Insurance Exam

An insured was involved in an accident and could not perform her current job for 3 years. If the insured could reasonably perform another job utilizing similar skills after 1 month, for how long would she be receiving benefits under an "own occupation" disability plan? a) 2 years b) 1 month c) She would not receive any benefits. d) 3 years

2 years

When an employee terminates coverage under a group insurance policy, how long does he have to replace it?

31 days

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

6 months

How long is the time between an accident and bonus for an accidental death rider?

90 days

Blue Cross is known as a what?

A service organization

For which annuity beneficiary would the interest not be taxable if the annuity buyer dies before the annuitization?

A spouse

A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change? a) Value Adjustment Rider b) Return of Premium Rider c) Inflation Rider d) Cost of Living Rider

Cost of living rider

Concerning AIDS and HIV risks, all of the following acts may subject an insurer to liability claims or fines EXCEPT a) Not providing counseling contacts and educational information about HIV and AIDS. b) Disclosing test results to third party without applicant's consent. c) Requiring applicant to pay for HIV test in order to be underwritten. d) Declining applicant for a positive HIV test result.

Declining an applicant for a positive HIV test result

Which of the following statements about occupational vs. nonoccupational coverage is TRUE? a) Disability insurance can be written as occupational or nonoccupational. b) Group medical expense policies and individual medical expense policies always cover both occupational and nonoccupational injuries. c) Individual disability policies never cover nonoccupational injuries. d) Only group disability income policies can be written on an occupational basis.

Disability Insurance can be written as occupational or nonoccupational

Which of the following is an eligibility requirement for all Social Security Disability Income benefits? a) Have permanent kidney failure b) Be at least age 50 c) Have attained fully insured status d) Be disabled for at least 1 year

Have attained fully insured status

Which renewal option does NOT guarantee renewal and allows the insurance company to refuse renewal of a policy at any premium due date? a) Optionally renewable b) Conditionally renewable c) Guaranteed renewable d) Noncancellable

Optionally Renewable

Three time periods are common in medical expense policies. Which of the following is the normal chronological order of their occurrence? a) It depends on the situation. b) Waiting Period - Probationary Period - Benefit Period c) Probationary period - Waiting Period - Benefit Period d) Benefit Period - Waiting Period - Probationary Period

Probationary Period - Waiting Period - Benefit Period

Which of the following dental insurance categories would cover the filling of cavities? a) This type of work is not covered. b) Routine and preventative maintenance c) Routine and major restorative care d) Orthodontic care

Routine and major restorative care

Every long term care insurer in California must submit to the Commissioner a list of all agents or other representatives authorized to solicit individual consumers for the sale of long term care insurance. These submitted agent lists must be updated at least

Semiannually

Which of the following describes the tax advantage of a qualified retirement plan? a) The earnings in the plan accumulate tax deferred. b) Distributions prior to age 59½ are tax deductible. c) Employer contributions are deductible as a business expense when the employee receives benefits. d) Employer contributions are not taxed when paid out to the employee.

The earnings in the plan accumulate tax deferred

Elimination Period

When benefits are not payable after an injury