"Simulate Your Exam"

An insured owns a $50,000 whole life policy. at age 47, the insured decided to cancel his policy and excercise the entended term option for the policy's cash value, which is currently $20,000. what would be the face amount of the new term policy?

20K not sure

Most policies will pay the accident death benefits as long as the death is caused by the accident and occurs within

90 days

NOT true regarding underwriting group health insurance?

???

Which is NOT required to be stated in the outline of coverage provided with a long=-term care policy?

???

Which of the following is a feature of a disability of a disability buyout plan?

A lump-sum benefit payment option

Which is NOT a characteristic of group health insurance?

A policy is issued to each insured individual (NOT SURE IF CORRECT)

Level term insurance provides a level death benefit and a level premium during a policy term....If the policy renews at the end of a specified period of time, the policy premium will be

Adjusted to the insured's age at the time of renewal

Periodic payments of accumulated funds best describes

An annuity

While a claim is pending, an ins company may require

An independent examination as often as reasonably required. While a claim is pending, an insurance company may require an independent exam as often as reasonably required.

premium payment modes will incur the lowest overall payment?

Annual

Insurable interest as it applies to life insurance

Business partners have an insurable interest in each other A husband or wife has an insurable interest in their spouse An individual has an insurable interest in his or own life

All are personal uses of life ins EXCEPT

Buy-sell agreement Survivor protection Estate creation Cash accumulation

If an applicant for a life insurance policy is found to be a substandard risk, the insurance company is most likely to

Charge a higher premium

What is main difference between coninsurance and copayments?

Coinsurance is when you pay a percentage and copayment is when you pay a set dollar amount for the cost of a medical procedure or prescription

When delivering a policy, which of the following is an agent's responsibility?

Collect payment at time of delivery (if payment has not already been collected)

When an insured makes truthful statements on app for ins and pays required premium, it is known as

Consideration

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

Consumer Report

An individual has just borrowed $10K from his bank on a 5-year installment loan requiring monthly payments. WHat type of life ins policy would best be suited to this situation?

Decreasing term

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

Decreasing term

A waiver of premium provision may be included with which kind of health ins policy?

Disability income.

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Either the amt paid into the plan or the cash value of the plan, whichever is greater

provision which states that both the policy and a copy of the app form the contract betweeen the policy owner and the insurer is called the

Entire Contract

Which nonforfeiture option has the highest amount of insurance protection?

Extended Term Same face value as original policy but for shorter period of time

When transacting business in this state an insurer formed under the laws of another country is knows as

Foreign

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the ins 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?

Guaranteed insurable option

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

IMPAIRMENT RIDER

An insured purchased a LI policy on hi slife naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?

If primary predeceases the contingent??? Not sure

What type of ins would be used for a Return of Premium rider?

Increasing Term

What do individuals use to transfer their risk of loss to a larger group?

Insurance

Which of the following entities can legally bind coverage?

Insurer

Who must pay for the cost of a medical exam required in the process of underwriting?

Insurer

The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the

Insuring Clause

Which statement best describes the free look provision?

It allows the insured to return the policy within 10 days for a full refund of premiums if dissatisfied for any reason

Which of the following best describes annually renewable term insurance?

It is a level term insurance

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?

It is reduced to the amount of what the cash value would buy as a single premium. In a reduced paid-up policy, the original policy's cash value is used as single premium to pay for a permanent policy with a reduced face amount from the original, hence the name. The new policy accumulates in cash value until its maturity or the insured's death.

Which of the following is true about the premium on the children's rider in a LI policy?

It remains the same no matter how many children are added to the policy.

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Limited-pay life

An applicant who receives a preferred risk classification qualifies for

Lower premiums than a person who receives standard risk

Which of the following would basic medical expense coverage NOT cover?

Mental illness because its not in hospital?? NOT SURE

Part 2 of the app for life insurance provides questions regarding all of the following EXCEPT

Other insurance coverages

Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner?

Payment of Claims

An ins policy that only requires a payment of premium at its inception, provides ins protection for the life of the insured, and matures at the insured's age 100 is called

Single premium whole life

owned by stockholders who have the usual rights of ownership, including the right of voting?

Stock

An insured has endured multiple surgeries and hospitalizations for an illness during the summer months. Her insurer no longer bills her for medical expenses. What term best describes the condition she has met?

Stop-Loss Limit A "stop-loss limit" is a specified dollar amount beyond which the insured no longer participates in the sharing of expenses.

Which of the following is NOT covered under Plan A in Medigap insurance?

The Medicare Part A deductible WHAT IS COVERED: The first three pints of blood each year Approved hospital costs for 365 additional days after Medicare benefits and The 20% Part B coinsurance amounts for Medicare approved services

The annuity owner dies while the annuity is still in the accumulation stage. Which is TRUE?

The beneficiary will receive either money paid into the annuity or the cash value, whichever is greater

A man works for Company A and his wife works for Company B. The spouses are covered by health plans through their respective companies that also cover the other spouse. If the husband files a claim

The insurance through his company is primary

An insured submitted a notice of claim to the insurer, but never received claims forms. He later submits proof of loss, and explains the nature and extent of loss in a hand-written letter to the insurer. Which of the following is true?

The insured was in compliance with the policy requirements regarding claims.

Which of the following is NOT true regarding partial disability?

This is a form of insurance that covers part-time workers. Partial disability covers full-time-working insureds who are unable to perform some, but not all, of their regular job duties or can no longer work full-time, which ultimately results in a loss of income. Payment from partial disability is typically 50% of the total disability benefit.

Which provision states that the ins company must pay Medical Expense claims immediately?

Time of Payment of Claims

main purpose of the regulation on life ins policy illustrations?

To help the public make educated decisions about buying life insurance.

Which of the following types of policies allows the policyowner to skip premium payments, provided there is enough cash value in the policy to cover the premium amount?

Universal Life

Social Security Supplement (SIS) or Social Security Riders would provide for the payment of income benefits in each of the situations below EXCEPT

When the amount payable under Social Security is more than the amount payable under the rider

An applicant failed to complete app properly. Before being able to complete app and pay initial premium, she is confined to hospital. this will not be covered by ins bc she has not met conditions specified in the

consideration clause

"fixed" in a fixed annuity refers to these:

guaranteed rate of interest equal annuity payments amount and length of payments EXCEPT (not) death benefit

In which of the following locations would skilled care most likely be provided?

in an institutional setting

Authority to make changes to an insurance policy?

insurer's executive officer

Rebating

providing substantial value as inducement to purchase insurance

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

s

WHich is classified as a traditional level premium contract?

straight life

An applicant signs an app for $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant is killed in an auto accident the next day,

the beneficiary would receive $25,000 if it was determined that the insured qualified for the policy applied for. The conditional receipt provides that when the applicant pays the initial premium, coverage is effective on the condition that the applicant proves to be insurable either on the date the application was signed or the date the medical examination, if one is required.

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

the policy is owned by the company.

which is generally true regarding insureds who have been classified as preferred risks?

their premiums are lower