questions1

Rebating

An insurance agency is running a promotion offering any purchaser of insurance two tickets to a basketball game upon payment of the annual premium. This promotion constitutes

30 days

An insured pays a monthly premium of $100 for health insurance. What would be the duration of the grace period under the policy?

Disability insurance can be written as occupational or nonoccupational.

Of the following choices, which of the statements about occupational versus nonoccupational coverage is true?

50 or more

One of the differences between group underwriting and individual underwriting is that there is little or no medical information required regarding plan participants in groups of

Making derogatory oral statements about another in suer's financial condition

Which of the following nest describes an unfair trade practice of defamation?

Buy-sell agreements are normally funded with a life insurance policy.

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

Dividend

Which of the following terms is used to name the non-taxed return of unused premium?

Decreasing term

Which of the following types of insurance policies is most commonly used in credit life insurance?

Providing a customer with a incomplete illustration

Which of the following would be a violation of life policy illustration regulation in Oregon?

A level annual premium for the life of the insured.

A Straight Life policy charges

Joint Life Policy

A married couple owns a permeant policy which covers both of their lives an pays the face amount of the policy only upon the death of the first. Which policy is that?

Non-particparting policy

A policy that does not pat dividends to policy owners is a

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?

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

Increase benefit levels without providing proof of insurability

Guarantee of insurability option in long-term care policies allows the insured to

The primary care physician refers the member

How does a member of an HMO see a specialist?

Fixed period

If a beneficiary wanted a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what option would a beneficiary select?

After 1 year

If a person purchase a Flexible Premium Deferred Annuity. When is the soonest that income payouts will begin?

Age 65 who are retired/

The Omnibus Budget Reconciliation Act of 1990 requires that large group health plans must provide primary coverage for disabled individuals under

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

The paid-up addition option uses the dividend

The doctors

To insure intentional losses would be against public policy.

Discrimination

Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?

90 days of a loss.

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within

To avoid an increase in premium rate for the insured

Under what circumstances may a life insurance agent deliver a policy that is dated up to six months before the application was taken?

Fixed amount

Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits?

Adverse medical information about individual

What are the member of the Medical Information Bureau required to report?

They offer the option of purchasing coverage that raises benefit levels accordingly

What do long-term care policies offer to policyholders to account for inflation?

One-sided, only one party makes an enforceable promise.

What is a definition of a Unilateral Contract?

It has the highest amount of insurance protection

What is the benefit of choosing extended term as a nonforfeiture option?

5 months

What is the elimination period for Social Security disability benefits?

12 months

What is the maximum amount of time a health plan can exclude a pre-existing condition?

Payor Benefit

What is the term that most accurately describes the provision designed to relieve life insurance premium payment for minors whose parents have died or become disabled?

Cash refund annuity

What type of annuity promises to pay to a beneficiary, in a lump sum, the difference between the amount paid into the contract and the benefits received prior to the annuitant's death?

When the insured is unable to perform his/her job duties.

When does a person qualify to receive disability-realated income?

30 days

A person buys an individual long-term care policy and is not satisfied with the provision. Within how many days will the insured be able to return the policy for a full premium refund?

6 months

A pre-existing condition is a condition for which the employee has sought medical advice, diagnosis, or treatment within the previous

It has favorable tax treatment

If a retirement plan or annuity is "qualified", this means

50 or fewer

Medical savings accounts are only available to groups of how many employees?

Insured stopped paying premiums

According to the incontestability provision, which of the following is a reason an insurer can deny a claim on a policy that has been in force for 2 years?

Premiums are determined by the age, sex and occupation of each individual certificate holder.

All of the following are characteristics of group life insurance, EXCEPT

Policy loan can be made on policies that do not accumulate cash value.

All of the following are true regarding insurance policy loans EXCEPT

Coverage for cosmetic treatment.

All of the following are usually provide under an employer dental insurance plan EXCEPT

The planned premium pays for mortality charges and expenses and any excess is returned to the policyowners

All of the following character tics of a Universal Life policy EXCEPT

Dividend amounts are guaranteed in the policy.

All of the following statements concerning "dividends" are true EXCEPT

403(b) Plan (TSA)

An Internal Revenue Code provision that specifically provides for an individual retirement plan for public school teachers, for example, is a(n)

Unilateral

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?

The right to determine the wording of a policy

In insurance policies where contract ambiguities are automatically ruled in the favor of the insured, what privilege does the insurer have in order to balance this?

Misrepresentation

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of

Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant.

When a replacement is involved, a replace insurance company is responsible for all of the following EXCEPT

Size of each installment

Which of the following determines the length of time that benefits will be received under the Fixed Amount settlement option?

Premium are not elevated.

Which of the following do the Standard and Preferred risk categories share?

Subscribers

Which of the following entities are responsible for making premium payments?

Workers compensation

Which of the following insurance coverages would be allowed with an MSA?

It is solely a federally administered

Which of the following is INCORRECT concerning Medicaid?

To minimize the insured's level of liability in the event of loss

Which of the following is NOT a goal of risk retention?

Apparent

Which type of authority is based on the actions, words, or deeds, or the principal?

They offer the option of purchasing coverage that raises benefit levels accordingly.

What do long-term care policies offer to policyholders to account for inflation?

Much more money can be contributed to a SEP

What is a primary difference between an IRA and an SEP?

Lower.

When compared with the administrative cost found in individual coverage, the per capita administrative cost in group health insurance is

Annuities payments

Which concept is associated with 'exclusion ratio"?

Both the principal and interest will be liquidated over a selected period of time.

Which of the following best describes fixed period settlement option?

Annual cost of mortality plus expenses

Which of the following best describes gross annual premium?

The policy will terminate when the loan amount with interest equals or exceeds the cash value.

An insured stops making payments on a loan taken from his cash value. What will most likely happen?

Attained age

An insured's premium increases as a result of her age. Which type of policy does she have?

Present the insured with a Disclosure Authorization Notice

An insurer wants to obtain information from investigators regarding an insured. What must the insurer do in order to legally acquire this information?

The insured must have first been hospitalized for 3 consecutive days.

In order for an insured under Medicare Part A to receive benefits for care in a skilled nursing facially, which of the following conditions must be met?

It is never legal to limit coverage based on martial status.

In which of the following situations is it legal to limit coverage based on martial status?

$100,000

J purchase a $100,000 Joint Life policy that covered his life and the life of his wife. Eight years later, he died in an automobile accident. How much will the wife receive from the policy?

No benefits

Judy is involved in a car accident. After the accident is determined to be Judy's fault, the police give her a breathalyzer test to determine whether or not she had been drinking alcohol before the accident. Her blood alcohol level is over the legal limit. What type of health benefits will Judy's policy pay for her injuries if the policy includes the narcotics and intoxicants provision?

The loss may be intentional.

Not all losses are insurable, and there are certain requirements that must be met before a risk is proper subject for insurance. These requirements include all of the following EXCEPT

An application on which the medical information is completed by the applicant and the agent only

Which of the following would be considered a non-medical insurance application?

Bull-sell

Which of the following would describe a legal document which would dictate who can buy a deceased partner's share of a business and for what amount?

Permanent

An applicant wants to buy a life insurance policy that has a cash value element. Which type should she buy?

The group has at least 50 members.

An association could buy group insurance for its member if it meets all of the following requirements EXCEPT

Decreasing term

An individual has just borrowed $10,000 from his bank on a 5-year note. The note is due in installments. What type of life insurance policy would be lest suited to this situation?

Estimated Longevity

Which of the following is NOT a type of information that needs to be gathered in order to determine the value of someone's life when using the needs approach?

Money borrowed from the cash value is taxable.

Which of the following is NOT true regarding policy loans?

Payment of premium

Which of the following is deemed to be consideration on the part of the applicant, in respect to the Consideration Clause?

They only cover specific accidents or diseases.

Which of the following is true regarding limited health insurance policies?