Exam 6 corrections

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

$50,000

According to OBRA, what is the minimum number of employees required to constitute a large group?

100

The term "illustration" in a life insurance policy refers to

a presentation of non guaranteed elements of a policy

All of the following are correct about the required provisions of a health insurance policy EXCEPT

a reinstated policy provides immediate coverage for an illness

Which of the following conditions would a disability income policy most likely NOT require in order to qualify for benefits?

a specified income status prior to the disability

Which of the following authorities is authorized to issue a temporary insurance producer's license?

commissioner

An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the

consideration clause

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

guaranteed insurability rider

The insurer may suspect that a moral hazard exists if the policyholder

is not honest about his health on an application for insurance

All of the following statements are true of a Combination Dental Plan EXCEPT

it is also known as the superimposed plan

All of the following are licensing requirements for a business entity, EXCEPT

having all employees complete continuing education courses once every 2 years

When would a misrepresentation on the insurance application be considered fraud?

if it is intentional and material

In a group health policy, a probationary period is intended for people who

join the group after the effective date

An individual's tendency to be dishonest would be indicative of a

moral hazard

All of the following are considered to be supplemental benefits under an HMO plan EXCEPT

preventive services

A life insurance policy does not have a war clause. If the insured is killed during a time of war, what will the beneficiary receive from the policy?

the full death benefit

When an insurer issues an individual health insurance policy that is guaranteed renewable, the insurer agrees

to renew the policy until the insured has reached age 65

When is the earliest a policy may go into effect?

when the application is signed and a check is given to the agent

If a licensed person is moving to Pennsylvania, he or she may become licensed as a resident if they submit a completed application within how many days of establishing residence in Pennsylvania with proof of licensing from their prior home state?

90 days

Once a viatical contract has been established, how long does the viator have to rescind the contract?

15 calendar days

How often must the Commissioner examine rating organizations?

5 years

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months