Georgia life and health missed q #1

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will a)Pay the policy proceeds up to an established limit. b)Not pay the policy proceeds under any circumstances. c)Automatically pay the policy proceeds. d)Pay the policy proceeds only if it would have issued the policy.

d)Pay the policy proceeds only if it would have issued the policy.

Which of the following is NOT covered under a long-term care policy? a)Acute care in a hospital b)Adult day care c)Hospice care d)Home health care

a)Acute care in a hospital

What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided? a)Application b)Policy Request c)Insurance Request Form d)Request for Insurance

a)Application

An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy? a)7 days b)10 days c)31 days d)60 days

b)10 days

Underwriting a group health insurance plan that is paid for by the employer requires all of the following EXCEPT a)Coverage for plan participants is uniform. b)Individual members of the group may select the level of benefits for their own coverage. c)The plan is based on other than individual selection. d)All eligible employees must be covered.

b)Individual members of the group may select the level of benefits for their own coverage.

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? a)$20,000 b)$25,000 c)$50,000 d)The face amount will be determined by the insurer.

c)$50,000

Which of the following answers does NOT describe the principal goal of a Preferred Provider Organization? a)Provide the subscriber a choice of hospitals b)Provide medical services at a reduced cost c)Provide medical services only from physicians in the network d)Provide the subscriber a choice of physicians

c)Provide medical services only from physicians in the network

An employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage? a)$25 b)$25.50 c)$100 d)$102

d)$102

Authorized insurance companies are examined by the Commissioner at least once every a)Year. b)2 years. c)3 years. d)5 years.

d)5 years.

What is the waiting period on a Waiver of Premium rider in life insurance policies? a)30 days b)3 months c)5 months d)6 months

d)6 months

Disability income coverage specifies that the policy covers the insured if he is unable to perform any job for which he is qualified. In this case, total disability is defined as a)Any occupation - less restrictive than other definitions. b)Own occupation - more restrictive than other definitions. c)Own occupation - less restrictive than other definitions. d)Any occupation - more restrictive than other definitions

d)Any occupation - more restrictive than other definitions

Which is true about a spouse term rider? a)Coverage is allowed for an unlimited time. b)The rider is decreasing term insurance. c)Coverage is allowed up to age 75. d)The rider is usually level term insurance.

d)The rider is usually level term insurance.

As it pertains to group health insurance, COBRA stipulates that a)Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense. b)Retiring employees must be allowed to convert their group coverage to individual policies. c)Terminated employees must be allowed to convert their group coverage to individual policies. d)Group coverage must be extended for terminated employees up to a certain period of time at the employer's expense.

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

Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid? a)Insuring clause b)Entire contract clause c)Beneficiary clause d)Consideration clause

a)Insuring clause

The premium of a survivorship life policy compared with that of a joint life policy would be a)Lower. b)Higher. c)As high. d)Half the amount.

a)Lower.

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?a)Additional insured rider b)Family term rider c)Spouse rider d)Children's rider

b)Family term rider

An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. What did he forget to do?a)Ask the applicant to sign a statement that acknowledges that the policy had been delivered b)Collect a late payment fee c)Ask her to sign a statement of good health d)Offer her a secondary policy

c)Ask her to sign a statement of good health

All of the following are personal uses of life insurance EXCEPT a)Estate creation. b)Cash accumulation. c)Buy-sell agreement. d)Survivor protection.

c)Buy-sell agreement.

How many pints of blood will be paid for by Medicare Supplement core benefits? a)Everything after first 3 b)1 pint c)First 3 d)None; Medicare pays for it all

c)First 3

Which of the following entities can legally bind coverage?a)Federal Insurance Board b)Agent c)Insurer d)The insured

c)Insurer

The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as a)Payment of claims. b)Proof of loss. c)Legal actions. d)Time limit on certain defenses.

c)Legal actions.

Medicare supplements specifically exclude all of the following EXCEPT a)Outpatient prescription drug plans. b)Any Health Care Prepayment Plan providing benefits related to Social Security. c)Surgical expenses of persons eligible for Medicare. d)Medicare Advantage plans.

c)Surgical expenses of persons eligible for Medicare.

Which of the following terms refers to the acts of soliciting insurance, making an insurance contract effective, and dealing with matters arising from that contract? a)Executing insurance b)Effectuating insurance c)Transacting insurance d)Conducting business

c)Transacting insurance

All of the following are requirements for life insurance illustrations EXCEPT a)They may only be used as approved. b)They must identify nonguaranteed values. c)They must differentiate between guaranteed and projected amounts. d)They must be part of the contract.

d)They must be part of the contract.

How is the Commissioner of Insurance selected to be the chief officer of the Department of Insurance? a)Elected to office b)Hired by the Department c)Nominated by insurers d)Appointed by the Governor

a)Elected to office

How often does an agent's insurance license expire? a)Every 2 years b)Every 3 years c)The license is perpetual. d)Annually

a)Every 2 years

The authority granted to an agent through the agent's contract is referred to as a)Express authority b)Apparent authority. c)Implied authority. d)Absolute authority.

a)Express authority

The Ownership provision entitles the policyowner to do all of the following EXCEPT a)Set premium rates. b)Receive a policy loan. c)Assign the policy. d)Designate a beneficiary.

a)Set premium rates.

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT? a)The insured may choose to convert to term or permanent individual coverage. b)The insured would not need to prove insurability for a conversion policy. c)The insured may convert coverage to an individual policy within 31 days. d)The premium for individual coverage will be based upon the insured's attained age

a)The insured may choose to convert to term or permanent individual coverage.

Which of the following is NOT a feature of a guaranteed renewable provision? a)The insurer can increase the policy premium on an individual basis. b)The insured has a unilateral right to renew the policy for the life of the contract. c)Coverage is not renewable beyond the insured's age 65. d)The insured's benefits cannot be reduced.

a)The insurer can increase the policy premium on an individual basis.

When transacting business in this state an insurer formed under the laws of another country is known as a/an a)Admitted insurer. b)Alien insurer. c)Domestic insurer. d)Foreign insurer.

b)Alien insurer.

If an employee terminates her employment, which of the following provisions would allow her to continue health coverage under an individual policy, if requested within 31 days?a)Renewability b)Conversion c)Replacement d)Grace period

b)Conversion

Which two terms are associated directly with the way an annuity is funded? a)Renewable or convertible b)Single payment or periodic payments c)Increasing or decreasing d)Immediate or deferred

b)Single payment or periodic payments

Which of the following is INCORRECT concerning a noncontributory group plan?a)The employer pays 100% of the premiums. b)The employees receive individual policies. c)They help to reduce adverse selection against the insurer. d)They require 100% employee participation.

b)The employees receive individual policies.

An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged $100 per day. How much will the insurance company pay? a)80% of the total cost b)20% of the total cost c)$120 a day d)$100 a day

c)$120 a day

An insured had a $10,000 term life policy. The annual premium of $200 was due on February 1; however, the insured failed to pay the premium. He died on February 28. How much would the beneficiary receive from the policy? a)$0 b)$200 c)$9,800 d)$10,000

c)$9,800

If an insured's cognitive impairment results in the lapse of a long-term care policy, how long from the policy lapse may the insured request reinstatement? a)30 days b)3 months c)5 months d)6 months

c)5 months

An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company obligated to do? a)Look at the applicant's medical history to decide what premium to charge b)Send the applicant to a doctor for a physical. Nothing can happen until they get the results. c)Offer the supplement policy on a guaranteed issue basis d)Exclude pre-existing conditions from coverage under the supplement policies

c)Offer the supplement policy on a guaranteed issue basis

Which nonforfeiture option provides coverage for the longest period of time? a)Paid-up option b)Accumulated at interest c)Reduced paid-up d)Extended term

c)Reduced paid-up

Which of the following is the closest term to an authorized insurer? a)Certified b)Licensed c)Legal d)Admitted

d)Admitted

An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an a)Credit Life. b)Annual Renewable Term. c)Adjustable Life. d)Interest-sensitive Whole Life.

d)Interest-sensitive Whole Life.

Which of the following will be included in a policy summary?a)Copies of illustrations and application b)Comparisons with similar policies c)Primary and secondary beneficiary designations d)Premium amounts and surrender values

d)Premium amounts and surrender values

Which of the following best describes the "first-dollar coverage" principle in basic medical insurance? a)The insured must first pay a deductible. b)The insurer covers the first claim on the policy. c)Deductibles and coinsurance are taxed first. d)The insured is not required to pay a deductible.

d)The insured is not required to pay a deductible.