General Practice Exam-MD Accident, Health & Life Producer Practice Exam C

Todd and Tim are named as co-primary beneficiaries on a $650,000 Accidental Death and Dismemberment policy that insurers their mom. Their father was named a beneficiary of contingency. Four years pass and Tim dies and then his mom died of an accident within a short time. What will the father receive as a death benefit? A. $0 B. $650.000 C. $325.000 D. Double the indemnity amount

$0

Sam directly transferred $10,000 from one qualified plan to another. What is the tax circumstance on this direct transfer? A. $10,000 and no tax B. $10,000 and subject to10% tax C. $10,000 and subject to 20% tax D. $10,000 and subject to 7% tax

$10,000 and no tax

Jay surrendered his Whole Life policy that he had for 20 years. He paid yearly premiums of $500, which totaled $10,000. When he surrendered his policy, his cash value was $13,000. What part of this scenario is taxable income? A. $500 B. $3,000 C. $13,000 D. $10,000

$3,000

Kelly has a Major Medical Plan with a 75%/25% coinsurance and a $25 deductible. How much will she pay if she has not met any of her deductible, and she visits her doctor and then gets a bill for $125? A. $25 B. $50 C. $100 D. $150

$50

Wilson has a stop loss limit of $5,000, a deductible of $500 and an 80%/20% coinsurance. If Wilson has $25,000 of covered losses, how much will he have to pay? A. Nothing B. $5000 C. $5,500 D. $5,400

$5000

Jill is insured under a group medical plan with a $500 deductible and a 90% coinsurance. If Jill incurs $1,500 in covered health care services how much will her group insurance carrier pay? A. $500 B. $450 C. $900 D. $1,200

$900

Wanda pays $357.92 a month for her insurance. What is the duration of her grace period? A. 7 days B. 14 days C. 10 days D. 30 days

10 days

Considerations for Life (wrong) What penalty is applied to a premature annuity distribution? A. 5% B. 7% C. 10% D. 15%

10%

What penalty is applied to a premature annuity distribution? A. 5% B. 7% C. 10% D. 15%

10%

Marty is 56 years old and he just made a withdrawal from his IRA. What would Marty pay for his withdrawal from his account? A. Nothing B. 10% penalty C. 15% penalty D. 20% penalty

10% penalty

What percentage of Medical, Dental and Vision Expense Insurance premiums may be deducted as a business by an employer? A. 0% B. 75% C. 100% D. 7.5%

100%

Diane is looking for a disability income policy. Which of the following would have the highest premium? A. 12 day waiting period/ 5 year benefit period B. 12 day waiting period/ 10 year benefit period C. 30 day waiting period/ 5 year benefit period D. 30 day waiting period /10 year benefit period

12 day waiting period/ 10 year benefit period

HIPAA applies to groups of ____________ A. More than 2, less than 50 B. 2 or more C. 3 or more D. 5 or less

2 or more

The Notice of Claims provision states that a claimant must notify their insurance company of loss within how many days after their loss has occurred? A. 10 B. 15 C. 20 D. 30

20

COBRA relates to employers with how many employees? A. 20 or more B. More than 100 C. 50 or more D. 20 or less

20 or more

Within how many months must a person be expected to die from a sickness in order to be classified as terminally ill? A. 3 B. 24 C. 6 D. 12

24

Certain groups require a specific amount of participation. How many members are required for a Labor Union? A. 25 B. 50 C. 75 D. 100

25

Which of the following is the number base for a Labor Union? A. 10 B. 15 C. 25 D. 50

25

The HMO Act states that employers that provide health benefits for their workers to offer enrollment in an HMO must have a certain minimum number of required employees. What is the minimum number of required employees? A. 10 or more B. 15 or more C. 20 or more D. 25 or more

25 or more

Fred has a fixed annuity with a guaranteed minimum rate of interest of 3.5%. Due to fluctuations in the economy, his investments are now earning 3%. What interest rate will Fred's insurer pay him? A. 3% B. 5% C. 3.5% D. Due to the market fluctuation, Fred must wait 3 months and receive 3% from his account

3.5%

A Long Term Care policy can be reviewed and returned for a refund. How many days can an applicant review their policy and return it without a penalty? A. 7 days B. 20 days C. 30 days D. 45 days

30 days

Small tax-exempt organizations can get a tax credit for ____% of the premiums they paid. A. 15 B. 20 C. 30 D. 35

35

What is the Social Security elimination period for disability benefits? A. 2 months B. 3 months C. 4 months D. 5 months

5 months

A replacing Life insurer must maintain a register for a replaced policy for how many years? A. 2 years B. 4 years C. 5 years D. 3 years

5 years

Under HIPAA, Group Health plans CANNOT impose more than a 12 month pre-existing conditions exclusion for a person who sought medical advice, treatment, or diagnosis within the last: A. 12 months B. 6 months C. 30 days D. 3 months

6 months

Benefit periods for Individual Short Term Disability policies vary between what periods of time? A. 1month to 6 months B. 3 months to 9 months C. 6 months to 2 years D. 9 months to 2 years

6 months to 2 years

In regard to a Short Term Disability employer plan, what percentage of an employee's income would generally be covered? A. 30% B. 40% C. 50% D. 70%

70%

Medicare Part B covers what percentage of approved charges after a yearly deductible has been satisfied? A. 20% B. 50% C. 80% D. 100%

80%

Mike was under the influence of alcohol at the time his application was completed. Mike would not be issued a valid contract because the contract would not contain: A. Offer and acceptance B. Legal purpose C. A Competent party D. Consideration

A Competent party

When can a group be formed to obtain insurance? A. After submitting their application and paying their premium B. After waiting to fulfill their probationary period C. A group is never allowed to be formed to obtain insurance D. A group must show proof of insurability

A group is never allowed to be formed to obtain insurance

What does a Fixed Annuity contract provide? A. A level benefit B. A varying benefit C. Protection against inflation D. Increasing payment amounts

A level benefit

What type of Health Care services are provided by an HMO? A. Limited services B. A package of Comprehensive services C. Excluded services D. Monetary services

A package of Comprehensive services

Which of the following would qualify for Medicare under the age of 65? A. No one B. A person that meets the Special Needs qualifications C. A person that pays the premium for the coverage D. A person that is disabled

A person that meets the Special Needs qualifications

Carrie has coverage with two different providers and is covered on an expense incurred basis. She had surgery on her throat and filed claims with both of her insurers. She didn't notify her companies in advance about her other coverage or her surgery. What would her insurers pay? A. Nothing, because she didn't inform her insurance companies about her dual coverage B. A proportionate amount C. Both will pay the total amount D. The first company to receive the claim will pay

A proportionate amount

Which of the following is not a characteristic of advertising? A. Precise B. Clear C. AM Best D. Understandable

AM Best

Policy Prov Options and Riders (wrong) What is a living benefit option in a life policy? A. Payor benefit B. Reinstatement C. Indemnity D. Accelerated Death Benefit

Accelerated Death Benefit

Injuries are classified as accidental injury or as accidental bodily injury. Which injury generally has broader coverage? A. Accidental injury B. Accidental bodily injury C. Both injury types have the same coverage D. There is not enough information to determine the coverage between the injuries by their definition

Accidental bodily injury

What is best defined as bathing, eating and walking independently? A. Activities of Daily Living B. Functions of Life C. Unattended Life Activities D. Activities of Home Health Care

Activities of Daily Living

What is the amount a doctor bills for a service? A. Actual charge B. Excess charge C. Applied charge D. Assigned charge

Actual charge

Mr. Jones has care that transports him to a center with activities. What best describes his LTC? A. Adult Day Care B. Respite Care C. Hospice Care D. Skilled Care

Adult Day Care

When will Single Premium Deferred Annuity benefits be paid? A. When the owner is 65 B. When the owner is in a LTC facility C. After a year D. When the owner dies

After a year

Which of the following relates to the fact that both parties of a contract may not receive the same value? A. Apparent B. Express C. Aleatory D. Unilateral

Aleatory

Regarding the PPACA, what is the mandate on pre-existing conditions? A. All Health plans must cover an insured regardless of their pre-existing condition B. Pre-existing conditions must be covered after 30 days C. Pre-existing conditions are covered to a certain degree set by each insurer D. All Health plans must limit coverage to two pre-existing conditions

All Health plans must cover an insured regardless of their pre-existing condition B. Pre-existing con

The cash value of a Universal Life policy can be used in many ways without the policy lapsing. Which of the following is not allowed? A. It is used for a loan B. It is used to pay a debt C. Allow the cash value to go to a negative amount D. Pay for a Term policy

Allow the cash value to go to a negative amount

An insured's representations and warranties are incorrectly stated in which of the following statements? A. Statements made by an applicant that are guaranteed true are considered to be warranties B. Statements that an applicant believes to be true, but does not guarantee are considered to be representations C. An applicant's statements on an application are considered warranties D. An applicant's statements on an application are considered representations

An applicant's statements on an application are considered warranties

In reference to Life Insurance and Contract Law, a person most likely will have an insurable interest in insuring a person's life if: A. Any type of relationship exists between the insured and their beneficiary B. An economic interest exists for the continuance for an insured's life C. If any type of decent family relationship exists with an insured's party D. The interest exists at the time of death, rather than at the time a policy is purchased

An economic interest exists for the continuance for an insured's life

When can an insurer rescind a policy due to an unintentional omission of information on an application? A. After the policy has been in force for 30 days B. After the policy has been in force for 45 days C. An insurer may not rescind a policy due to an unintentional omission of information on an application D. After the free look period has expired

An insurer may not rescind a policy due to an unintentional omission of information on an application

Which of the following characteristics is not associated with a Non-Cancellable policy? A. An insurer cannot cancel the policy B. An insurer cannot increase the premium C. An insurer may terminate the contract for certain conditions D. An insurer has the right to make contract changes

An insurer may terminate the contract for certain conditions

Which of the following is most closely associated with group plans? A. Increasing Term B. Level Term C. Adjustable Life D. Annually Renewable Term

Annually Renewable Term

Which of the following would be considered the purest form of Term insurance? A. Annually Renewable Term B. Increasing Term C. Decreasing Term D. Level Term

Annually Renewable Term

Which of the following does not describe a MET? A. METS obtain coverage by joining together B. METs can be self insured C. At least 3 or more employers must join together to form a MET D. METs are arrangements for employers

At least 3 or more employers must join together to form a MET

Every year Frank's policy's premium increases. What kind of policy does this describe? A. Acquired Age rated B. Issue Age Rated C. Attained Age rated D. Assumed Age rated

Attained Age rated

In regard to determining Wayne's life insurance needs, which of the following would not be considered? A. Social Security B. Work pension C. Savings D. Auto

Auto

Which of the following is a factor M&B insurer would consider when determining whether to accept a group life plan? A. Average age B. Free Look period C. Dependents of employee D. Beneficiaries

Average age

Barbara has a fixed annuity. Who bears the risk of her account? A. Barbara B. Barbara's beneficiary C. Barbara's annuitant D. Barbara's insurance company

Barbara's insurance company

What kind of policies are identified by their low dollar limits and first dollar coverage? A. Health and General Policies B. Basic Medical Policies C. Comprehensive Policies D. Limited Choice Provider Policies

Basic Medical Policies

Which schedule lists the type and an amount payable in a Medical Plan? A. Benefit Schedule B. Prepaid Schedule C. Comprehensive Schedule D. Profit Schedule

Benefit Schedule

Roger bought a Medical policy for his family that covered his wife and son. His employer purchased a group Disability policy for their eligible employees. Unfortunately, Roger suffered an accident on his job which left him unable to work for 5 months. If Roger receives benefits from the policy, which of the following will be true in relationship to this scenario? A. Benefits received by Roger that are attributable to his employer's contributions are fully taxable to Roger as income B. Benefits received by Roger can be deducted on his income tax C. Benefits are not taxable as income D. Benefits can be credited and carried over to the next year if not used

Benefits received by Roger that are attributable to his employer's contributions are fully taxable to Roger as income

Bob was covered by his Whole Life policy and he recently died. His named primary beneficiary died before he did and the contingent beneficiary. What will happen to the benefits of the policy? A. Benefits will go to Bob's estate B. Benefits will go to the contingent beneficiary C. Benefits will go to be decided by the state D. Benefits will go to the primary beneficiary's estate

Benefits will go to the contingent beneficiary

In regard to Social Security benefits, what refers to the period of time after the youngest child reaches 16, and prior to the surviving spouse reaching 60, when the Social Security benefits will not be paid? A. Benefit Period B. Benefit Check Period C. Buy Sell Period D. Blackout Period

Blackout Period

What legal agreement dictates who may buy a deceased business partner's share of their business? A. Key Person B. Buy Sell C. Business Overhead D. Pure Salary

Buy Sell

How do some insurers minimize loss exposure? A. By reinsuring risks B. By lowering costs C. By using adverse selection D. By increasing administrative costs

By reinsuring risks

Considerations for Health (wrong) The IRC Section 125 is what type of plan? A. Cafeteria Plan B. Disability Plan C. Buy Sell Plan D. Business Overhead Plan

Cafeteria Plan

Policy Prov Options and Riders (wrong) Which option allows a company to pay the surrender value of a policy and end their obligations to their policyowner? A. Cash Surrender B. Paid Up Additions C. Paid Up Option D. Extended Term

Cash Surrender

What does "liquidity" refer to in a Life insurance policy? A. The insured is receiving payments each month in retirement B. The policy owner receives dividend checks each year C. Cash values can be borrowed at any time D. The death benefit replaces the assets that would have accumulated if an insured had not died

Cash values can be borrowed at any time

All of the following are exclusions from Major Medical policies, except: A. Custodial Care B. Self inflicted injuries C. Catastrophic loss D. Injuries from an act of war

Catastrophic loss

If an insured has an outstanding policy loan, what action would their insurer most likely take against them? A. No action can be taken B. Sue to collect the funds C. Charge interest on the policy loan D. Cancel the loan

Charge interest on the policy loan

When advertising, the identity of the insurer shall be: A. Secured B. Capitalized C. Clear D. Guaranteed

Clear

Lynn wanted to buy a cupcake shop so she took out a loan. Unfortunately, her bank needed more in trade to make her purchase. Since she has a $200,000 Life policy, Lynn decided to use it to secure her loan. What assignment made this possible? A. Absolute B. Collateral C. Partial D. Modified

Collateral

Which party approves all Medicare Supplement advertisements prior to their use? A. Commissioner B. No one C. Executive officer of the Department of Hygiene D. Department of Health and Hygiene

Commissioner

What states how death benefit proceeds should be distributed if an insured and their beneficiary get killed in an accident together? A. Common Disaster Clause B. Spendthrift Clause C. Proceeds Clause D. Surrender Clause

Common Disaster Clause

An insurer monitors care an insured is receiving in the hospital to be sure that everything is preceding according to schedule. This best describes: A. Absolute review B. Benefit review C. Concurrent review D. Pre-Certification review

Concurrent review

What investments are associated with a general account? A. Aggressive B. Conservative C. Standard D. Regular

Conservative

In order for a contract to become valid, each party must give the other party something of value. This fulfills the essential part of the contract known as: A. Legal Purpose B. Acceptance C. Consideration D. Offer

Consideration

Bill participates in his company's group plan. One of the provisions of his plan specifies that if he is eligible for benefits under another policy, his group plan will serve as the primary plan. What provision does this describe? A. Excess B. Coordination of Benefits C. Other Insurance D. Carry Over Coverage

Coordination of Benefits

What provision in a disability policy would be in regard to the value of benefits decreasing over time? A. Cost of Living B. Return of Premium C. Inflation benefit D. Interest growth

Cost of Living

Daniel has received disability income for over a year, and just last week he noticed his monthly benefit increased. What rider does Daniel have that caused his benefits to increase? A. SIS Rider B. Annual Renewable Rider C. Cost of Living Adjustment Rider D. Waiver of Premium Rider

Cost of Living Adjustment Rider

A Key Person Insurance Policy would pay for which of the following? A. Costs associated with training a new replacement employee B. Rent C. Loss of a top executive's IRA D. Supplies used by a key employee

Costs associated with training a new replacement employee

Mr. Potter owns a Market Value Adjusted Annuity. He has accumulated a large gambling debt, and some unanticipated Medical expenses, so he made the decision to surrender his annuity. Unfortunately, his annuity is premature. Which of the following will affect the penalty he will have to pay? A. Current interest rates B. Nothing will affect his penalty because he will not be required to pay one C. Minimum interest rate D. The age of Mr. Potter at the time he surrenders his annuity

Current interest rates

Which of the following is an exclusion under a Health insurance policy? A. Dental B. Vision C. Hospital D. Death

Death

Policy Prov Options and Riders (wrong) Which of the following would not be an exclusion from a Life insurance policy? A. Death due to a self inflicted injury B. Death due to war C. Death due to committing a felony D. Death while being a fare paying passenger on a plane

Death while being a fare paying passenger on a plane

Which of the following describes when an IRA must be distributed if a beneficiary is not named? A. December 31st of the year that contains the 5th anniversary of the owner's death B. December 31st of the year of the owner's death C. December 31st of the year that contains the 3rd anniversary of the owner's death D. December 31st of the year that contains the first anniversary of the owner's death

December 31st of the year that contains the 5th anniversary of the owner's death

Bill has a work benefit that allows him to defer his present income and have it paid at a later date, when he presumes he will be in a lower tax bracket. What does this describe? A. Key Employee IRA B. Keogh C. Deferred Compensation option D. Income deferral IRA

Deferred Compensation option

What must a Long Term Care policy contain? A. A 15 Day Free Look Period B. A Term Condition C. Defined Requirements D. Being Conditionally Renewable

Defined Requirements

Funds transferred from one trustee or administrator to the trustee or administrator of a new IRA plan refers to which of the following? A. MEC B. Direct Rollover C. Profit Sharing D. Non-Qualified

Direct Rollover

What legal agreement states how a business will transfer when one of the partners becomes disabled? A. Sole Proprietorship Disability B. Business Overhead Disability C. Disability Buy-Sell D. Presumptive Disability

Disability Buy-Sell

Which is true regarding Immediate Annuity contributions made with before tax dollars? A. Distributions are taxable B. Distributions cannot be before age 70 1/2 C. Distributions cannot be taxed D. Distributions cannot be taken

Distributions are taxable

What best describes the name for non-taxed return of premiums? A. Dividends B. Premiums C. Funds D. Indemnity

Dividends

From the following which is an example of risk sharing? A. Doctors pooling their funds to cover malpractice exposures B. Robert choosing not to invest in stocks C. Bob that added more security to a high risk investment D. Greg that bought a policy to cover potential liabilities

Doctors pooling their funds to cover malpractice exposures

What kind of policy is very specific and covers only certain conditions like Cancer? A. Dread Disease B. Specialized C. Provisional D. Terminal

Dread Disease

Due to Karen's family history of heart disease, she purchased a policy that specifically covers the expense of treating heart disease. What kind of policy did Karen purchase? A. Limited Care Policy B. Critical Family Heart Disease Policy C. Dread Disease Policy D. Term Disease Policy

Dread Disease Policy

What kind of income qualifies an individual to contribute to an IRA? A. Earned income B. Annual income C. Any income D. Annuity income

Earned income

Who is issued a Certificate of Insurance? A. Employer B. Employee C. Health Carrier D. Health Provider

Employee

Wayne has a disease. His employer has kept him on their Health plan for 30 before Medicare becomes his primary coverage. What is Wayne's disease? A. Heart Disease B. Cancer C. End Stage Renal Kidney disease D. Leukemia

End Stage Renal Kidney disease

What type of Buy Sell agreement involves a partnership? A. Cross Purchase Plan B. Entity Plan C. Stock Redemption Plan D. Corporation Plan

Entity Plan

What term refers to taxes being paid from Life Insurance proceeds, so it isn't necessary to sell assets from an estate, to pay for them? A. Estate Creation B. Estate Conservation C. Estate Compensation D. Estate Calculation

Estate Conservation

Identical twins Jake and Jill bought a retirement annuity. They retired at the same time and selected the Life Income Option. Which of the following is true in regard to their monthly annuity payments? A. Jill's payment will be larger B. They will receive the same amount because they are the same age C. Jake's payment will be larger D. Even though they are identical twins, their payments depend on their health status

Even though they are identical twins, their payments depend on their health status

Gill is an employee that was just taxed on the cost of his employer's Group Life policy. What amount did their coverage exceed in order for this to take place? A. Exceeded $25,000 B. Exceeded $35,000 C. Exceeded $50,000 D. Exceeded $100,000

Exceeded $50,000

Accident Only, Credit Only and Disability Income insurance coverages describe what kind of benefits? A. Essential B. Excepted C. Excellent D. Enforced

Excepted

Which term would limit a company's liability to provide insurance coverage? A. Rider B. Exclusion C. Waiver of premium D. Insurability

Exclusion

Which Act makes it a necessity for insurers to disclose when their applicant's consumer or credit background information is being investigated? A. Fair Credit Reporting Act B. Gramm Biley Act C. Florida Investigation Act D. Financial Services Act

Fair Credit Reporting Act

A family can be covered under a single contract. What kind of policy would provide permanent Life coverage on the breadwinner of a family and Term coverage for their other family members? A. Adjustable Life B. Joint Life C. Family Plan D. Family and Joint Plan

Family Plan

Policy Prov Options and Riders (wrong) Which of the following is not a dividend option? A. Cash Payment B. One Year Term C. Fixed Period D. Paid Up

Fixed Period

An insurance company incorporated in one state and licensed to conduct business within another state is called? A. Foreign B. Domestic C. Alien D. Surplus

Foreign

What provision will allow Carl to inspect his policy and if he is dissatisfied with it, he can return it for a refund? A. Grace Period B. Free Look C. Probationary Period D. Elimination Period

Free Look

What provision will allow Sam to inspect his policy and if dissatisfied, be able to return it for a full refund? A. Grace Period B. Free Look C. Payment of Premium D. Consideration

Free Look

Chris is still within his Grace Period, but he didn't pay his premium. Within that time Chris died. What will Chris's named beneficiary receive? A. Nothing B. All paid in premiums plus the cash value C. Full face amount minus any past due premiums D. Full face amount of benefits

Full face amount minus any past due premiums

If a qualified plan begins to make payments to its recipient, what part of the distributions are taxable? A. Gains B. Principle C. Employee contributions D. Employer contributions

Gains

What kind of characteristic refers to an inherited gene that will most likely develop a disorder in an individual? A. Genetic B. Medical C. Chromosome D. Chronic

Genetic

Bob's insurer accepted his premium and continued his coverage in full force as though it was not late during which period? A. Indemnity B. Grace C. Absolute D. Collateral

Grace

Which of the following is a feature of a Long Term Care plan? A. Guaranteed Renewability B. General Enrollment C. Open Enrollment D. No Elimination Period

Guaranteed Renewability

Rick is an insured on a participating Life policy that presently has his premiums waived due to his disability. In regard to his situation, what can Rick do or not do? A. He cannot borrow against the cash value while disabled B. He cannot assign his policy while his premiums are waived C. He can still receive his dividends D. He will pay income taxes on the waived premiums

He can still receive his dividends

Ed wants a Health Savings Account with his employer. What kind of insurance plan will be most likely associated with the HSA? A. High deductible B. Basic deductible C. No deductible D. First dollar deductible

High deductible

Dean chose a nonforfeiture option by using his life policy's cash value to buy an extended term insurance option. What will happen when his term insurance coverage expires? A. His protection ends B. His remaining cash will be paid to him C. He has the chose to keep his original policy D. He can resume coverage with a premium payment

His protection ends

Which of the following is not considered durable Medical equipment? A. Hospital pillows B. Hospital bed C. Oxygen equipment D. Wheel Chair

Hospital pillows

Who has jurisdiction with the Commissioner over alleged discrimination factors? A. Human Rights Commission B. Human Resource Commission C. Human Relations Commission D. Human Research Commission

Human Relations Commission

When will a PPO not pay the full amount of a charge? A. Never B. If a non-PPO doctor is used for services C. If the service fee is too high D. When the gatekeeper does not provide a referral for a specialist

If a non-PPO doctor is used for services

When is a Section 1035 Exchange of a Life policy to a different policy permitted? A. Always B. Never C. If from insurer to insurer and no cash is received by the policy owner D. It depends on the exchange

If from insurer to insurer and no cash is received by the policy owner

Will is a Fixed Annuity owner that pays his insurance company a monthly premium. Where is Will's money placed? A. In a general account B. In a separate account C. In an investor's account D. In an installment account

In a general accountIn a general account

A Long Term Care policy's guarantee of insurability allows an insured to do which of the following? A. Increase benefit levels without providing proof of insurability B. Add extra dependents to their policy C. Replace their existing policy D. Secure their policy's values without proof of insurability

Increase benefit levels without providing proof of insurability

Issue age policy premiums will increase in regard to which of the following? A. Increased benefits B. Occupation C. Age D. Inflation

Increased benefits

Which annuity guarantees income to an annuitant as long as he or she lives, and upon their death refunds their beneficiary their remaining payments? A. Installment Refund Annuity B. Variable Annuity C. Cash Annuity D. Multiple Life Annuity

Installment Refund Annuity

A licensed producer represents the: A. Fiduciary B. Policyholder C. Insured D. Insurer

Insurer

What clause identifies the agreement between an insurer and an insured? A. Contract B. Insuring C. Conditional D. Consideration

Insuring

What report is very thorough and contains information gained from an applicant's neighbors and friends? A. Attending Physician Report B. MIB Report C. Investigative Consumer Report D. Agent's Report

Investigative Consumer Report

What happens to the death benefit under Option B of a Universal Life policy? A. It remains constant B. It decreases every year C. It increases every year by the amount the cash values increase D. It remains level for the first 3 to 5 years, and then it gradually increases by 2%

It increases every year by the amount the cash values increase

Which of the following is most closely related to an Equity Indexed Annuity? A. It is conservatively invested B. It is a security C. It is invested aggressively D. It is tied to the Standard & Poor's Index

It is invested aggressively

Which of the following describes the premium of a Modified Life policy? A. It remains level B. It increases only in the first year C. It decreases only in the first year D. It is low in the first 3 to 5 years, and then it gradually increases

It is low in the first 3 to 5 years, and then it gradually increases

Which of the following is usually true of a participating Life Insurance Policy? A. An attorney in fact manages the company B. It may be converted to a Term Life policy C. It pays dividends to its stockholders D. It pays dividends to its policy owners

It pays dividends to its policy owners

Which of the following will happen to Tom's total premium amount if his policy's payment occasionally increases? A. Nothing B. It will increase C. It will decrease D. It will depend on the grace period

It will increase

Which of the following relates to a nonparticipating policy? A. It will provide a return of premium B. It will provide tax advantages C. It will not pay dividends D. It will provide policy owner privileges

It will not pay dividends

They retired at the same time and selected the Life Income Option. Which of the following is true in regard to their monthly annuity payments? A. Jake's payment will be larger B. They will receive the same amount because they are the same age C. Jill's payment will be larger D. Even though they are identical twins, their payments depend on their health status

Jake's payment will be larger

Which of the following would not be considered in determining the total disability of any occupation? A. Education B. Training C. Experience D. Job interest

Job interest

Policy Prov Options and Riders (wrong) When can John change his revocable beneficiary? A. After 30 days of purchasing his policy B. John can do it at anytime C. John must get written permission D. After the initial Free Look Period

John can do it at anytime

When can John change his revocable beneficiary? A. After 30 days of purchasing his policy B. John can do it at anytime C. John must get written permission D. After the initial Free Look Period

John can do it at anytime

John and Mary are looking forward to their retirement. Should one of them die, the other one will continue to receive benefits. What type of settlement option did John and Mary choose for their lives? A. Straight B. Deferred C. Single D. Joint and Survivor

Joint and Survivor

The type of insurance used to indemnify a firm for the loss of earnings brought about by the death of an officer or other significant employee is: A. Business Overhead B. Business Continuation C. Key Person D. Employee Welfare

Key Person

An underwriter's attitude toward group risks can be ____ restrictive than with individual policies, because the group policies are subject to annual reevaluations. A. More B. Less C. Liberally D. Conservatively

Less

What kind of insurance is associated with a Spouse Term Rider? A. Level B. Increasing C. Decreasing D. Adjustable

Level

Which of the following types of insurance policies would perform the function of cash accumulation? A. Property B. Life C. Stock D. Health

Life

In a Life Income Option, what determines the amount of each installment? A. Life expectancy and the principal amount B. Income C. Health and Life expectancy D. Life expectancy and occupation

Life expectancy and the principal amount

Which of the following is a source that releases coded information to insurers for underwriting purposes? A. NAIC B. MIB C. CIA D. Protection Guild

MIB

Which of the following helps impoverished people that are unable to provide for themselves? A. Medicaid B. Medicare C. LTC D. Custodial Care

Medicaid

Which of the following is a government funded needs based program? A. Medicaid B. LTC C. Medicare D. Non-Forfeiture

Medicaid

Which of the following would be the best for a 75 year impoverished woman in need of Nursing Home Care? A. Medicaid B. Custodial Care C. Respite Care D. Intermediate Care

Medicaid

Medicare Part B provides coverage for Medical services. Which of the following is not covered under Part B? A. Physician and surgeon services B. Diagnostic services C. Physical Therapy D. Medicare Hospice Care

Medicare Hospice Care

Tri-Care refers to a Health Care system exclusively designed for which of the following? A. Military personnel B. Needy and impoverished individuals C. Individuals over the age of 65 D. Employees in organizations with fewer than 50 people

Military personnel

Henry has a Life policy that he allowed to earn cash value faster than a seven pay Whole Life contract. What is this called? A. Modified Endowment Contract B. Settlement Option C. An early distribution D. Cash distribution

Modified Endowment Contract

A person who shows indifference about taking proper care to minimize a loss represents what type of hazard? A. Moral B. Physical C. Morale D. Retention

Morale

All of the following are differences between Fixed and Variable annuities except: A. Interest rates B. Investment C. Mortality D. License

Mortality

Coleman, Inc. has 243 employees that are covered under their group plan. Which of the following would describe their group? A. Contributory B. Noncontributory C. Professional D. Sponsored

Noncontributory

How much tax is on a direct rollover from one IRA to another IRA is withheld? A. 100% B. 50% C. None D. 50% if the amount is over $50,000

None

How does a Section 125 Cafeteria Plan provide its benefits to qualifying employees? A. On a pretax basis B. On a sliding tax scale C. On a after tax basis D. On a credit employment basis

On a pretax basis

How is a Hospital Indemnity Policy based? A. On the type of surgery B. On the number of days an insured is confined in a hospital C. On the geographic area D. On the patient's condition

On the number of days an insured is confined in a hospital

When can denture replacements be covered? A. Never B. Once every year C. Once in a lifetime D. Once every five years

Once every five years

What is the operative mouth procedure? A. Oral surgery B. Diagnostic C. Restorative D. Major Service

Oral surgery

In which part of an application would information be found on an applicant's Medical background? A. Agent's Report B. Part 1 C. Part 3 D. Part 2

Part 2

There is a correlation between an insured's disability and the amount of the disability premium. Which of the following would pay the lowest disability insurance premium? A. Fireman B. Construction worker C. Personal Trainer D. Pilot

Personal Trainer

What must be in all Medicare Supplement policies? A. Plan A B. Plan B C. Home Recovery Benefits D. Travel Benefits

Plan A

Oliver has a Life policy with a provision that states he can be paid an amount that does not exceed its guaranteed cash value. What provision does this describe? A. Policy Loan Provision B. Consideration Provision C. Indemnity Provision D. Automatic Premium Loan Provision

Policy Loan Provision

The cash values of a policy belong to which of the following? A. Policyowner B. Insured C. Insurer D. Beneficary

Policyowner

All of the following are agent authorities and powers, except: A. Expressed B. Apparent C. Power of Agency D. Implied

Power of Agency

What important information can be found in a Life insurance policy's Consideration Clause? A. Policy summary B. Entire contract C. Indemnity of benefits D. Premium amount and payment due date

Premium amount and payment due date

Which of the following is specific to the Payor Clause on a Juvenile policy? A. Premiums are waived at age 21 B. Premiums are waived for 6 months after age 18 C. Premiums are waived if the payor becomes disabled D. The clause allows the face amount to be increased in the first 3 years

Premiums are waived if the payor becomes disabled

An underwriter may reject an application for Health insurance if the rejection was based upon which of the following? A. Sexual preference B. Prescription usage C. Blindness D. Genetic characteristics (such as sickle cell)

Prescription usage

Carl was repairing his neighbor's roof and he fell off the ladder and received severe injuries. He broke his leg and a head trauma caused total blindness in both of his eyes. Carl's policy has an Accidental Death & Dismemberment Rider. What benefits will Carl receive? A. Capital B. Principal C. None D. Half of the Capital

Principal

Accidental Death and Dismemberment benefits cover ____and ____ amounts. A. Accident and Sickness B. Principal and Capital C. Income and Sickness D. Income and Medical

Principal and Capital

Which of the following is not considered in rating a Health policy? A. Occupation of an applicant B. Copayment amount C. Benefits in a policy D. Race of an applicant

Race of an applicant

Removing ice from a sidewalk is an example of what type of risk management? A. Reduction B. Transfer C. Adverse Selection D. Peril

Reduction

What provision gives an insured the right to cancel their coverage? A. Renewability B. Conformity C. Conditional D. Cancellation

Renewability

If the application is made part of the policy, the policy shall contain a provision that statements on an application in the absence of fraud are considered: A. Endorsements B. Conditions C. Representations D. Warranties

Representations

Which term below relates to Disability Income insurance? A. First Dollar B. Comprehensive C. Fee for Service D. Residua

Residua

Bringing back the functional use of teeth refers to which of the following? A. Restorative B. Orthodontics C. Endodontics D. Prosthodontics

Restorative

Paul wants to put his wife as a beneficiary on his policy, but he also wants to retain the rights of ownership. Paul should designate his wife as what type of beneficiary? A. Irrevocable B. Assigned C. Revocable D. Collateral

Revocable

What kind of Medicare policy requires the use of specific providers, except in emergency situations? A. Preferred B. Select C. Standard D. Special

Select

Three months after obtaining Part A of Medicare, Jill applied for a Medicare Supplement policy. Which of the following will relate to Jill's situation? A. She will have to pay a higher than normal premium B. She will be denied coverage because she doesn't have Part B C. She will be excluded for all pre-existing conditions D. She will need approval from the Health Department

She will be denied coverage because she doesn't have Part B

Gambling is an example of what type of risk? A. Pure B. Real C. Loss D. Speculative

Speculative

Which clause states that the proceeds of a life insurance policy will be clear from an attachment or seizure by a beneficiary's creditors? A. Spendthrift B. Insuring C. Collateral D. Assignment

Spendthrift

Which risk classification reflects an age group with similar lifestyles? A. Substandard B. Preferred C. Standard D. Average

Standard

Billy is covered under Blue Cross Blue Shield plan. What is he called? A. Participant B. Subscriber C. Member D. Affiliate

Subscriber

Bob is a heavy chain smoker. Which risk does Bob most likely represent? A. Average B. Standard C. Substandard D. Preferred

Substandard

Which risk pays a premium rated-up? A. Declined B. Substandard C. Preferred D. Standard

Substandard

What is a policy that covers two lives that only pays a death benefit when the second insured person dies? A. Joint Life B. Survivorship C. Family Plan D. Adjustable Life

Survivorship

Tim just purchased a Health policy. How will he receive his benefits? A. Tax Free B. Subject to Federal Tax C. Subject to State Tax D. Subject to State and Federal Tax

Tax Free

Which policy is considered to be affordable and temporary? A. Term B. Variable C. Whole D. Adjustable

Term

Large Group Life Insurance underwriting takes all of the following into consideration EXCEPT: A. The nature or purpose of the group B. The level of participation by the group C. The Health of each individual in the group D. The size of the group

The Health of each individual in the group

Jane is currently insured by ABC Life insurance, and she learns she is terminally ill. Jane then agrees to sell her policy to XYZ Insurance Recovery. Joe, Jane's insurance producer, arranges the transaction between Jane and XYZ Insurance Recovery. In this scenario, Joe is: A. The Life provider B. The Viatical Settlement Provider C. The Settlement Broker D. The Life Broker

The Settlement Broker

Sam lost his right arm in an accident covered under his Accidental Death & Dismemberment policy. What will Sam receive from his policy? A. Nothing B. The principal amount in a lump sum C. The capital amount in 6 monthly installments D. The capital amount in a lump sum

The capital amount in a lump sum

Which of the following is a true statement regarding group Health Insurance? A. Every employee receives a policy B. The employer receives a Certificate of Insurance C. The employer is the policyholder D. The employer is the beneficiary

The employer is the policyholder

Which of the following is true regarding the excess funds in an employee's HSA? A. The excess funds are not tax deductible B. The excess funds are forfeited if not used during the year C. The excess funds may be carried over to the next year D. The excess funds may pay for deductible amounts for the next year

The excess funds may be carried over to the next year

What is an important feature of a Dental Expense Insurance plan that is not typically found in a Medical Expense Insurance plan? A. A low monthly premium B. A broad coverage area C. The inclusion of diagnostic and preventive care D. Low cost deductibles

The inclusion of diagnostic and preventive care

An insurer hires a representative to advertise its company at a local convention. The representative lies about the details of some of the policies, in an attempt to secure more business for the company. Who is responsible for the representative's actions? A. The representative B. The underwriters C. The agent D. The insurer

The insurer

Which of the following will change the grace period of a policy? A. The premium amount B. The length of the coverage C. The probationary period D. The mode of the policy

The mode of the policy

What is the main difference between a Single and Flexible premium payment option in a deferred annuity? A. The time of the annuity B. The reason for the annuity C. The benefit amount D. The number of payments to purchase the annuity

The number of payments to purchase the annuity

In what time must a Section 1035 Exchange take place? A. 10 days B. 15 days C. 30 days D. There is not a required time

There is not a required time

Considerations for Life (wrong) Which of the following can deduct their full contribution to a traditional IRA? A. Joseph, who is covered by his employer's sponsored plan B. Beth, who contributes to her son's educational IRA C. Harvey, who makes $200,000 D. Tim, who is not covered by an employer sponsored plan and has earned income

Tim, who is not covered by an employer sponsored plan and has earned income

What is the purpose of the PPACA insurance exchange? A. To administer Health insurance subsidies and to help with the enrollment in private Health insurance B. To provide insurance to impoverished individuals C. To provide insurance to high risk individuals D. To facilitate tax credits

To administer Health insurance subsidies and to help with the enrollment in private Health insurance

Which of the following statements best describes the HMO gatekeeper concept? A. To control costs B. To limit services C. To lower a deductible amount D. To provide equal coinsurance

To control costs

A consumer report was requested by an underwriter during Joe's application process. What would the report be used for? A. To see if he is a drinker B. To determine if he smokes C. To determine the probability of him making his timely premium payments D. To note the overall health of Joe

To determine the probability of him making his timely premium payments

What is the main reason for the target premium of a Universal Life policy? A. To cover the policy's expenses B. To accumulate cash value C. To keep the policy in force D. To pay up the policy at a faster rate

To keep the policy in force

Policy Prov Options and Riders (wrong) A policy owner has many rights. Which of the following is not a right of a policy owner? A. To surrender a policy for its cash value B. To change a revocable beneficiary C. To assign ownership D. To modify a provision in their contract

To modify a provision in their contract

Why is a disability benefit payment less than an insured's income? A. To prevent higher premium rates B. To ensure increased coverage C. To reduce costs of extensive benefits D. To prevent over insurance and malingering

To prevent over insurance and malingering

Which of the following describes the purpose for a Certificate of Coverage? A. To reduce the 6 month waiting period for pre-existing conditions B. To reduce the 5 month waiting period for pre-existing conditions C. To reduce the 1 year waiting period for pre-existing conditions D. To reduce and discontinue coverage

To reduce the 1 year waiting period for pre-existing conditions

Who makes the final decision regarding a risk? A. Underwriters B. Field Investigators C. Executive Officers D. The Commissioner

Underwriters

oan didn't pay her Life insurance premium for the last two months. She was glad to know her policy didn't lapse, but her premiums were deducted from the cash value of her policy. What kind of policy does this describe? A. Term B. Modified C. Universal D. Equity Indexed

Universal

Before Joseph became disabled he bought a Credit Disability policy. Until what point will his creditor make his payments? A. Until he attains age 65 B. 3 months after he is able to work C. 6 months after he is able to return to work D. Until his disability ends or his debt is paid

Until his disability ends or his debt is paid

Larry has Life and Securities licenses and is registered with FINRA. What type of annuity does he sell? A. Variable B. General C. Standard D. Benefit

Variable

What is a terminally ill person that sells their insurance policy for a percentage called? A. Investor B. Subscriber C. Beneficiary D. Viator

Viator

A probationary period refers to: A. A benefit period B. An income period C. Conditional period D. Waiting period

Waiting period

When will a member of a PPO Medical Provider be required to pay a higher coinsurance amount or a higher percentage of their costs? A. When they move out of their geographic area for services B. When a non member PPO doctor is used for their services C. When their service is for an illness D. When the member is hospitalized

When a non member PPO doctor is used for their services

Which of the following is false regarding Medicare Part B? A. Part B is fully funded by FICA B. Part B is partially funded by FICA C. Part B provides benefits not covered by Part A D. Part B can be rejected

Which of the following is false regarding Medicare Part B?A. Part B is fully funded by FICAB. Part B is partially funded by FICAC. Part B provides benefits not covered by Part AD. Part B can be rejected

An agent cannot disclose any personal information without: A. Verbal permission from an insured B. A phone call from an insured C. Representation from an executive officer of the company D. Written authorization from an insured

Written authorization from an insured

Bill and Barbara have a Common Disaster Clause in a policy if both were to die in a common accident. In regard to their decision which of the following is correct? A. The estate taxes in the beneficiary's estate may be reduced B. The beneficiary's estate may be reduced C. The Common Disaster's Clause prevents an insured's proceeds D. The Common Disaster's Clause prevents the beneficiary's to be provided

v

Brad has a monthly benefit of $2,500 for total disability under a residual disability policy. Brad suffered a 40% loss. How much will be his benefit? A. $2,500 B. $0 C. $1,250 D. $1,000

$1,000

An Industrial Life Insurance Policy has a face amount that is: A. $3,000 or less B. $1,000 or less C. $2,500 or less D. $5,000 or less

$1,000 or less

Will surrendered his Whole Life policy for $20,000 cash value. At that time he had paid his premiums that totaled $18,000. What would be the Federal income taxable part? A. $20,000 B. $18,000 C. $2,000 D. $0

$2,000

John was just delivered his Life insurance policy. How many days can he review it and decide if it is best for him to keep? A. 5 days B. 7 days C. 10 days D. 15 days

10 days

N&J insurer received a notice regarding a claim. When must N&J supply claim forms to their insured? A. 7 days B. 10 days C. 12 days D. 15 days

15 days

To receive Social Security Disability benefits one must wait during an elimination period. How long would an insured wait? A. 2 months B. 3 months C. 5 months D. 6 months

5 months

When can a corporation be an annuitant? A. A corporation can be an annuitant as long as it is a natural person B. A corporation can be an annuitant at any time C. A corporation may never be an annuitant D. A corporation can be an annuitant if it is the beneficiary

A corporation may never be an annuitant

Which of the following signatures are required on an application? A. Insured B. Broker C. Agent and proposed insured D. Agent

Agent and proposed insured

A group policy used to provide Accident and Health coverage on a group of persons being transported by a common carrier, without naming the insured persons individually is called: A. Specified Disease policy B. Activity policy C. Blanket Policy D. Certificate of Coverage Policy

Blanket Policy

What makes a policy loan possible? A. By the loan clause B. By the consideration clause C. By the assignment provision D. By the cash value provision

By the cash value provision

Betty has a health insurance plan that states she must pay a certain amount out of pocket before any benefits are paid in a calendar year. What does this describe? A. Stop loss provision B. Flat deductible C. Integrated deductible D. Calendar year deductible

Calendar year deductible

Which of the following is an example of replacement? A. Cancel a Return Policy to purchase a LTC Policy B. Cancel a Whole Life policy to purchase a Term Policy C. Cancel a Term Policy to purchase a Disability Policy D. Cancel a Major Medical Policy to purchase a Disability Policy

Cancel a Whole Life policy to purchase a Term Policy

An insured employee would receive which of the following regarding their Health coverage? A. Master policy B. Certificate of Insurance C. Provider Certificate D. Buyer's Guide

Certificate of Insurance

What type of employee Welfare plan is exempt from Erisa's regulations? A. Church plans B. Prepaid legal services C. Day Care benefits D. Disability and Life insurance

Church plans

Upon the satisfaction of a Health deductible amount, what does an insurer and insured share? A. Maximum benefits B. Coinsurance C. Limitation amounts D. Indemnity benefits

Coinsurance

What is level in a Level Term Insurance policy? A. Premium B. Interest C. Cash D. Death Benefit

Death Benefit

When a client is considering replacing an existing Health insurance policy, all of the following should be areas of concern EXCEPT: A. Duration of time on the existing Health Insurance policy B. Time limit on certain defenses C. Limitations D. Waivers for impairments

Duration of time on the existing Health Insurance policy

All of the following are not acceptable qualifiers for group insurance except: A. Individual selection B. Applicant's physical condition C. Medical background D. Employment

Employment

Ned has a desire to fly a plan, so he is taking flying lessons. Which of the following would limit his insurer's obligation of his life insurance policy of $300,000 in the event Ned would die as a student pilot? A. Revocation B. Estoppel C. Exclusion D. Stop loss

Exclusion

David wants to sell Variable Annuities and has his Security and Life licenses. He must also be registered with which of the following? A. MIB B. NAIC C. FINRA D. DIO

FINRA

Which of the following will NOT be covered by a Health Insurance policy? A. Financial loss after an insured dies B. Loss resulting from an accident C. Loss resulting from sickness D. Both accident and sickness loss

Financial loss after an insured dies

A/An_______ is a prescription drug list covered under an insurance plan. A. Formulary B. Benchmark C. Exchange D. Subsidy

Formulary

Policy Prov Options and Riders (wrong) Chris is still within his Grace Period, but he didn't pay his premium. Within that time Chris died. What will Chris's named beneficiary receive? A. Nothing B. All paid in premiums plus the cash value C. Full face amount minus any past due premiums D. Full face amount of benefits

Full face amount minus any past due premiums

Which of the following is the best way to correct a mistake on an application? A. Get a new application B. Use white out C. Draw a line through the mistake D. Insert the correct answer

Get a new application

What best describes a health plan that existed before the Affordable Care Act? A. Customized B. Grandfathered C. Non-grandfathered D. Fathered

Grandfathered

A third party ownership would be which of the following? A. Group insurance B. MEC C. Collateral Assignment D. Nonqualified Exchange

Group insurance

A Universal Life policy's cash value is credited with a current interest and which of the following? A. Guaranteed interest rate B. Target rate C. Variable rate D. General rate

Guaranteed interest rate

What approach helps with the prediction of an individual's earning potential and how much of it would be devoted to their dependents? A. Needs B. Human Life C. Retirement D. Social Security

Human Life

At the time of an application for disability benefits, what factor determines the amount of an insured's coverage? A. Income B. Age C. Number of dependents D. Medical background

Income

A Universal Life policy has 2 main components. What are the components of the policy? A. Insurance and a cash account B. Separate account and interest C. General account and interest D. Death benefit and interest

Insurance and a cash account

What kind of deductible would apply a single deductible to both medical and dental insurance coverage? A. Limited B. Standard C. Integrated D. Combined

Integrated

Larry is a beneficiary of a policy. His designation may only be changed by himself. What kind of beneficiary is Larry? A. Revocable B. Irrevocable C. Cancellable D. Guaranteed

Irrevocable

The special significance of a conditional receipt is that it: A. Is given only to applicants who fully prepay all scheduled premiums in advance of their issued policy B. Is intended to provide coverage on a date earlier than the date of the issuance of the policy C. Guarantees an applicant that a policy will be issued in the amount applied for in their application D. Serves as proof that an agent has determined an applicant to be fully insurable for coverage by the insurance company

Is intended to provide coverage on a date earlier than the date of the issuance of the policy

Which of the following is incorrect about Term insurance? A. It provides temporary protection B. Level, Increasing and Decreasing are types of Term policies C. It is protection for a certain period of time D. It builds cash value

It builds cash value

Which of the following is correct regarding an irrevocable beneficiary? A. It can be changed any time during the policy B. It is permanent C. It can only be changed after 1 year D. It can be changed only with the written permission of that beneficiary

It can be changed only with the written permission of that beneficiary

This type of annuity does not have a named beneficiary. What is it called? A. Life with 20 Year Certain B. Life with 10 Year Certain C. Life with 15 Year Certain D. Life without Period Certain

Life without Period Certain

Being tax free is associated with which of the following? A. Lump sum death benefit settlement B. Interest amount C. Fixed amount D. Period amount

Lump sum death benefit settlement

If a group has 50 members, which of the following is not required from their participants? A. Medical information B. Work status C. Premium D. Eligibility

Medical information

With the PPACA, how is the amount of covered cost by the health plans determined? A. Risk B. Age C. Metal level D. Occupation

Metal level

If a producer makes untrue statements on an application, it is considered to be a(n): A. Omission B. Warranty breach C. Negligence D. Misrepresentation

Misrepresentation

George, the owner of an art shop, is very concerned that his employees may help themselves to his art supplies from his inventory without paying for them. What hazard does this represent? A. Physical B. Morale C. Moral D. Community

Moral

Which of the following is true in regard to an association? A. Requires a constitution B. Must have 100 members C. Must have bi-laws D. Must be active for at least 2 years

Must have 100 members

An insurance company that is owned by its policyholders and can pay annual dividends to them is considered : A. Reciprocal Exchange B. Mutual Company C. Risk Retention Group D. Stock Company

Mutual Company

What is defined as a health plan's manner to deliver promised benefits to consumers, by providing them with primary care and specialty physicians' access, without any unreasonable delay? A. Network adequacy B. Network programming C. Network planning D. Network directory

Network adequacy

What kind of health care system has private insures that contract with doctors and hospitals to give service at a set price and their insureds may choose among selected doctors and hospitals when medical care is needed? A. HMO B. POS C. PPO D. MIB

PPO

Which life insurance policy issued by a mutual insurer provides a return of divisible surplus? A. Nonparticipating B. Participating C. Divisible D. Earned income

Participating

Partner A and Partner B are in business together. Partner A bought a Life insurance policy on Partner B to protect herself against a financial loss if her partner should die. Two years after their partnership was dissolved Partner B dies. Who will receive the death benefit? A. The beneficiary will be determined by state probate court if Partner B did not have a will B. Estate of Partner B C. Partner A D. No death benefit will be paid because insurable interest didn't exist at their death

Partner A

The death benefit will not increase with which rider? A. Payor Benefit B. Adjustment C. Inflation D. Guaranteed Benefit

Payor Benefit

When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT: A. Obtain from the producer a list of the applicant's contracts to be replaced B. Include a policy summary on the proposed Life Insurance in the communication with the existing company C. Provide a copy of the Notice Regarding Replacement of Life Insurance to an applicant D. Send the existing insurance company a written notice of replacement

Provide a copy of the Notice Regarding Replacement of Life Insurance to an applicant

Henry's is an insurance applicant. His statements regarding his job, hobbies and history background is best related to which of the following? A. Warranty B. Representation C. Insurable interest D. Collateral

Representation

Which term below relates to Disability Income insurance? A. First Dollar B. Comprehensive C. Fee for Service D. Residual

Residual

Joan wants to put some of her money aside from her savings account to take care of her family's financial needs when she dies. Her risk is treated in which manner? A. Indemnity B. Retention C. Exposure D. Speculative

Retention

What term refers to accepting a risk and confronting it as it occurs called? A. Retention B. Indemnity C. Consideration D. Self- insuring

Retention

Funds from a 401(k) are used for many purposes. What is the main use of a 401(k) plan? A. Education B. Vacation C. Retirement D. Liquidation

Retirement

Gail bought a $20,000 Whole Life policy in 2008 and her annual premium is $300. Gail died three years later and her insurer paid her beneficiary $20,900. What kind of rider did Gail include in her policy? A. Family Maintenance B. Return of Premium C. Waiver of Premium D. Substitute Maintenance

Return of Premium

Schmitt, Inc. employs 249 people. They offer group Life insurance coverage to their employees. Who is the policyholder of the Life policies they offer? A. Schmitt, Inc. B. Schmitt employees C. Schmitt's insurer D. Beneficiaries of the Schmitt's policies

Schmitt, Inc.

Dan cancelled his Life policy and told his insurer to put his policy's cash value into an annuity. What nontaxable transaction does this describe? A. Section 1035 Exchange B. A Distribution of dividends C. Seven Pay Exchange D. An MEC

Section 1035 Exchange

What type of account is associated with a Variable Annuity? A. General B. Separate C. Standard D. Indexed

Separate

A Variable Whole Life policy has an investment feature. What is the sub-account with this policy called? A. Separate account B. Premium account C. General account D. Variable account

Separate account

Policy Prov Options and Riders (wrong) Which of the following is not a beneficiary? A. Primary B. Standard C. Tertiary D. Contingent

Standard

Wat kind of annuity pays the largest monthly amount for as long as an annuitant lives? A. Straight B. Joint C. Installment D. Survivor

Straight

Which of the following groups would most likely be covered under a Blanket Accident Policy? A. Factory workers at the automobile assembly plant B. Students at a public school C. Independent contractors who work for a general contractor D. Office workers for a retail business

Students at a public school

Which risk would pay the highest premium? A. Substandard B. Preferred C. Declined D. Average

Substandard

An authorized but non-admitted insurer can be represented in this state only by which of the following? A. Domestic insurer B. Surplus Lines Broker C. Licensed producer D. Mutual Insurer

Surplus Lines Broker

Members of the Armed Forces can obtain _________, also called SGLI. A. PPO Individual Life Insurance B. Group Universal Life Insurance C. Term Group Life Insurance D. Tax Deferred Life Insurance

Term Group Life Insurance

Jill wants a Life policy that will cover her two daughters under her policy. What will provide this coverage for Jill? A. Family Income Rider B. Term Rider C. Payor Benefit Rider D. Spouse

Term Rider

What kind of Life policies are generally used for key employee indemnification? A. Term, Whole and Universal B. Variable and Equity C. Modified and Term D. Variable and Fixed

Term, Whole and Universal

Policy Prov Options and Riders (wrong) Which is correct about a One Year Dividend Option? A. The dividend is used to buy an additional policy B. The dividend is guaranteed for one year C. The dividend's interest is used to buy a 1 year Term policy D. The dividend is given to the beneficiary within 1 year

The dividend is used to buy an additional policy

Medicare Supplement Core Benefits will cover how many pints of blood? A. The first pint B. The first three C. The first five D. All pints after the first 5

The first three

Joe is a beneficiary that just received the principal and interest. What is taxable as income? A. Nothing is taxable income B. The interest C. The principal D. It depends on the amount

The interest

When are lenders allowed to suggest a source for Credit Insurance? A. The lenders are never allowed to suggest a source for Credit Insurance. B. After an individual's loan has been approved C. During an individual's loan procedure D. If an individual is approved for a loan over $100,000

The lenders are never allowed to suggest a source for Credit Insurance.

When would an Accidental Death and Dismemberment policy pay the principal amount, other than for an accidental death? A. The loss of sight in 1 eye B. The loss of 2 or more limbs C. Loss of hearing D. The policy would only pay the principal amount for accidental death

The loss of 2 or more limbs

George was killed in a motorcycle accident while his annuity was still in its accumulation phase. What will his beneficiary receive? A. The money paid into the annuity or the cash value whichever is greater B. The amount paid into the annuity minus a 25% early surrender charge C. The money paid into the annuity minus a 10% surcharge D. The total amount paid into the annuity plus 10% interest

The money paid into the annuity or the cash value whichever is greater

Which of the following is a true feature of a Guaranteed Renewable Health policy? A. The policyholder can renew their policy up to five years B. The policyholder can renew their policy and their insurer can increase their premium C. An insurer can increase a policyholder's risk D. An insurer can renew the policy with proof of insurability

The policyholder can renew their policy and their insurer can increase their premium

There are times when group insurance is provided to employees in more than one state. If this occurs, which state would have the jurisdiction? A. The state of the business's home address B. The state with the most employees C. The state where the employer resides D. The state where the coverage was delivered

The state where the coverage was delivered

Earned income is all of the following except: A. Commissions B. Salary C. Part time wages D. Unemployment benefits

Unemployment benefits