Need to learn
The provision in a health insurance policy that ensured that the insurer cannot refer to any document that is not contained in the contract is the
Entire contract clause
Which statement is not true regarding a straight life policy?
Its premium steadily decreases over time, in response to its growing cash value.
Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?
Joint Life
Which part of an insurance application would contain information regarding the cause of death of the applicants deceased relatives?
Medical information
An insured severely burns her hand, but is not classified as disabled. Which of the following types of coverage would cover at least a portion of the insured's medical expenses?
Medical reimbursement benefit
An agent who includes a statement or omits a statement which, when taken in context of the whole presentation, may tend to mislead or deceive the persons addressed has committed
Misrepresentation
Using a class designation for beneficiaries means
Naming beneficiaries as a group
Which of the following is not true regarding the needs approach method of determining the value of an individuals life ?
Need is predicted using the number of years until the insured's retirement.
Which of the following is not true regarding the needs approach method of determining the value of an individuals life?
Need is predicted using the number of years until the insured's retirement.
Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive
Nothing; the payments will cease.
Your client is planning to retire. She accumulated $100,000 in a retirement annuity, and now wants to select the benefit option that will pay the largest monthly amount for as long as she lives. As her agent, you should recommend
Straight life
Your client is planning to retire. She has accumulated $100,000 in a retirement annuity, and I want to select the benefit option that will pay the largest monthly amount for as long as she lives. As her agent, you should recommend
Straight life
Who is the beneficiary in a credit disability income policy?
lending institution
Medicare Part A services do NOT include which of the following?
outpatient hospital treatment
While repairing the roof of his house an insured accidentally falls off and breaks his arm and sustains a head injury that results in total blindness of both eyes. His policy contains an Accidental Death & Dismemberment Rider. What is the extent of benefits that he will receive?
principal sum
What form of the annuity settlement options provides payments to an annuitant for the rest of the annuitant's life and ceases at the annuitant's death?
pure life
Installing deadbolt locks on the doors of a home is an example of which method of handling risk?
reduction
Which of the following is not provided by an HMO?
reimbursement
Workers compensation benefits are regulated by which entity?
state government
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date ?
the date of medical exam
Regarding the return of premium option for LTC policies, what happens to the premium if the policy lapses?
the insurer will return a percentage of the premiums paid
What is the advantage of reinstating a policy instead of applying for a new one?
the original age is used for premium determination
All of the following are true regarding the guaranteed insurability rider except
this rider is available to all insureds with no additional premium
In insurance policies, the insured is not legally bound any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?
unilateral
What types of services may not be provided under the long-term care's assisted living care?
visits by a registered nurse
Which of the following policies would be classified as a traditional level premium contract?
Straight life
An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?
$100,000
An insured's disability income policy includes an additional monthly benefit rider. For how many years can the insured expect to receive payment from the insurer before Social Security benefits begin?
1 year
What is the maximum period that an insurer would pay benefits in accordance with an additional monthly benefit rider?
1 year
Under the Affordable Care Act, what percentage of preventive care must be covered without cost sharing?
100%
Every small employer carrier must actively offer to small employers at least how many health benefit plans?
2 plans
What is the maximum amount of coinsurance in New York's major medical plans?
25%
What is the maximum age for qualifying for a catastrophic plan?
30
In addition to examinations that are specifically authorized by the insurance code, the superintendent may examine each domestic life insurer as often as it is deemed necessary for the production of the consumers. The code requires examination of domestic life insurers every
5 years
Under the New York State disability benefit law, the weekly benefit that the disabled employee is entitled to receive is
50% of weekly wage
Which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance
Which of the following is not true regarding the accumulation period of an annuity?
It would not occur in a deferred annuity.
Monty has late-stage leukemia and is now under hospice care. He's expected to live for only a few more weeks. His medical bills are extensive, so he needs an additional source of funding. What life insurance provision would pay part of his death benefit early, in order to provide extra funding for his medical bills?
Accelerated death benefit
What is the amount a physician or supplier builds for a particular service or supply?
Actual charge
An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?
Aleatory
Which of the following choices defines 24-hour coverage?
An employer is covered by both a workers compensation and a medical insurance coverage
All of the following qualify for Medicare Part A EXCEPT
Anyone who is willing to pay a premium.
If during the underwriting process an insurer obtains personal information about an applicant from the applicant, when must the insurer provide notice of its information practices?
At the time of policy delivery
All of the following are requirements of eligibility for social security disability income benefits EXCEPT
Being age 65
The term "fixed" in a fixed annuity refers to all of the following except
Death benefit
A tax-sheltered annuity is a special tax-favored retirement plan available to
Certain groups of employees only.
Which of the following is not allowed in credit life insurance?
Creditor requiring that a debtor buys insurance from a certain insurer
What is the difference between the Medicare approved amount for a service or supply and the actual charge?
Excess charge
What method is used to determine the taxable portion of each annuity payment?
Exclusion ratio
All of the following are business used of life insurance except
Funding against company's general financial loss
Which is true about the cash surrender nonforfeiture option?
Funds exceeding the premium paid are taxable as ordinary income.
In terms of renewability, Medicare supplement insurance plans must be
Guaranteed renewable
Which of the following is true about a defined death benefit plan?
High-salaried employees with only a few years until retirement receive the highest contribution
In which of the following locations would skilled care most likely be provided?
In an institutional setting
Which benefits would a disability plan most likely pay?
Income lost by the insured's inability to work
Issue age policy premiums increase in response to which of the following factors?
Increased benefit
Issue age policy premiums increase in response to which of the following factors?
Increased benefits
Medical Information Bureau (MIB) was created to product
Insurance companies from adverse selection by high risk persons.
Who makes up the medical information bureau?
Insurers
Which of the following statements regarding HIV testing for life insurance purposes is NOT true?
Insurers are barred from requesting HIV testing
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.
Which of the following is true regarding health insurance?
It could provide payments for loss of income
Which of the following is true regarding health insurance?
It could provide payments for loss of income.
An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company obligated to do?
Offer the supplement policy on a guaranteed issue basis
Under a pure life annuity, an income is payable by the company
Only for the life of the annuitant
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 and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?
Pay a reduced death benefit
A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will
Pay the policy proceeds only if it would have issued the policy
Which of the following applies to partial disability benefits?
Payment is limited to a certain period of time
Which of the following factors would be an underwriting consideration for a small employer carrier?
Percentage of participation
Which of the following must be present in all Medicare supplement plans?
Plan A
Which of the following will be included in a policy summary?
Premium amounts and surrender values
If an individual is covered by a policy, that includes an accidental death and dismemberment rider, what term describes the maximum benefits he will receive if he loses site in both eyes as a result of fire?
Principal sum
Which of the following best describes a pure life annuity settlement option?
Pure life provides payments for as long as the annuitant is alive.
Which services are associated with standard & poors and AM Best?
Rating the financial strength of insurance companies
Which nonforfeiture option provides coverage for the longest period of time?
Reduced Paid-Up
The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She decided that she would rather use the dividends to help pay for next premium. What option would allow her to do this?
Reduction of premium
Worker's Compensation benefits are regulated by which entity?
State government
When a group disability insurance plan is paid entirely by the employer, benefits paid to disabled employees are
Taxable income to the employee
When a group disability insurance policy is paid entirely by the employer, benefits paid to disabled employees are
Taxable income to the employee
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy
Which state has jurisdiction over a group policy that covers individuals that reside in more than one state?
The state in which the policy was delivered
Which of the following statements regarding conditional receipts is true?
They are temporary insuring agreements
Which of the following is a short-term annuity that limits the amounts paid to specific fixed period or until a specific fixed amount is liquidated?
annuity certain
What do long-term care policies offer to policyholders to account for inflation?
They offer the option of purchasing coverage that raises benefit levels accordingly
The purpose of managed care health insurance plans is
To control health insurance claims expenses
Which of the following is not the purpose of HIPAA?
To provide immediate coverage to new employees who had been previously covered for 18 months
The paid-up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
An insured owes his insurer a premium payment. Since then, he incurs medical expenses. The insurer deducts the unpaid premium amount from the claim amount and pays the insured the difference. What provision allows for this?
Unpaid premium
What's types of services may not be provided under the long-term cares assisted living care?
Visits by a registered nurse
An agent is completing an application for a long-term care policy. The agent is required to do all of the following EXCEPT
Warn the applicant about the 10-day free-look period.
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
When is the insurability conditional receipt given?
When the premium is paid at the time of application
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
When an insurer begins underwriting procedures for an applicant, what will be the main source for its underwriting information?
application
What term best describes the act of withholding material information that would be crucial to an underwriting decision?
concealment
Which of the following terms is used to name the nontaxed return of unused premiums?
dividend
All of the following are business uses of life insurance except
funding against general company financial loss
A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?
if the father is disabled for more than 6 months
The patient protection and affordable care act includes all of the following provisions except
individual tax deduction for premiums paid
Stranger-oriented life insurance policies are in direct opposition to the principle of
insurable interest