Course Final Exam 2

GROUP HEALTH INSURANCE REQUIRES THAT WHAT PERCENTAGE OF ELIGIBLE INDIVIDUALS MUST BE PROVIDED COVERAGE UNDER A NONCONTRIBUTORY PLAN?

100

HOW MANY MEMBERS ARE ASSOCIATION GROUPS REQUIRED TO HAVE

100

1999 GROUP REGULATIONS NOW PERMIT A ____ PERCENT PLUS OR MINUS RATE VARIANCE FROM THE APPROVED COMMUNITY RATE, TO COMPENSATE FOR HEALTH CHANGES AND/OR CLAIMS EXPERIENCE

15%

WHEN ARE HMOs REQUIRED TO PAY THEIR PROVIDER'S CLAIMS?

20 DAY'S

A POLICY IS CONSIDERED REPLACED IF AS MUCH AS _____ PERCENT OF ITS EXISTING CASH VALUE IS USED TO FINANCE THE NEW CONTRACT.

25%

HOW MANY DAYS ADVANCE NOTICE MUST AN INSURANCE COMPANY THAT WISHES TO CANCEL AN INDIVIDUAL HEALTH INSURANCE POLICY GIVE TO THE POLICY OWNER?

45 DAYS

SUITABILITY INFORMATION COLLECTED BY AGENTS AND INSURERS MUST BE RETAINED FOR ______ YEARS (FOR REVIEW BY THE DEPARTMENT).

5

THE ADVANTAGES OF THE FIXED ANNUITY OVER THE VARIABLE ANNUITY IS

: MONTHLY INCOME OF THE ANNUITANT IS STABLE : THE ANNUITANT NEED NOT WORRY ABOUT THE SECURITIES MARKETS : LOADING CHARGES ARE USUALLY LESS

WHAT IS THE BASIS FOR MOST LONG -TERM CARE BENEFITS?

A DAILY INDEMNITY BENEFITS

A LIFE INSURANCE POLICY THAT CONTINUES TO PROVIDE PROTECTION AFTER THE PREMIUM PERIOD HAS ENDED IS CALLED:

A LIMITED PAY LIFE POLICY

THE DUTIES OF THE REPLACING INSURER INCLUDE ALL OF THE FOLLOWING EXCEPT:

A SIGNED STATEMENT SPECIFYING THE AGENTS COMMISSION ON THE TRANSACTION

AN IMMEDIATE ANNUITY MUST ALSO BE

A SINGLE-PREMIUM ANNUITY

SPECIAL RULES TO PROTECT AGAINST THE UNINTENTIONAL LAPSE OF LONG-TERM CARE POLICIES INCLUDE THE FOLLOWING EXCEPT:

A STIPULATED SECONDARY ADDRESSEE NEED NOT RECEIVED THESE NOTICES

WHICH OF THE FOLLOWING MIGHT BE OMITTED FROM AN OUTLINE OF COVERAGE?

A SUMMARY STATEMENT OF THE RENEWAL RATES

POLICIES THAT COVER ACCIDENTAL DEATH OR ACCIDENTAL DISABILITY HAVE VARYING DEFINITIONS OF THE CAUSE OF DEATH OR DISABILITY. WHICH STATEMENTS BELOW IS CORRECT?

ACCIDENTAL MEANS REQUIRES TAT AN UNINTENTIONAL ACT LED TO THE BODILY INJURY. E.G. FALLING FROM A LADDER

IN A VARIABLE ANNUITY, A CONTRACT OWNER'S INTEREST IN HIS\HER SEPARATE ACCOUNT IS STATED IN TERMS OF

ACCUMULATIONS UNITS

UNDER THE LAW OF __________,AN AGENT IS THE LAWFUL REPRESENTATIVE OF THE PRINCIPAL

AGENCY

WHICH OF THE BELOW IS NOT AN ELEMENT OF THE WHOLE LIFE CONTRACT?

AN ADJUSTABLE FACE

MARIA HAS JUST PURCHASED AN ANNUITY THAT WILL BEGIN MAKING MONTHLY PAYMENTS TO HER NEXT MONTH. MARIA HAS PURCHASED

AN IMMEDIATE ANNUITY

STATEMENTS MADE ON THE INSURANCE APPLICATION GENERALLY DO NOT PROVIDE WHICH OF THE FOLLOWING?

AN OUTLINE OF THE BENEFITS PROVIDED

THE PRINCIPLE OF WORKERS COMPENSATION LAWS IS THAT THE EMPLOYER IS CONSIDERED LIABLE FOR ALL ON-THE-JOB INJURIES

AND CANNOT BE REQUIRED TO PAY ADDITIONAL DAMAGES UNDER THE LAW

THE FOLLOWING STATEMENT REGARDING A LIFE INSURANCE CONTRACT IS TRUE?

CASH VALUES ARE THE SAME AS NON FORFEITURE VALUES

HMO TYPE HEALTH PROVIDERS ARE CLASSIFIED IN SEVERAL DIFFERENT WAYS. WHICH OF THE BELOW IS CORRECT?

CLOSED PANEL SYSTEMS ARE STAFFED BY M.D.S WHO FUNCTION AS EMPLOYEE IN THE HMO FACILITY.

WHICH OF THE FOLLOWING IS NOT A FEATURE OF MEDICARE PART A?

CO-PAYMENT

WHICH OF THE BELOW HAS NOT BEEN CONSIDERED AN INSURANCE INDUSTRY TOP ETHICAL CONCERN?

COMMISSION PAYMENT METHODOLOGY

HOW CAN A PERSON WITH A RECURRING ALIMENT PURCHASE HEALTH INSURANCE AT A STANDARD RATE?

COVERAGE CAN BE ISSUED WITH A RIDER EXCLUDING A SPECIFIED CONDITION

ANNUITIES MAY BE WHICH OF THE FOLLOWING TYPES?

DEFERRED OR IMMEDIATE FIXED INTEREST

A VARIABLE ANNUITY SEPARATE ACCOUNT CONTAINS 250,000 ACCUMULATION UNITS BELONGING TO 10,000 OWNERS. ON JULY 1, 2005, THE MARKET VALUE OF THE ACCOUNT IS $7,500,000.

EACH ANNUITY UNIT IS WORTH $30

THE GROUP PROBATIONARY PERIOD IS ESTABLISHED BE THE:

EMPLOYER

MOST LONG TERM CARE CONTRACTS PAY ON A

FLAT DAILY RATE BASIS

THE PREMIUM THAT REFLECTS MORTALITY RATES, ASSUMED INTEREST, AND THE POLICY'S SHARE OF THE COMPANY'S OPERATING EXPENSES IS CALLED THE:

GROSS PREMIUM

HIPAA REGULATIONS REQUIRE THAT INSURERS MUST ACCEPT ANY APPLICANT THAT HAS BEEN COVERED AT LEAST 18 MONTHS ON A:

GROUP AND/OR COBRA

MEDICARE SUPPLEMENTS MUST BE:

GUARANTEED RENEWABLE

DUPLICATION OF BENEFIT PROVISIONS ARE EXCLUDED FROM ________POLICIES

INDEMNITY

WHEN AN OWNER MUST OBTAIN THE BENEFICIARY'S CONSENT TO CHANGE THE BENEFICIARY OF A LIFE INSURANCE POLICY THE DESIGNATION IS SAID TO BE:

IRREVOCABLE

WHICH OF THE FOLLOWING STATEMENTS ABOUT A WHOLE LIFE POLICY IS TRUE?

IT FURNISHES PERMANENT PROTECTION IN THE SENSE THAT IS DOES NOT HAVE TO BE RENEWED OR CONVERTED

WHICH OF THE BELOW IS NOT A VARIABLE UNIVERSAL LIFE (VUL) CHARACTERISTIC?

IT GENERALLY HAS THE CAPACITY TO BE STABLE DURING INFLATION PERIODS.

WHICH OF THE BELOW IS NOT A VARIABLE UNIVERSAL LIFE (VUL) CHARACTERISTICS?

IT GENERALLY HAS THE CAPACITY TO BE STABLE DURING INFLATION PERIODS.

WHICH OF THE FOLLOWING STATEMENTS ABOUT "PROOF OF LOSS" UNDER A DISABILITY INCOME POLICY IS MOST ACCURATE?

IT IS A WRITTEN STATEMENT BY THE CLAIMANT COVERING THE OCCURRENCE, NATURE, AND EXTENT OF A LOSS

WHICH OF THE BELOW IS NOT A UNIVERSAL LIFE CHARACTERISTIC?

IT OFFERS A VARIETY OF INVESTMENT CHOICES

WHICH OF THE BELOW IS NOT UNIVERSAL LIFE CHARACTERISTIC?

IT OFFERS A VARIETY OF INVESTMENT CHOICES

WHICH OF THE BELOW IS NOT A FORM OF LIFE ANNUITY WITH SAFETY OF PRINCIPLE.

JOINT AND LAST SURVIVOR

WHICH OF THE BELOW IS NOT A CHARACTERISTIC OF A MUTUAL INSURANCE COMPANY?

MAKES A PROFIT FOR ITS STOCKHOLDERS

WHICH OF THE FOLLOWING IS CONSIDERED TO BE MISREPRESENTATION?

MAKING A STATEMENT WHICH IS NOT ENTIRELY TRUE ABOUT THE TERMS OF A POLICY

_______________ INVOLVES A SITUATION WHERE ONE FAILS TO CLEARLY BRING TO MIND A FACT OR CONDITION EITHER INNOCENTLY OR INTENTIONALLY TO DECEIVE

MISREPRESENTATION

WHICH OF THE ENTITIES BELOW IS NOT INVOLVED IN THE REGULATION OF VARIABLE ANNUITIES?

NCAA

IS HE SPENDTHRIFT CLAUSE AUTOMATICALLY INCLUDED AS AN INTEGRAL PART OF A STANDARD POLICY?

NO

THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS HAS CAREFULLY DEFINED A STANDARD RISK FOR WHICH OF THE BELOW?

NON OF THESE ANSWERS ARE CORRECT. :DISABILITY INCOME INSURERS :HEALTH INSURERS :LIFE INSURERS

WHICH OF THE RENEWAL CLAUSES BELOW IS MOST ADVANTAGEOUS TO THE OWNER AND REQUIRES THE MOST STRINGENT UNDERWRITING?

NON-CANCELABLE

THE "EXCLUSION RATIO" IN AN ANNUITY BENEFIT PAYMENT IS:

NORMALLY CONSIDERED TO BE 100% IN THE VARIABLE ANNUITY

TO A GREATER DEGREE THAN LIFE INSURANCE UNDERWRITING HEALTH CONTRACTS ARE CONCERNED WITH THE APPLICANTS

OCCUPATION

WHICH OF THE FOLLOWING IS A TYPE OF TEMPORARY ANNUITY PAYOUT?

PAYMENTS FOR A FIXED AMOUNT

THE UNIQUE CHARACTERISTIC THAT ALLOWS LIFE INSURANCE TO BE ASSIGNED OR SOLD IS THAT IT IS NOT A

PERSONAL CONTRACT

ONE OF THE MAJOR PROHIBITIONS IN THE NAIC MODEL LONG-TERM CARE REGULATIONS CONCERNS

POST-CLAIMS UNDERWRTING

THE COMMON DISASTER PROVISION, IN A BENEFICIARY DESIGNATION:

PROVIDES THE SEQUENCE OF BENEFICIARIES

WHICH OF THE BELOW DOES NOT QUALIFY AS TWISTING IN POLICY REPLACEMENT?

REPLACING POLICIES AFTER FULL DISCLOSURE OF LL RELEVANT VALUES & FACTS

WHICH OF THE FOLLOWING EXPENSES ARE GENERALLY NOT EXCLUDED FROM COVERAGE UNDER A MAJOR MEDICAL POLICY?

REQUIRED DENTAL TREATMENT DUE TO AN ACCIDENT

INSURERS, TO AVOID ADVERSE SELECTION, IN CONTRIBUTORY GROUP PLANS WILLS OFTEN HAVE A MINIMUM PARTICIPATION REQUIREMENT OF:

SEVENTY-FIVE PERCENT

MANY ELDERLY ARE NOT AWARE OF MEDICARE AND EXCLUSIONS WHICH INCLUDE THOSE LISTED EXCEPT:

SKILLED NURSING UNDER 100 DAYS DURATION

THE DISABILITY INCOME RIDER ADDED TO A LIFE INSURANCE CONTRACT IS:

SOMETIMES PAIRED WITH THE WAIVER OF PREMIUM RIDER AS AN ADDED BENEFIT

THE INSURANCE CONTRACT IS A "CONTRACT OF ADHESION" THEREFORE, WHICH OF THE BELOW IS NOT TRUE ABOUT THE APPLICATION?

THE AGENT AND THE APPLICANT MAY COMPROMISE ON THE POLICY RESTRICTIONS IN ORDER TO PROVIDE COVERAGE FOR EVERYONE

THE PRODUCER'S ETHICAL OBLIGATIONS TO WHICH OF THE FOLLOWING IS THE LEAST IMPORTANT?

THE AGENT'S CREDITORS

REQUIRED STANDARDS FOR RECOMMENDING AN ANNUITY INCLUDE ALL THE FOLLOWING EXCEPT:

THE AGENTS CONVICTION THAT ANNUITIES FIT THE RETIREMENT NEEDS OF MOST POTENTIAL CLIENTS.

OCCUPATIONAL VERSUS NON-OCCUPATIONAL COVERAGE BECOMES AN ISSUE WHEN::

THE APPLICANT IS SELF-EMPLOYED IN A HAZARDOUS OCCUPATION AND NEEDS HEATH COVERAGE.

IN AN INSURANCE CONTRACT, THE CONSIDERATION GIVEN BY THE APPLICANT IN EXCHANGE FOR THE INSURERS PROMISE TO PAY BENEFITS IS

THE APPLICATION AND THE INITIAL PREMIUM

IN THE SETTLEMENT OPTION KNOWN AS LIFE INCOME OPTION:

THE BENEFICIARY RECEIVES A GUARANTEED INCOME NO MATTER HOW LONG HE/SHE LIVES

WHICH OF THE BELOW ADMINISTERS INSURANCE LAWS OF THE STATE OF FLORIDA?

THE CHIEF FINANCIAL OFFICER

WHICH OF THE FOLLOWING IS TRUE ABOUT A UNIVERSAL LIFE CONTRACT?

THE FACE VALUE MAY BE ADJUSTED TO FIT THE INSURED'S CURRENT NEEDS

WITH INSURANCE CONTRACTS THERE IS A POSSIBILITY FOR EITHER OF THE PARTIES TO LOSE. WHICH OF THE FOLLOWING DESCRIBES THIS FEATURE OF INSURANCE CONTRACTS?

THE INSURANCE CONTRACT IS AN ALEATORY CONTRACT

WHICH OF THE FOLLOWING IS CHARACTERISTIC OF A FIXED ANNUITY?

THE ISSUING ENTITY BEARS THE INVESTMENT RISK.

THE PROBATIONARY PERIOD IN A DISABILITY INCOME POLICY IS

THE PERIOD OF TIME STARTING ON THE POLICY EFFECTIVE DATE DURING WHICH THERE IS NO COVERAGE FOR ILLNESS

WHICH OF THE FOLLOWING IS NOT TRUE ABOUT TRADITIONAL VARIABLE LIFE INSURANCE?

THE POLICY OWNER MAY INCREASE CONTRIBUTIONS AT HIS DISCRETION

TO WHAT DOES THE STATEMENT "SPREADING THE INCOME LOSS CREATED BY AN INDIVIDUAL'S DEATH AMONG MANY PERSONS SO THE COST FOR EACH INDIVIDUAL IS SMALL" REFER?

THE PRINCIPLE OF LIFE POOLING

DISABILITY INCOME BENEFITS ARE CONSIDERED TAXABLE INCOME TO THE DISABLED PERSON WHEN:

THE RECIPIENT'S EMPLOYER HAS PAID THE PREMIUMS

WHO REGULATES THE VARIABLE ANNUITY?

THE STATE AND THE SECURITIES EXCHANGE COMMISSION

WHICH OF THE FOLLOWING STATEMENTS ABOUT UNIVERSAL LIFE IS NOT CORRECT

UL POLICIES PROVIDE FOR A VARIETY OF INVESTMENTS OPTIONS

THE FLORIDA ADMINISTRATIVE CODE REGARDING AGENTS PROHIBITS WHICH OF THE FOLLOWING?

UNSUBSTANTIATED DISPARAGING STATEMENTS REGARDING AN INSURER

WHEN AN INSURED POLICY OWNER MAKES A TRANSFER-FOR-VALUE (SELLS THE POLICY) WITHOUT ADDRESSING THE MATTER OF INSURABLE INTEREST, THE EXCHANGE IS CALLED A

VIATICAL SETTLEMENT

WHEN DO POLICY OWNERS USUALLY USE THE COLLATERAL ASSIGNMENT?

WHEN THEY WANT TO BORROW MONEY OUTSIDE THE POLICY

IN VARIABLE ANNUITY THE ACCUMULATION UNITS

WILL RARELY HAVE THE SAME VALUE FROM MONTH TO MONTH

DOES THE IRS BECOME INVOLVED WITH LONG-TERMED CARE POLICY BENEFITS?

YES, IRS HAS MAXIMUM NONTAXABLE BENEFIT LIMIT