Attempt 2

morale hazards

state of mind that causes indifference to loss; carelessness may cause physical injuries

moral hazard

tendency towards increased risk evaluate character and reputation of proposed insurer examples: submitted fraudulent claims, lie on application

Which of the following best describes what the annuity period is?

The period of time during which accumulated money is converted into income payments

After a hearing, if the Commissioner finds that a licensee is in violation of the state insurance laws, the Commissioner can do any of the following EXCEPT

Imprison the licensee; The Commissioner does not have the power to imprison a person.

How soon after the due date should the insurer pay the agent appointment fees?

30 days

In long term care policies, the term "chronically ill" means an individual who is unable to perform at least 2 activities of daily living for at least

90 days

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

90 days.

Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insureds' death?

A minor son of the insured

Which of the following Medicare supplement plans would be available to a reasonably healthy 91-year-old female?

A-N

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?

Any form of life insurance

When must the Medicare supplement policy issued provide the applicant the Guide to Health Insurance for People with Medicare

At the time of application

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

Excessive benefits may be taxable.

In order to minimize adverse selection, employer group dental plans may require employees who enroll after they were initially eligible to participate to do all of the following EXCEPT

Increase benefits for a period of one year.

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

Insurance

Which statement is NOT true regarding a Straight Life policy?

Its premium steadily decreases over time, in response to its growing cash value.

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

Purchase a single premium policy for a reduced face amount.

An insured committed suicide one year after his life insurance policy was issued. The insurer will

Refund the premiums paid. If the insured commits suicide within 2 years following the policy effective date, the insurer's liability is limited to a refund of premium.

Which of the following components of dental insurance does NOT require the payment of a deductible?

Routine and preventive maintenance does require deductible: -cosmetic surgery -routine and major restorative care -orthodontic care

With regards to premium rates, which of the following statements is NOT true?

The Commissioner sets all insurance premium rates used in Pennsylvania All premium rates must be filed with the Commissioner. The insurer must wait 30 days before using the filed rate, or until the approval is received. If, after thirty days, the filing has not been disapproved, the insurer may use the filed rate

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability.

Which of the following will vary the length of the grace period in health insurance policies?

The mode of the premium payment

An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?

They are tax deductible.

Which of the following is true regarding Medicare supplement policies?

They must be guaranteed renewable.

When would a 20-pay whole life policy endow?

When the insured reaches age 100

Which of the following long-term care benefits would provide coverage for care for functionally impaired adults on a less than 24-hour basis?

adult day care (Custodial care is usually the only service provided by adult day care facilities.)

insurable interest must exist at:

at time of application

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.

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

consideration (payment of premiums + representations on application)

Which of the following is NOT fundable by annuities

death benefits

All of the following may be excluded from coverage in a Major Medical Expense policy, EXCEPT

emergency surgery

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

the longer the elimination period = lower the cost of coverage

The termination of marital property rights may be reversed for all of the following reasons EXCEPT

The spouse named as beneficiary has obtained or consented to a final decree or judgment of an annulment, divorce or separation. The termination of marital property rights may not be reversed if the spouse named as beneficiary has obtained or consented to a final decree or judgment of annulment, divorce or separation.

In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT

The type of investment

insruanble interest exist in:

policyowner's life life of a family member business partner not beneficiary

incontestability

prevents an insurer from denying a claim due to statements in the application AFTER the policy has been in force for 2 years

Which of the following is NOT covered under Part B of a Medicare policy?

routine dental care covers: home health care, lab services, physician expenses

partial surrender (parital withdrawal)

in universal life policies withdraw policy CV not the same as a policy loan interest subject to taxation DB reudced

Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to

insured Claims other than death benefits are to be paid to the insured or the insured's estate, unless otherwise assigned by the insured.