Life & Health Insurance

If an annuitant dies before annuitization occurs what will the beneficiary receive? A) cash value of the plan B) either the amount paid into the plane the cash value of the plan. Whichever is the greater amount.

B

Issue age policy premiums increase in response to which of the following A) inflation B) age C) increased benefits D) increased deductible

B

Nonforfiture values guarantee which of the following for the policy owner A) policy premiums will never increase B) cash value will not be lost C) dividends will be paid annually D) death benefit will be paid in a lump sum

B

Which of the following would be required to be licensed as an insurance producer A) salaried full time employee who furnishes info for group insurance B) insurance company director C) salaried employee who solicits and advertises insurance D) person who produces insurance advertisements

C

If a business owner becomes totally disabled a business overhead expense policy will pay all of the following except.... A) rent B) utilities C) employee payroll D) loss of owners income

D

Other than for a qualified life event when can a change be made in benefits for a flexible spending account A) any time necessary B) within 3 months C) no changes can be made D) during the open enrollment period

D

The insured purchased a life insurance policy. The agent told him that depending upon the companies investments and expense factors the cash value could change from those shown in the policy at issue time. The policy is a A) credit life B) annual renewable term C) adjustable life D) interest sensitive whole life

D

(Car accident) in addition to general,less serious injuries he permanently loses the use of his leg and is rendered completely blind (blindness improves 1 mo later) to what extent will he receive presumptive disability benefits? A) full benefits until blindness lifts B) no benefits C) full benefits D) partial benefits

B

All of the following are true about group disability income insurance except A) the longer the waiting period the lower the premium B) coverage applies on and off the job C) benefits are usually short term D) the waiting period starts as soon as the onset of injury or illness

B

(Car accident) the husband dies immediately, the wife 15 days later. The company pays the death benefit to the estate of the insured. This states that the life insurance policy had what provision A) common disaster B) accidental death C) survivor life D) second to die

A

All of the following statements concerning workers compensation are correct except A) a worker receives benefits only if the work injury was not their fault B) workers comp laws are established by each state C) all states have workers comp D)benefits include medical, disability, and rehabilitation

A

In an immediate annuity is purchased with the face amount of at death or with cash value at surrender this would be considered a A) settlement option B) non taxable exchange C) nonforfiture option D) rollover

A

They two types of assignments are... A) absolute & collateral B) absolute & partial C) complete & partial D) complete & proportionate

A

What is the period of time specified in a disability income policy that must pass after the policy is in force before a loss can be covered A) probationary period B) contestable period C) elimination period D) grace period

A

When delivering a policy, which of the following is an agents responsibility? A) collect payment at time of delivery B) issue the policy if the applicant is present C) approve or decline risk D) collect medical statement from physician

A

Which of the following is true regarding hiv exam requirements A) hiv exams may not be used as a basis for underwriting B) the applicant must give prior informed written consent C) results may be disclosed to the agent and the underwriter D) prior informed oral consent is required from the applicant

A

Which premium payment mode the lowest overall payment? A) annually B) semi annual C) quarterly D) monthly

A

Which would not be eligible for a health savings account? A) Amanda, 67, basic medical expense B) Andy, 55c dental care C) Jenny, 60, has long term care D) joe, 40, not covered by any health insurance

A

An association can buy groups insurance for its members if it meets all of the following requirements except... A) it's contributory B) has at least 50 members C) has a constitution and by law D) holds annual meetings

B

Social security supplement or social security riders would provide for the payment of income benefits in each of the situations below except... A) if the insured has been denied coverage B) when the amount payable under social security is more than the amount payable under the rider C) when used to replace or supplement benefits payable under other social insurance programs D) when the insured is eligible for social security benefits but before the benefits begin

B

The commissioner has full power to do all of the following except A) issue cease and desist orders B) draft insurance laws C) issue certificates of authority D) enforce the insurance code

B

Under the fair credit reporting act of the consumer challenges the accuracy of information on his report the reporting agency must... A) send a certified copy B) respond to the consumers complaint C) defend the report D) change the report

B

Which of the following is true regarding the accumulation period of an annuity? A) it is limited to 10 yrs B) it is a period during which the payments into the annuity grow tax deferred C) it is also referred to as the annuity period D) a period of time where the beneficiary receives income

B

Which two terms are associated with the premium A) renewable or convertible B) level or flexible C) fixed or variable D) term or permanent

B

A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as... A) benefit schedule B) gatekeeper C) usual, customary and reasonable D) relative value schedule

C

An insured has endured multiple surgeries and hospitalizations for an illness the insurer no longer bills her what term best describes the condition A) max threshold B) max loss C) stop loss limit D) out of pocket limit

C

Disability income coverage says that the policy covers the insured if he is unable to preform any job he is qualified. Here, total disability is defined as... A)own occupation, more restrictive B) own occupation, less restrictive C) any occupation, more restrictive D) any occupation, less restrictive

C

Hmos that contract with outside physicians to provide health care service to their subscribers compensate those providers on a A) fee for service basis B) usual, reasonable, or customary basis C) capitation basis D) Medicare allowable basis

C

In a group health policy a probationary period is intended for people who... A) have additional coverage B) want lower premiums C) join group after effective date D) have a pre existing condition

C

Provision that prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as A) payment of claims B) proof of loss C) legal actions D) time limit on certain defense

C

The Federal Fair Credit Reporting Act A) regulates telemarketing B) prevents money laundering C) regulates consumer reports D) protects customer privacy

C

The type of policy that can be changed from one that does not accumulate cash value to one that does is a A) decreasing term B)whole life C) convertible term D) renewable term

C

What contract states that if the insured was to die the insurer will pay the death benefit to the beneficiary if the policy is approved? A) personal B) unilateral C) conditional D) adhesion

C

What is the goal of the hmo? A) limiting deductibles and coinsurance B)health services close to home C) early deduction through regular check ups D) free health services

C

What is the term used for an applicants written request to an insurer for the company to issue a contract based on the information provided? A) insurance request form B) request for insurance C) application D) policy request

C

When an individual obtains an insurance license for the primary purpose of writing insurance on themselves, family members, or businesses this is called A) rebating B) self insurance C) controlled business D) personal insurance

C

Which is not true concerning insurable interest as it applies to life insurance A) husband and wife having insurable interest in each other B) an individual having insurable interest in themselves C) a debtor has an insurable interest in the life of a lender D) business partners have insurable interest in each other

C

Which of the following applies to partial disability benefits? A) payment is based on termination of employment B) benefits are reduced once an insured is no longer under a doctors care C) payment is limited to a certain period of time D) an insured is entitled to a principal sum benefit

C

Which of the following determines the length of time that benefits will be received under the fixed amount settlement option A) length of income period B) amount of interest C) size of each installment D) predetermined length of time

C

Which of the following is incorrect concerning taxation of disability income benefits? A) if the insured paid the premiums any disability income benefits are tax free B) if the benefits are for a permanent loss the benefits paid to the employee are not taxable C) if paid by the individual the premiums are tax deductible D) if the employer paid the premiums, income benefits are taxable to the insured as ordinary income.

C

Who bears all of the investment risk in a fixed annuity? A) beneficiary B) annuitant C) insurance company D) owner

C

Which of the following info will be stated in the consideration clause of a life insurance policy? A) the parties to the contract B) the time period allowed for the payment of premium C) the conditions for insurability D) the amount of premium payment

D

Which of the following is a generic consumer publication that explains life insurance in general terms? A) insurance index B) policy summary C) illustrations D) buyers guide

D

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain amount of time and proof of insurability is provided which policy provisions provides this? A) waiver of premium provision B) incontestable clause C) grace period D) reinstatement provision

D

At what age may an individual make withdrawals from an HSA for non health purposes without being penalized? A) 55 B)59 1/2 C)62 D)65

D

In health insurance if a dr charges $50 more than that the insurer calls usual, customary, and reasonable the extra cost A) must be covered by the insurer B)counts towards deductible C) counts towards coinsurance D) is not covered

D

In the occurrence of a covered loss how soon must an insured submit written proof of such loss to the insurance company? A) asap B) within 20 days C) within 60 days D) within 90 days no longer then 1 yr

D

Insured notified insurance company that she has become disabled what provision states that claims must be paid immediately upon written proof of loss A) incontestability B) physical exam and autopsy C) legal action D) time of payment of claims

D

The relation of earnings to insurance provision allows the insurance company to limit the insureds benefits to the average income over the last A) 6 mo B) 12 mo C) 18 mo D) 24 mo

D

When a life insurance policy is canceled and the insured has selected the extended term non forfeiture option the cash value will be used to purchase term insurance that has a face amount A) in lesser amounts for the remaining policy term B) equal to the cash value surrendered C) the same as the original policy minus cash value D) equal to the original policy for as long as the cash value will purchase

D

Which is not a license requirement for a corporation in Texas A) must demonstrate financial responsibility to provide coverage B) must be Texas corporation with principle place of business in Texas C) at lease 1 officer of corporation must be licensed D) business must be able to pay up to$50,000 in the event that is is proven negligent

D

Which of the following has the authority to make changes to an insurance policy A) department of insurance B) broker C) producer D) insurers executive officer

D

Which of the following is true regarding the annuity period? A) payments grow interest tax deferred B) referred to as the accumulation period C) it is the period of time during which the annuitant makes premium payments D) it may last for the lifetime of the annuitant

D

Which of the following provisions is mandatory for health insurance policies A) recurrent disability B) unpaid premiums C) intoxicants and narcotics D) physical examination & autopsy

D

Which of the riders would not increase the premium for the policy owner? A) Payor benefit rider B) waiver of premium rider C) multiple indemnity rider D) impairment rider

D

Who chooses a primary care physician in an hmo A) hmo subscribers do not have a primary care physician B) insurer C) referral physician D) individual members

D