Oklahoma Life and Health Practice Exam

Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy? $400 $800 $2,000 $4,000

$4,000 In this situation, Ron may increase the face value of his policy by $4,000. $100,000 X .04 = $4,000.

An insured has a stop-loss limit of $5,000, a deductible of $500, and an 80/20 coinsurance. The insured incurs $25,000 of covered losses. How much will the insured have to pay? $500 $5,000 $5,400 $5,600

$5,000 In this situation, the insured will pay the stop-loss limit of $5,000.

Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How much will she have to pay if she, not having met any of her deductible, visits the doctor and receives a bill for $125? $25.00 $50.00 $75.00 $100.00

$50.00 In this situation, the insured will have to pay $25 deductible plus $25 coinsurance = $50.

Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. How much will she pay if she incurs a loss of $1,500? $200 $500 $700 $1,300

$700 In this situation, the insured will pay $500 deductible plus $200 coinsurance = $700.

Amy has a group medical policy through her employer with a $500 deductible and a 90% coinsurance provision. She incurs $1,500 in covered health care services. How much will her group insurance carrier pay? $500 $900 $1,000 $1,350

$900 In this situation, the group insurance carrier will pay 90% of the covered loss after the deductible has been applied.

Any person of competent legal capacity may contract for life and health insurance at a minimum age of 15 16 18 21

15 Any person of competent legal capacity may contract for life and health insurance at a minimum age of 15.

The MAXIMUM period of time that an eligible employee can be excluded from coverage under a group health policy as a late enrollee is 6 months 10 months 18 months 24 months

18 months The maximum time period that an eligible employee can be excluded from coverage under a group health policy as a late enrollee is 18 months.

A temporary producer's license issued by the Insurance Commissioner without examination is valid for a period of no longer than 90 days 120 days 180 days 270 days

180 days A temporary producer's license issued by the Insurance Commissioner without examination is valid for a period of no longer than 180 days.

Other than for fraud, under the Time Limit on Certain Defenses Provision, a health insurance policy is incontestable after it has been in force for a time period of 1 year 2 years 3 years 4 years

2 years Other than for fraud, under the Time Limit on Certain Defenses Provision, a health insurance policy is incontestable after it has been in force for a period of 2 years.

The licensing period for a producer's license is a 1-year term 2-year term 3-year term 4-year term

2-year term The licensing period for a producer's license is a 2-year term.

How many employees must an employer have for a terminated employee to be eligible for COBRA? 20 30 40 50

20 An employer MUST have 20 employees for a terminated employee to be eligible for COBRA.

When a life insurance or annuity replacement policy is sold, the policyowner has a right to return the policy for a full refund of premium within 3 days 7 days 14 days 20 days

20 days When a life insurance or annuity replacement policy is sold, the policyowner has a right to return the policy for a full refund of premium within 20 days.

In conjunction with an Oklahoma insurance license renewal, which one of the following is the continuing education REQUIREMENT? 12 hours annually 18 hours every 2 years 24 hours every 2 years 26 hours every 3 years

24 hours every 2 years Oklahoma has a continuing education requirement of 24 hours every 2 years for license renewal.

Under an Unfair Claims Settlement Practices Act, an insurer CANNOT request a refund of an overpayment paid to a claimant after 3 months 6 months 12 months 24 months

24 months Under an Unfair Claims Settlement Practices Act, an insurer CANNOT request a refund of an overpayment paid to a claimant after 24 months.

How long must a life insurance policy be in effect before the policyowner may use the nonforfeiture provision? 1 year 2 years 3 years 4 years

3 years A life insurance policy must be in effect for 3 years before the policyowner may use the nonforfeiture provision.

An insurance producer is required to maintain the usual and customary records pertaining to authorized transactions for how long? 1 year 3 years 5 years 7 years

3 years An insurance producer is required to maintain the usual and customary records pertaining to authorized transactions for 3 years.

Following military service, an insured must submit a request for reinstatement to a private health insurer no later than how many days following the deactivation? 15 30 45 60

30 Following military service, an insured must submit a request for reinstatement to a private health insurer no later than 30 days following deactivation.

Group and individual health insurance policies that provide coverage to women must cover annual mammography screenings for women aged: 30 and older 35 and older 40 and older 50 and older

40 and older Group and individual health insurance policies must cover annual mammography screenings for women aged 40 and older.

A health benefit plan that provides maternity benefits must provide at least how many hours of inpatient care for the mother and newborn infant following delivery? 24 hours for vaginal birth or 96 hours for caesarean section 36 hours for vaginal birth or 48 hours for caesarean section 48 hours for vaginal birth or 96 hours for caesarean section 72 hours for vaginal birth or 96 hours for caesarean section

48 hours for vaginal birth or 96 hours for caesarean section A health benefit plan provides maternity benefits must provide at least 48 hours of inpatient care for vaginal birth, or 96 hours for caesarean section, for the mother and newborn infant following delivery.

The Oklahoma Insurance Commissioner is REQUIRED to examine domestic insurers AT LEAST every 2 years 4 years 5 years 6 years

5 years The Oklahoma Insurance Commissioner is REQUIRED to examine domestic insurers AT LEAST every 5 years.

In Oklahoma, a small employer may not consist of more than how many eligible employees? 10 employees 20 employees 50 employees 100 employees

50 employees In Oklahoma, a small employer may not consist of more than 50 eligible employees.

What percentage of a participant's income are group long-term disability benefit amounts typically limited to? 30% 40% 50% 60%

60% Group long-term disability benefit amounts are usually limited to 60% of the participant's income.

A life insurance policy loan shall bear interest at a specified rate, NOT in excess of 2% 5% 8% 10%

8% A life insurance policy loan shall bear interest at a specified rate, NOT in excess of 8%.

A 10% excise tax is normally applied to an early withdrawal from an IRA. According to HIPAA, this tax will not be applied if the withdrawal is used for medical expenses that exceed ____ of the individual's adjusted gross income. 5% 6.5% 7.5% 8%

8% HIPAA provides that the 10% excise tax for early withdrawal from IRAs will not apply to the extent a withdrawal is used for medical expenses that exceed 7.5% of the individual's adjusted gross income.

An insured MUST submit proof of loss on a health insurance claim within how many days after the date of loss? 30 60 90 120

90 Written proof for any loss must be given to the insurance company within 90 days.

Which policy feature makes a universal life policy different from a whole life policy? A fixed cash value A flexible premium schedule A fixed death benefit The ability to take out a policy loan

A flexible premium schedule The policy feature that makes universal life different from whole life insurance policies is its flexible premium schedule.

Which of the following is NOT a qualification to be licensed as a producer or adjuster? 18 years of age Authorized to work in the United States A high school diploma Successfully passing the examination

A high school diploma Having a high school diploma is not a qualification to be licensed as a producer or adjuster.

A Modified Endowment Contract (MEC) is best described as A life insurance contract which accumulates cash values higher than the IRS will allow An annuity contract which was converted from a life insurance contract A modified life contract which enjoys all the tax advantages of whole life insurance A life insurance contract where all withdrawals prior to age 65 are subject to a 10% penalty

A life insurance contract which accumulates cash values higher than the IRS will allow A Modified Endowment Contract (MEC) can be described as a life insurance contract that has accumulated cash values higher than the IRS allows.

Which of the following employers is required to follow ERISA regulations? A local government with 150 employees A church with 30 employees A local electrical supply company with 12 employees A Canadian company with 300 employees working in the United States

A local electrical supply company with 12 employees A local electrical supply company with 12 employees would be subject to ERISA.

How soon can the benefit payments begin with a deferred annuity? Anytime after date of purchase Anytime within 12 months after date of purchase A minimum of 6 months after date of purchase A minimum of 12 months after date of purchase

A minimum of 12 months after date of purchase A deferred annuity is an annuity contract in which periodic income payments are not scheduled to begin for at least 12 months.

A person covered with an individual health plan is issued a policy is issued a certificate of medical costs does not contract directly with the insurance company is not subject to medical underwriting

A person covered by an individual health plan is issued a policy.

HIPAA considers which of the following as "individually identifiable health information"? A person's employment history A person's net income A person's hire date A person's health claim information

A person's health claim information HIPAA considers a person's health claim information as "individually identifiable health information".

Which of the following is considered to be an alternative to a life settlement? Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance

Accelerated death benefit rider An alternative to a life settlement is an accelerated death benefit rider.

Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is this annuity in? Payout period Accumulation period Deferred period Growth period

Accumulation period Kathy's annuity is in the accumulation period.

When does an immediate annuity begin making payments? After multiple premiums have been paid After the first premium has been paid After policy has been active for one year After the incontestable period

After the first premium has been paid An immediate annuity begins making payments after the first premium has been paid.

An error was made on Mary's life insurance application. Which of the following areas are errors commonly made on applications for which the incontestable clause does NOT apply? Marital status Age Address Income

Age The incontestable clause does not apply to the misstatement of age provision.

According to Oklahoma law, which of the following must include coverage for equipment, supplies, and related services for the treatment of Type I and Type II diabetes when prescribed by a physician or other licensed health care provider? All individual or group health contracts or agreements Diabetes self-management training programs Limited benefit or specific disease plans State-sponsored Medicaid or Medicare supplement plans

All individual or group health contracts or agreements According to Oklahoma law, all individual or group health contracts or agreements must include coverage for equipment, supplies, and related services for the treatment of Type I and Type II diabetes when prescribed by a physician or other licensed health care provider.

What amount will be paid under a policy where the insured misstated his/her age? The amount stated in the policy, only if the insured pays an additional premium No adjustments will be made An amount the premium would have purchased at the correct age No amount will be paid because the insured misstated his/her age

An amount the premium would have purchased at the correct age The misstatement of age provision allows the insurer to adjust the benefit payable if the age of the insured was misstated when application for the policy was made.

Under long-term care insurance, which of the following MUST an insurer offer to each policyowner at the time of purchase? Lifetime minimum benefit levels Daily minimum benefit levels A decrease in annual benefit levels An inflation protection feature

An inflation protection feature Under long-term care insurance, an insurer MUST offer to each policyowner an inflation protection feature at the time of purchase.

Dental coverage in an employer-sponsored medical expense insurance policy will typically cover which of the following? An oral injury that requires repair Cosmetic dental procedure Routine visits and cleaning Crowns and restorative procedures

An oral injury that requires repair A medical expense plan will normally provide dental coverage for an oral injury that requires repair.

Which of these is NOT considered to be a purpose of an annuity? Annuities are intended to create an estate Annuities are intended to liquidate an estate Annuities are intended for the tax-free growth of principal Annuities are intended to distribute accumulated principal

Annuities are intended to create an estate

Which of the following is considered to be the period when the accumulated value in an annuity is paid out? Annuitization phase Accumulation phase Principal phase Period certain phase

Annuitization phase The period when the annuitant starts to receive payments from the annuity is the annuitization phase.

Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home options would best serve him? Nursing home Assisted living Congregate housing Custodial residence

Assisted living An assisted living facility would best suit an individual who needs some nursing care and supervision but not full-time care.

Which situation would qualify an individual for receiving benefits from a qualified long-term care policy? Becoming unemployed Becoming temporarily disabled Becoming injured on the job Becoming cognitively impaired (mentally ill)

Becoming cognitively impaired (mentally ill) A qualified long-term care policy must pay benefits when an individual is cognitively impaired.

What are the levels of coverage as defined by the Affordable Care Act? 1st, 2nd, 3rd, and 4th Bronze, Silver, Gold, and Platinum Substandard, Standard, Preferred, and Premium PPO, HMO, POS, and MET

Bronze, Silver, Gold, and Platinum The levels of coverage defined in the Affordable Care Act are Bronze, Silver, Gold, and Platinum.

Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled? Disability overhead policy Business continuation policy Disability buy-sell policy Business overhead expense policy

Business overhead expense policy A form of business disability insurance that is designed to cover the actual costs of continuing to do business while an insured business owner is disabled is called a business overhead expense policy.

In which of the following relationships would there NOT be an insurable interest? Parent to child Business partner to business partner Brother to sister Business owner to business customer

Business owner to business customer An insurable interest does not exist between a business owner and a business customer.

What is issued to each employee of an employer health plan? Provision Receipt Policy Certificate

Certificate Employees covered by an employer health plan are issued an insurance certificate.

All of the following are required uniform provisions in individual health insurance policies EXCEPT Change of occupation Grace period Entire contract Reinstatement

Change of occupation An insured's change of occupation is not a required uniform provision in individual health insurance policies.

When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates? Relation of earnings to insurance provision Change of occupation provision Conformity of state statutes provision Modified occupation provision

Change of occupation provision The change of occupation provision allows an insurer to adjust policy benefits and/or rates if the insured has changed to a more hazardous occupation.

For violating the Unfair Claims Settlement Practices Act, the Insurance Commissioner may subject an insurer to which of the following penalties? Imprisonment of up to a maximum of 2 years Revocation of the insurer's Oklahoma insurance license Civil penalty of not less than $100 and not more than $5,000 Felony conviction and penalty of not more than $10,000

Civil penalty of not less than $100 and not more than $5,000 For any violation of the Unfair Claims Settlement Practices Act, the Insurance Commissioner may subject an insurer to a civil penalty of not less than $100 and not more than $5,000.

What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day? Claim will be denied by insurer Claim will be paid if money was received by the insurance company Claim will be paid if underwriter has received the application Claim will be paid if application is approved

Claim will be paid if application is approved In this situation, the claim will be paid if the application is approved.

Because an insurer writes the policy language and the insured has little or no control over the content, any ambiguity in the wording is usually resolved in favor of the insured. Because the design and wording of a policy are in the hands of the insurer, insurance policies are said to be Unilateral contracts Contracts of indemnity Aleatory contracts Contracts of adhesion

Contracts of adhesion Because the insurer drafts the language of the contract, the insured simply adheres to the terms.

Tim is covered under a group plan and would like to change his group coverage to an individual policy with the same insurer because of employment termination. Which of these describes the change that will take place? Coordination of benefits Conversion Extension of benefits Rollover

Conversion Conversion is when an insured individual changes his or her group insurance to an individual policy with the same insurer at the termination of employment.

A form of medical health insurance covering the treatment and care of gum disease is called Medicaid Major Medical Franchise health policy Dental expense insurance

Dental expense insurance Dental expense insurance is a form of medical health insurance covering the treatment and care of gum disease.

Which of these statements concerning Traditional IRAs is CORRECT? Earnings are not taxable when withdrawn Earnings are taxable when withdrawn Contributions are never tax-deductible Contributions are always made by the employer

Earnings are taxable when withdrawn Traditional IRA earnings are taxable when withdrawn.

Coverage under a cancelable health insurance policy may be terminated by The insurer only the insured only Either the insured or the insurer An arbitration committee

Either the insured or the insurer Coverage under a cancelable health insurance policy may be terminated by either the insured or the insurer.

Which of the following would be considered a possible applicant and contract policyholder for group health benefits? Human resource department Employer Insured employee Insurance company

Employer An employer would be a possible applicant and contract policyholder of a single master contract or master policy for group health benefits.

A common exclusion or limitation on a dental policy is Endodontics Tooth extractions Flouride treatments X-rays

Endodontics Endodontics is commonly excluded or limited from a dental policy.

Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? Adjustable life policy Modified life policy Endowment policy Universal life policy

Endowment policy A type of life insurance policy which provides for the payment of the face amount at the end of the specified period if the insured is still alive, is an endowment policy.

What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Policy Summary Buyer's Guide Entire Contract Entire Policy

Entire Contract The provision that the policy and a copy of an application is endorsed upon or attached to the policy when issued is the entire contract provision.

Which of the following is an annuity that is linked to a market-related index? Market-related annuity Equity-indexed annuity Deferred-risk annuity Fixed-amount annuity

Equity-indexed annuity An equity-indexed annuity is linked to a market-related index.

The taxable portion of each annuity payment is calculated using which method? Exclusion Ratio Taxable Ratio Cost Basis Tax Basis

Exclusion Ratio The Exclusion Ratio is used to determine the taxable portion of each annuity payment.

A Fraternal Benefit Society has each of the following characteristics EXCEPT Incorporated Without capital stock Exists For profit Exists for the benefit of its members

Exists For profit A Fraternal Benefit Society is a nonprofit entity.

Which of these riders will pay a death benefit if the insured's spouse dies? Guaranteed Insurability rider Family term insurance rider Family whole insurance rider Payor benefit rider

Family term insurance rider A Family Term Insurance rider provides a death benefit if the spouse of the insured dies.

An applicant for health insurance deliberately lies in order to obtain a lower premium rate. This is an example of Embezzlement Misrepresentation Fraud Unfair Settlement Practice

Fraud Deliberately lying in order to achieve a lower premium rate is considered insurance fraud.

When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable? Principal Contributions made by employee Contributions made by employer Gains

Gains Gains are the taxable portion of the distributions of qualified plans.

How is Medicare Part B funded? Employer taxes Payroll taxes User premiums General tax revenue and user premiums

General tax revenue and user premiums Medicare Part B insurance is funded by general tax revenue and user premiums.

In Oklahoma, all of these are considered forms of inducement EXCEPT Gift whose value is under $100 Contract promising special profits or favor $250 gift Promised employment

Gift whose value is under $100 Gifts whose value is OVER $100 is considered to be a form of inducement and prohibited.

Under the Oklahoma Insurance Code, a licensed insurance producer is prohibited from which of the following? Inviting a client to his or her home for a holiday party Giving a gift of more than $100 value to a client as an inducement to purchase insurance Collecting premiums on renewal policies Taking a client to lunch

Giving a gift of more than $100 value to a client as an inducement to purchase insurance Under the Oklahoma Insurance Code, a licensed insurance producer is prohibited from giving a gift of more than $100 value to a client as an inducement to purchase insurance.

An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period? Incontestable period Probation period Reinstatement period Grace period

Grace period The grace period is the amount of time an insurer continues coverage in full force and will accept the premium from the insured as though it was NOT late.

Which kind of health insurance policy assures renewability up to a specific age of the insured, although the company reserves the right to change the premium rate on a class basis? Noncancellable Guaranteed renewable Optionally renewable Cancellable

Guaranteed renewable A guaranteed renewable policy is an insurance policy that obligates the insurer to continue coverage as long as premiums are paid.

The Oklahoma Life and Health Insurance Guaranty Association provides financial policyholder protection for all of the following EXCEPT health insurance life insurance annuities Health Maintenance Organizations (HMOs)

Health Maintenance Organizations (HMOs) The Oklahoma Life and Health Insurance Guaranty Association provides financial policyholder protection for all of the following EXCEPT Health Maintenance Organizations (HMOs).

Which type of coverage pays an amount per day for hospitalization directly to the insured regardless of the insured's other health insurance? MEWA Mutual Group Hospital indemnity

Hospital indemnity A hospital indemnity policy pays an amount per day for hospitalization directly to the insured regardless of the insured's other health insurance.

All of the following are true regarding required immunization benefits for each child listed as a dependent on a health benefit plan EXCEPT: Immunization benefits must not be subject to a deductible Immunization benefits may not be subject to a schedule Immunization benefits may not be subject to a coinsurance requirement Immunization benefits may not be subject to copayment

Immunization benefits may not be subject to a schedule Immunization benefits may be subject to a schedule for each child listed as a dependent on a health benefit plan.

Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake? Reinstatement clause Entire Contract clause Incontestable clause Nonforfeiture clause

Incontestable clause A clause that protects a policyowner from a misrepresentation caused by his or her own innocent mistake is an incontestable clause.

How is the cost of a policy affected when a policyowner pays premiums more frequently? Not affected Increases Decreases Depends on the type of coverage

Increases The cost of a policy increases when an insured pays premiums more frequently.

Which type of beneficiary should be named if the insured wants to give explicit directions on how the policy proceeds should be paid? Individual Group Class Estate

Individual An individual beneficiary designation would be most appropriate in this situation.

Which of the following plans require a replacement disclosure notice be given to the applicant in the event of policy replacement? Individual Major Medical Expense policy Group Credit plan Group Annuity plan Direct Response Insurer health plan

Individual Major Medical Expense policy A disclosure notice must be given to an applicant in the event of replacing an existing individual major medical expense policy with a new one.

Ambulatory care centers are designed to treat all of the following EXCEPT: Inpatient surgery Outpatient surgery Routine physicals Immunizaitons

Inpatient surgery Ambulatory care centers are an alternative to costly inpatient diagnostic testing and treatment. They are best known to operate in hospital outpatient departments

The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? An agent establishes insurable interest An individual does not have insurable interest on his or her own life Insurable interest only pertains to business arrangements Insurable interest can be based on the love and affection of individuals related by blood or law

Insurable interest can be based on the love and affection of individuals related by blood or law Individuals related closely by blood or law have an insurable interest based on love and affection.

The part of a health insurance policy that states the kind of benefits provided and the circumstances under which they will be paid is the Definitions Conditions Insuring clause Face of the policy

Insuring clause The part of a health insurance policy that states the kind of benefits provided and the circumstances under which they will be paid is the insuring clause.

Which of the following types of deductibles would apply a single deductible to both medical and dental insurance coverage? Standard deductible Combined deductible Integrated deductible Blended deductible

Integrated deductible A single deductible applied to both medical and dental insurance coverage is referred to as an integrated deductible.

An applicant's character and personal habits can be obtained for underwriting purposes from which source? Investigative consumer report Attending physician's statement Medical Information Bureau (MIB) Credit report

Investigative consumer report An investigative consumer report is a detailed report that contains information on a consumer's character, general reputation, personal characteristics, or mode of living and is obtained through personal interviews with neighbors, friends, or associates of the consumer.

A policyowner is prohibited from making any changes to the policy without the beneficiary's written consent under which beneficiary designation? Contingent beneficiary Tertiary beneficiary Revocable beneficiary Irrevocable beneficiary

Irrevocable beneficiary An irrevocable beneficiary designation prohibits the policyowner from making any changes to the policy without the beneficiary's written consent.

Which of the following would disqualify a company's retirement plan from receiving favorable tax treatment? Contains a vesting schedule Contributions are applied with no regard to income Formed for the sole benefit of employees and their beneficiaries It is temporary

It is temporary A retirement plan will not qualify for favorable tax treatment if it is temporary.

Assume the following individuals are issued health insurance policies with varying renewability provisions. All other factors being equal, who would pay the highest premium? Dana-cancellable Chris-optionally renewable Pam-conditionally renewable Jack-noncancellable

Jack-noncancellable The insurer assumes a higher risk in a noncancellable policy, therefore they charge a higher premium

The open enrollment period for Medicare Part B is January 1 through March 31 January 1 through April 30 January 1 through May 31 January 1 through June 30

January 1 through March 31 The open enrollment period for Medicare Part B is January 1 through March 31.

Joe is a military retiree after having served 20 years of active duty. Upon retiring, he requests reinstatement of his lapsed individual health policy and is denied. Which of the following is correct? Reinstatement can be denied only if a government plan finds health issues unrelated to his military service Joe cannot be denied reinstatement to his original individual health plan Reinstatement can be denied upon finding negative underwriting results Reinstatement applies, but only for lesser coverage and higher cost

Joe cannot be denied reinstatement to his original individual health plan An Oklahoma resident activated for military service cannot be denied reinstatement into the same individual health insurance coverage that lapsed while the person was on active duty.

Diana, the beneficiary under her husband's AD&D policy, submits an accidental death claim on May 1, 2010 following his death. However, the company denies the claim on the basis that death was due to natural causes. She decides to talk to her attorney. What is the earliest date for taking legal action against the insurer? May 2, 2010 June 1, 2010 July 1, 2010 May 1, 2011

July 1, 2010 The insured cannot take legal action against the company in a claim dispute until after 60 days from the time the insured submits proof of loss.

What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? Dual Life insurance Joint Life insurance Last Survivor Life insurance Shared Life insurance

Last Survivor Life insurance Coverage of two or more individuals with the death benefit payable upon the last person's death is a feature of last survivor insurance.

Insurance companies determine risk exposure by which of the following? Insurable interest Insurance exchanges Law of large numbers and risk pooling Population table data

Law of large numbers and risk pooling All forms of insurance determine exposure through risk pooling and the law of large numbers.

According to Oklahoma Statute, commissions may be paid to Non-licensed individuals who earn less than $5,000 annually Licensed producers not yet appointed to any insurer Licensed and duly appointed producers A salaried full-time employee who does not solicit insurance contracts

Licensed and duly appointed producers According to Oklahoma Statute, commissions may be paid to licensed and duly appointed producers.

Which of the following annuity payout options makes no additional payments regardless of when the annuitant dies? Life only Life with period certain Cash refund Installment refund

Life only The life only annuity payout option has no additional payouts regardless of when the annuitant dies.

According to the Affordable Care Act, any plan in existence prior to which date is considered a grandfathered plan? March 23, 2010 March 23, 2011 March 23, 2012 March 23, 2013

March 23, 2010 Grandfathered plans are plans that were purchased before March 23, 2010. These plans do not have to follow the ACA's rules and regulations or offer the same benefits, rights and protections as new plans.

Shirley has a Medigap policy, which is designed to pays costs associated with Medicare Parts A and B Medicare Advantage Medicare Part C Medicare Part D

Medicare Parts A and B The Medigap policy is designed to pay costs associated with Medicare Parts A and B.

A producer may be disciplined by the Commissioner for which of the following actions? Being accused of a felony Misappropriation of premium funds Sharing commissions with other licensed producers Failing to meet insurer production requirements

Misappropriation of premium funds Disciplinary action may be taken by the Commissioner for misappropriation of premium funds.

Which of the following is a standard optional provision for health policies? Grace period Physical exam autopsy Change of beneficiary Misstatement of age

Misstatement of age Misstatement of age is one of the standard optional provisions for health policies. The misstatement of age provision allows the insurer to adjust the benefit payable if the age of the insured

In the state of Oklahoma, to qualify for a Resident Producer license each of the following is required EXCEPT? Pass state exam Attained age of 18 Must be fit for license Must have residence in Oklahoma for 6 months prior to submitting the license application

Must have residence in Oklahoma for 6 months prior to submitting the license application There is not a 6-month residence requirement in Oklahoma to qualify for a resident producer license.

A Medicare Supplement policy may be cancelled for which of the following reasons? Claims exceed specified loss-ratio percentage Non-payment of premium End stage renal disease diagnosis Prescription drug cost exceeds the "donut hole threshold"

Non-payment of premium A Medicare Supplement policy may be cancelled for nonpayment of premiums due.

What type of health insurance policy may NOT be changed in any way by the insurer, up to a specified age, so long as the premiums are paid? Guaranteed renewable Noncancellable Conditionally renewable Optionally renewable

Noncancellable Noncancellable policies may NOT be changed in any way by the insurer, up to a specified age, so long as the premiums are paid

If it is discovered that a producer cheated on their examination for an insurance license, the Commissioner may place on probation, censure, suspend, revoke, or refuse to issue the producer's license, as well as assess a fine of Not greater than $100 Not greater than $300 Not greater than $1,000 Not greater than $3,000

Not greater than $1,000 If it is discovered that a producer cheated on their examination for an insurance license, the Commissioner may place on probation, censure, suspend, revoke, or refuse to issue the producer's license, as well as assess a fine of no more than $1,000.

An insured has a health insurance policy that has been in effect beyond the incontestable period. A fraudulent statement was made in the application. This statement would normally void the policy, but now it is beyond the incontestable period. If the policy is not guaranteed renewable, what amount will the company have to pay? Nothing 50% of the claim 66% of claim 80% of claim

Nothing Nothing will be paid because fraud was committed during the application process, which is grounds for contest at any time with a health insurance policy.

Which of these is NOT considered to be a risk factor in life insurance underwriting? Number of children Health history Hobbies Occupation

Number of children All of these are considered risk factors in life underwriting criteria EXCEPT number of children.

How do interest earnings accumulate in a deferred annuity? On a tax credit basis On a tax-deferred basis On a tax-free basis On a taxable basis

On a tax-deferred basis Deferred annuities accumulate interest earnings on a tax-deferred basis.

Which one of the following is a domestic insurer? One formed under the laws of Oklahoma One formed under the laws of a state or government of the United States other than Oklahoma One formed under the laws of a country other than the United States of America One formed under the laws of Oklahoma or under the laws of a state geographically bordering Oklahoma

One formed under the laws of Oklahoma A domestic insurer is one formed under the laws of Oklahoma.

A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision? Partial disability Nondisabling injury Presumptive disability Flat amount disability

Partial disability In this situation, the policyowner would be eligible for benefits under a partial disability provision.

According to the Health Insurance Portability and Accountability Act (HIPAA), when can a group health policy renewal be denied? There have been too many claims in the previous year The size of the group has increased by more than 10% Participation or contribution rules have been violated Participation or contribution rules have been changed

Participation or contribution rules have been violated According to the Health Insurance Portability and Accountability Act (HIPAA), a group health policy renewal can be denied when participation or contribution rules have been violated.

The consideration clause in health insurance usually lists the insured's consideration given for the policy as: Payment of the first premium and the application Payment of the first premium and the insurer's acceptance of the risk The application and the insurer's acceptance of the risk The application and completion of an investigative report

Payment of the first premium and the application The consideration clause in health insurance usually lists the insured's consideration given for the policy as payment of the first premium and the application.

Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit

Payor benefit A payor benefit will waive the premium on a juvenile life insurance policy if the parent paying the premium dies.

In what form do disability income policies typically pay benefits? Lump sum Periodic income Tax credit Annuity

Periodic income Disability policies typically pay benefits in the form of periodic income.

Variable life insurance and Universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance? Policyowner may increase or decrease the premium payments Policyowner may increase or decrease the face amount Policyowner can contribute large sums of money Policyowner has the right to select the investment which will provide the greatest return

Policyowner has the right to select the investment which will provide the greatest return The right to select the investment which will provide the greatest return pertains only to variable universal life insurance.

A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? Standard Substandard Acceptable Preferred

Preferred In this situation, the individual will most likely have a preferred risk classification.

What is considered to be the primary reason for buying life insurance? Provide death benefits Provide money for retirement Provide living benefits Provide money for college

Provide death benefits The primary reason for purchasing life insurance is to provide death benefits.

What is the purpose of a Disability Income Benefit? Provide money for living expenses Completely replace the insured's total income Reimburse for medical expenses related to a disability Pay for business overhead expenses if the owner becomes disabled

Provide money for living expenses A Disability Income Benefit is intended to provide cash payments for living expenses.

Who is the individual paid on a fee-for-service basis? Subscriber Administrator Insured Provider

Provider The person who is paid on a fee-for-service basis is also known as a provider.

A producer offers a $50.00 handbag in exchange for the purchase of an insurance policy. The producer would be considered to have committed which prohibited sales practice? Twisting Rebating Coercion Replacement

Rebating In this situation, the producer would be considered to have committed the prohibited sales practice of rebating.

Insurance producer Kate offers insureds a $250 shopping card if they purchase an insurance product through her. What is this an example of? A fair trade practice Enticement, which is an unfair trade practice Rebating, which is an unfair trade practice Coercion, which is an unfair trade practice

Rebating, which is an unfair trade practice This is an example of rebating, which is prohibited.

What is the primary feature of a viatical settlement? No interest on policy loans Reduced death benefit prepayment Longer contestable period Lower premiums

Reduced death benefit prepayment The primary feature of a viatical settlement is the prepayment of a reduced death benefit.

An annuitant dies during the distribution period. What kind of annuity will return to a beneficiary the difference between the annuity value and the income payments already made? Variable annuity Refund annuity Rebate annuity Return annuity

Refund annuity An annuity that returns the difference between the annuity value and the income payments made to a beneficiary when the annuitant dies during the distribution period is a refund annuity.

HIV disclosure for an insurance applicant may include which of the following? Sexual orientation Sexual behavior Denial based upon family history Request for a blood test to detect presence of HIV virus

Request for a blood test to detect presence of HIV virus HIV disclosure to an insurance applicant may include the request for a blood test to detect presence of HIV virus.

Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Which military service exclusion clause would pay upon his death? Active Status Results Leave

Results The "results clause" states the insurer is excused from paying the amount only if the death is a result of war.

Which of the following enables a life policy to be replaced with another life policy and results in the postponement of the tax consequence? Section 1040 exchange Section 1035 exchange Nonforfeiture Option Spendthrift Option

Section 1035 exchange A Section 1035 Exchange enables a life policy to be replaced with another life policy and results in the postponement of the tax consequence.

Which of the following is considered an example of rebating? Greeting card to say "thank you" Pen with producer's name and address Splitting commissions with a licensed producer Sharing commissions with an applicant

Sharing commissions with an applicant Sharing commissions with a client (applicant) is considered a form of rebating and is prohibited.

Which of the following is NOT a type of Medicare Advantage Plan? Health Maintenance Organization (HMO) Preferred Provider Organization (PPO) Private Fee-For-Services (PFFS) Social Security Disability Income (SSDI)

Social Security Disability Income (SSDI) All of these are types of Medicare Advantage Plans EXCEPT Social Security Disability Income (SSDI).

Which of these ensures that proceeds of a life insurance policy will be free from attachment or seizure by the beneficiary's creditors? Spendthrift Clause Protection Clause Viatical Clause Settlement Clause

Spendthrift Clause A Spendthrift Clause is a statement in a settlement agreement that indicates that the proceeds of the policy will be free from attachment or seizure by the beneficiary's creditors.

Which of these will have the highest monthly payout upon annuitization? Life with period certain Joint and survivor life Straight life Joint life

Straight life A straight life annuity will have the highest monthly payout.

Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? Standard risk Preferred risk Unacceptable risk Substandard risk

Substandard risk An individual who is not acceptable by an insurer at standard rates because of health history, occupation, or hobbies is called a substandard risk.

Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes? Partially taxable income Non-taxable income Taxable income Conditionally taxable income

Taxable income Disability insurance benefits from a group policy paid for by an employer is considered taxable income.

Which of the following is typically NOT eligible for coverage in a group health policy? Full-time employee Temporary employee Business owner Partner in a partnership

Temporary employee A temporary employee is typically NOT eligible for coverage in a group health policy.

Which of the following decisions would a Health Savings Account (HSA) owner NOT be able to make? The amount contributed by the employer The amount contributed by the owner The underlying account investments used The medical expenses paid for by the HSA

The amount contributed by the employer An individual with a Health Savings Account (HSA) can make all of these decisions EXCEPT how much the employer will contribute.

James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount? The original face amount will be paid to the beneficiary The policy will be voided with no death benefits paid The death benefit paid will be what the premium would have purchased at the correct age The amount of premiums paid will be returned with interest

The death benefit paid will be what the premium would have purchased at the correct age Under the Misstatement of Age provision, the amount paid will be what the premium would have purchased at the correct age.

Which of the following would be the advantage of replacing an existing health insurance policy with a new one? Pre-existing conditions New contestable period Guaranteed issue The existing policy no longer meets the needs of the insured

The existing policy no longer meets the needs of the insured An advantage of replacing an existing health insurance policy with a new would would be when the existing policy no longer meets the needs of the insured.

Under the Affordable Care Act, how would a grandfathered health plan lose its grandfathered status? The insurer applies a lifetime dollar limit on essential health benefits The insurer does not re-apply for grandfathered status The insurer raises premiums across the board by 50% The insurer does not add vision or dental coverage to existing grandfathered plans

The insurer applies a lifetime dollar limit on essential health benefits According to the Affordable Care Act, grandfathered health plans may lose their grandfathered status if the insurer applies a lifetime dollar limit on essential health benefits.

Individual health insurance policies may include a provision concerning unpaid premiums. When the provision applies, if a premium payment is overdue when a claim for benefits is made Coverage is suspended until the premium is paid. The insurer may pay the claim and then cancel the policy. A written demand for premium payment will be sent to the insured. The insurer may deduct the overdue premium from the benefits

The insurer may deduct the overdue premium from the benefits This is a standard provision in almost all life and health insurance policies. The insurer always has the right to deduct overdue premiums from any benefits paid.

When a preferred provider organization (PPO) insured goes out-of-network, which of the following actions occur? The insured will pay a reduced amount The benefits are taxable The insured has lower out-of-pocket expenses The insurer will pay a reduced amount

The insurer will pay a reduced amount A reduced benefit occurs when the insured goes out of the PPO network.

The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is The shorter the payment period, the lower the premium The longer the payment period, the higher the premium The shorter the payment period, the higher the premium The payment period has no affect on the premium payment

The shorter the payment period, the higher the premium With a whole life policy, the shorter the payment period, the higher the annual premium.

An insurance producer whose license has been revoked continues to provide insurance services. Which of the following is TRUE? This violation can result in a fine of up to $10,000 This violation is a felony and can result in a fine of up to $5,000 This violation is a misdemeanor and can result in a fine of up to $5,000 This individual could be committed to the custody of the Department of Corrections for up to 10 years

This violation is a felony and can result in a fine of up to $5,000 Any person performing insurance transactions without a producer's license or under a license that has been suspended or revoked can be penalized up to $5,000 and charged with a felony.

Which of the following pertains to the analysis of an applicant's personal information and determining whether insurance should be issued or declined? Adverse calculation Underwriting Risk classification Actuarial determination

Underwriting The analysis of information pertaining to an applicant that was obtained from various sources and the determination of whether the insurance should be issued or declined is called underwriting.

Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy

Universal Life policy This is an example of a Universal Life policy.

Craig submits a $500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. Which of the Uniform Optional Provisions covers this situation? Payment of claims Legal actions Unpaid premium Time of payment of claims

Unpaid premium If there is an unpaid premium at the time a claim becomes payable, the amount of the premium is to be deducted from the sum payable to the insured or beneficiary.

A life insurance policy which contains cash values that vary according to its investment performance of stocks is called Increasing Term Life Modified Whole Life Variable Whole Life Adjustable Whole Life

Variable Whole Life A Variable Whole Life policy has cash values that vary according to the investment performance of common stocks.

Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? Adjustable life policy Variable universal policy Universal policy Modified whole life policy

Variable universal policy A variable universal life policy has three key elements- flexible premium, death benefit, and the choice of how the cash value will be invested.

A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? Viatical settlement agreement Funding medium agreement Split dollar plan Buy-sell plan

Viatical settlement agreement Viatical settlement agreements typically include a percentage payment of the death benefits to the policyowner prior to the death of the insured.

An individual can enroll in a Part C Medicare Advantage Plan at what time? When becoming eligible for Medicaid At age of retirement Age 59 1/2 When becoming eligible for Medicare

When becoming eligible for Medicare An individual can enroll under a Part C Medicare Advantage Plan when eligible for Medicare.

Which of these would be the best example of a limited pay life insurance policy? Which of these would be the best example of a limited pay life insurance policy? Whole life policy with premiums paid up after 20 years Term life policy that returns cash value after 20 years Term life policy with premiums paid up after 20 years

Whole life policy with premiums paid up after 20 years A whole life insurance policy where the premiums are paid up after 20 years would be considered a limited pay life insurance policy.

A 70-year old insured individual has suffered from kidney failure for the past 24 months. She is covered by her spouse's large-group employer plan. How will Medicare be utilized in this situation? Will be the primary insurer and pay for 100% of covered expenses Will be the secondary insurer and pay for claims not fully covered by the group plan Will not pay for any of the covered expenses Will be the primary insurer and the group plan will be secondary

Will be the secondary insurer and pay for claims not fully covered by the group plan If you are eligible for Medicare because of kidney failure and are also covered by a group health plan, your group plan will pay first on your hospital and medical bills for 30 months. During this time, Medicare pays second.

How is a health provider reimbursed if they do NOT have an agreement in place with the insurance company? With a contingent fee With a scheduled fee With a usual, customary, and reasonable fee With a reasonably appropriate fee

With a usual, customary, and reasonable fee When a provider does not have an agreement with the insurer for payment, they will be reimbursed a usual, customary, and reasonable fee.

In the health insurance policy, when should the written notice of claim be given to the insurer? Within 20 days after the occurrence or commencement of any loss covered by the policy 30 to 60 days after the occurrence or commencement of any loss covered by the policy 90 to 120 days after the occurrence or commencement of any loss covered by the policy 1 year after the occurrence or commencement of any loss covered by the policy

Within 20 days after the occurrence or commencement of any loss covered by the policy Written notice of a claim must be given within 20 days after a covered loss starts or as soon as reasonably possible.

What type of injury would NOT be covered under a health insurance policy? Accidental Work-related Sports-related Recreational

Work-related Work-related injuries would be covered under Workers' Compensation.

A fee for service health insurance plan will normally cover vitamins and natural remedies cosmetic procedures gym membership a disease

a disease Diseases are usually covered by fee for service health insurance plans.

Proceeds payable under a life insurance contract to a policyowner in anticipation of death or upon the occurrence of specified life-threatening conditions as defined by the policy are best described as: accelerated benefits expedited benefits cash surrender benefits proceed benefit options

accelerated benefits Proceeds payable to a policyowner under a life insurance contract in anticipation of death or upon the occurrence of specified life-threatening conditions as defined by the policy are best described as accelerated benefits.

All of these are common exclusions to a life insurance policy EXCEPT accidental death military service aviation hazardous occupations

accidental death Accidental death is not a common exclusion to a life insurance policy.

Group dental plans offered by employers will frequently place a limit on annual benefits in order to minimize adverse selection enrollment coinsurance administrative costs

adverse selection Employer group dental expense plans limit annual benefits in an attempt to minimize adverse selection.

Medicare Supplement coverage permits an open enrollment period on a guaranteed issue basis upon reaching age 60 age 62 age 65 age 70

age 65 Medicare Supplement coverage permits an open enrollment period on a guaranteed issue basis upon reaching age 65.

An individual most likely will have an insurable interest in insuring a person's life if an economic interest exists for the continuance of the insured's life a financial interest exists at the time of insured's death there is any blood relationship with the insured a business relationship exists

an economic interest exists for the continuance of the insured's life An individual most likely will have an insurable interest in insuring a person's life if an economic interest exists for the continuance of the insured's life.

Loss of income insurance provides an individual the means to replace wages an individual the ability to collect workers' compensation an individual the ability to continue with medical coverage after a disability unlimited income replacement to a disabled person

an individual the means to replace wages The primary purpose of loss of income insurance is to provide an individual a means to replace wages.

A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n) employer group employee group association or labor group multiple coalition

association or labor group Associations and labor groups have a constitution and bylaws.They are organized and maintained in good faith for purposes other than obtaining insurance.

Which of these factors is NOT taken into account when determining an applicant's life insurance needs? Social Security automobile savings pension

automobile In the process of determining an applicant's life insurance needs, an insurance producer takes into account all of these factors EXCEPT an applicant's automobile.

Insurers do business in Oklahoma only after a thorough financial review. MOST insurance policies written in Oklahoma are protected by the Guaranty Association established to protect policyowners in the event an admitted company merges with a foreign insurer becomes financially insolvent cannot meet its capital surplus requirements depletes its loss reserves

becomes financially insolvent Insurers do business in Oklahoma only after a thorough financial review. MOST insurance policies written in Oklahoma are protected by the Guaranty Association established to protect policyowners in the event an admitted company becomes financially insolvent.

An insured has a health plan that pays established amounts in accordance with a list of injuries, surgical procedures, or other losses. This list is called a loss chart benefit summary benefit schedule coverage menu

benefit schedule Benefit schedules set pre-determined limits or maximums on how much money an insured can be reimbursed for a covered loss.

The type of policy where the insurer can send a notice to the insured that the policy has been cancelled in the middle of the term is called noncancelable conditionally renewable optionally renewable cancelable

cancelable The renewability provision in a cancelable policy allows the insurer to cancel or terminate the policy at any time, simply by providing written notification to the insured and refunding any advance premium that has been paid.

Which of the following is NOT a required provision in an accident and health insurance policy? legal actions grace period change of occupation reinstatement

change of occupation The change of occupation provision is considered an OPTIONAL provision.

Insurance that is designed to pay the balance of a loan if the insured dies before the loan has been repaid in full is life settlement whole life universal life credit life

credit life Insurance that is designed to pay the balance of a loan if the insured dies before the loan has been repaid in full is credit life.

The requirements for continuing education apply to all of the following EXCEPT insurance producers customer service representatives limited insurance representatives part-time insurance producers

customer service representatives The requirements for continuing education apply to all of the following EXCEPT customer service representatives.

An example of a presumptive disability would be a stroke deafness diabetes cancer

deafness Deafness is an example of a presumptive disability.

Jennifer is required to pay a specific sum out of pocket before any benefits are paid in a year. Her health policy most likely contains a(n) stop-loss provision deductible copayment out of pocket provision

deductible A deductible is a stated initial dollar amount that the individual insured is required to pay before insurance benefits are paid.

Making or publishing any oral or written statement that is FALSE or maliciously critical of the financial condition of an insurer, and is calculated to injure any person engaged in the business of insurance is known as coercion defamation twisting misrepresentation

defamation Making or publishing any oral or written statement that is FALSE or maliciously critical of the financial condition of an insurer, and is calculated to injure any person engaged in the business of insurance is known as defamation.

An example of a tax-qualified retirement plan would be a(n) equity compensation plan defined contribution plan executive index plan 1035 exchange plan

defined contribution plan A defined contribution plan is considered a tax-qualified plan.

Benefits provided by a Medicare Supplement policy must NOT be payable to the insured duplicate Medicare benefits be sold to individuals under 70 charge additional premiums

duplicate Medicare benefits A Medicare Supplement policy must NOT contain benefits which duplicate Medicare benefits.

Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new Group Health Plan will verify Creditable Coverage so that the employee's benefits still owed can be claimed employee cannot be excluded from the new employer's health plan employee's waiting period for coverage of a preexisting condition can be reduced under the new employer's health plan new health insurance carrier will have a clear record of any chronic conditions that exist

employee's waiting period for coverage of a preexisting condition can be reduced under the new employer's health plan Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new Group Health Plan will verify Creditable Coverage so that the employee's waiting period for coverage of a preexisting condition can be reduced under the new employer's health plan.

An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of rebating coercion fraud twisting

fraud A deliberate lie by an insured to the insurance company in order to obtain a lower premium is an example of fraud.

An insured's status under Social Security can be described as partially insured actively insured fully insured completely insured

fully insured There are two types of insured statuses that qualify individuals for Social Security benefits: fully insured and currently insured. Most Social Security benefits are paid to fully insured individuals.

Transacting insurance includes any of the following EXCEPT selling insurance preliminary negotiations delivering insurance contracts gathering prospective buyer information

gathering prospective buyer information Transacting insurance includes any of the following EXCEPT gathering prospective buyer information.

A life insurance producer would be found guilty of inducing a customer to purchase insurance in all of the following situations EXCEPT: offering the applicant employment for the purchase of insurance giving the applicant merchandise worth $75 for the purchase of insurance giving the applicant merchandise worth more than a total of $100 for the purchase of insurance guaranteeing the applicant dividend payments for the purchase of insurance

giving the applicant merchandise worth $75 for the purchase of insurance A life insurance producer would be found guilty of inducing a customer to purchase insurance in all of these situations except giving the applicant merchandise worth $75 for the purchase of insurance.

Dental health plans are typically underwritten as group coverage because group coverage pays greater benefits individual policies help minimize pre-existing conditions individual policies are difficult to underwrite group dental plans help to minimize adverse selection

group dental plans help to minimize adverse selection Dental health plans are typically underwritten as group coverage because group dental plans help to minimize adverse selection.

A health insurance policy that allows an insurer to change the policyowner's premiums, but NOT cancel the policy is called a(n) guaranteed renewable policy conditionally renewable policy optionally renewable policy noncancelable policy

guaranteed renewable policy An insurer has the right to change the premium for policyowners with a guaranteed renewable policy, but CANNOT cancel the policy.

The Oklahoma Insurance Commissioner may place on probation, censure, suspend, revoke, or refuse to issue to an applicant for all of the following causes EXCEPT having admitted to committing fraud providing incorrect, misleading, or materially untrue information in the license application having been convicted of a misdemeanor failing to pay state taxes

having been convicted of a misdemeanor The Oklahoma Insurance Commissioner may place on probation, censure, suspend, revoke, or refuse to issue to an applicant for all of the following causes EXCEPT having been convicted of a misdemeanor.

Index whole life insurance contains a securities component that acts as a(n) hedge against inflation premium stabilizer means to lowering taxes on earnings incentive to purchase more coverage

hedge against inflation The securities component of index whole life insurance is considered an effective hedge against inflation.

Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contract's surrender charge death benefit cash refund income period

income period The amount of a fixed immediate annuity payment is dependent upon starting principal, interest, and the annuity's income period.

If the Commissioner has received a complaint that an individual has committed an Unfair Trade Practice, the Commissioner may immediately notify the person of a hearing issue a cease and desist order place on probation, censure, suspend, revoke, refuse to issue or renew the individual's insurance license sentence the person to a minimum of 1 year imprisonment and a $1,000 fine

issue a cease and desist order If the Commissioner has received a complaint that an individual has committed an Unfair Trade Practice, the Commissioner may immediately issue a cease and desist order.

A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n) adjustable policy limited pay policy level term policy variable universal policy

limited pay policy A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a limited pay policy.

A life insurance policy that has premiums fully paid up within a stated time period is called stated payment insurance limited universal insurance stated modified insurance limited payment insurance

limited payment insurance Limited payment insurance is characterized by premiums that are fully paid up within a stated period, after which no further premiums are required.

It is the responsibility of the producer to report all of the following information to the insurance commissioner EXCEPT changes of his or her address marital status name status with regard to felonies

marital status It is the responsibility of the producer to report all of these to the insurance commissioner EXCEPT changes of his or her marital status.

The focus of major medical insurance is providing coverage for critical illnesses only preventative care medical and hospitalization expenses doctor's visits

medical and hospitalization expenses The focus of major medical insurance is providing coverage for medical and hospitalization expenses.

A guaranteed issue insurance policy has no initial premium requirement incontestable period waiting period medical underwriting

medical underwriting A guaranteed issue policy refers to an insurance policy with no medical underwriting.

The premium payment mode that results in the highest overall cost would be monthly quarterly semi-annual annual

monthly A monthly premium mode will result in the highest overall cost.

How are premiums paid by the insured for personally owned disability income insurance treated for tax purposes? partially tax deductible not tax deductible fully tax deductible tax deferred

not tax deductible Premiums paid for personal disability income insurance are not deductible by the individual insured, but the disability benefits are tax-free to the recipient.

Which of these characteristics of an applicant is NOT taken into consideration when assessing risk for Disability coverage? health of applicant gender of applicant number of children occupation of applicant

number of children All of these characteristics of an applicant are considered when assessing risk for Disability coverage EXCEPT number of children.

Paul is an employee who caught a disease unique to the trade in which he was exposed to. Paul has a(n) genetic predisposition worksite malady contagious disease occupational disease

occupational disease A disease resulting from causes unique to the trade in which the employee is exposed to is called an occupational disease.

A clause that allows an insurer the right to terminate coverage at any anniversary date is called a(n) conditionally renewability clause optional renewability clause selective renewability clause cancelable clause

optional renewability clause An optional renewability clause allows an insurer the unrestricted right to terminate coverage at any anniversary or at any premium due date.

A provision that allows a policyowner to withdraw a policy's cash value interest free is a(n) partial surrender waiver of premium automatic premium loan grace period

partial surrender A partial surrender allows the policyowner to withdraw the policy's cash value interest free.

The automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the amount of any interest payable from an outstanding policy loan balance past due premiums that have not been paid by the end of the grace period the outstanding policy loan balance any surrender charges owed by the policyowner

past due premiums that have not been paid by the end of the grace period In a life insurance cash value policy, the automatic premium loan provision authorizes the insurance company to withdraw from the policy's cash values the amount of premiums due if the premium has not been paid by the end of the grace period.

Upon surrender of a whole life policy, which has been in force for AT LEAST 3 full years, and within 60 days after the date the premium payment is due and unpaid, the insurer will pay a cash surrender value extend the grace period reimburse all paid premiums refund premium

pay a cash surrender value Upon surrender of a whole life policy, which has been in force for AT LEAST 3 full years, and within 60 days after the date the premium payment is due and unpaid, the insurer will pay a cash surrender value.

States that have "no loss no gain" laws require a replacing policy to keep the same type of coverage as the policy it replaces not charge a different premium from the policy it replaces pay for half of any ongoing claims under the policy it replaces pay for ongoing claims under the policy it replaces

pay for ongoing claims under the policy it replaces No loss no gain legislation requires that when health insurance is replaced, ongoing claims under the former policy must continue to be paid under the new policy.

A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n) waiver of premium rider payor rider automatic premium loan rider juvenile waiver rider

payor rider A payor rider assures the premiums will be paid on a juvenile policy until the insured child reaches a specific age.

Medicaid is intended for people with kidney failure people aged 65 and older unemployed people poverty stricken people

poverty stricken people Medicaid is a government-funded program intended to provide health care for poverty stricken people.

All Health Benefit Plans issued after January 1, 2014 must provide long-term care dental care adult vision care preventative health services

preventative health services Preventative health services must be provided by Health Benefit Plans issued on or after January 1, 2014.

The PRIMARY purpose of the Fair Credit and Reporting Act is to forewarn an insurer about an applicant's recent bankruptcy protect consumers from insurers who have filed for bankruptcy protect consumers with guidelines regarding credit reporting and distribution alert insurers regarding applicants who may have poor credit histories and may be adverse risks to the company

protect consumers with guidelines regarding credit reporting and distribution The primary purpose of the Fair Credit and Reporting Act is to protect consumers with guidelines regarding credit reporting and distribution.

An indemnity plan pays both the insured and health care provider provides the insured a specific dollar amount for services pays the health care provider directly for services rendered is typically issued as a group plan

provides the insured a specific dollar amount for services With an indemnity plan, an insured is provided a specific dollar amount for services.

All of the following are Unfair Claims Settlement Practices EXCEPT misrepresenting the policy provisions relating to coverage at issue attempting to settle the claim on basis of an application altered without notice, knowledge, or consent of the insured refusing to pay a claim without conducting a reasonable investigation based on all available information providing claim payments to insureds accompanied by a statement setting forth the coverage under which payment is made

providing claim payments to insureds accompanied by a statement setting forth the coverage under which payment is made All of the following are Unfair Claims Settlement Practices EXCEPT providing claim payments to insureds accompanied by a statement setting forth the coverage under which payment is made.

An insurance producer is often responsible for field underwriting during the application process. All of these are possible field underwriting roles EXCEPT providing disclosure information to the applicant collecting initial premium policy delivery providing commission information to the applicant

providing commission information to the applicant All of these are field underwriting roles an insurance producer may perform EXCEPT "providing commission information to the applicant".

A license is NOT required when you are providing referrals selling insurance negotiating insurance soliciting insurance

providing referrals A license is NOT required when you are providing referrals.

What is the automatic continuance of insurance coverage referred to as? renewal reinstatement resumption renovation

renewal The automatic continuance of insurance coverage is called renewal.

A life insurance policyowner does NOT have the right to change a beneficiary select a beneficiary take out a policy loan revoke an absolute assignment

revoke an absolute assignment A policyowner may not revoke an absolute assignment.

The envelope in which insurance solicitation material is contained may be addressed to the parents of students. The address may NOT include any combination of words which imply that the correspondence is from the insurer directly captive producer school government

school In this situation, the address on the envelope may NOT include any combination of words which imply that the correspondence is from the school.

Term insurance is appropriate for someone who seeks living benefits for themselves seeks a policy that builds cash value seeks temporary protection and lower premiums seeks permanent protection and higher premiums

seeks temporary protection and lower premiums Term insurance is appropriate for individuals seeking temporary protection and lower premiums.

Continuous 24-hour care provided by licensed medical professionals under the direct supervision of a physician is called adult day care home health care skilled nursing care custodial care

skilled nursing care Skilled nursing care is the type of care that is continuous 24-hour care provided by licensed medical professionals under the direct supervision of a physician.

A nonparticipating company is sometimes called a(n) alien insurer mutual insurer reinsurer stock insurer

stock insurer A stock insurer is referred to as a nonparticipating company because policyholders do not participate in dividends resulting from stock ownership.

If the Commissioner determines that an individual has engaged in an act violating state insurance laws, the Commissioner may issue an order requiring the violator to pay restitution to his or her victims stop engaging in those acts appear before a jury of his or her peers perform community service

stop engaging in those acts The Commissioner may issue a cease and desist order when it has been determined that an individual has violated state insurance laws.

An insurer has the right to recover payment made to the insured from the negligent party. These rights are called contributory indemnity estoppel subrogation

subrogation The rights of the insurer to recover payment made to the insured from the negligent party is called subrogation.

What types of life insurance are normally used for key employee indemnification? term, whole, and universal life insurance increasing term insurance joint, credit, and group life insurance adjustable, permanent, and limited-pay life insurance

term, whole, and universal life insurance The types of life insurance generally used to cover key employee indemnification are term, whole, and universal life insurance.

A form of an accelerated death benefit is a home care benefit nonforfeiture extended term benefit terminal illness settlement benefit cost of living benefit

terminal illness settlement benefit A form of an accelerated death benefit is a terminal illness settlement benefit.

Converting a group plan to permanent life insurance involves submitting proof of insurability paying a lower premium converting to term life insurance the conversion being applied within 1 month of termination

the conversion being applied within 1 month of termination When converting from group to permanent life insurance, conversion must be applied for within 1 month of termination.

This MANDATORY health policy provision states that the policy, including endorsements and attached papers, constitutes the partial insurance contract between the parties the entire insurance contract between the parties the conformity of state statutes the legal purpose of the contract

the entire insurance contract between the parties The entire contract provision states that the policy, including endorsements and attached papers, constitutes the entire insurance contract between the parties.

Under the Affordable Care Act, a large employer that does NOT provide health insurance and owes an employer mandate penalty MUST pay an annual penalty, which is calculated by multiplying $2,000 by the number of full time employees minus 20 the number of full time employees minus 30 the number of subsidized employees minus 10 the total number of full time employees

the number of full time employees minus 30 According to the Affordable Care Act, if a large employer does NOT provide health insurance and owes an employer mandate penalty, the annual penalty is calculated by multiplying $2,000 by the number of full time employees minus 30.

If the annuitant dies before the annuity start date, the benefits will be given tax-free only to a stated beneficiary nothing is given to the beneficiary the premiums paid will be given to the beneficiary the premiums paid plus interest earned will be given to the beneficiary

the premiums paid plus interest earned will be given to the beneficiary If the annuitant dies before the annuity start date, the beneficiary receives the premiums paid plus interest earned.

The elimination period under a hospital indemnity plan is the period in which pre-existing conditions are not taken into consideration the period in which all deductibles are eliminated the specified number of days after an insurance policy's issue date during which coverage is not afforded for sickness the specified number of days an insured must wait before becoming eligible to receive benefits for each hospitalization

the specified number of days an insured must wait before becoming eligible to receive benefits for each hospitalization In a hospital indemnity plan, an elimination period refers to the number of days an insured must wait before becoming eligible to receive benefits for each hospital stay.

A field underwriter's main task is assign a risk classification to the insured report medical information to the Medical Information Bureau (MIB) to ensure an applicant's medical information is accurate and complete to approve or decline an applicant

to ensure an applicant's medical information is accurate and complete One of the main tasks of a field underwriter is to ensure the accuracy and completeness of an individual's medical information.

In Oklahoma, claims for a medical expense health plan may be denied due to a material misrepresentation within one year of issue two years of issue three years of issue four years of issue

two years of issue The contestable period for health policies in Oklahoma is 2 years.

In an insurance contract, the insurer is the only party legally obligated to perform. Because of this, an insurance contract is considered voidable conditional aleatory unilateral

unilateral A contract in which only the insurer would be legally obligated to perform is considered unilateral.

The Commissioner can deny or refuse a license for an insurance producer if the applicant has done any of the following EXCEPT willfully violated the laws of the state that relate to insurance committed fraudulent or dishonest practices in the insurance business unintentionally misrepresented a material fact in an application being convicted of a felony 7 years ago

unintentionally misrepresented a material fact in an application All of these are reasons the Commissioner can deny or refuse a license for an insurance producer EXCEPT unintentionally misrepresented a material fact in an application.

A securities license is required for a life insurance producer to sell modified life insurance Modified Endowment Contracts (MEC) variable life insurance universal life insurance

variable life insurance A life insurance producer needs to possess a securities license to sell variable annuities.

Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. If Mike dies first, the policy proceeds will no longer provide insurance protection will go to Mike's estate will be divided by probate will not be paid until the last brother dies

will no longer provide insurance protection In this situation, if Mike dies first, the policy proceeds will no longer provide further insurance protection.

A renewable Term Life insurance policy allows the policyowner the right to renew the policy at anytime the policyowner chooses as many times as the policyowner chooses paying the same premium as before the renewal without producing proof of insurability

without producing proof of insurability If Term Life insurance is renewable, the policyowner is purchasing the right to renew the policy without showing proof of insurability.