EXAM 1!!

At the very least, an admitted insurance company shall be examined once every_______years.

5

Producers must complete hours of continuing education every two years to keep their license active .

24

Which of the following claims are typically excluded from Medical expense policies?

Intentionally self-inflicted injuries

S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance company did not respond to the claim. S can take legal action against the insurer beginning:

November 1

Which of these statements is INCORRECT regarding a Preferred Provider Organization (PPO) ?

PPO's are NOT a type of managed care systems

Which of the following best describes a contingent beneficiary?

Person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured

When an employee is terminated, which statement about a group term life conversion is true?

Policy proceeds will be paid if the employee dies during the conversion period

Which of the following provisions specifies how long a policyowner's health coverage will remain in effect if the policyowner does not pay the premium when it is due?

grace period

Under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of:

$10,000

Which of the following types of Term Life policies most likely contains a Renewability feature ?

10 year convertible term

Traditional individual retirement annuity ( IRA) distributions must start by:

April 1st of the year following the year the participant attains age 70 1/2

At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?

At the time of application

Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?

Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company

What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?

Decreasing term

Which of the following types of organizations are prepaid group health plans, where members pay in advance for the services of participating physicians and hospitals that have agreements ?

HMO

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?

Insured's contingent beneficiary

What is Indiana's definition of Life insurance replacement ?

a transaction in which a new policy is bought and an old policy is terminated

L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision , the insurer will:

adjust the death benefit to a reduced amount

A(n) \ insurance company is one formed in a country other than the United States .

alien

What does a certificate of authority allow?

an insurance company to conduct insurance business in indiana

Which of the following statements BEST describes what the Legal Actions provision of an Accident and Health policy requires ?

an insured must wait at least 60 days after Proof of Loss has been submitted before a lawsuit can be filed

When can a policyowner change a revocable beneficiary ?

anytime

All of the following statements about Major Medical benefits are true, EXCEPT:

benefits have no maximum limit

Which statement about a whole life policy is true ?

cash value may be borrowed against

Additional coverage can be added to a Whole Life policy by adding a(n) :

decreasing term rider

An agent takes an individual Disability Income application, collects the appropriate premium , and issues the prospective insured a conditional receipt. The next step the insurance company will take is to:

determine if the applicant is an acceptable risk by completing standard underwriting procedures

B is a teacher who was injured in a car accident and cannot work. She is now receiving monthly benefits as a result of this accident. Which type of policy does B have?

disability income

A group life insurance policy can be converted to an individual whole life policy under which circumstance?

employment termination

P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or to his beneficiary if he dies before age 70. What kind of policy does P own?

endowment at age 70

The payments on Q's annuity are no less than $250 quarterly. Which of the following annuities does Q own?

flexible installment deferred

A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as:

fraternal benefit society

Under the Patient Protection and Affordable Care Act (PPACA ), consumers have access to health coverage that is:

garunteed available and renewable

In a Life insurance contract, an insurance company's promise to pay stated benefits is called the:

insuring clause

How are policyowner dividends treated in regards to income tax?

interest on accumulations is taxed

The Accidental Death and Dismemberment (AD&D) provision in a life insurance policy would pay additional benefits if the insured:

is blinded in an accident

Which statement regarding third -party ownership of a life insurance policy is true ?

it is used extensively in estate-planning as well as business circumstances

Which of the following types of health coverage frequently uses a deductible ?

major medical policy

An example of unfair discrimination would be:

offering different terms of coverage for different policyowners having the same risk classification

Which of these do NOT constitute policy delivery ?

policy issued with a rating

A Limited-Pay Life policy has:

premium payments limited to a specified number of years

The_______must provide an insured with proper disclosure concerning the replacement of a life insurance policy.

producer

When an insured has the same disability within a specified time period and the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following benefits?

recurrent disability

Which provision allows a portion of any used medical benefits to be restored following a particular amount of benefit has been used, or after the policy has been in effect for a particular period of time?

restoration of used benefit

What is the Suicide provision designed to do ?

safeguard the insurer from an applicant who is contemplating suicide

Upon delivery of a rated life insurance policy, the Producer must obtain each of the following, EXCEPT:

signed HIPAA disclosure

How does a typical Variable Life Policy investment account grow ?

through mutual funds, stocks, bonds

Why would the Commissioner examine the records of an insurance company ?

to determine the solvency of the company

B the producer sold an insurance contract to a client . B has engaged in

transacting insurance

When is the face amount paid under a Joint Life and Survivor policy ?

upon death of the last insured

In order to sell a(n) \ Life policy , a producer is required to register with the Financial Industry Regulatory Authority ( FINRA).

variable