I AM MY OWN BOSS
In Delaware, group health insurance must provide benefits or coverage for a mammogram every year for women starting at what age?
50
In Delaware, group health insurance must provide prostate cancer screening for men starting at what age?
50
In the event of default in any premium payment, the insurer will grant a paid-up nonforfeiture benefit after how many days?
60 days
Jeff was injured in a car wreck. How many day does he have to provide a notice of claim to his insurer?
20 days
The licensee must maintain at their principal place of business all required records for inspection by the Commissioner for a period of:
3 years
What is the minimum grace period for annuity premiums?
30 days
What is the minimum grace period for annuity premiums?
30 days
In Delaware, group health insurance must provide benefits or coverage for a mammogram every 1 to 2 years for women starting at what age?
40
A lapsed individual health policy may be reinstated within how many days?
45 days
For tax purposes, how are premiums from a group life policy treated for an employer?
tax deductible
What is the maximum in benefits with respect to any one life provided by the Guaranty Association?
$300,000
A lapsed annuity contract can be reinstated at any time within:
1 year
When a company provides employees with a noncontributory group health insurance plan, what percentage of employees must be covered?
100 percent
A group life insurance policy may be issued to an association having at its outset a minimum of:
100 persons
Insurers are required to appoint new agents within how many days of the first insurance application being submitted to the insurer?
15 days
The insurer has a maximum of how many days after receiving notice of a claim to provide claims forms?
15 days
In Delaware, group health insurance must provide benefits or coverage for a pap smear every year for women starting at what age?
18
What type of policy would offer a 40-year old the fastest accumulation of cash value?
20 - pay life
How many days does an insured have to file a notice of claim?
20 days
A variable whole life policy would be the most appropriate for:
A 34 year old executive with a lawyer wife and a child
A blanket policy would NOT be used for which of the following?
A small grocery store covering its workers
A one-sided agreement whereby a promise to do (or refrain from doing) something in return for a performance (not a promise) is what type of contract?
A unilateral contract
Which rider on Diane's life policy will help her out when she is confined to a nursing home with a terminal illness?
Accelerated benefit rider
Long-term care policies CANNOT exclude benefits on the basis of:
Alzheimer's disease
which of the following groups is NOT eligible for group life insurance?
Amateur sports teams
Cindy has a new medical plan that provides both health care services and health care insurance. She is covered by:
An HMO (Health Maintenance Organization)
If an insurer gives a customer reasonable belief that an agent has the power and authority to bind the principal even in cases where the agent does not have such authority, this would be?
Apparent authority
If the Commissioner reasonably believes that someone engaged in the insurance business in Delaware is engaged in an unfair method of competition or deceptive act or practice, he may restrain the person from engaging in the act or practice with the help of the:
Attorney General
Where replacement insurance is involved, an agent must present to the applicant a "Notice Regarding Replacement" to be signed by:
Both the applicant and the agent
Which of the following is not a change that a policyowner can make to an adjustable life policy?
Change the named insured
Most medical expense plans have coinsurance. All of the following are false about coinsurance EXCEPT:
Coinsurance is useful in controlling overutilization of benefits
When a person buys insurance, the insurer is obligated to pay uncertain benefits in the future which are called?
Conditional
Nick has a policy that the insurer can cancel when he turns 65. Which type of policy is it?
Conditionally renewable
What type of disability policy states that a policy can be renewed beyond age 65 if the insured is actively at work?
Conditionally renewable contract
The duties of the Delaware Insurance Fraud and Fraud Prevention Bureau include all of the following, EXCEPT:
Conduct inquiries when persons in the Bureau are acting suspiciously
What are the two most common adjustments made during a month with a universal life insurance policy?
Cost of death protection deducted and current interest rate credited
On December 6, an application for life insurance is submitted with the initial premium. On December 23 the insurer issues the policy. Due to it being Christmas, the agent doesn't deliver the policy until December 28. A conditional receipt was issued without a required medical exam. When is coverage effective?
December 6
Jeff and Mike own an architect firm with 20 employees and worry about the company if one of them becomes permanently disabled. What type of policy should they buy?
Disability Buy-Out
An insurer who fails to issue a policy to an applicant due to the results of HIV testing CANNOT:
Disclose the specific results of such medical examination to the applicant
what is the explicit authority granted to an agent by the principal as written in the agency contract?
Express
The ____________ requires an applicant be notified in writing that the insurer could request an investigative consumer report may be made on them.
Fair Credit Reporting Act
Producers have an ethical responsibility to place the interests of their clients first, which is known as:
Fiduciary trust
Which of the following provisions for individual health insurance policies is NOT optional?
Grace period
Which of the following is not a benefit of the Social Security program?
Group health insurance benefit
Which rider allows an insured to purchase additional disability income coverage, at a future date, regardless of insurability?
Guaranteed insurability rider
What right of renewability guarantees insurability, but does not guarantee premiums?
Guaranteed renewable
What type of policy does not allow the insurer to change the coverage, but allows the insurer to change the premiums by class?
Guaranteed renewable
The most common plan used with an HSA is:
HDHP
Generally, how are health insurance policies taxed?
If premiums are tax-deductible, benefits are taxed as income.
What type of authority is an agent presumed to have?
Implied
For how much time after a dependent child who is incapable of self-sustaining employment due to mental retardation or physical handicap reaches the limiting age may they remain on an individual health policy?
Indefinitely
All of the following terms can be used interchangeably with the term "insurance producer", EXCEPT:
Insurance administrator
A producer acting as an agent represents the:
Insurer
A producer acting as an agent represents the:
Insurer
Which of the following statements is true about the return of premium rider?
It is an increasing term rider that matches the total premium input.
What is the primary purpose of Medicaid?
It provides medical expense coverage for low income people.
What type policy would pay the death benefits after the first person dies, if it covers two or more lives?
Joint Life
What type policy would pay the death benefits after the first person dies, if it covers two or more lives?
Joint Life
Vision plans are considered:
Limited plans
A health policy will usually exclude losses related to all of the following, EXCEPT
Losses from an auto accident when the insured was at fault
All of the following are true concerning taxation of medical benefits, EXCEPT:
Medical expenses deducted from income tax become taxable in the next year if they are reimbursed after the deduction is taken.
which of the following provisions for individual health insurance policies is optional?
Misstatement of age
What percentage of the benefits received from a health insurance company after an accident are taxable?
None
Samson has a policy that allows the insurer to cancel the policy at any date specified in the contract, and to raise his premiums. Which type of policy is it?
Optionally renewable
Baxter tells the insurer to keep the dividend and apply it to the face value of his life policy. He is using which dividend option?
Paid-up addition
Mr. Jones, the insured, committed suicide after the expiration of the suicide clause in his life insurance policy. The insurer is obligated to:
Pay the death benefit
Which of the following statements is not true about the tax liabilities for individual life insurance policies?
Policy loans are taxable as income.
which of the following statements is not true about the tax liabilities for individual life insurance policies?
Policy loans are taxable as income.
What is HIPAA's most important aspect?
Portability
Amelia has a nonqualified annuity that is paid out of her paycheck. It will be paid:
Post tax
Insurers use risk classification to rate policies. Risk classification can impact all of the following EXCEPT:
Premium payment dates.
Errors and Omissions insurance coverage is used by:
Producer
Errors and Omissions insurance coverage is used by:
Producers
Nick's life policy lapsed, which Nonforfeiture option would allow the insurer to use the cash value to buy a whole life policy?
Reduced paid-up
Dylan tells the insurer to keep the dividend and apply it to his next premium. He is using which dividend option?
Reduction of premium
Jamie has a renewable term policy. Which of the following is not an incorrect statement about this type of policy.
Renewability is the insurer's option.
amie has a renewable term policy. Which of the following is not an incorrect statement about this type of policy.
Renewability is the insurer's option.
Jeff has limited financial resources, but finds himself in a position where he needs a good deal of protection. A __________would probably best suit his needs at this time.
Term policy
Jackie's insurance policy was in force with a pregnancy benefit and she became pregnant. When the insurer declined to renew the policy, what happened to her pregnancy benefit?
The benefit was extended as long as premiums were paid.
If James has an increasing term policy, which of the following must increase?
The death benefit increases
What happens to a death benefit if it is determined that an applicant stated their age was younger than their actual age?
The death benefit would be lowered.
which of the following is not a rider that increases the policy's base premium?
The impairment rider excludes coverage; therefore, the premium would not increase. The correct answer is: Impairment rider
If an individual has a chronic medical condition, how is the insurer likely to handle this situation when issuing an individual health policy?
The insurer will exclude the condition with an Impairment rider.
Which clause in an insurance policy identifies the scope and limits of coverage as well as the contracting parties?
The insuring clause
If the cash values of an annuity are invested in securities, it is a:
Variable annuity
What is the advantage of a Waiver of Premium provision in a life policy?
Waive an insured's premiums if he/she becomes disabled.
What type of insurance contract is prepared by the insurer and not negotiated?
adhesion
With what receipt is coverage assured, even if the person is later proved to be uninsurable, until the insurer formally rejects the application?
binding
What unfair trade practice manipulates through the prospect of something desirable?
coercion
What type of premiums payment can employers deduct as an ordinary business expense?
group
What contract term means only one party to a contract's promises are legally enforceable?
unilateral
