INSURANCE NOTES TO STUDY
Joint Life Policy
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured, Which policy is that
Convert to an individual health policy
A small company offers group health insurance to its employees , but recently has decided to terminate the health insurance contract, leaving the workers without insurance. What can the employees do regarding their insurance?
Individual insurance does not require medical examinations, while group insurance does require medical examinations.
All of the following are differences between individual and group health insurance EXPECT
Welfare benefits
All of the following benefits are available under Social Security EXCEPT
The employer can receive a current tax deduction for any contributions made to the plan
All of the following statements concerning an employer sponsored nonqualified retirement plan are true EXCEPT
False advertising
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of
Beneficiary consent
An insurance contract must contain all of the following to be considered legally binding EXCEPT
25%
An insured has Medicare Part D coverage. Upon reaching the initial benefits limits, what percentage of the prescription drug cost is the insured responsible for paying ?
Cash Option
An insured receives an annual life insurance dividend check. What term best describes this arrangement ?
A specified dollar amount that the insured must pay first before the insurance company will pay the policy benefits
A deductible is
The applicant
An insurer is attempting to determine the insurability of an applicant and decides to obtain medical information from several different sources. Which entity must be notified of the investigation?
Yes, and they may use any preferred physician, even if not part of the HMO
Can an individual who belongs to a POS plan use an out-of-network physician ?
90 days
How long is the waiting period for benefits to be paid in a long term care policy or rider ?
The policy will be interpreted as if the insurer waived its right to have an answer on the application.
If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?
The person must have at least completed secondary education
In terms of parties to a contract, which of the following does NOT describe a competent party ?
The Spouse of the policyowner
On a health insurance application, a signature is required from all of the following individuals EXCEPT
Waiver of premium
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
Certificate of Authority
To legally transact insurance in this state, an insurer must obtain which of the following?
Payment of premium
With respect to the Consideration Clause, which of the following would be considered consideration on the part of the applicant for insurance ?
Immediate annuity
A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?
Joint
Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefits should one of the die ?
Principal Sum
Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefits will be paid to the beneficiary in the event of the insured's accidental death?
When the benefits received are equal or less than the employee's percentage of the contribution.
Under what condition are group disability income benefits received by an employee NOT taxable as income ?
Ownership
What is the main difference between a stock company company and a mutual company?
Copayment is a set dollar amount
What is the main difference between coinsurance and copayment ?
It determines if the insurance policy is MEC
What is the main purpose of the Seven-pay Test?
to help the insurance company to prevent overutilization of the policy
What is the purpose of coinsurance provision?
Purchase a single premium policy for a reduced face amount.
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
It is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age.
Which of the following is true of a children's rider added to an insured's permanent life insurance policy ?
Impairment rider
Which of the following riders would NOT increase the premium for a policyowner ?
Notice of Claim
Which provision concerns the insured's duty to provide the insurer with reasonable notice in the event of a loss?
31 days
When a disabled dependent child reaches the age limit for coverage, how long does the policyowner have to provide proof of dependency in order for the dependent to remain covered under the policy?
Replacement company
When a policy is being replaced, the replacing company notifies the
To renew the policy until the insured has reached age 65
When an insurer issues an individual health insurance policy that is guaranteed renewable, the insurer agrees.
The rider is usually level term insurance
Which is true about a spouse term rider?
Commissioner of Insurance
Which of the following entities has the power to issue certificates of authority?
The insurer may terminate the contract only at renewal for certain conditions.
Which of the following is NOT a feature of a noncancelable policy?
It will pay double or triple the face amount
Which of the following is True concerning the Accidental Death Rider?
Telling a client that his first premium will be waived if he purchases the insurance policy today
Which of the following is an example of a producer being involved in an unfair trade practice of rebating ?