Simulate your exam

Ifa producer has been found guilty of any violations of the provisions of the Insurance Code, in addition to or instead of the suspension, revocation, or refusal to renew a producer's license, the Commissioner may levy a fine upon the licensee, up to

$1,000 per offense.

A noncontributory group disability income plan has a 30-day waiting period and offers benefits of $2,000 a month. If an employee is unable to work for 7 months due to a covered disability, the employee will receive

$12,000, all of which is taxable.

Individuals who itemize deductions can claim deductions for medical expenses not covered by health insurance that exceed what percent of their adjusted gross income?

10%

Every order by the Commissioner suspending any insurance license must specify the period during which the suspension will be effective and may not last longer than

12 months.

Once a producer's appointment is filed, within how many days will the Commissioner verify the appointment (for eligible producers)?

15 days

What is the elimination period for Social Security disability benefits?

5 months

How many eligible employees must be included in a contributory plan?

75%

In insurance, an offer is usually made when

An applicant submits an application to the insurer.

All of the following are requirements of eligibility for Social Security disability income benefits EXCEPT

Being age 65.

Which of the following provisions requires that any policy language that is in conflict with the state statutes of the state in which the insured resides is automatically amended to conform with those of the state of residence?

Conformity with State Statutes

Which of the following is a specific dollar amount or a percentage of the cost of care that must be paid by an HMO member?

Copayment

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

Coverage for catastrophic medical expenses

Group disability income insurance premiums paid by the employer are

Deductible by the employer as an ordinary business expense.

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?

Defamation

What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan?

Diagnostic and preventive care

A producer just completed a continuing education (CE) course. How soon would the producer be allowed to repeat the same course as part of his CE requirement?

During the next licensing renewal period

All of the following are advantages of an HMO or PPO for a Medicare recipient EXCEPT

Elective cosmetic procedures are covered.

An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This would indicate that his policy was written with a 30-day

Elimination period.

If an agent converts premium he collects for his personal use, the agent can be charged with

Embezzlement.

The insurance policy, together with the policy application and any added riders form what is known as

Entire contract.

Which of the following statements is correct concerning taxation of long-term care insurance?

Excessive benefits may be taxable,

All of the following actions can be described as twisting EXCEPT

Explaining to client the advantages of permanent insurance over term and suggesting changing policies

43. An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?

Fair Credit Reporting Act

An extent sustain any insured will he is other receive involved major in injuries. an Presumptive accident Disability insured that renders still benefits? him able to perform permanently his deaf, current job. although To he what does not

Full benefits

Which of the following is INCORRECT concerning taxation of disability income benefits?

If paid by the individual, the premiums are tax deductible.

Which of the following is correct about a group health insurance policy?

It cannot exclude newborn children from coverage.

Which of the following is NOT true regarding a flexible spending account?

It does not have limits on contributions.

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

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

Medicare Advantage is also known as

Medicare Part C.

A producer is selling a client a Variable Life Insurance policy and as an inducement shows the client a projection based upon shares or dividends paid on a similar policy. This is

Misrepresentation,

If a health care plan has characteristics of an HMO and PPO, what type of plan is it?

POS

All of the following are considered prohibited practices for producers and insurers issuing Medicare supplement policies EXCEPT

Receiving commissions.

Which of the following dental insurance categories would cover the filling of cavities?

Routine and major restorative care

When an agent is soliciting a policy through an insurer, whose responsibility is it to determine that the insurer is authorized to transact business in this state?

The agent's

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customer's associates, friends, and neighbors provide the report's data.

Which of the following is true regarding elimination periods and the cost of coverage?

The longer the elimination period, the lower the cost of coverage

Social Security was created to provide all of the following benefits EXCEPT

Unemployment income.