Oklahoma Health and Life Insurance Qs

The replacing insurer must maintain copies of the notice, statement, and notification to the replaced issuer for at least a) 3 years b) 5 years c) 2 years d) 4 years

3 years

What is the maximum death benefit that the Oklahoma Life and Health Insurance Guarantee Association will pay for health insurance benefits for anyone individual? a) $300,000 b) $500,000 c) $100,000 d) $200,000

b) $500,000

Which of the following insurers are owned by stockholders? a) Reciprocal b) Fraternal c) Stock d) Mutual

c) Stock Only stock insurance companies are owned and controlled by stockholders

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is a) Conditional b) Aleatory c) Personal d) Unilateral

a) Conditional

An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This indicates that his policy is written with a 30 day a) Elimination period b) Blackout period c) Probationary period d) Waiver of benefits period

a) Elimination period

Which of the following is NOT required of a business entity applying for its required insurance producer license? a) Ensuring that all employees of the business have passed an insurance licensing exam b) Designating a licensed producer responsible for compliance with insured laws c) Submitting a uniform application to the Commissioner d) Paying state licensing fees

a) Ensuring that all employees of the business have passed an insurance licensing exam

All of the following premium rates for health benefit plans subject to the Small Employer Health Insurance Reform Act are subject to the following provisions EXCEPT a) Every filing must be made at least 60 days prior to the date the small employer carrier intends to implement the rates b) The commissioner may at any time, after notice and for cause shown, withdraw approval of a filed rate c) The rate manual developed for use by a small employer carrier must be filed and approved by the Insurance Commissioner d) Any changes to the rate manual must be filed and approved by the Insurance Commissioner prior to use

a) Every filing must be made at least 60 days prior to the date the small employer carrier intends to implement the rates

Which nonforfeiture option has the highest amount of insurance protection? a) Extended term b) Conversion c) Decreasing term d) Reduced paid-up

a) Extended term

Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid? a) Insuring clause b) Entire contract clause c) Beneficiary clause d) Consideration clause

a) Insuring clause

Which of the following best describes annually renewable term insurance? a) It is level term insurance b) It requires proof of insurability at each renewal c) Neither the premium nor the death benefit is affected by the insureds age d) It provides an annually increasing death benefit

a) It is level term insurance

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? a) Medical Reimbursement Benefit b) Medical Expense Compensation c) Accidental death & dismemberment d) Partial disability

a) Medical reimbursement benefit Medical reimbursement benefits help pay medical costs for accidental injuries that are not considered disabling

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy a) Required a premium increase each renewal b) Built cash values c) Required proof of insurability each year d) Decreased death benefit at each renewal

a) Required a premium increase each renewal

If the policy owner defaults on any premium for a life insurance policy, the insurer must notify the policyholder in writing as to the policyholders options. This notification form must be provided to the policy owner within a) 6 months b) 3 months c) 2 months d) 1 month

b) 3 months

All of the following are correct about the required provisions of a health insurance policy EXCEPT a) The entire contract clause means the signed application, policy, endorsements, and attachments constitute the entire contract b) A reinstated policy provides immediate coverage for an illness c) Proof-of-loss forms must be sent to the insured within 15 days of notice claim d) A grace period of 31 days is found in an annual pay policy

b) A reinstated policy provides immediate coverage for an illness Accidental coverage is covered immediately, but to protect the insurer against adverse selection, losses resulting from sickness are covered only if the sickness occurs at least 10 days after the reinstatement date

Which of the following is INCORRECT regarding a $100,000 20-year level term policy? a) The policy will expire at the end of the 20 year period b) At the end of 20 years, the policy's cash value will equal $100,000 c) The policy's premiums will remain level for 20 years d) If the insured dies before the policy is expired, the beneficiary will receive $100,000

b) At the end of the 20 years, the policy's cash value will equal $100,000

An insurance contract must contain all of the following to be considered legally binding EXCEPT a) Competent Parties b) Beneficiary's consent c) Offer and acceptance d) Consideration

b) Beneficiary's consent The four essential elements of all legal contracts are offer and acceptance, consideration, competent parties, and legal purpose

Most scheduled plans provide first-dollar benefits without a) Exclusions and conditions b) Coinsurance and deductibles c) Premiums d) Copays

b) Coinsurance and deductibles

Which of the following is NOT a type of whole life insurance? a) Limited payment b) Level term c) Single premium d) Straight life

b) Level term

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are a) Guaranteed b) Not taxable since the IRS treats them as a return of a portion of the premium paid c) Paid a fixed rate every year d) Taxable as ordinary income

b) Not taxable since the IRS treats them as a return of a portion of the premium paid

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will a) Automatically pay the policy proceeds b) Pay the policy proceeds only if it had issued the policy c) Pay the policy proceeds up to an established limit d) Not pay the policy proceeds under any circumstances

b) Pay the policy proceeds only if it would have issued the policy

The Federal Fair Credit Reporting Act a) Prevents money laundering b) Regulates consumer reports c) Protects customer privacy d) Regulates telemarketing

b) Regulates consumer reports

All of the following statements about Medicare supplement insurance policies are correct EXCEPT a) They are issued by private issuers b) They cover the cost of extended nursing home care c) They cover Medicare deductibles and copayments d) They supplement Medicare benefits

b) They cover the cost of extended nursing home care

Which of the following life insurance policies allows a policy owner to take out a loan from the policy's cash value? a) Decreasing term life b) Variable universal life c) Increasing term life d) Credit term life

b) Variable universal life

In which of the following locations would skilled care most likely be provided? a) At a physician's office b) In an institutional setting c) At the patients home d) In an outpatient setting

b) in an institutional setting

In a replacement situation, all of the following must be considered EXCEPT a) Limitations b) Exclusions c) Assets d) Benefits

c) Assets In a replacement situation the agent must be careful to compare the benefits, limitations and exclusions found in the current and the proposed replacement policy

Which of the following terms describes a specific dollar amount of the cost of care that must be paid by the member? a) Prepayment b) Contractual cost c) Copayment d) Cost share

c) Copayment

In increasing and decreasing term policies, which policy component fluctuates during the policy term? a) Cash value b) Nonforfeiture values c) Death benefit d) Premium

c) Death benefit

Fixed annuities provide all of the following EXCEPT a) Minimum guaranteed rate of interest b) Future income payments c) Hedge against inflation d) Equal monthly payments for life

c) Hedge against inflation

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client? a) Life annuity with period certain b) Increasing term c) Limited pay whole life d) interest-sensitive whole life

c) Limited pay whole life

Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs? a) Grandfathered and nongrandfathered b) Risk classification c) Metal level classification d) Guaranteed and nonguaranteed

c) Metal level classification Plans other than self-insured plans will be classified into four levels determined by how much of ones expected health costs are covered. The four plans are bronze, silver, gold, and platinum

Which of the following factors would be an underwriting consideration for a small employer carrier? a) Health status b) Medical history c) Percentage of participation by the employees d) Claims experience

c) Percentage of participation by the employees

Which of the following is TRUE about nonforfeiture values? a) A table showing nonforfeiture values for the next 10 years must be included in the policy b) Policyowners do not have the authority to decide how to exercise nonforfeiture values c) They are required by state law to be included in the policy d) They are optional provisions

c) They are required by state law to be included in the policy

A policy must meet all of the following minimum benefit standards to be advertised or issued for delivery in Illinois as a Medicare supplement policy EXCEPT a) The policy must provide that benefits designed to cover cost sharing amounts under Medicare will be changed automatically to coincide with any changes in the applicable Medicare deductible amount b) Medicare supplement policies must be guaranteed renewable. The insurer may not cancel or not renew solely on the grounds of deterioration of health or any other reason other than non payment of premium c) the policy cannot deny a claim for losses incurred more than 12 months before the effective date of coverage due to a pre-existing condition d) the policy cannot indemnify against losses resulting from sickness on a different basis than from losses resulting from accidents. The policy cannot deny a claim for losses incurred more than 6 months before the effective date of coverage due to a pre-existing condition

c) the policy cannot deny a claim for losses incurred more than 12 months before the effective date of coverage due to a pre-existing condition

In the event of an admitted life insurer's insolvency, the maximum obligation of the Oklahoma Life and Health Insurance Guaranty Association for all cash surrender values under life insurance policies covering any one life is a) $200,000 b) $250,000 c) $300,000 d) $100,000

d) $100,000

The term "illustration" in a life insurance policy refers to a) A depiction of policy benefits and guarantees b) Pictures and accompanying policies c) Charts and graphs d) A presentation of nonguaranteed elements of a policy

d) A presentation of nonguaranteed elements of a policy

In insurance, an offer is usually made when a) The insurer approves the application and receives the initial premium b) The agent hands the policy to the policyowner c) An agent explains a policy to a potential client d) An applicant submits an application to the issuer

d) An applicant submits an application to the issuer

Which of the following is the term for the specific dollar amount that must be paid by an HMO member for a service? a) Deductible b) Premium c) Cost share d) Copayment

d) Copayment

Which component increases in the increasing term insurance? a) Cash value b) Interest on the proceeds c) Premium d) Death benefit

d) Death benefit

All of the following statements about Medicare Part B are correct EXCEPT a) It covers services and supplies not covered by part A b) It is financed by a monthly premium c) It is financed by tax revenues d) It is a compulsory program

d) It is a compulsory program

Which of the following statements is NOT correct concerning the COBRA act of 1985? a) It covers terminated employees and/or their dependents for up to 36 months after a qualifying event b) It applies only to employers with 20 or more employees that maintain group health insurance plans for emplyees c) COBRA stands for Consolidated Omnibus Reconciliation Act d) It requires all employers, regardless of the number of age or employees, to provide extended group health coverage

d) It requires all employers, regardless of the number of age or employees, to provide extended group health coverage

Which of the following is TRUE regarding the Accidental Death Rider? a) It is also known as the triple indemnity rider b) The rider is also available to insureds over the age of 65 c) It is only available in group life insurance d) It will pay double or triple the face amount

d) It will pay double or triple the face amount

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? a) exclude pre-existing condition things from coverage under the supplement policies b) look at the applicants medical history to decide what premium to charge c) send the applicant to a doctor for a physical. Nothing can happen until they get the results d) offer the supplement policy on a guaranteed issue basis

d) Offer the supplement policy on a guaranteed issue basis

Which two terms are associated directly with the way an annuity is funded? a) Increasing or decreasing b) Immediate or deferred c) Renewable or convertible d) Single payment or periodic payments

d) Single payment or periodic payments

The paid-up addition option uses the dividend a) To purchase a one-year term insurance in the amount of the cash value b) To reduce the next years premium c) To accumulate additional savings for retirement d) To purchase a smaller amount of the same type of insurance as the original policy

d) To purchase a smaller amount of the same type of insurance as the original policy

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit? a) Universal Life - Option B b) Equity Indexed Universal Life c) Variable Universal Life d) Universal Life - Option A

d) Universal Life - Option A

An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? a) Estate liquidation b) nonpayment of premium c) Change of beneficiary d) Viatical statement

d) Viatical statement

The interest earned on policy dividends is a) Nontaxable b) Tax deductible c) 40% taxable, similar to a capital gain d) taxable

d) taxable