insurance

The Commissioner of Insurance issues a Cease and Desist Order and immediately receives a request for the charges to be reviewed in a hearing. Within what number of days must the hearing be held?

10

An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?

10,000 no tax consequence

For how many days of skilled nursing facility care will Medicare pay benefits?

100

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

15 days

In the event a policy lapses due to nonpayment of premium, within how many days would the policy be automatically reinstated once the outstanding premium is paid?

45

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within

90 days of loss

Which of the following individuals will be eligible for coverage on the Health Insurance Marketplace?

A permanent resident lawfully present in the U.S.

All of the following are correct about the required provisions of a health insurance policy EXCEPT

A reinstated policy provides immediate coverage for an illness.

Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain

A statement that is sufficiently clear to identify the insured and the nature of the claim.

All of the following would be considered rebating EXCEPT

An agent misrepresents policy benefits to convince a policyowner to replace policies.

An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an

Authorized insurer.

Which of the following statements regarding Business Overhead Expense policies is NOT true?

Benefits are usually limited to six months.

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.

A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible?

Collateral assignment

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

Continuation Provision

What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan?

Diagnostic and preventive care

Which of the following best describes the aleatory nature of an insurance contract?

Exchange of unequal values

#6. An agent selling variable annuities must be registered with

FINRA

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?

Fair Credit Reporting Act

Which is TRUE about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income.

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

Guaranteed insurability rider.

Which of the following statements is CORRECT concerning the relationship between Medicare and HMOs?

HMOs may pay for services not covered by Medicare.

An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?

If the primary beneficiary predeceased the insured

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 Certificate of Authority?

It is issued to group insurance participants.

Which of the following best describes annually renewable term insurance?

It is level term insurance.

Which of the following statements concerning Medicare Part B is correct?

It pays for physician services, diagnostic tests, and physical therapy.

Which of the following statements is NOT correct concerning the COBRA Act of 1985?

It requires all employers, regardless of the number or age of employees, to provide extended group health coverage.

Which of the following statements about the reinstatement provision is true?

It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated.

Which statement is NOT true regarding a Straight Life policy?

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

A participating insurance policy may do which of the following?

Pay dividends to the policyowner

Which of the following will be included in a policy summary?

Premium amounts and surrender values

Insurers may change which of the following on a guaranteed renewable health insurance policy?

Rates by class

According to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following nonforfeiture options EXCEPT

Reduction of premium

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the

Revocable beneficiary.

Which of the following best details the underwriting process for life insurance?

Selection, classification, and rating of risks

The initial amount of credit life insurance may NOT exceed

The amount to be repaid under the contract.

Which of the following is TRUE regarding variable annuities?

The annuitant assumes the risks on investment.

Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner.

the policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability.

Which statement is NOT true regarding underwriting group health insurance?

The group is assessed individually for insurability.

An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. This results in a long hospitalization period. Which of the following is true?

The group plan will not pay because the employee was injured at work.

Who chooses a primary care physician in an HMO?

The individual member

Insured Z's health insurance policy year begins in January. His policy contains a carry-over provision. In November, he has a small claim which is less than his deductible. Which of the following is true?

The insured may carry over the amount of this year's expenses to next year, which will help satisfy next year's deductible.

Which of the following is NOT a feature of a noncancellable policy?

The insurer may terminate the contract only at renewal for certain conditions.

Which of the following statements regarding the Change of Beneficiaries Provision is false?

The policyowner has the right to change beneficiaries in any case.

How does a member of an HMO see a specialist?

The primary care physician refers the member.

According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT

Unearned premiums are retained by the insurance company.

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

Waiver of premium.

Social Security Supplement (SIS) or Social Security Riders would provide for the payment of income benefits in each of the situations below EXCEPT

When the amount payable under Social Security is more than the amount payable under the rider.

Which of the following premium payment modes will incur the lowest overall payment?

annual

When an insurer begins underwriting procedures for an applicant, what will be the main source for its underwriting information?

application

An insured's premium increases as a result of her age. Which type of policy does she have?

attained age

The premium charged for exercising the Guaranteed Insurability Rider is based upon the insured's

attained age

Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?

buyers guide

To legally transact insurance in this state, an insurer must obtain which of the following?

certificate of authority

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?

consideration

According to the entire contract provision, what document must be made part of the insurance policy?

copy of original application

A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as

critical illness

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

current assumption life

If an insured changes his payment plan from monthly to annually, what happens to the total premium?

decreases

An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

decreasing term

An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?

deferred

Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled?

disability buy-sell

An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This indicates that his policy is written with a 30-day

elimination period

An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This would indicate that his policy was written with a 30-day

elimination period

The provision in a health insurance policy that ensures that the insurer cannot refer to any document that is not contained in the contract is the

entire contract clause

Which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?

fraternal benefit society

What required provision protects against unintentional lapse of the policy?

grace period

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

guaranteed insurability option

Most LTC plans have which of the following features?

guaranteed renewability

What are the three basic coverages for medical expense insurance?

hospital, surgical, medical

Which of the following riders would NOT increase the premium for a policyowner?

impairment rider

A Return of Premium term life policy is written as what type of term coverage?

increasing

Stranger-originated life insurance policies are in direct opposition to the principle of

insurable interest

Who must pay for the cost of a medical examination required in the process of underwriting?

insurer

The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the

insuring clause

The type of dental plan which is incorporated into a major medical expense plan is a/an

integrated dental plan

All of the following are Nonforfeiture options EXCEPT

interest only

Which of the following is TRUE regarding the annuity period?

it may last the lifetime of the annuitant

Which of the following is NOT true regarding the accumulation period of an annuity?

it would not occur in deferred annuity

Which two terms are associated directly with the premium?

level or flexible

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

life income

Which of the following is considered a presumptive disability under a disability income policy?

loss of two limbs

Which of the following is NOT covered under Plan A in Medigap insurance?

medicare part A deductible

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of

misrepresentation

The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the

one year term option

Traditional IRA contributions are tax deductible based on which of the following?

owners income

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

payor benefit

Another name for a substandard risk classification is

rated

The regulations regarding replacement apply to which of the following?

renewable term

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a

settlement option

An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?

the capital amount in a lump sum

The period of time immediately following a disability during which benefits are not payable is

the elimination period

The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT

the insureds age at death

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

the policy is owned by the company.

An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen?

the policy will not be affected

An insured notifies the insurance company that he has become disabled. What provision states that claims must be paid immediately upon written proof of loss?

time of payment of claims

Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?

universal life

In forming an insurance contract, when does acceptance usually occur?

when an insurers underwriter approves coverage