COURSE 5.0

For how long is an insurance company allowed to defer policy loan requests? a)30 days b)60 days c)6 months d)1 year

6 months

If more than one family member covered under the same major medical policy is injured in the same accident, the family only has to pay one deductible. This is due to the a)Integrated deductible. b)Carry-over provision. c)Elimination period. d)Common accident provision.

Common accident provision.

An agent selling variable annuities must be registered with a)The Guaranty Association. b)SEC. c)FINRA. d)Department of Insurance.

FINRA

Under the Affordable Care Act, health insurance cannot be underwritten based on which of the following factors about the applicant? a)Tobacco use b)Health condition c)Family composition d)Age

Health condition

Underwriting is a major consideration when an insured wishes to replace her current policy for all of the following reasons EXCEPT a)Due to age or health, the policy may change dramatically. b)Pre-existing conditions that were previously covered may not be covered under the replacing policy. c)Benefits may change. d)Premiums always stay the same.

Premiums always stay the same.

To sell variable life insurance policies, an agent must receive all of the following EXCEPT a)A life insurance license. b)SEC registration. c)FINRA registration. d)A securities license.

SEC registration.

Who must pay for the cost of a medical examination required in the process of underwriting? a)Department of Insurance b)Insurer c)Applicant d)Underwriters

Insurer

Which of the following types of insurers is owned by stockholders? a)Stock b)Mutual c)Reciprocal d)Fraternal

Stock

Medicaid provides all of the following benefits EXCEPT a)Family planning services. b)Income assistance for work-related injury. c)Home health care services. d)Eyeglasses.

Income assistance for work-related injury.

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use? a)Reduction of premium b)Accumulation at interest c)Paid-up option d)One-year term

Paid-up option

All of the following are unfair claims settlement practices EXCEPT a)Failing to adopt and implement reasonable standards for settling claims. b)Failing to acknowledge pertinent communication pertaining to a claim. c)Suggesting negotiations in settling the claim. d)Refusing to pay claims without conducting a reasonable investigation.

Suggesting negotiations in settling the claim.

Which of the following may be included on an insurance advertisement? a)Claims settlement illustrations which imply special treatment b)Words and symbols similar to those of government agencies c)Testimonials from compensated individuals d)Trade names in place of the insurer's name

Testimonials from compensated individuals

Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe? a)Personal b)Adhesion c)Unilateral d)Conditional

Adhesion

Issue age policy premiums increase in response to which of the following factors? a)Increased benefits b)Increased deductible c)Inflation d)Age

Increased benefits

Which of the following statements pertaining to Medicare Part A is correct? a)Individuals who have ALS automatically qualify for Medicare Part A, regardless of age. b)Individuals who have the End Stage Renal Disease do not qualify for Medicare Part A. c)For the first 90 days of hospitalization, Medicare Part A pays 100% of all covered services, except for the initial deductible. d)Individuals entitled to Social Security disability are not eligible for coverage under Medicare Part A.

Individuals who have ALS automatically qualify for Medicare Part A, regardless of age.

The type of dental plan which is incorporated into a major medical expense plan is a/an a)Stand-alone dental plan. b)Blanket dental plan. c)Integrated dental plan. d)Supplemental dental plan.

Integrated dental plan.

A guaranteed renewable disability insurance policy a)Cannot be cancelled by the insured before age 65. b)Is renewable at the insured's option to a specified age. c)Is renewable at the option of the insurer to a specified age of the insured. d)Is guaranteed to have a level premium for the life of the policy.

Is renewable at the insured's option to a specified age.

All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT a)The insurer determines the amount for each payment. b)It is a life contingency option. c)It will pay the benefit only for a designated period of time. d)The payments are not guaranteed for life.

It is a life contingency option.

A married couple's retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select? a)Joint annuity b)Cash refund annuity c)Straight life d)Joint and survivor

Joint and survivor

If one takes Social Security retirement benefits at age 62, what needs to be done at age 65 to qualify for Medicare? a)Appear for a physical at the Social Security office b)Apply at a local Social Security office c)Nothing d)Apply for coverage through the state

Nothing