Big test

When replacement is involved, how long must an insurer maintain copies of all sales proposals used in the transaction?

3 years

What is the purpose of a benefit schedule?

To state what and how much is covered in the plan

Insurance contracts are unilateral in nature. What does that mean?

only one party makes a promise

Which of the following indicates the person upon whose life the annuity income amount is determined?

Annuitant

All of the following are characteristics of group health insurance plans EXCEPT

The parties that hold a group health insurance contract are the employees and the employer

Where are premiums from fixed annuities invested?

general account

Under the Affordable Care Act, when would pregnancy be considered a pre-existing condition?

Never

A husband and wife both incur expenses that are attributed to a single major medical insurance deductible. Which type of deductible do they have in their policy?

Family

An insured is anxious to get treatment for a health condition, and is convinced that a specialist is needed to cure the condition. If the insured has a PPO plan, which of the following is true?

The insured can select any specialist, but non-network specialists will have higher out-of-pocket costs.

Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policyowner select?

Joint and survivor

If a basic medical insurance plan's benefits are exhausted, what type of plan will then begin covering those losses?

Supplement major medical

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 available if the correct premium had been paid.

All of the following are true of group life insurance EXCEPT

The insureds each own their own comtract

In order for a business partner to be eligible for a Keogh plan, he/she must work full-time and own at least how much of the business?

10%

Which of the following types of care could be provided at a community center?

Adult day care

Which of the following is a correct statement about annuities?

Fixed annuities do not provide protection against infaltion

A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve that goal?

Family term

A worker is covered under his employer's health insurance plan and then loses his job. He may convert this coverage to an individual policy without having to provide proof of insurability, assuming that he makes the request within

31 days

All of the following are consideration in an insurance policy EXCEPT

The cash value in the policy.

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

To exclude coverage for a specific impairment

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 received tax free

Anyone who willfully transacts insurance in Kansas without a license may be subject to an administrative penalty of up to

2,000

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

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

Counter signature

Who is responsible for verifying and approving the use of a life insurance advertisement?

The commissioner

An application for life insurance usually requires the agent to ask if the proposed insurance will replace an existing life insurance policy. All of the following are purposes for obtaining this information EXCEPT

To ensure that at least three companies are involved so the policyowner gets competitive prices.

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

Within 20 days

Which of the following describes the Kansas Insurance Code?

State insurance rules and regulations

The guaranteed purchase option is also referred to as the

future increase option

Which of the following is TRUE regarding premium in a 10-year level premium policy?

The premium will remain level for 10 years

All of the following are true of the Survivorship Life policy EXCEPT

The premium is based on the age of each insured

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

An association of 35 people

Which of the following would NOT trigger the payment of Accelerated Death Benefits?

Being permanently disabled

An applicant misstates his age on his application for a health insurance policy. He states that he is 39, but his actual age is 49. When he files a claim, what will most likely happen?

Benefits paid will be those that would have been purchased at the correct age

Long-term care coverage may be sold in all of the various ways EXCEPT

As a part of a Medicare supplement policy by the use of an endorsement.

What is the maximum death benefit that the Kansas Life and Health Insurance Guaranty Association will pay for an insolvent insurer?

300,000

All insurers who issue health contracts in Kansas must keep all advertisements for at least how many years?

4

With Adjustable Life, the owner can change all of the following EXCEPT

insured

Which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care?

intermediate care

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

mental illness

In which of the following situations may the policyowner be allowed to sell a life insurance policy purchased 1 year ago for a viatical settlement contract?

Divorce

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

A policy is reissued with a reduction in cash value

Medicare Part B covers all of the following EXCEPT

Long-term care services

A viatical settlement is arranged between a viatical company and

The terminally ill insured

A Major Medical Expense policy would exclude coverage for all of the follow treatments EXCEPT

Drug addiction

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

He won't collect anything

Dividends received on participating life insurance policies are

Not taxable because they are a return of unused premiums

What effect will the long-term care (LTC) rider have on the death benefit of a life insurance policy if LTC benefits were paid to the insured?

Reduce the death benefit

Which of the following statements regarding HIV testing is NOT true?

Test results must be sent to the Department of Insurance.

According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

The primary beneficiary died before the insured

Which of the following is NOT a Medicaid qualifier?

insurability

An agent delivers a life policy. He explains a policy change was made and asks the applicant to sign a statement acknowledging the changes were explained. The agent says the premium has not been paid and must be paid before the policy goes into effect. He collects a Statement of Good Health, relinquishes the policy, and leaves. What did he do wrong?

He left the policy with the insured without collecting the premium