nm exam

Certificate of authority

A France-based insurer would like to do business in Louisiana. What document must it first receive?

June 2012

A Louisiana insurance company ran an advertisement in June 2008. When could the company discard the file on this advertisement?

$1000

A producer didn't realize that he had committed an act in violation of the Insurance Code. How much would he probably be penalized?

After the revocation period

A producer's license has been revoked a second time for violating the Insurance Code. When can the producer apply for a new license?

The premiums are invested in the insurer's general account

All of the following are true about variable products EXCEPT

The payable premium amount steadily declines throughout the duration of the contract

All of the following are true regarding a decreasing term policy EXCEPT

It is a life contingency option

All of the following are true regarding installments of a fixed period annuity settlement option EXCEPT

65

At what age may an individual make withdrawals from an HSA for nonhealth purposes without being penalized?

Presumptive disability

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?

Within 90 days or as soon as reasonably possible, but not to exceed 1 year

How soon following the occurrance of a covered loss must an insured submit written proof of such loss to the insurance company?

Master policy

In group insurance, what is the policy called?

Conservative investments like bonds

In reference to fixed annuities, what comprises most of a life insurance company's general account?

Expense loading

Insurer X charges the premium from its insured customers, passing on operating expenses for the company. The operating expenses plus the premium equals the "gross" premium. What is another name for the operating costs for Insurer X?

Medicare Part C

Medicare Advantage is also known as

That cash value will not be lost

Nonforfeiture values guarantee which of the following for the policy owner?

The cause of the loss insured against

Peril is most easily defined as

Ability to perform ADLs

The gatekeepers provision determines eligibility for benefits based upon

the method of premium payment

The insuring clause of a disability policy usually states all of the following EXCEPT

To purchase a smaller amount of the same type of insurance as the original policy

The paid-up addition option uses the dividend

Promote the public welfare

The purpose of insurance regulation is to

The state

The regulation of of the insurance industry primarily rests with

Respond to the consumer's complaint

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must

Must be informed of the source of the report

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

Level fixed

Variable Life insurance is based on what kind of premiums?

Face amount

What does the term "level" refer to in level term insurance?

20%

What is a penalty tax for nonqualified distributions from a health savings account?

0%

What percentage of individually-owned disability income benefits is taxable?

Immediate

What type of annuity can be purchased with a single premium and provides benefit payments immediately?

They can be changed only with the written consent of that beneficiary

Which of the following statements is most correct concerning the changing of an irrevocable beneficiary?

The are temporary insuring agreements

Which of the following statements regarding conditional receipts is true?

Beneficiaries are not identified by name

which of the following is TRUE about a class designation?

business overhead expense policy

A small hardware store owner is involved in a car accident that renders him totally disabled for half a year. Which type of insurance would help him pay for expenses of the company during the time of his disability?

MIB reports are based upon info supplied by doctors and hospitals

All of the following are true regarding the Medical Information Bureau (MIB) EXCEPT

MEWAs are groups of at least 3 employers

All of the following describe MEWAs EXCEPT?

It is a contingency option

All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT

The policy is owned by the company

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction

All of the following violations may result in an agent's imprisonment EXCEPT?

The insurer will issue a conditional coverage

An applicant is considered high-risk, but not so much that the insurer wants to deny coverage. Which of the following is NOT true?

The insured may choose to convert to term or permanent individual coverage

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following is INCORRECT?

The insurer will pay the full death benefit from the group policy to the beneficiary

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

the date of the medical exam

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?

guaranteed insurability option

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Fraud

An insurance company assures its new policy holders that their premium costs will not increase for a period of at least 5 years. However, due to increasing financial strain, they plan to raise the premium costs for all insureds by 10% over the next 2 years. What term best describes this act?

No coverage will apply, since the injury could have been forseen

An insured is covered by a disability income policy that contains an accidental means clause. The insured exits a bus by jumping down the steps and breaks an ankle. What coverage will apply?

Coat-containment

An insured is receiving hospice care. His insurer will pay for painkillers but not for an operation to reduce the size of the tumor. What term best fits this arrangement?

Aleatory

An insured pays $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?

Pay the full benefit

An insured purchases a health policy in 2000 and submits a claim in 2005. The insurance company discovers at that time that the insured misstated the info about his health condition. What will the insurer most likely do?

Present the insured with a Disclosure Authorization Notice

An insurer wants to obtain info from investigators regarding an applicant for insurance. What must the insurer do in order to legally acquire this info?

Increase annually

Annually renewable term policies provide a level benefit for a premium that

Amanda is 67 and is covered by a basic medical expense policy

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 for a Health Savings Account?

predicted needs of the family after the insured's death

Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?

seek higher returns

equity index annuities

6 months

how long is an open enrollment period for Medicare supplement policies?

Elected by the voters of the State for a period of 4 years

in Louisiana, the Commissioner of Insurance is

Without receiving written consent from an insurance regulatory authority

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce

100

For how many days of skilled nursing facility care will medicare pay benefits?

3 years

How long must an insurer retain an advertisement for its long-term care policies?

Reasonable expectations

If a court ordered payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept?

Jumping Juvenile policy

If a life insurance policy increased significantly in face amount(death benefit) when the insured reaches a certain age, what type of policy is this?

8am

If a telemarketer wants to make an unsolicited sales call to a potential customer, what is the earliest time the telemarketer can call the prospect's residence?

An unfair trade practice

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

0%

If an insured receives accelerated death benefits, what is the least amount of the original death benefit that the beneficiary would receive after the insured's death?

Cease and desist order

If the Commissioner believes that a producer may be in violation of an insurance law or regulation, what may be issued?

no tax

In an individual long-term care insurance plan, the insured is able to deduct the premiums from taxes. What income taxation will be imposed on the benefits received?

Any occupation

In disability income insurance, if an insured is considered disabled if they cannot perform any job they are suited for by prior education, training or experience, they fall under which definition of total disability?

Promptly forwarding premiums to the insurance company

Pertaining to insurance, what is the definition of a fiduciary responsibility?

She can appear in the advertisement under the condition that her connection to the company is disclosed

The human resources director of an insurance company loves the policy she has with the company. She's personable, and the company wants to use her in a new advertisement. Which of the following statements pertaining to this scenario is true?

It allows employers with low claims experience to get lower premiums

What is the benefit of experience rating?

Conditionally renewable

What is the contract provision that allows the insurer to nonrenew health coverage if certain events occur?

To protect the public

What is the main justification for the existence of the State Insurance Department?

3

What is the minimum required number of continuing education credits in ethics every licensing period?

cancellable

What type of policy allows the insurance company to cancel a policy at any time?

Equal to the original policy for as long a period of time that the cash values will purchase

When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount

Executive Bonus

When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n)

Transfer

When an individual purchases insurance, what risk management technique is he or she practicing?

Conditional

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is

Reduced paid-up

Which nonforfeiture option provides coverage for the longest period of time?

Universal life

Which of the following Life Insurance policies would be considered interest sensitive?

Payor benefit

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

It permits the insured to return the policy for a full refund of premiums paid

Which of the following applies to the 10-day free-look priviledge?

Only the annuity owner

Which of the following can surrender a deferred annuity contract?

buy-sell agreements are normally funded with a life insurance policy

Which of the following concerning buy-sell agreements is true?

Notice Regarding Replacement

Which of the following documents must be provided to the policy owner or applicant during policy replacement?

Insurance Guaranteed Association

Which of the following entities protects policyowners, insureds, and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment?

The benefit can be up to 50% of one's yearly income

Which of the following is NOT a characteristic of a group long-term disability plan?

Reimbursement

Which of the following is NOT provided by an HMO?

To provide immediate coverage to new employees who have been previously covered for 18 months

Which of the following is NOT the purpose of HIPAA?

coverage for catastrophic medical expenses

Which of the following is NOT true of basic medical expense plans?

Life Paid-up at Age 65

Which of the following is an example of a limited-pay life policy?

The trust that a client places in the producer in regard to handling premiums

Which of the following is an example of of a producer's fiduciary duty?

Driving recklessly

Which of the following is considered a morale hazard?

Loss of two limbs

Which of the following is considered a presumptive disability under a disability income policy?

To create an estate

Which of the following is the best reason to purchase life insurance rather than annuities?

20% of covered charges above the deductable

Which of the following must the patient pay under Medicare Part B?

A producer licensed 4 years ago who holds only one line of authority

Which of the following producers will be required to complete continuing education hours to renew his license?

Continuation provision

Which of the following provisions must be included on the first page of a Medicare supplement policy, which states the insurer's right to change premium amounts?

Consumer report

Which of the following reports will provide the underwriter with the info about an insurance applicant's credit?

Impairment rider

Which of the following riders would NOT increase the premium for a policyowner?

Medicare Advantage must be provided through HMOs

Which of the following statements is NOT correct?

October 31, 2014

A producer was originally licensed on April 1, 2001. The producer's birthday is October 17th. the producer last renewed her license in 2012. By what date must the producer renew her license again?