Monday 9.11
At the time of initial licensing, what fee must a viatical settlement provider pay?
$300
An insured has a primary group health plan and an excess plan, each covering losses up to $10,000. The insured suffered a loss of $15,000. Disregarding any copayments or deductibles, how much will the excess plan pay?
$5,000
Within 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
What is the duration of the free-look period for Medicare supplement policies?
30 days
Employer health plans must provide primary coverage for individuals with end-stage renal disease before Medicare becomes primary for how many months?
30 months
In the event a policy lapses due to nonpayment of premium, within how many days would the policy be automatically reinstated once the outstanding premium is paid?
45 days
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
Where would long-term care services be provided?
A nursing home or the insured's own home
Which of the following is NOT required to be stated in the outline of coverage provided with a long-term care policy?
Basic information about supplementary policies
All of the following information about a customer must be used in determining annuity suitability EXCEPT
Beneficiary's age.
What limits the amount that a policyowner may borrow from a whole life insurance policy
Cash value
According to the Future Increase Option Rider (FIO), which of the following is NOT a qualifying event to increase an insured's benefit level?
Death of a spouse
An individual has just borrowed $10,000 from 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 statements about occupational vs. nonoccupational coverage is TRUE?
Disability insurance can be written as occupational or nonoccupational.
What is the difference between the Medicare approved amount for a service or supply and the actual charge?
Excess charge
Which of the following statements is correct concerning taxation of long-term care insurance?
Excessive benefits may be taxable.
The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the
Incontestability clause.
Guarantee of insurability option in long-term care policies allows the insured to
Increase benefit levels without providing proof of insurability
Issue age policy premiums increase in response to which of the following factors?
Increased benefits
Annually renewable term policies provide a level death benefit for a premium that
Increases annually.
Which statement regarding insurable risks is NOT correct?
Insureds cannot be randomly selected.
Which of the following entities has the authority to make changes to an insurance policy?
Insurer's executive officer
All of the following statements about Medicare Part B are correct EXCEPT
It is a compulsory program.
Which of the following is true regarding a term health policy?
It is nonrenewable.
Which of the following statements is NOT correct concerning the COBRA Act of 1985?
It requires all employers, regardless of the number or age of employees, to provide extended group health coverage.
Traditional IRA contributions are tax deductible based on which of the following?
Owner's income
Under which of the following organizations are the practicing providers compensated on a fee-for-service basis?
PPO
An individual buys a flexible premium deferred life annuity with 20 year period certain. What would his beneficiary receive if he died 5 years after beginning the annuity phase?
Payments for 15 years
When the insured initiates the cancellation of a policy, the unearned premium will be refunded on a(n)
Short rate basis.
A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then
The benefit is received tax free.
Which of the following statements is true concerning the creditors of the deceased insured?
The creditors have rights to the proceeds if they can show evidence of valid assignment.
How does a member of an HMO see a specialist?
The primary care physician refers the member.
Whose responsibility is it to make certain that an application for insurance is filled out completely and correctly?
The producer
An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?
When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health
When would a 20-pay whole life policy endow?
When the insured reaches age 100