Guaranteed Exam - Missed Questions

When must insurable interest exist in a life insurance policy?

At the time of application

Which of the following provisions states the insurer's right to change premium amounts?

Continuation Provision

Which of the following losses would likely be covered under the Accidental Death rider?

Death caused by a head-on collision

A new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home, should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be

Decreasing term

Viatical settlements may be rescinding wihin what time period after the viator receives the proceeds?

15 days

The Insurance Commissioner may examine the affairs of any insurer as often as necessary, but not less frequently than once every

5 years

The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. This plan would be funded with before-tax corporate dollars, and it does not meet government approval standards. The annuity plan is

A nonqualified annuity plan

What is another name for interest-sensitive whole life insurance?

Current assumption life

Fixed annuities provide all of the following EXCEPT

Hedge against inflation

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?

Life income with period certain

Which of the following used to be called Medicare + Choice Plans?

Medicare Advantage Plans

To sign up for a Medicare prescription drug plan, individuals must first be enrolled in

Medicare part A

Who bears all of the investment risk in a fixed annuity?

The insurance company

With Adjustable Life, the owner can change all of the following EXCEPT

The insured

Under the Payment of Claims provision, to whom will the insured's benefits be paid if the insured is deceased?

The insured's primary beneficiary

Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

Those who have been insured under the plan for at least 5 years

Medicare is a health insurance program for all of the following individuals EXCEPT

Those with low income and low assets

Under workers compensation, which of the following benefits are NOT included?

Legal benefits

Which of the following settlement options in life insurance is known as straight life?

Life income

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

An insured wants 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 her husband named as what type of beneficiary?

Revocable

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

50/50

What guarantees that the information explained in the insurance contract is true?

A warranty

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

As of the application date

A small business owner is the insured under a disability policy that funds a buy-sell agreement. If the owner dies or becomes disabled, the policy would provide which of the following?

Cash to the owner's business partner to accomplish a buyout

The owner of a deferred annuity pays $100 in premium one month, and $130 the next month. Which of the following terms best describes this premium payment arrangement ?

Flexible premium

An agent delivers a life policy. He explains a policy change was made and asks the applicant to sign a statement acknowledging the changes were explained. The agent says the premium has not been paid and must be paid before the policy goes into effect. He collects a Statement of Good Health, relinquishes the policy, and leaves. What did he do wrong?

He left the policy with the insured without collecting the premium

An insured has an individual disability income policy with a 30-day elimination period. He becomes disabled on June 1st for 15 days. When will he collect on his disability income payments?

He won't collect anything

Which of the following types of LTC is NOT provided in an institutional setting?

Home health care

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

Income payments begin within 1 year from the date of purchase

What type of insurance would be used for a Return of Premium rider?

Increasing Term

A guaranteed renewable disability insurance policy

Is renewable at the insured's option to a specified age

With respect to the entire contract clause in health policies, who has the authority to make changes to an existing policy?

Only an executive officer to the company

Under a pure life annuity, an income is payable by the company

Only for the life of the annuitant

When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?

Paid-up additions

Which dividend option increases the death benefit?

Paid-up additions

Which of the following is consideration on the part of an insurer?

Paying a claim

The frequency and amount of the premium payment are known as what?

Premium mode

If a basic medical insurance plan's benefits are exhausted, what type of plan will then begin covering those losses?

Supplementary major medical

Which of the following is true about requirements regarding HIV exams?

The applicant must give prior informed written consent

What is the advantage of reinstating a policy instead of applying for a new one?

The original age is used for premium determination

All of the following are true of key person insurance EXCEPT

The plan is funded by permanent insurance only

According to the provisions of the Patient Protection and Affordable Care Act, all of the following are required preventive care services EXCEPT

Cervical cancer exams for all women starting at age 40

The owner of a small restaurant submits a claim to his insurer after a loss due to fire. The insurer's investigation finds a police report that shows that a fire may have been of suspicious origin. The insurer can do which of the following?

Delay an acceptance or rejection decision

All of the following are differences between individual and group health insurance EXCEPT

Individual insurance does not require medical examinations, while group insurance does require medical examinations

Which of the following is NOT true regarding a noncancellable policy?

Insurer can increase the premium above what is stated in the policy if claims experience is greater than expected

If an insured continually uses the automatic premium loan option to pay the policy premium,

The policy will terminate when the cash value is reduced to nothing

How does a member of an HMO see a specialist?

The primary care physician refers the member

If an applicant submits the initial premium with an application, which action constitutes acceptance?

The underwriters approve the application

An adjustable life policy can assume the form of

Either term insurance or permanent insurance

All of the following statements are true regarding installments for a fixed period annuity option EXCEPT

It is a life contingency option

Which statement is NOT true regarding a Straight Life policy?

Its premium steadily decreases over time, in response to its growing cash value

During replacement of life insurance, a replacing insurer must do which of the following?

Obtain a list of all life insurance policies that will be replaced

Which is true regarding obtaining underwriting sources?

The applicant must be informed of the sources contacted and how the information is being gathered

Which of the following best describes the tax advantage of a qualified retirement plan?

The earnings in a qualified plan accumulate tax deferred.

Who is the owner and who is the beneficiary on a Key Person Life Insurance Policy?

The employer is the owner and beneficiary

An employee is covered under COBRA. His previous premium payment was $100 per month. His employer now collects $102 each month. Why does the employer collect an extra $2?

To cover the employer's administration costs

The paid-up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

Premiums paid by self-employed sole proprietors or partners for medical expense insurance are

Totally tax deductible

All of the following statements concerning dividends are true EXCEPT

Dividend amounts are guaranteed in the policy

A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve that goal?

Family term

An annuity owner receives the same guaranteed payment every month. What type of annuity is it?

Fixed

Which of the following statements in INCORRECT regarding the definition of total disability?

Total disability is the inability to perform partial duties of any occupation for which a person is suited by reason of education, training, or experience.

Which of the following is NOT a factor in determining qualifications for Social Security disability benefits?

Worker's occupation

A deductible is

a specified dollar amount that the insured must pay first before the insurance company will pay the policy benefits

Which entity has the option of including optional provisions in a health insurance policy?

The insurer

A temporary license holder can receive a commission from a sale made to all of the following EXCEPT

The license holder's sister-in-law