits are income tax free except
employer-paid group disability
which of the following is not mandatory under the uniform provisions law as applied to accident and death policies
probationary period
what type of life policy does NOT typically require proof of insurability
group
a viatical settlement is a transaction outside the life insurance company where the owner sells the life insurance policy for w of the following
a percentage of the face amount of the policy
When may HIV-related test results be provided to the MIB?
only if the individual is not identified
Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain
within 20 days
which of the following statements is not true regarding life insurance provisions
an insurer may set an interest rate on a loan at its own discretion
when an insured reinstated his major medical policy, he was involved in an accident that required hospitalization. when would the accident be covered upon reinstatement of the policy
immediately
which of the following best defines the unfair trade practice of rebating
offering an inducement of something of value not specified in the policy
which statement best describes agreement as it relates to insurance contracts
one party accepts the exact terms of the other party's offer
all of the following are true of annually renewable term insurance except
proof of insurability must be provided at each renewal
An annuity would normally be purchased by an individual who wants to
provide income for retirement
which of the following is a provision found in life insurance policies
reinstatement
according to the life insurance solicitation rule 24, what would be defined as cost?
the difference between what the insured pays and what he gets in return
all of the following are advantages of a qualified retirement plan except
the income at retirement is tax free
With Adjustable Life, the owner can change all of the following EXCEPT
the insured
all of the following are gen requirements of a qualified plan except
the plan must be temporary
which of the following statements is true regarding advertisement of the fact that the insurance guaranty association would assure payments of benefits in the event of insurer insolvency
it is illegal to mention the association in advertisements
a temporary insurance producer license
may be issued to the surviving spouse of a deceased producer
a temporary insurance producer's license
may be issued to the surviving spouse of a deceased producer
which of the following would not be considered a limited coverage policy
major medical expense insurance
a person receives his medicare supplement policy and is not satisfied with the provisions. he can return the policy for a full premium refund if he does so within how many days
30
an IRA contribution can be made from w of the following
cash
an employee is insured by a group major medical plan that is provided through her employer. the employer contributes 75% of the premium and the employee contributes 25%. if the insured received a benefit from the policy in the amount of 1k how much of the benefit will be taxed as income
$0
all of the following are true regarding continuing education (CE) requirements in indiana except
a producer must complete ce hours for each line of authority
which of the following statements isn't true regarding health insurance policy provisions?
all additional provisions written by insurers are categorized by their respective status
which statement below is incorrect regarding the type of term insurance that fits best with the applicant's needs
applicants who may require a larger death benefit in the future should buy convertible term insurance
what is the purpose of the gatekeeper in an HMO
controlling costs
all of the following are changes in health insurance plans introduced by the PPACA except
full cost coverage for all medical expenses
which of the following is not correct concerning taxation of disability income benefits
if paid by the individual, the premiums are tax deductible
which of the following is not true regarding a deferred annuity
income payments begin within 1 year from the date of purchase
guaranteeing future dividends is considered to be an unfair or deceptive act known as
misrepresentations
what is a specific requirement regarding the # of employees in a SIMPLE plan
no more than 100 employees
cash value guarantees in a whole life policy are called
nonforfeiture values
policies written on a 3rd party ownership basis are usually written to cover w of the following
policyowner's minor children or business associates
the guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following except
purchase of a new home
an insured wants to cancel her health insurance policy. which portion of the contract would explain cancellation rights
renewability provision
all of the following are true regarding the federal fair credit reporting act except
reports may be sent to anyone who requests one
which of the following statements regarding HIV testing isn't true
test results must be sent to the dept of insurance
which of the following is true regarding examination of foreign companies by the commissioner
the commissioner may accept a company examination report from the dept of insurance at the company's state of domicile
An insured has a life insurance policy in the amount of $250k naming his wife as beneficiary. upon death, his beneficiary decides not to receive the death benefit for some time. when she finally receives it the amount of $250,530. is any portion of the proceeds that the beneficiary receives taxable
yes, proceeds in excess of face amt are taxable as interest
decreasing term insurance is often used to
cover a mortgage
a major medical expense policy would exclude coverage for all of the following treatments except
drug addictions
considering the principles of liquidity, how would the policyowner use today's cash value in a life insurance policy
use it for emergency expenses
an employee that becomes ineligible for group coverage because of termination of employment or change in status, must exercise extension of benefits under COBRA
within 60 days
J is receiving fixed 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
if a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedures
prior to performance of the test
who is the annuity owner
the person who purchases the annuity
which of the following individuals may act as a producer w/o a license
an insurance company president who is solely responsible for the administration of the company
in addition to participation requirements, how does an insurer guard against adverse selection when underwriting group health?
by requiring that the insurance be incidental to the group
if the policy summary for a life insurance policy is not given when the application is taken, when must the policy summary be given to the policyowner?
when the policy is delivered
When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?
paid-up addition
a core medicaid supplement policy (plan a) will cover all of the following expenses except
part a deductible
an annuity would normally be purchased by an individual who wants to
provide income for retirement
which of the following individuals would be a likely candidate to purchase a deferred annuity
someone who wants to grow retirement funds tax deferred
all of the following could qualify as a group for the purpose of purchasing group health insurance except
an association of 35 people
which of the following would not trigger the payment of accelerated death benefits
being permanently institutionalized
what is the purpose of a benefit schedule
To state what and how much is covered in the plan
an insured needs ongoing treatment for a diabetic condition. under ppaca which of the following is correct
the condition must be covered under the insured's plan
which of the following best describes a presumptive disability
one that is severe enough that the insured automatically qualifies for full disability benefits
a married couple purchases a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death/disability. which policy rider should their agent recommend
payor benefit
when an agent delivered an insurance policy to the insured, he collected the initial premium, as well as a document verifying that the insured has not had any injuries or illness since the app date. what is this document called?
statement of good health
an insured has an individual disability income policy with a 30-day elimination period. he becomes disabled june 1st for 15 days when will he collect income payments
he won't collect anything
which of the following statements is false
the insurer does not have the right to conduct an autopsy
all of the following are characteristics of group health plans except
the parties that hold a group health insurance contract are the employees and the employer
which of the following is true regarding consultation of foreign companies by the commissioner
the commissioner may accept a company's examination report from the dept of insurance of the company's state of domicile
an agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, charge or surrender a life insurance policy or annuity has committed an illegal act called
twisting
which of the following is not true regarding the requirements for resident producers in indiana
a licensed resident producer in good standing in another state may also be a resident producer in indiana
Chris, who is unlicensed, works part-time in her father's insurance agency. She may perform all of the following activities EXCEPT
collect premium for in-force policies and explain coverages to clients that have existing policies written by her father
an insurance agent visits a potential client and explains various types of policies. the customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. which term describes what the agent has done
misrepresentation
the guaranteed purchase option is also referred to as the
future increase option
the guaranteed purchase option is often referred to as the
future increase option
which of the following is the primary source of info that an insurer uses to evaluate an insured's risk for life insurance
insurance application
an ex of an alien insurer doing business in this state is one formed under the laws of mexico
mexico
when a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?
extended term
if a basic medical insurance plan's benefits are exhausted, what type of plan will then begin covering those losses?
supplementary major medical
when term insurance is added to the main policy to enhance the policy/provide added benefits or coverage it is called a
term rider
which of the following is true regarding taxation of accelerated benefits paid under a life insurance policy
they are received tax free
when a whole life policy is surrendered for its nonforfeiture value, what is the automatic option
extended term
all of the following are features of catastrophic plans except
high premiums
which of the following is NOT true regarding a producer's appointment and termination
insurance producers may not act as agents of an insurer w/o an appointment
all of the following must sign an application for health insurance except
insurer
what is the purpose of impairment rider in. a health insurance policy
to exclude coverage for a specific impairment
the provision that sets forth the basic agreement between the insurer and the insured and states the insurer's promise to pay the death benefit upon the insured's death is called the
insuring clause
A husband and wife both incur expenses that are attributed to a single major medical insurance deductible. Which type of policy do they have?
family
a viatical settlement is a transaction outside the life insurance company where the owner sells the life insurance policy for w of the following?
a percentage of the face amount of the policy
which of the following is a correct statement about annuities
fixed annuities do not provide protection against inflation
An IRA owner who is 57 years old want to make a withdrawal form her traditional IRA. What penalty will be imposed
10%