Exam FX Life Insurance Test Questions

Subrogation

A provision found in insurance policies which prevents the insured from collecting twice for the same loss is called

Convert to an individual policy

A small company offers group insurance to its employees, but recently has decided to terminate the health insurance contract, leaving the workers without insurance. What can the employees do regarding their insurance?

Twisting

Agents who persaude insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of

Applicant

An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must initial that change?

Occupational

An insured has health insurance that covers them at work and at home. This policy was written on what basis?

Consideration

An insurer neglects to pay a legitmate claim that is sovered under the terms of the policy. Which of the following insurance principles has the insurer violated?

Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense

As it pertains to group health insurance, COBRA stipulates that

A master contract

Group health insurance is characterized by all of the following EXCEPT

Conversion

If an employee terminates her employment, which of the following provisions would allow her to continue health coverage an individual policy, if requested within 31 days?

The individual insured

In a group policy, who is issued a certificate of insurance?

3

In this state, long-term care benefits may be triggered by inability to perform how many activities of daily living?

$900 (deductible + 20% of the bill after te deductible [20% of $2,000])

L has a major medical policy with a 4500 deductible and 80/20 coinsurance. L is hospitalized and sustains a $2,500 loss. What is the maximum amount that L will have to pay?

Income for 2 or more receipients until they die

Life income joint and survivor settlement option guarantees

Attending physician

Occasional visits by which of the following medical professionals will not be covered under LTC's home health care?

Elderly insureds

What does the secondary notice provision protect?

Maintaining a copy of the Notice Regarding Replacement and all sales proposals used for at least 5 years

When replacing life insurance , the duties of the replacing insurance company include all of the following EXCEPT

Single payment or periodic payments

Which two terms are associated directly with the way an annuity is funded?

Is renewable at the option of the insurer to a specified age of the insured

A guaranteed renewable disability insurance policy

Critical Illness

A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as

Joint Life Policy

A married couple owns a permanent policy covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?

Person, at least 65 years of age, who are blind or disabled and financially unable to pay, may qualify for Medicaid Nursing Home Benefits

All of the following statements concerning Medicaid are correct EXCEPT

50/50

Ray has an individual major medical policy that requires a coinsurance payment. Ray rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arranngement would be best for Ray?

Issues of securities

The Office of Insurance Regulation is responsible for all of the following insurer activties EXCEPT

Free-Look period

What phase begins after a new policy is delivered?

Insurer

When a person applies for Medicare supplement insurance, whose responsibility is it to confirm that the applicant does not already have accident sickness insurance in force?

Outline of Coverage

Which document helps ensure that full and fair disclosure is provided to the recipient of a policy?

Premium are not tax deductible and benefits are not taxable

Which of the follow describes taxation of individual disability income insurance premiums and benefits?

Payor Benefit

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have dies of become disabled?

The date the summary was prepared

Which of the following dates must be contained in a policy summary?

Gatekeeper

Which of the following is another name for a primary care physician in an HMP?

To create an estate

Which of the following is the best reason to purchase life insurance rather than annuities?

The longer the elinimation period, the lower the cost of coverage

Which of the following is true regarding elimination periods and cost of coverage?

The insured over the age of 64

Who does the secondary addressee provision protect?

Pay dividends to the policyowner

A participating insurance policy may do which of the following?

Disability income

A waiver of premium provision may be included with which kind of health insurance policy?

The insurer wil pay the full death benefit from the group policy to the beneficiary

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

$50,000

An employee will be taxed on the cost of group life insurnace paid by the employer if the amount of coverage exceeds

$50,000

An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he dies in an automobile accident. How much will his wife receive from the policy?

Revocable

An insured want to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have herhusband named as what type of beneficiary?

200%

If a parent would like to enroll a child over the age of 5 into the Florida Healthy Kids program, their family income must be under a certain percentage of the federal poverty level. What percentage?

Certificate holder

If an employee is accepted into a group insurance plan, which status will the employee have?

At the time of application

To comply with Fair Creidt Reporting Act, when must a producer notify an applicant that a credit report may be requested?

If the employee enrolls within a certain time period

Under what conditions will proof of insurability NOT be required of an employee wanting to enroll in a group insurance plan?

All elgible employees must be covered

Underwriting a group health insurance plan that is paid for by the employer requires ll of the following EXCEPT

The attending physcian will be paid a fee for service, but the member patient will have to pay a higher coinsurance amount

What happens if a non-member physician is utilized under the Point-Of-Service plan?

Both principal and interest will be liquidated over a selected period of time

Which of the following best describes fixed period settlement option?

It is a nonprofit that maintains underwriting information on applicants for life and health insurance

Which of the following best describes the MIB?

It remains the same no matter how many children are added to the policy

Which of the following is true about the premium on the children's rider in a life insurance policy?

Increasing term life

Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value?

That its policies are covered by a state Guaranty Association

Which of the following may NOT be included in an insurance company's advertisement?

A minor son of the insured

Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insured's death?

Premium amounts and surrender values

Which of the following will be incuded in a policy summary?

The mode of the premium payment

Which of the following will vary the legnth of the grace period in health insurance policies?

The pre-existing condition waiting period fulfilled in the old policy will be transferred to the ne wpolicy, the new one picking up where the old on left off

An individual purchased a Medicare supplement policy in March and decied to replace it 2 months later. His history of coronary artery disease is considered a pre-existing condition. Which of the following is true?

It will increase because the insured will be 5 years older than when the policy was originally purchased

An insured buys 5-year level premium term policy with a face amount of $10,000. The policy contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?

$3,000

An insured is covered by a partially contributory group disability income plan that pays benefits of $4,000 a month. The insured pays 25% of the monthly premium, how much of the monthly benefit would be taxable?

The annuitant assumes the risks on the investment

Which of the following ie TRUE regarding variable annuities?

The amount of premium payment

Which of the following information will be stated in the consideration clause of the life insurance policy?

The employees receive individual policies

Which of the following is INCORRECT concerning a noncontributory group plan?

5

A licensed agent must complete how many hours of continuing education specific to ethics and regulatory updates?

No, the group must be formed for a purpose other than obtaining group insurance

Can a group that is formed for the sole purpose of obtaining group insurance qualify for group coverage?

the insured may renew the policy for another 10 years, but at a higher premium rate.

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?

An insured borrows money from the bank and makes a collateal assignment of a part of the death benefit to secure the loan

All of the following are examples of thirs party ownership of life insurance

Mutual

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

100

In order for a debtor group to qualify for group life insurance, what should be the minimum number of participants joining the plan every year

Rates by class

Insurers may change which of the following on a guranteed renewable health insurance policy?

The insurance contract

Which of the following is an agreement between an insured and an insurer, where the insurer agrees to indemnify the insured for specific losses in exchange for a premium?

Elimination period

An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be elgibile for benefits for at least 30 days. This indicates that his policy is written with a 30-day

Reduction of premium

An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's premiums, thus reducing it to $900. What option does this describe?

Is not covered

In health insurance , if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost

The insurer can increase the policy premium on an individual basis

Which of the following is NOT a feature of a guaranteed renewable provision?

Target premium

Which of the following would help prevent a universal life policy from lapsing?

Replacement rule

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Nonforfeiture values

Which term secribes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses?