Readiness Exam

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If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?

immediately

All of the following must sign an application for health insurance except the

insurer

What advantage does the recurrent disability provision provide to the insured under the disability income policy?

it eliminates the imposition of an elimination period for a separate disability

On an Accidental Death and Dismemberment (AD&D) policy, the death beneffit payable is known as the

principal sum

Which of the following best describes the type of care provided by HMO's ?

Preventative

Medicare Part A services do NOT include which of the following?

Private duty nursing

If an insured is injured while commiting an illegal act and the insureds health policy contains the illegal oppupation provison, what percentage of the claim will be paid?

0

Core benefits are included in all medicare supplemental policies. Which percentage of part B coinsurance is required?

20%

The affordable care act mandated that the insurer provide coverage for adult children of the insured up to the age of

26

A medicare policy supplement policy must have a free look period of at least?

30 days

An IRA contribution can be made from which of the following?

Cash

In a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT?

Cash surrender values

Which of the following is NOT a typical type of Long Term Care coverage?

Child day care

An insured and his spouse recently had a child. Which of the following riders would allow the couple to insure the child for a limited period of time at a specified amount?

Children's term rider

Policy delivery refers to the delivery of the

Completed insurance policy to the policyowner

Under what circumstances will the contigent beneficiary receive death benefits?

If the primary beneficiary dies before the insured

Which of the following is NOT a medicaid qualifier

Insurability

What happens to the copy of the application for health insurance once the policy is issued?

It becomes part of the entire contract

What does the application of contract of adhesion mean?

Since the insured does not participate in preparing the contract, any ambuities would be resolved in favor of the insured

the family term rider incorporates

Spouse term and children's term

Which of the following types of insurance is investment based, has a level fixed premium, and nonguaranteed cash value?

Variable whole life

What guarantees that the information explained in the insurance contract is true?

Warranty

A whole life policy that will generate immediate cash value is a

single premium policy

Which risk classification is representative of the majority of people in a certain age group and with similar lifestyles?

standard

A retail shop owner is insured under a business overhead expense policy that pays a maximum monthly benefit of $2,500. His actual monthly expenses are $3,000. If the owner becomes disabled, the monthly benefit payable under his policy will be

$2,500

An insurer must notify the consumer in writing that an investigative consumer report has been requested within how many days of the initial request?

3 days

*Policy loan requests, except for loan requests for payment of due premiums, may be deferred for a period of up to

6 months

What is the purpose of the impairment rider in a health insurance policy?

?To exclude coverage for a specific impairment?

A subscriber has been treated for a medical condition by his primary care physician for 3 months with experimental remedies without significant health improvement before being referred to a specialist. Which of the following types of plans does the subscriber have?

A gatekeeper HMO plan to control the costs

Which of the following terms is used to define the period of time during which an annuitant makes payments into an annuity?

Accumulation period

An individual is approaching retirement age and is concerned about having proper coverage should he have to be placed in a long term care (LTC) facility. His agent told him that LTC policies would provide necessary coverage at all of the following levels EXCEPT?

Acute

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

In whole life insurance, when is the policy cash value scheduled to equal the face amount?

At the insureds age 100

An underwriter is revewing an applicant with an extensive medical history. Which of the following would give the underwriter a better understanding of how the applicant has been treated for various illnesses?

Attending physicians statement

an applicant gives her agent a completed application and the initial premium. What can the agent issue her that acknowledges the initial premium payment?

Conditional receipt

Which of the following provisions gives an employee the right to exchange group insurance for an indivdual policy within a certain number of days from termination of employment?

Conversion provision

An employee dies having 6 quarters of coverage during the previous 13-quarter period. What status of coverage does the employee have under Social Security?

Currently insured

Which of the following is NOT a standard exclusion in life insurance policies?

Disability

All of the following are features of a health insurance plan purchase on the health insurance marketplace except?

Dollar limits on essential benefits

The Uniform Provision Law that prevents an insurance company from altering its agreement with a policyholder by referring to documents or other items not contained in the policy is called the

Entire contract provision

The stop loss feature on a major medical policy is intended to

Establish maximum amount of out of pocket expenses that an insured will have to pay for a medical expense in a calendar year

Which federal act defines rules pertaining to protected heath information?

HIPAA

In order for an alumni association to be eligible to purchase group health insurance for its members, all of these statements must be true EXCEPT when the association

Has been active for five years minimum

An insured has an individual disability income policy with a 30 day elimination period. He becomes disabled on June 1 for 15 days. When will he collect on his disability income payments?

He wont collect anything

All of the following information needs to be included on an application for life insurance except

Health insurance policies in force

Life insurance can provide which of the following?

survivor protection

Which of the following is NOT true regarding a noncancellable policy?

Insurer can increase the premium above what is stated in the policy if claims experience is greater than expected

ALl of the following statements are true regarding an Ordinary (Straight) Life policy EXCEPT?

It does not have a guaranteed death benefit

Which of the following best described a major medical expense policy?

It provides catastrophic medical coverage beyond basic benefits on a usual customary and reasonable basis

Which of the following time periods is the general enrollment period for medicare part b?

Jan 1 - March 31 each year

When comparing a joint life policy to two individual life policies of the same amount of the same insured, which condition is true?

Joint life has a lower premium than the total of the two individual policies

An annuitant pays the annuity premium on the 14th of each month. Which of the following best describes this arrangement?

Level

All of the following are excluded from coverage in an individual health insurance policy except?

Mental illness

Which of the following would qualify as a suspicious transaction and would require the filling of an SAR?

Multiple wire transfers from the account in the amount of $5000

Dividends received on participating life insurance policies are

Not taxable because they are a return of unused premiums

Which dividend option will increase the death benefit?

Paid up additions

An equity indexed annuity will grow based upon?

Performance of a recognized index

Ed is covered under a health plan provided by his employer. He was told that his insurance would pay the majority of the covered expenses if he would choose to see a provider in his plan's list. If Ed chose to be treated by a provider who was not on the list, his portion of the bill would be greater. Ed is covered under a/an

Preferred Provider Plan

The manner and/or frequency that the policyowner pays the policy premium is called

Premium mode

Which of the following is a provision found in life insurance policies?

Reinstatement

Which of the following optional provisions allows insurers to limit benefits to an insured's average income over the last 2 years

Relation of Earnings to insurance

Which of the following individuals would be a likely candidate to purchase a deferred annuity?

Someone who wants to grow retirement funds tax deferred

Whole responsibility is it to ensure that the application for health insurance is completed and accurate?

The agent's

An insured needs ongoing treatment for a diabetic condition. Under PPACA, which of the following is correct?

The condition must be covered under the insureds plan.

A man is an attorney when he applies for a health policy. He decides to become a professional bungee jumper. He files a claim. What should happen?

The insurance company will pay the claim according to the benefits avaialble if the correct premium has been paid

Which of the following statements concerning the medical information bereau is correct?

The medical information bureau assists underwriters in evaluating and classifying risks

Which of the following bears the investment risk in a variable life insurance policy?

The policyowner

When a settlement option is chosen at death, how are the monthly income payments taxed?

The principal portion is generally income tax free while the interest portion is taxed as ordinary income.

Which of the following is true regarding taxation of accelerated benefits paid under a life insurance policy?

They are considered taxable income

What is the purpose of a buy-sell agreement?

To allow the business buyout in case of the owner's death

Because of an injury, an insured has been unable to work for 9 months. He paid the policy premium for his life insurance for the first 6 months of disability, but didnt have to pay anything for the remaining 3 months, yet the policy remained in force. the policy includes

Waiver of premium rider

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

Under the mandatory uniform provision notice of claims, written notice of a claim must be submitted to the insurer within what time parameters?

Within 20 days

The entire contract includes all of the following except?

a buyers guide

the benefits for group disability plans are based on

a percentage of the workers income

which of the following statements is not true regarding health insurance policy provisions?

all additional provisions written by insurers are cataloged by their respective states

which of the following is considered a field underwriter ?

an agent

All of the following could qualify as a group for the purpose of purchasing group health insurance excpet?

an association of 35 people

The corridor deductible applies between

basic and major medical coverage

A whole life policy is surrendered for a reduced paid up policy. The cash value in the new policy will

continue to increase

an individual has a $200,000 convertible term life insurance policy. if he chooses, he can

convert to a whole life policy for the same face amount without proof of insurability

HMO members pay a small fee when they see their primary care physician. This fee is called a

copay

To be valid, an insurance policy must have all of the following except?

countersigniture

a limited health insurance policy that will pay a lump sum to an insured diagnosed with a heart attack, stroke, or renal failure is known as

critical illness insurance

In this state the owner gets a free look of a specified number of days from?

delivery of the policy

In the event one of two business partners becomes disabled and unable to work, what type of arrangement would help the nondisabled parner to buy the disabled partners business interest?

disability buy sell

which of the following best describes pure life annuity?

it provides the highest monthly benefits

Contributions to Roth IRA are

not tax deductible

Which of the following medicare parts provides prescription drugs benefit?

pard d

an insured purchased a health insurance policy with a renewability clause that states the policy is guaranteed renewable. this means that as long as the required premiums are paid, the policy will continue until the insured

reaches age 65

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 medical policy?

submit the description in their own words on a plain sheet of paper.

Who is obligated to make sure all questions are answered and all necessary signatures are collected on the application?

the agent

In life insurance, which of the following is NOT required to have an insurable interest in the insured?

the beneficiary.

all of the following are consideration in an insurance policy except?

the cash value in the policy

all of the following are true about key person insurance except

the death benefit is taxable to the business

Under the Payment of Claims provision, to whom will the insured's benefits be paid if the insured is deceased?

the insureds primary beneficiary

which of the following is true regarding a joint life annuity?

the payments stop at the first death

Which of the following statements 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 experience.

Which method of dealing with risk is applied when insurance is purchased?

transfer

What does basic medical expense cover?

x ray charges


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