exam pre
If an insurer wishes to appoint a producer, it must file a notice of appointment within how many days of the date that the contract is executed?
15 days
If an insurance agent has made a misrepresentation or incomplete comparison of policies for the purpose of inducing a potential client to purchase an insurance policy, the agent may be assessed a fine of up to
2,000
What is the maximum age for qualifying for a catastrophic plan?
30
Which of the following individuals will be eligible for coverage on the Health Insurance Marketplace?
A permanent resident lawfully present in the U.S.
Which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance
The LEAST expensive first-year premium is found in which of the following policies?
Annually Renewable Term
What is another name for interest-sensitive whole life insurance?
Current assumption life
Which of the following terms is used to name the nontaxed return of unused premiums?
Dividend
Which of the following is true regarding taxation of dividends in participating policies?
Dividends are not taxable.
What provision in an insurance policy extends coverage beyond the premium due date?
Grace period
Which of the following statements pertaining to Medicare Part A is correct?
Individuals who have ALS automatically qualify for Medicare Part A, regardless of age.
Who must pay for the cost of a medical examination required in the process of underwriting?
Insurer
All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT
It is a life contingency option.
All of the following statements are true of a Combination Dental Plan EXCEPT
It is also known as the Superimposed Plan.
In which of the following situations is it legal to limit coverage based on marital status?
It is never legal to limit coverage based on marital status.
Which of the following statements concerning Medicare Part B is correct?
It pays for physician services, diagnostic tests, and physical therapy.
All of the following statements describe a MEWA EXCEPT
MEWAs are groups of at least 3 employers.
Under which plan does preventative dental treatment not apply toward the deductible?
Nonscheduled
Which renewability provision allows an insurer to terminate a policy for any reason, and to increase the premiums for any class of insureds?
Optionally renewable
An applicant wants to buy a policy that has a cash value element. Which type should she buy?
Permanent
Under which provision can a physician submit claim information prior to providing treatment?
Prospective Review
Following a career change, an insured is no longer required to perform many physical activities, so he has implemented a program where he walks and jogs for 45 minutes each morning. The insured has also eliminated most fatty foods from his diet. Which method of dealing with risk does this scenario describe?
Reduction
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 premium, thus reducing it to $900. What option does this describe?
Reduction of Premium
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
Signed waiver of premium.
In a group life insurance policy, the employer may select all of the following EXCEPT
The beneficiary.
Not all losses are insurable, and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT
The loss may be intentional.
What happens if a deferred annuity is surrendered before the annuitization period?
The owner will receive the surrender value of the annuity.
An insured stops making payments on a loan taken from his cash value policy. What will most likely happen?
The policy will terminate when the loan amount with interest equals or exceeds the cash value.
A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as
Usual, customary and reasonable.
An insurance company receives an application with some information missing and issues the policy anyway. What is this called?
Waiver
When is the insurability conditional receipt given?
When the premium is paid at the time of application