Missed Questions

Which of the following actions is NOT in violation of the Unfair Claims Settlement Practices Act?

Denying an unsubstantiated claim

Concerning group Medical and Dental insurance, which of the following statements is INCORRECT?

Employee benefits are tax deductible the year in which they were received.

In the executive Bonus plan, who is the owner of the policy, and who pays the premium?

Executive is the owner, and the executive pays the premium

Which policy component decreases in decreasing term insurance?

Face amount

All of the following are dividends options except

Fixed-Period Installments

Life Insurance death proceeds are

Generally not taxed as income

As it pertains to group health insurance. COBRA stipulates that

Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense.

What is the minimum renewability standard for long-term care policies issued in this state?

Guaranteed renewable Allong-term care policies or certificates issued in this state must be guaranteed renewable or noncancellable

Which of the following insurance plans do not require an insured to pay a deductible

HMO

Which of the following statements is CORRECT concerning the relationship between Medicare and HMOS?

HMOS may pay for services not covered by Medicare

Which of the following is available to employers of all sizes?

HRAS

An insured has a Modified Endowment Contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true?

He will have to pay a penalty if he is younger than 59 1/2

What are the two types of flexible spending accounts?

Health Care Accounts and Dependent Care Accounts

What are the 2 types of Flexible Spending Accounts?

Health Care Accounts and Dependent Care Accounts There are 2 types of Flexible Spending Accounts: a Health Care Account for out-of-pocket health care expenses, and a Dependent Care Account to help pay for dependent care expenses which make it possible for an employee and his or her spouse, if applicable, to work.

Under the Affordable Care Act. health insurance cannot be underwritten based on which of the following factors about the applicant

Health Conditions

Which of the following is INCORRECT concerning taxation of disability income benefits?

If paid by the individual, the premiums are tax deductible

Issue age policy premiums increase in response to which of the following factors?

Increased benefits

The Medical information Bureau (MIB) was created to protect

Insurance companies from adverse selection by high risk persons.

Which of the following entities has the authority to make changes to a insurance policy

Insurer's executive office

All of the following are nonforfeiture options EXCEPT

Interest only it's a settlement option

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?

Interest only option

In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary, and reasonable, the extra cost

Is not covered

Which of the folowing best describes a misrepresentation?

Issuing sales material with exaggerated statements about policy benefits. Misrepresentation is issuing. publishing or circulating any illustration or sales material that is false, misleading or deceptive as to policy benefits or terms, the payment of dividends, etc. This includes oral statements.

Which of the following is NOT true regarding the Life with guaranteed minimum annuity settlement option

It does not guarantee that the entire principal amount will be paid out.

Why is an equity indexed annuity considered to be a fixed annuity?

It has a guaranteed minimum interest rate.

Concerning Medicare Part B, which statement is INCORRECT?

It is fully funded by social security taxes (FICA)

Which of the following is NOT true regarding a Certificate of Authority?

It is issued to group insurance participants

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?

It is reduced to the amount of what the cash value would buy as a single premium

Variable Whole Life insurance is based on what type of premium?

Level fixed

Which of the following settlement options in life insurance is known as straight life?

Life Income

In a disability income policy, all of the following are considered presumptive disabilities EXCEPT

Loss of one eye

If a dental plan is integrated, it is combined with what type of plan?

Medical

Which of the following statements is NOT correct regarding Medicare?focc

Medical Advantage must be provided through HMOs

Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is

Monthly

In long-term care insurance, what type of care is provided with intermediate care?

Occasional nursing or rehab care

Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT

Other insurance coverages

Medicare Part A services do NOT include which of the following?

Outpatient Hospital Treatment

An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old He is killed in an automobile accident actually 45 years old, and not 43 as stated on the application What will the company do?

Pay reduced death benefit

Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner?

Payment of Claims

All of the following are characteristics of group life insurance EXCEPT

Premiums are determined by the age, sex and occupation of each individual certificate holder.

Which of the following describes taxation of individual disability income insurance premiums and benefits?

Premiums are not tax deductible, and benefits are not taxable

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

Purchase a single premium policy for a reduced face amount

The regulations regarding replacement apply to which of the following

Renewable term

Which health insurance provision describes the insured's right to cancel coverage?

Renewal Provision

Which two terms are associated directly with the way an annuity is funded?

Single payment or periodic payments

Company Y has 20 employees on staff last year. Which of the following terms most precisely labels the compnay's group insurance classification?

Small employer

Which of the following would be considered a nonqualified plan?

Split-Dollar Plan

Which of the following types of insurers is owned by stockholders?

Stock

Which of the following types of annuities will generally provide the highest monthly income

Straight Life

Your client is planning to retire. She has accumulated $100,000 in a retirement annuity, and now wants to select the benefit option which will pay the largest monthly income for the longest period of time. As her agent what should you recommend

Straight Life

Which of the following statements about a suicide clause in a life insurance policy is TRUE

Suicide is excluded for a specific period of years and covered thereafter.

All of the following would be different between qualified and nonqualified retirement plans EXCEPT

Taxation on accumulation

The annual contribution limit of a Dependent Care Flexible Spending Account is set by

The IRS

Who do the agents represent?

The Insurance Company

Which of the following is NOT covered under Plan A in Medigap Insurance

The Medicare Part A deductible

What happens if a non-member physician is utilized under the Point-Of-Service plan?

The attending physician will be paid a fee for service, but the member patient will have to pay a higher coinsurance amount.

The primary beneficiary of her husband's life policy found that no settlement ootion was stated in the policy on the date of her husband's death. Who will select the settlement option in this case?

The beneficiary

Which of the following is NOT a licensing requirement for a corporation of the state of Texas

The business must be able to pay up to $50,000 in the event that it is proven to be negligent.

An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?

The capital amount in a lump sum

Which of the following is INCORRECT concerning a noncontributory group plan?

The employees receive individual policies

An agent receives an Emergency Cease and Desist Order for chronically misrepresenting his insurance policies. The agent knows that he did not commit the violations stated in the Emergency Cease and Desist Order, He wants to contest the charges in a court hearing. Which of the following is true?

The hearing must be held within 30 days of receiving a request, unless both parties agree to a later date.

An insured has $500 left in his Health Reimbursement Account when he quit his job. What happens to that money?

The insured can have access to the $500 at his previous employer's discretion

An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?

They are tax deductible

How are employer contributions to Health Reimbursement Accounts treated in regards to taxation?

They are tax deductible

Which of the following is true regarding Medicare supplement policies?

They must be at least guaranteed renewable

What is the purpose of a disclosure statement in life insurance policies?

To explain features and benefits of a proposed policy to the consumer

Social security was created to provide all of the following benefits EXCEPT

Unemployment Income

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT

Upon conversion, the death benefit of the permanent policy will be reduced by 50%

All of the following benefits are available under social security EXCEPT

Welfare Benefits

All of the following benefits are available under Social Security EXCEPT

Welfare benefits Social Security is an entitlement program, not a welfare program.

Social Security Supplement (SIS) or Social Security Riders would provide for the payment of income benefits in each of the situations below EXCEPT

When the amount payable under Social Security is more than the amount payable under the rider

Upon the submission of a death claim under a life insurance policy, when should the insurer pay the policy benefit?

Within 2 months

How soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company?

Within 90 days or as soon as reasonably possible, but not exceed 1 year

Which of the following is another term for an authorized insurer

admitted

Which of the following best describes a pure life annuity settlement option? a)Benefits are paid for a fixed period of time specified when the policy begins to pay b) Pure life provides payments for as long as both the annuitant and the spouse are living c) Pure life provides payments for as long as the annuitant is alive. d)Pure life guarantees that all the proceeds will be paid out.

c) Pure life provides payments for as long as the annuitant is alive

The term "fixed" in a fixed annuity refers to all of the following EXCEPT

death benefit

When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?

foreign

Who bears all the risk in a fixed annuity?

insurance company

All advertisements are the responsibility of the

insurer

Which of the following statements is NOT true concerning Medicaid?

it consists of 3 parts: Part A: hospitalization, Part B: doctor's services, Part C: disability income

The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as

legal actions

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?

paid up option

An insured committed suicide one year after his life insurance policy was issued. The insurer will

refund the premiums paid

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

replacement rule

It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability?

sexual orientation

Hospice care is intended for

terminally ill

All of the following statements about Medicare supplement insurance policies are correct EXCEPT

they cover the cost of extended nursing home care

What is the purpose of settlement options?

they determine how death proceeds will be paid

An insured has a $1,000 HRA account through his emolover He incurred $750 in medical exoenses the first wear of the plan. How much, if anything, will the insured be able to roll over toward the next year's expenses?

$250

In all health care plans under the Affordable Care Act (ACA), how many essential benefit categories are there?

10

How many consecutive months of coverage must LTC insurance provide in this state?

12

An insurer must acknowledge receipt of a Notice of Claim within how many days?

15 days

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

COBRA applies to employers with at least

20 employees

The relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over the last

24 months

Within in how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained

3 days

How long is the grace period in group policies?

31 days

With in how many days must an insured notify the insurer of a child's birth and pay any required fees?

31 days

What percentage of continuing education hours must be in a classroom setting?

50%

How long is an open enrollment period for Medicare supplement policies?

6 months

How soon from the termination of debt under a credit life insurance policy must a creditor provide notice to the insurer?

60 days

In order to maintain coverage under COBRA how soon from termination of employment must an employee exercise extension of benefits

60 days

The commissioner of Insurance issues a Cease and Desist order to an agent. If the agent wishes to contest the charges in court, how many days after the order was issued does the agent have to make the request?

60 days

An agent's license will terminate within how many days from the due date of obligatory fees and continuing education requirements?

90

Most policies will pay the accident death benefits as long as the death is caused by the accident and occurs within

90 days

Under the uniform reauired orovisions proof of loss under a health insurance policy should be filled within

90 days

The benefits for individual disability plans are based on

A flat amount

According to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following nonforfeiture options EXCEPT a) Reduction of premium b) Reduced paid-up c) extended term d) Shortened benefit period

A) reduction of premium

Which of the following statements concerning group health insurance is CORRECT? A. The employer is the policy holder B. Only the employer receives a certificate of insurance C. Each employee receives a policy D. Under group insurance, the insurer may reject certain individuals from coverage

A. The employer is the policy holder

which of the following is NOT covered under a long-term care policy?

Acute care in a hospital

If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following?

Adjust the benefit in accordance with the increased risk

Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be

Adjusted to the insured's age at the time of renewal

How can a new physician be added to the PPO's approved list?

Agree to follow the PPO standards and charge the appropriate fees

All of the following statements about the continuing education requirement in this state are true EXCEPT

All licensed agents must comply by Jan 1 of even-numbered years

All of the following statements about the continuing education requirement in this state are true EXCEPT

All licensed agents must comply by January 1 of even-numbered years

Assuming that all of the following people are covered by a High Deductible Health Plan and are not claimed as dependents on anyone's tax returns, which would NOT be eligible of Health Savings Account?

Amanda is 67 and is covered by a basic medical expense policy

Who can make a fully deductible contribution to a traditional IRA?

An individual not covered by an employer-sponsored plan who has earned income

All of the following are examples of third-party ownership of a life insurance policy EXCEPT

An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan

The death protection of Universal Life is always

Annually Renewable Term

Which of the following is a short-term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated?

Annuity certain

Which of the following statements is CORRECT concerning the relationship between Medicare and HMOs? a) All HMOs and PPOs charge premiums beyond what is paid by Medicare. b) HMOs may pay for services not covered by Medicare, c HMOs do not pay for services covered by Medicare & Medicare Advantage is Medicare provided by an approved HMO only

B. HMOs may pay for services not covered by Medicare,

All of the following are correct regarding credit life insurance EXCEPT

Benefits are paid to the borrowers beneficiary

All of the following are true regarding Key Employee Disability Income Insurance Except

Benefits are taxable to the employer

Which of the following statements regarding Business Overhead Expense policies is NOT true?

Benefits are usually limited to six months

Which of the following is NOT true regarding a annuity certain?

Benefits stop at the annuitants death

According to the provisions of the Patient Protection and Affordable Care Act, all of the following are required preventive care services EXCEPT

Cervical cancer exams for all women starting at age 40

Which of the following provisions states the insurers right to change the premium amounts

Continuation Provision

When an individual obtains an insurance license for the primary purpose of writing insurance on him- or herself, or for members of his or her immediate family, or business, this is called

Controlled business