INSURANCE EXAM
MAJOR MEDICAL POLICY
10 DAY GRACE PERIOD. IF NO PAYMENT, CLAIMS WILL BE DENIED
Premature IRA distributions are assessed a penalty tax of
10%
Enaction of McCarran Ferguson Act
1945
An insured must notify an insurer of a medical claim within how many days after an accident?
20
What is Medicare?
A hospital and medical expense insurance program
ALL OF THE FOLLOWING ARE CONSIDERED TYPICAL CHARACTERISTICS DESCRIBING THE NATURE OF AN INSURANCE CONTRACT EXCEPT
BILATERAL
WHICH OF THE FOLLOWING ORGANIZATIONS MAKE REIMBURSEMENT PAYMENTS DIRECTLY TO THE INSURED INDIVIDUAL FOR COVERED MEDICAL EXPENDITURES
COMMERCIAL INSURER
THE MOST IMPORTANT FACTOR TO CONSIDER WHEN DETERMINING WHETHER TO CONVERT TERM INSURANCE AT THE INSURED'S ATTAINED AGE OR THE INSURED'S ORIGINAL AGE IS
COST
WHICH POLICY DOES NOT HAVE AN AUTOMATIC PREMIUM LOAN PROVISION ATTACHED TO IT
DECREASING TERM
An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n)
EXCLUSION
A CONDITION THAT INCREASES THE POSSIBILITY OF FINANCIAL LOSS IS
HAZARD
SIMILAR OBJECTS WHICH ARE EXPOSED TO THE SAME GROUP OF PERILS ARE REFERRED TO AS
HOMOGENOUS EXPOSURE UNITS
In regards to representations or warranties, which of these statements is TRUE?
IF MATERIAL TO THE RISK, FALSE REPRESENTATIONS WILL VOID THE POLICY
THE TYPE OF ANNUITY THAT CAN BE PURCHASED WITH A SINGLE MONETARY DEPOSIT IS CALLED AN
IMMEDIATE ANNUITY
WHICH OF THE FOLLOWING IS PROTECTED UNDER THE BROKERED TRANSACTIONS GUARANTY FUND
INSURED
COMPANY HAS 2 YEARS TO CONTEST INFORMATION. 2 YEARS STARTS WHEN
INSURER DATES THE POLICY
POLICY PROVISION THAT SPECIFIES HEALTH CARE SERVICES A POLICY PROVIDES
INSURING CLAUSE
What is being delivered during a policy delivery?
Insurance contract to the proposed insured
WHICH OF THESE IS CONSIDERED A LIMITED PAY LIFE POLICY
LIFE PAID UP AT AGE 70
WHICH OF THESE IS AN ELEMENT OF A SINGLE PREMIUM ANNUITY
LUMP SUM PAYMENT
WHICH OF THE FOLLOWING ARE NOT MANAGED CARE ORGANIZATIONS
MIB
WHICH TYPE OF POLICY IS CONSIDERED TO BE OVERFUNDED
MODIFIED ENDOWMENT
SHORT TERM MEDICAL EXPENSE POLICY
NON RENEWABLE
A FATHER WHO DIES WITHIN 3 YEARS OF PURCHASING A LIFE INSURANCE POLICY CAN HAVE HIS PREMIUMS WAIVED UNDER WHAT PROVISION
PAYOR PROVISION
WHICH OF THE FOLLOWING CAN BE DEFINED AS A CAUSE OF A LOSS
PERIL
Who elects the governing body of a mutual insurance company?
POLICYHOLDERS
WHICH OF THE FOLLOWING ACTIONS IS NOT POSSIBLE WITH A UNIVERSAL LIFE POLICY
PREMIUMS MAY BE APPLIED AS A CREDIT AGAINST INCOME TAX
WHICH OF THESE IS NOT A CHARACTERISTIC OF THE LAW OF LARGE NUMBERS
RATES CAN BE CALCULATED TO COMPENSATE FOR LOSSES
WHICH OF THESE NON FORFEITURE OPTIONS CONTINUE A BUILD UP OF CASH VALUE
REDUCED PAID UP
ABC Company is attempting to minimize the severity of potential losses within its company. The company is engaged in risk
REDUCTION
WHICH OF THE FOLLOWING COULD BE DEFINED AS THE POTENTIAL FOR A LOSS
RISK
THE CONSIDERATION CLAUSE OF AN INSURANCE CONTRACT INCLUDES
SCHEDULE AND AMOUNT OF PREMIUM PAYMENTS
WHICH OF THESE IS NOT CONSIDERED TO BE AN ELEMENT OF AN INSURABLE RISK
SPECULATIVE RISK
WHAT BEST DESCRIBES A WARRANTY
STATEMENT GUARANTEED TO BE TRUE
WHICH OF THE FOLLOWING INVOLVES SHARING AN UNCERTAIN RISK WITH ANOTHER SIMILAR GROUP
TRANSFER
THE CASH VALUE IN A ________ LIFE POLICY MAY FLUCTUATE TO REFLECT CHANGING ASSUMPTIONS
UNIVERSAL
WHICH OF THE FOLLOWING BEST DESCRIBES HOW PRE ADMISSION CERTIFICATIONS ARE USED
USED TO PREVENT NONESSENTIAL MEDICAL COSTS
WHICH OF THESE LIFE INSURANCE OPTIONS ALLOWS THE POLICY OWNER TO HAVE LEVEL PREMIUMS AND TO ALSO CHOOSE FROM A SELECTION OF INVESTMENT OPTIONS
VARIABLE LIFE
WHICH OF THESE IS CONSIDERED A STATEMENT THAT IS TRUE IN EVERY RESPECT
WARRANTY
A POLICY OF ADHESION CAN ONLY BE MODIFIED BY
insurance company
Deductibles are used in health policies to lower
overuse of medical services
WHICH OF THESE IS NOT A TYPE OF AGENT AUTHORITY
principal
WHICH OF THE FOLLOWING TYPES OF RISK IS INSURABLE
pure
WHICH TERM DESCRIBES THE ELIMINATION OF A HAZARD
risk avoidance
Which of these life products is NOT considered interest-sensitive?
MODIFIED WHOLE LIFE
WHICH OF THE FOLLOWING IS NOT AN EXAMPLE OF RISK RETENTION
NOT DOING A BUSINESS DEAL AFTER DECIDING IT WOULD BE TOO RISKY
Insurers may request a hearing within ___ if their policy is rejected
20 DAYS
TIME PERIOD AFTER POLICY IS ISSUED WHERE NO BENEFITS ARE PROVIDED FOR ILLNESS
PROBATIONARY PERIOD
WHAT IS THE CONSIDERATION GIVEN BY AN INSURER IN THE CONSIDERATION CLAUSE OF A LIFE POLICY
PROMISE TO PAY A DEATH BENEFIT TO BENEFICIARY
WHAT TYPE OF LIFE INSURANCE GIVES THE GREATEST AMOUNT OF COVERAGE FOR A LIMITED PERIOD OF TIME
TERM LIFE
THE POLICY PROVISION THAT ENTITLES THE INSURER TO ESTABLISH CONDITIONS THE INSURED MUST MEET WHILE A CLAIM IS PENDING IS
TIME LIMIT ON CERTAIN DEFENSES
Elimination Period
TIME PERIOD A PERSON MUST WAIT BEFORE BENEFITS ARE PAID
A business becoming incorporated is an example of risk ____.
TRANSFER
A hold-harmless clause is an example of risk
TRANSFER
WHICH OF THE FOLLOWING INVOLVES ANALYZING A CASE BEFORE ADMISSION TO DETERMINE WHAT TYPE OF TREATMENT IS NECESSARY
PROSPECTIVE REVIEW
WHICH TYPE OF RISK INVOLVES THE POTENTIAL FOR LOSS WITH NO POSSIBILITY FOR GAIN
PURE RISK
A MEDICARE SUPPLEMENT POLICYHOLDER HAS _____ DAYS TO RETURN THE POLICY AND RECEIVE A FULL PREMIUM REFUND
30 DAYS
PRODUCERS LICENSED IN CT MUST NOTIFY THE INSURANCE DEPARTMENT WITHIN _____ DAYS OF ANY CHANGE OF NAME OR ADRESS
30 DAYS
MAX TIME AFTER PREMIUM DUE DATE THAT POLICY REMAINS IN FORCE
31 DAYS
HOW MANY DAYS BEFORE LEGAL ACTION CAN BE TAKEN
60
IN CT WHAT IS THE MAXIMUM FIXED INTEREST RATE
8%
Medicaid
A federal and state assistance program that pays for health care services for people who cannot afford them.
A CONTRACT WHERE ONE PARTY EITHER ACCEPTS OR REJECTS IS CALLED A CONTRACT OF
ADHESION
GROUP LIFE INSURANCE POLICIES ARE GENERALLY WRITTEN AS
ANNUALLY RENEWABLE TERM
WHICH OF THESE IS NOT A NON FORFEITURE PROVISION IN LIFE INSURANCE POLICY
AUTOMATIC PREMIUM LOAN
The annuity that represents the largest possible monthly payment to an individual annuitant is a(n)
STRAIGHT LIFE
WHAT TYPE OF LIFE POLICY COVERS 2 PEOPLE AND PAYS UPON THE DEATH OF THE LAST INSURED
SURVIVORSHIP
