Missed Questions- big quiz
each willful violation of the insurance statutes regarding unfair methods of competition may result in fines up to
$5,000
an insured purchased a variable life insurance policy with a face amount of $50,000. over the life of the policy, stock performance declined and the cash value fell to $10,000. if the insured dies, how much will be paid out?
$50,000
an insured is covered under 2 group health plans- under his own and his spouse's. He has suffered a loss of $2,000. After the insured paid the total of $500 in deductibles and coinsurance, the primary insurer covered $1,500 of medical expense. what amount, if any, would be paid by the secondary insurer?
$500
company C is developing its own advertising script to be used in their radio advertising campaign for their LTC policies. which of the following words or phrases would be allowed?
'benefits paid directly to you'
an insured pays a monthly premium of $100 for her health insurance. what would be the duration of the grace period under her policy?
10 days
what percentage of a company's employees must take part in a noncontribuitionary group life plan?
100%
group life insurance is a single policy written to provide coverage to a members of a group. which of the following statement's concerning group life is correct?
100% participation of members is required in noncontributory plans
how many consecutive months of coverage (other than in an acute care unit of a hospital) does LTC insurance coover?
12
how many consecutive months of coverage (other than in an acute care unit of a hospital) must LTC insurance provide in this state?
12
a client has a new individual disability income policy with a 20-day probationary period and a 30-day elimination period. ten days later, the client breaks their leg and is off work for 45 days. how many days of disability benefits will the policy pay?
15 days
if an employee has been continuously insured under a group health policy for at least 3 months prior to termination, the employee will be entitles to how many months of continued coverage (maximum)?
18 months
all group life policies must include a grace period lasting at least
31 days
how long must insurance companies, that issue health insurance benefit contracts in Kansas, keep records of the advertising used in marketing these products?
4 yeaars, or until the next examination y the commisioner
in the event a policy lapses due to nonpaymnet of premium, within how many days would the policy be automatically reinstated once the outstanding premium is paid?
45 days
in the event of a policy lapse due to nonpayment of premium, within how many days would the policy be automatically reainstated once the outstanding premium is paid?
45 days
once the person meets the stringent requirements for disability benefits under Social Security, how long is the waiting period before any benefits will be paid?
5 months
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
which of the following is not possible punishment for a violation of general provisions of the Kansas insurance code?
a maximum fine of $10,000 for a willful violation
which of the following names beneficiaries would not be able to receive the death benefit directly from the insurer in the event of the insured's death?
a minor son of the insured
the term "illustration" in a life insurance policy refers to...
a presentation of nonguaranteed elements of a policy
how often must insurer renew a producer's appointment?
annually
all of the following statmeent are false regarding licensing except...
applicants must pass a state licensing exam
an agent is ready to deliver a policy to an applicant but has not yet received payment. upon delivery, the agent collects the applicants premium check, answers any questions the applicant may have, and then leaves. what did he forget to do?
ask her to sign a statement of good health
all of the following are true of the federal tax advantages of a qualifies plan except
at distribution, all amounts received by the emloyee are tax free
all of the following are duties and responsibilities of producers at the time of application except
change any incorrect statement on the application by personally initialing next to the corrected statement
an insurer neglects to pay a legitimate claim that is covered under the terms of the policy. which of the following insurance principles has the insurer violated?
consideration
an applicant for an individual health policy failed to complete the application properly. before being able to complete the application and pay the initial premium, she is confined to a hospital. this will not be covered b insurance because she has not met the conditions specified in the...
consideration clause
if an employee terminates her employment, which of the following provisions would allow her to continue health coverage under an individual policy, if requested within 31 days?
conversion
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?
convert to an individual health policy
all health policies issued in this state must provide all of the following benefits related to adopted children except...
coverage for adopted children may be excluded at the discretion of the insurer
what amount of care is provided in LTC's intermediate care?
daily care by medical professionals
an individual has just borrowed $10,000 for his bank on a 5-year installment loan requiring monthly payments. what type of life insurance policy would be best suited to this situation
decreasing term
which of the following terms is used to name the nontaxed return of unused premums?
dividend
which is true about the cash surrender nonforfeiture option?
funds exceeding the permium paid are taxable as ordinary income
in life insurance policies, cash value increases
grow tax deferred
in life insurance policies, cash values increases...
grow tax deferred
which of the following is incorrect concerning taxation of disability income benefits?
if paid by the individual, the premiums are tax deductible
in order to maintain coverage under COBRA, how soon from termination of employment must an employee exercise extension of benefits?
in order to 60 days
life income joint and survivor settlement option gurantees...
income for 2 or more recipients until they die
a return of premium term life policy is written as wat type of term covergage?
increasing
what type of insurance would be used for a Return of Premium rider?
increasing term
the patient protection and affordable care at includes all of the following provisions except...
individual tax deduction for premiums paid
the Medical Information Bureau (MIB) was created to protect...
insurance companies from adverse selection by high risk persons
the section of a health policy that states the casuses of eligible loss under which an insured is assumed to be disabled is the
insuring clause
what is not a benefit of a POS plan?
it allows guaranteed acceptance of all applicants
what is the benefit of choosing extended term as a nonforfeiture option?
it has the highest amount of insurance protection
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
which of the following is true of a children's rider added to an insured's permanent life insurance policy?
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 about the premium on the childen's rider in a life insurance policy?
it remains the same no matter how many children are added to the policy
which statement is not true regarding a straight life policy?
its premium steadily decreases over time, in response to its growing cash value
the provision which prevents the insured from beinging any legal action against the company for at least 60 days after proof of loss is known as...
legal actions
which two terms are associated directly with the premium?
level or flexible
which of the following best describes the unfair trade practice of defamation?
making derogatory oral statements about another insurer's financial condition
an applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. she receives a conditional receipt two weeks later. which of the following has the insurer done by this point?
neither approved the application nor issued the policy
all of the following are duties of an agent involved in policy replacement except...
notify any insurer whose insurance is being replaced within 3 working days
in long-term care insurance, what type of care is provided with instermediate care?
occasional nursing or rehabilitation care
prior to purchasing a Medicap policy, a person must be enrolled in which of the following?
parts A and B of Medicare
Don has both a basic expense and a major medical policy. he is injured in an accident, which requires several major surgeries. this quickly exhausts Don's basic expense policy. what must Don do before his major medical policy can pick up where the basic expenses left off?
pay a special deductible on his major medical policy
which of the following riders would not cause the death benefit to increase?
payor benefit rider
a guaranteed renewable health insurance policy allows the...
policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class
regarding the taxation of Business Overhead policies...
premiums are deductible, and benefits are taxed
which of the following describes taxation of individual disability income insurance premiums and benefits?
premiums are not tax deductible, and benefits are not taxable
certain conditions, such as dismemberment or total and permanent blindness, will automatically qualify the insured for full disability benefits. which disability policy provision does this describe?
presumptive disability
under the accidental death and dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?
principal sum
what type of care is respite care
relief for a major care giver
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 insured's loss of earning after recovery from a disability?
residual disability
if an agent wishes to sell variable life policies, what license must the agent obtain?
securities
all of the following are mandatory life insurance policy provisions except
sharing commisions
which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?
size of each installment
which of the following determines the length of time that benefits will be received under to Fixed-Amount settlement option?
size of each installment
the advantages of qualifies plans to employers is...
tax-deductible contributions
which of the following may not be included in an insurance company's advertisment
that its polies are covered by a state guaranty association
all of the following entities regulate variable life policies except...
the Guaranty association
all of the following statements about equity index annuities are correct except...
the annuitant receives a fixed amount of return
which is true regarding obtaining underwriting sources?
the applicant must be informed of the sources contacted and how the information is being gathered
if the annuitant dies during the accumulation period, who will receive the annuity benefits?
the beneficiary
which of the following manages the Kansas life and Health Insurance Guaranty association?
the board of directors
which of the following describe the tax advantages of a qualified retirement plan?
the earnings in the plan accumulate tax deferred
the period of time immediately following a disability during which benefits are not payable is
the elimination period
in which of the following situations would replacement rules apply?
the existing life insurance is converted into paid-up insurance
which statement is true about the proceeds of a life insurance policy?
the lawful beneficiary is entitled to all policy benefits free from all claims of creditors or representatives of the insured's estate
which of the following is true regarding elimination periods and the cost of coverage?
the longer the elimination period, the lower the cost of coverage
what is the advantage of reinstating a policy instead of applying for a new one?
the original age is used for premium determination
in a life settlement contract, whom does the life settlement broker represent?
the owner
all of the following are true regarding a decreasing term policy except...
the payable premium amount steadily declines throughout the duration of the contract
which of the following determines the cash value of a variable life policy?
the performance of the policy portfolio
a policy with a 31-day grace period impliez...
the policy will not lapse for 31 days if the premium is not paid when due
which of the following is true regarding the premium in term polices?
the premium is level
an insured has chosen join 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 benefit paid when both beneficiaries were alive
which of the following is true about nonforfeiture values?
they are required by state law to be included in the policy
which of the following employees insured under a group life policy would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
those who have been insured under the plan for at least 5 years
which of the following products requires a securities license?
variable annuity
