life and health insurance exam
What provides income for a specific period of years or for life, and protects a person from outliving their money?
An annuity
The death protection portion of a universal life policy is?
Annually renewable term
To attain currently insured status under social security, a worker must have earned at least how many credits during the last 13 quarters?
6 credits
How long is an open enrollment period for Medicare supplement policies?
6 months
What is the warranty period on a waver of premium rider in a life insurance policy?
6 months
Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within?
90 days of loss
A hospital indemnity policy will pay?
A benefit for each day the insured is in the hospital.
If an applicant intends to replace any existing accident and sickness policy with a Medicare supplement policy, what must the agent furnish to the application?
A notice regarding replacement.
The term Illustration in a life insurance policy refers to?
A presentation of nonguaranteed elements of a policy.
What is another term for an authorized insurer?
Admitted
What's another term for an authorized insurer?
Admitted
In which Medicare supplemental policies are the core benefits found?
All plans
What is an example of an agent not acting ethically?
Always representing the insured.
The provisions which prevent the insured from bringing any legal action against the company for at least 60 days after the proof of loss is?
Legal actions
Variable whole life insurance is based on what type of premium?
Level fixed
What is true about whole life insurance?
Lump-sum death benefits are not taxable.
The corridor deductible derives its name from the fact that it is applied between the basic coverage and the?
Major medical coverage
Untrue statements on an application unintentionally made by insureds that, if discovered, would alter the decisions of the underwriter?
Material misrepresentation
Which type of Medicare policy requires insureds to use specific healthcare providers and hospital ( network providers ) except for in emergency situations?
Medicare Select
To sign up for a Medicare prescription drug plan individuals must first be enrolled in?
Medicare part A
What universal life policy allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
Which universal life policy allows the beneficiary to collect both the death benefits and cash value upon insureds death?
Option B
A insured notifies the insurance company that he has become disabled. What provision stated that claims must be paid immediately upon written proof of loss?
Time of payment claims
What is the purpose of Life insurance solicitation regulations?
To help consumers compare life insurance products in regards to there relative cost.
An absolute assignment is a?
Transfer of all ownership wrights in a policy
Which kind of policy allows withdraws or partial surrenders?
Universal Life
Which type of life insurance policy allows the policy owner to pay more or less than the planed premium?
Universal life
When is the earliest a policy may go into affect?
When the applicant is signed and a check is given to the agent.
Following hospitalization because of an accident, Bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many days?
20 days
Following and injury a policyowner covered under Medicare parts A and B was treated by her physician on an outpatient basis. How much of her Dr. bill will she be required to pay out of pocket?
20% of the covered charges above the deductible.
The relation of earnings to insurance provision allows the insurance company to limit the insured's to his/her average income over the last?
24 months
Within how many days of requesting an investigative consumer report must an insured notify the consumer in writing that the report will be obtained?
3 days
For how long are insurers required to maintain records pertaining to life insurance solicitation?
3 years
Insurers must keep files of all the advertisements used in GA for how many years?
4 years
In the event a policy lapses due to the nonpayment of premium within how many days would the policy be reinstated once the outstanding premium is paid?
45 days
Agents, subagents, and counselors are required to maintain records of all insurance transactions for what time period?
5 years
Authorized insurance companies are examined by the commissioner at least once every?
5 years
Authorized insurance company's are examined by the commissioner every?
5 years
What is true regarding an accidental death rider?
It'll pay two to three times the face amount.
If a person is disabled at age 27 and meets Social Security's definition of total disability, how many work credits must he/she have earned to receive benefits?
12 credits
The violation of a cease and desist order may result in a fine of?
$10,000
Before he died, an annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity. He was also the insured under a $50,000 paid-up whole life policy that named his wife as primary beneficiary. Considering both contracts, how much will the annuitant's spouse receive in benefits?
$50,000
Existing insurers must provide policy owners with a policy summery for the existing life insurance within how many days of receiving the written communication of replacement?
10 days
How soon from the reestablishment of a health insurance policy would a loss be covered?
10 days
How soon from the reinstatement of a health insurance policy would a loss be covered?
10 days
For how many days will Medicare pay benefits for a skilled nursing facility?
100 days
If a person is disabled at 27 and meets social security's definition of total disability how many work credits must he/she have earned to receive benefits?
12 credits
What is the minimum age for purchasing a life insurance policy in the state of GA?
15
What is the primary source of information used for insurance underwriting?
Application
What's true regarding inpatient hospital care for HMO members?
Care can be provided outside the service area.
What term is used for replacing insurance policies for the purpose of making a commission?
Churning
In any case where there is a controversy of dispute between the insurance company and the insured, the soliciting agent is the agent of the?
Company
What report includes information regarding a persons credit, character, reputation and habits?
Consumer report
What is a rebate?
Dividends aren't considered rebates, rebates are only allowed if specified in the policy.
Another term to describe no deductible is?
First dollar basis
Fixed annuities provide what?
Future income payments, equal monthly payments for life, minimum garneted rate of interest.
A Medicare supplement plan must have at least what renewal policy previsions?
Garneted renewability
Which required provision allows an insured to pay overdue premiums within 30 days for a life insurance policy to remain in effect?
Grace Period
What is the relationship between Medicare and HMO?
HMO may pay for services not covered by Medicare.
What is covered under part B of Medicare?
Home health care, lab services, physician expenses.
What is different between qualified and nonqualified retirement plans?
IRS approval requirements, taxation of withdraws, taxation of contributions.
What is Medicare part A coverage?
Individuals who have ALS automatically qualify for Medicare part A regardless of age.
Who pays for the cost of a medical examination required in the prosses of underwriting?
Insurer
Who makes up the Medical Information Bureau?
Insurers
What entity has the authority to make changes to an insurance policy?
Insurers executive officer
The policy owner wants to make sure that upon his death, the life insurance policy will pay a portion of the proceeds annually to his spouse, but that the principle will be paid to their children when they reach a certain age. which settlement option should the policy owner choose?
Interest only option
What describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits.
What is Medicare part B coverage?
It pays for physician services, diagnostic tests, and physical therapy.
What is Medicaid?
It provides medical assistance to low-income people who can't otherwise provide for themselves. It pays for hospital, outpatient care, lab and X-ray services, and the federal government provides about 56 cents for every Medicaid dolor spent.
Concerning Medicare part B what is true?
It provides partial coverage for medical expenses not fully covered by part A. Its known as medical insurance, it offers limited prescription drug coverage.
The part of Medicare that helps pay for in patent hospital care, inpatient care in a skilled nursing facility, home health care and hospice care is known as?
Part A Medicare
A participating insurance policy may do what?
Pay dividends to the policy owner.
What's another term for the accumulation period of an Annuity?
Pay in period
What provision would prevent an insurance company from paying a reimbursement claim to someone other than the policy owner?
Payment of claims
What allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
Payor Benefit
An insurance agent responsibility's include?
Performing professionally, performing faithfully, representing the insurer.
What included in a policy summery?
Premium amounts and surrender values.
Another name for a substandard risk classification is?
Rated
When a insurer combines two period of disability into one, the insurer must suffer a?
Recurrent disability
An insured pays $1200 annually for her life insurance policy premium. The insured applies this years $300 worth of accumulated dividends to the next years premium, thus reducing it to $900. what option does this describe?
Reduction of premium
Disability income polices can provide coverage for a loss of income when returning to work only part-time after recovering from total disability. What is the benefit that is based on the insureds loss of earnings after recovering from disability?
Residual disability
What insurers are owned by stockholders?
Stock
What term describes the specific dollar amount beyond which the insured no longer participates in the sharing of expenses?
Stop-loss limit
Children's riders attached to whole life policies are usually issued as what type of insurance?
Term
The annual contribution limit of a dependent care flexible spending account is set by?
The IRS
A 60 year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 6o days what is true?
The amount of the distribution is reduced by the amount o fa 20% withholding tax.
In health insurance if a Dr. charges $50 more than what the insurance company considers usual, customary, and reasonable?
The extra cost is not covered
What is true about equity index annuities?
The insurance company keeps a percentage of the returns. They have a guaranteed minimum interest rates. They are less risky than variable annuities.
Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to?
The insured
What would make it easier to qualify for total disability benefits?
The more liberal " own occupation"
What is the advantage of reinstating a policy instead of applying for a new one?
The original age is used for the premium determination.
What best describes what the annuity period is?
The period of time during witch accumulated money is converted into income payments.
Who must have insurable interest in the insured?
The policy owner
If an insurer issued a policy based on the application that had unanswered questions, what would happen?
The policy will be interpreted as if the insurer waved its wrights to have an answer on the application.
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
The surviving beneficiary will continue receiving 2/3 of the benefits paid when both beneficiary's were alive.
What is true about a life settlement?
They can be used for a Key Person, they could be sold for an amount greater than the current cash value, they involve insurance policy's with large face amounts.
Regarding Medicare select policies what are restricted network provisions?
They condition the payment of benefits.
All of the following are covered by part A Medicare.
post hospital nursing care, home health services, in patent hospital services.
An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?
they are tax deductible
What policies would have an IRS required corridor or gap between the cash value and the death benefit?
universal life- option A