ND Life & Health (Xcel Final Exam)
HR-10 plan
What is another name for a Keogh plan?
Using certified nurse midwives
How do birthing centers reduce medical costs?
The unpaid premium may be subtracted from the reimbursement
How is an insured's accident and health claim handled by an insurer if it occurs during the policy's grace period?
6 months
How long do most states allow an insurance companu to delay the payment of cash surrender under the Delayed Payment provision?
31 days
How long must all health plans provide coverage for newborn children?
30 days
How many days notice must a producer be given prior to a scheduled hearing?
40
How many quarters must an employee have worked in a covered occupation to be considered fully insured for Social Security disability income?
Policy's face amount minus any premiums due
If an insured dies during the grace period without having the premium, how much will the insurer pay?
Overutilization of the plan
If group Health benefit levels are too high, what could be the end result?
the commission will likely be shared between the two producers
If one producer provides a referral to another producer which results in the sale of an insurance contract, who will likely be paid a commission?
application date
If replacement was involved in the sale of life insurance policy, a producer must provide a replacement notice no later than the?
the apllicant must be enrolled in a High Deductible Health Plan (HDHP)
In order to contribute to a Health Savings Account (HSA), ?
30
Individual Medicare Supplement policies must allow an insured a MINIMUM of how many days after policy delivery to return and recieve a refund of premium?
Misstatement of Age
Individual health policies contain both mandatory and optional provisions. An example of an optional provision would be?
26
Individual health policies sold in North Dakota require dependent children coverage up to age?
the insurer was not notified prior to the claim that the insured has other health coverage
James is covered with health insurance by two different insurers. The "insurance with other insurers" provision in an individual health insurance policy allows an insurer to pay benefits to the insured on a pro-rata basis when?
specific reasons stated in the contract
Kelly purchaes a health insurance policy issued on a conditionally renewable basis. The insurance company has the right to refuse renewal of the policy for?
Plan A pays up to $5,000 and Plan B pays up to $2,000.
Kim is covered under two medical expense plans. Plau A pays up to $5,000. Plan B pays up to $4,000. If she incurs $7,000 in expenses, the coordination of benefits provision dictates that?
60 days
Larry wants to purchase an individual disability income policy to provide continuous income while disabled. He is also covered by a two-month wage continuation benefit from his employer. What should the policy elimination period be for his individual policy?
Exchanging an exisiting life policy for a new policy
Life insurance replacement can be defined as?
creditors
Life settlement proceeds may be subject to the claims of?
30
Long-term care insurance and Medicare Supplement plans have a free-look period of ___ day?
Nursing homes
Long-term care policies normally cover expenses associated with?
10%
A "premature" distribution from a modified endowment contract (MEC) incurs a penalty tax of?
Fair Credit Reporting Act
A consumer who has been recently denied insurance, credit, or employement based on an unfavorable consumer report MUST be advised as such. Which of the following does this statute originate from?
has a mental or physical handicap and remains dependent on the parent
A dependent child may remain on a parent's health insurance plan beyond age 26 if the child?
Hospice care
A family counseling benefit is typically offered under which of thse coverages?
Proof of incapacity and dependency upon reaching the age limit
A handicapped child is covered under an indvidual health policy. If continuation of coverage is needed beyond the policy's age limit, which of the following is required?
increased exposure to risk
A health insurance underwriter will most likely view alcohol abuse as a(n)?
guarenteeing benefit payments for stated minimum number of years
A life annuity with period certain is characterized as?
two
A life insurance policy can usually be contested by the insurer only during the first ___ years of the contract.
accelerated (living) benefit
A life insurance policy provision that has the ability to reduce the death benefit is called the?
Reduction of premium payment
A life insurance policyowner would like a dividend optio that results in a limited current outlay of funds. Which dividend option would be chosen?
seeking additional information requested by the insurance company
A life insurance producer's underwriting duties may include?
Total premiums paid plus the policy face amount
A life inurance policy that includes a return of premium rider will pay the beneficiary how much upon the insured's death?
the seven pay test, adjusted for cash value, applies again
A materal change in a modified endowment contract (MEC) results in?
In the event of death, the loan amount is deducted from the policy proceeds.
A policyowner has just borrowed from a life insurance policy's cash value. Which of these statements is true?
Beneficiary recieves $50,000 income tax-free
A policyowner pays the first annual premium for a $50,000 life insurance policy and dies one month after the policy effective date. Which of these statements is normally true?
Claim must be paid after proof of loss is received
A policyowner suffers a covered accident and health insurance loss on June 30th and submits the proof of loss to the insurer July 10th. If the policyowner cancelled the coverage on July 2nd, how will the insurance company handle the claim?
Larcenous activity
A producer collecting premiums from clients for his personal use is engaging in a:
fraud
A producer who knowingly subimits a FALSE statement in support of a claim may be found guilty of:
200%
A producer's first-year commission on Medicare supplements may not exceed ___ of the compensation paid in the second year?
Policy Delivery
A signed good health statement may be requested by a life producer at the time of?
cash value
A source of supplemental income for a life insurance policyowner can be derived from the?
Replacement
A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrenderred is called?
adjuster
A(n) ___ settles or investiages insurance claims?
foreign
A(n)___ insurer writes business in a state other than the one in which it is domiciled?
Cross purchase agreement
ABC Partnership is a busness with a limited number of partners. Which disability buy-sell agreement is best suited for this business?
demonstrate full and truthful disclosures to the public
Advertising regulations exist in order to?
for life
All individual long-term care policies delievered in North Dakota MUST be renewable?
Furnishing required disclosure information
All of the following are examples of unfair trade practices, EXCEPT:
Leave a conditional receipt with client
All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT:
Consideration Clause
An accident and health insurance policy's premium requirments are set forth in which of the following provisions?
When conditions of the receipt are met
An agent gives a conditional receipt to a client for an insurance policy after collecting the intial premium. When will the policy become effective?
free look period
An annuity contract may be returned for a full refund during the?
providing incorrect, misleading, incomplete, or materially untrue information in the license application
An example of misrepresentation is?
Marriage partners
An insurable interest in each other's lives may exist in absence of an economic interest when the indivduals are?
living in a rural area
An insurance policy may be issued with a preferred insurance premium in all of these situations EXCEPT:
60
An insured MUST wait ___ days to bring legal action against an insurer after written proof of loss has been recieved by the insurer?
$25,000
An insured has a $25,000 whole life insurance policy with $6,000 cash value available. Under the extended term nonforfeiture option, what is the amount of insurance available to the insured?
90
An insured must furnish written proof of loss to the health insurer within ___ days of the occurence of the loss.
20 days
An insured must notify an insurer of a medical claim within how many days after an accident?
Misstatement of Age
An insurer may contest the validity of life insurance policy during the policy's first two years for all these reasons EXCEPT:
When the first insured dies
At what point are death proceeds paid in a joint life insurance policy?
20 employees
COBRA replacement ONLY applies to employers who employ at LEAST?
comprehensive
Chris has a single major medical contract which covers all medical expenses. His plan is considered to be?
taxed as ordinary income in the year recieved
How are monthly life annuity benefit payments treated under a tax sheltered annuity (TSA)?
active military duty
Disability income insurance normally excludes coverage for disabilities that arise from?
Ecomomic Death
Disability income policies provide protection for which of the following?
a Buyer's Guide and Policy Summary
Disclosure requirments in the life insurance solicatation requlation mandate that prospective purchasers be given?
recieves benefit payments at regular intervals
During an annuity's liquidation phase, the annuitant normally?
pay for finding and training a replacement if the employee dies prematurely
Employers often purchase life insurance on a key employee in order to?
monthly
Periodic health claim payments MUST be made at least?
equal the net single premium for the same face amount at the insured's attained age
Scott has a life insurance policy in which the dividends are left with the insurance company. This particular policy may be paid up when the cash value plus accumlated dividends?
a percentage of weekly earnings up to a stated maximum
Short-term group disability income benefits are?
Request of the change will be refused
T is covered by an Accidental Death and Dismemberment (AD&D) policy that contains an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?
The license required for an insurer to conduct business in the state
What is a certificate of authority?
Entire Contract clause
The application is part of the annuity contract according to the?
within 31 days of terminated employment
The conversion option for group term insurance may be exercised by an employee?
30
The free-look period for long-term care insurance policies sold in North Dakota is ___ days?
Residual Disability
The inability to perform SOME of the duties of one's own occupation is known as a?
the first premium payment and the application
The insured's consideration given for a health insurance policy is?
Conversion Provision
The policy provision that permits an employee to change from group life coverage to an indvidual life policy is called the?
tax-deductible to the employer
The premiums paid by an employer for his employee's group life insurance are usually considered to be?
completed application
The principal source of information concerning an applicant's identity, age, and martial status is found in the?
to obtain a premium rate based on an earlier age
The reason for backdating a policy is?
policy, endorsements, and attached papers constitute the "enitre contract:
The standard provisions of an accident and health insurance policy require that the?
intimidation
The unfair trade practice of using threat or force to restrict fair trade in the transaction of insurance is called?
Noncancelable
Tim is covered by an accident and health insurance policy that may not be changed in any way by the insurer up to a stated age, as long as the premiums are paid. What type of polocy is this?
Apply for the license after passing the appropriate examination
To receive an insurance license an applicant must?
If Tom's employment is terminated, 20% of the funds could be forfeited
Tom has qualified retirement plan with his employer that is currently considered to be 80% "vested". How can the be interpreted?
April 1st of the year following the year the participant attains age 70 1/2
Traditional individual retirement annuity (IRA) distributions must start by?
When the contract has been held for the period specified in the policy
Under which circumstance is the interest rate guaranteed within a makret value adjusted annuity?
claim forms
Upon receipt a written notice of claim, an insurer is required to provide the claimant with?
Containment of the employer's premium cost
What does a Mandatory Second Surgical Opinion provision provide to an employer-paid health insurance plan?
Policy will no longer be in force
What happens to a life insurance policy when the policy loan balance exceeds the cash value?
Social Security
What is Old Age and Survivors Health Insurance (OASDHI) also known as?
A life policy that covers the life of a minor
What is a juvenile life insurance policy?
The cash value
What is payable to the policyowner if a whole life policy is surrendered prior to its maturity date?
Under $50,000 initially, but increases over time
What is the face amount of a $50,000 graded death benefit life insurance policy when the policy is issued?
30 days
What is the length of the free look period when a Medicare Supplement insurance policy is replaced?
Decreasing term
What kind of life policy typically offers mortgage protection?
Conditional Receipt
What must be given to a life insurance applicant when the agent recieves an application and the intial premium?
Producer
When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice?
Name of the actual insurer
When advertising a life insurance policy, a producer is required to disclose the?
Identifies the needs of an individual and the individual's dependents
When an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve?
Flat rate unrelated to the borrower's age
When are premiums for a group credit life insurance based on?
Eating, bathing, dressing, and mobility.
When dealing with long-term care coverage, which of the following are classified as ADLs?
At the moment of birth
When does a family accident and health policy's coverage for a newborn child begin?
At the time of death or 30 years after the policy's inception, whichever comes first
When does the insured stop making payments under a thirty-payment whole life policy?
shorten the benefit period
When issuing disability income coverage to a substandard risk, an insurance company may?
Prior to or at the time of signing the application
When must a producer provide disclosure about information practices to an applicant?
At the tiime the policy is delievered
When must the Buyer's Guide to life insurance be provided to an applicant?
use an illustration that shows both gaurenteed and non-guaranteed elements
When using illustrations in the sale of a life insurance policy, producers and insurance companies are required to?
Premium charges
Where is the difference between a standard risk and a substandard risk reflected?
Family Term Rider
Which benefit supplement added to a life insurance policy insures an entire family?
State Insurance Departments
Which entity is responsible for regulating claims settlement practices of insurers?
Conducting business under an assumed name
Which event must a producer report to the Commissioner?
Insuring
Which health policy clause specifies the amount of benefits to be paid?
Medicare enrollee
Which individual would be best suited for Medicare Supplement insurance?
Extended Term Nonforfeiture Option
Which life insurance policy option allows the policyowner to have coverage equal to the net death benefit of the lapsed policy?
Free-look period
Which life insurance policy provison allows a policyowner to cancel the policy and recieve a full refund within a limited time period after policy delivery?
Joint and survivor
Which life insurance settlement option pays lifetime benefits to two or more people?
Misrepresenting a policy for the purpose of inducing a policyholder to chnage or replace an excisting policy
Which of the following BEST defines the illegal act of twisting?
A producer who sells insurance to an individual by means of threat
Which of the following actions is considered to be an unfair trade practice?
Waives the typical total disability requirements
Which of the following best describes the presumptive disability provison?
A flexible premium deposit fund and monthly renewable term insurance policy
Which of the following combinations best describe a universal life insurance policy?
Must be provided exclusively in a hospital
Which of the following does NOT meet the requirments of "skilled nursing care"?
state attorney general
Which of the following entites does NOT establish regulations for variable insurance products?
Noncancelable
Which of the following health insurance plans charges a premium that cannot be increased?
Entire Contract Clause
Which of the following health insurance provisions requires that the application becomes part of the policy?
Replacing existing coverage with a new policy
Which of the following is NOT a prohibitied sales practice for marketing long-term care coverage?
How to take legal action against an insurance company
Which of the following is NOT information found in a life insurance buyer's guide?
Making a statement that is false or maliciously critical of the finacial condition of an insurer
Which of the following is an example of defamation?
Cancer plan
Which of the following is considered a Limited accident and health plan?
Elimination period
Which of the following would permit an insurer to delay a covered disability policy claim?
former residence
Which of these is NOT a factor during the health insurance underwriting process?
A cash benefit will be provided if the insured is alive at the end of the policy period
Which of these is NOT an advantage of term life insurance?
Buyer's Guide
Which of these is NOT considered a form of life insurance advertisment?
Local unemployment rates
Which of these is NOT relevant when determining the amount of personal life insurance needed?
Disability income
Which of these noncontributory group plans would a claim likely result in the payment of federal income taxes?
Benefits are paid on a capitation basis
Which of these statements regarding Major Medical Expense insurance is NOT true?
The agent doesnt have the authority to change the policy or waive its provisions
Which statement concerning the Entire Contract provision in an individual accident and health insurance policy is TRUE?
The installment payment amount is determined by the total number of installments
Which statement regarding a fixed period settlement option is correct?
It indicates evidence of an employee's insurance coverage
Which statement regarding the certicate of insurance is accurate?
30-year decreasing term
Which type of life insurance policy is the best suited for paying off the outstanding balance of a 30-year mortgage in the event of the insured's death?
Insurance company
Who is protected with the "other insurance with this insurer" provision?
The stated person or entity who is designated to recieve the death proceeds
Who is the beneficiary in a life insurance policy?
Insured and producer
Who must sign a rider attached to a health insurance policy in order for it to be valid?
Net payment cost index
Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit. Which index should he be looking at then making comparisons?
