guarantee exam 2 life insurance exam

how often must the insurance agency notify the director of the appointment of a producer

annually

what is it called when a doctor accepts the medicare approved amount?

assignment

which of the following would NOT trigger the payment of accelerated death benefits?

being permanently disabled

Insurers CANNOT transact insurance in this state without a

certificate of authority

which of the following advises people (for a fee) regarding the provisions of their insurance policies?

consultants

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

extended term

what is the major difference between private and government insurance programs?

government insurance programs are partially or totally funded by taxes

In order for an alumni association to be eligible to purchase group health insurance for its members, all of these statements must be true EXCEPT when the association

has been active for at least 5 years

all of the following information needs to be included on an application for life insurance except

health insurance policies in force

which of the following is NOT true regarding a deferred annuity?

income payments begin within 1 year from date of purchase

An insured's hospital policy states that it will pay him a flat fee of $75 per day for each day he is hospitalized. The policy pays benefits on what basis?

indemnity

who makes up the medical information bureau?

insurance companies

which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care?

intermediate care

which of the following is true regarding pure life annuity settlement option?

it provides the highest monthly premium

who would be the insured in business disability insurance?

key employee

which of the following statements is incorrect about medicare and medigap?

medicare and medigap policies provide coverage for long term custodial or nursing home care

the reduction of premium option uses the dividend to reduce

next years premiums

In contrasting stock insurers with mutual insurers, which statement is true?

stock insurers are owned by the shareholders and issue nonparticipating policies

an employer is no longer able to afford the group health insurance plan and the plan terminates. however, one of the employees continues to receive coverage under the plan. which of the following explains the reason for the continues coverage?

the employee is totally disabled

an applicant completes an application for disability policy and pays the initial premium. the producer gives the applicant a conditional receipt insurance coverage for the applicant will become effective when

the insurance company accepts the risks

if an applicant for insurance license is likely to earn an aggregate amount in commissions that would exceed 30% of the aggregate amount represented by all other insurance business that would be procured through the applicant, which of the following would most likely happen?

the license would to be granted

according to the common disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be be determined who died first, which of the following will be assumed?

the primary beneficiary died before the insured.

an employee that becomes ineligible for group coverage because of termination of employment or change in status, must exercise extension of benefits under COBRA

within 60 days

with adjustable life the owner can change all of the following except?

the insured

HMO members pay a small fee when they see their primary care physician. This fee is called a

copay

an individual buys a disability policy May 1 with a waiver of premium rider. the insured becomes disabled June 1. it is determined the insured is permanently totally disabled on july 1; and he reduced his first benefit payment on july 15. when does the waiver of premium provision start?

june 1

all of the following are true of an annually renewable term insurance except?

proof of insurability must be provided at each renewal

which of the following is a provision found in life insurance policies?

reinstatement

what is the purpose of a benefit schedule?

to state what and how much is covered in the plan

an insured purchased a health insurance policy with a renewability clause that states the policy is "guaranteed renewable". this means that as long as the required premiums are paid, the policy will continue until the insured

reaches age 65

Insureds have the right to do which of the following if they have NOT received the proper claim forms within 15 days of their notice to the insurer of a covered loss under a major medical policy?

submit the description in their own words on a plain sheet of paper

all of the following are advantages of a qualified retirement plan except

the income at retirement is tax free

medicare is a health insurance program for all of the following individuals except

those with low income and low assets

what is the cost of coverage based on for group life insurance?

the average age and the ratio of men to women

Who does the spendthrift clause in a life insurance policy protect?

the beneficiary

how many days notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans?

30 days

all of the following are considerations under the needs approach planning for life insurance except?

insureds income