Questions from phone app

statements made by the applicants for insurance policies that are true to the best of their knowledge are known as

disclosures

which of the following is considered the nontaxable return of unused premiums

dividend

what is the goal of an HMO

early detection through regular checkups

which of the following is not a type of hazard

exposure hazards are classified as physical, moral, and morale

what is the default non forfeiture option when the policy owner neglects to select an option

extended term this option maintains the same death benefit for the beneficiary, but the coverage is for fewer years

which non forfeiture option allows a policyowner to use the existing cash value to purchase a policy of the same face amount as the original policy for as long as the policy will buy

extended term insurance the non forfeiture option that results in a paid up policy with the same face amount as the original policy is the extended term option

an individual wants to buy life insurance policy in which he can count on guaranteed minimum benefits. which of the following types of insurance would best suit his needs

fixed

what is not a policy dividend option

fund the distribution of periodic income payment what is an option apply the dividend toward paying the current premium purchase 1 year term insurance purchase paid up additions to the policy

in iowa, medicare supplement insurance policies must be insured as what type of policy

guaranteed renewable

which of the following best describes the agent's fiduciary responsibility

handling insurer funds in a trust capacity

events or conditions that increase the chances of an insured loss occurring are referred to as

hazards

under the terms of the 10 day free look period, a claim will be paid

if the premium has been paid and the policy has not been returned

under which of the following conditions would life insurance proceeds be taxable by the federal government

if there is a transfer for value

under which of the following conditions would life insurance proceeds be taxable by the federal gov

if there is a transfer of value

which of the following riders would not increase the health policy premium for the policy owner

impairement rider

medicaid provides all of the following benefits except

income assistance for work related options does provide family planning services home health care services eyeglasses

which of the following is not a feature of a whole life policy

increasing premium whole life policies provide permanent protection build cash value and offer non forfeiture values. The premium, however,remains level for the life of the policy.

when agents are acting within the scope of their contract, their actions will be assumed to be the acts of the

insurer while acting within the authority of he contract given by the insurer, the acts of an agent/producer are considered to be the acts of the insurer

which of the following entities has the authority to make changes to an insurance policy

insurer's executive office

the section of the health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the

insuring clause provision on the first page of the policy that states the coverage and when it applies

a guaranteed renewable disability insurance policy

is renewable at the insured option to a specified age

how does the incontestability clause benefit the insured

it prevents the policy from being cancelled if, after several years, it is discovered that there was a misrepresentation by the policy owner

a beneficiary decides to take a settlement option that will pay the largest amount per payment, knowing that after the beneficiary death no monies will be paid out to any descendants. The settlement option is

life income (straight life) the life income settlement option pays the beneficiary an income until his or her death. Since no further payments will be made to survivors, the insurer can afford to pay a larger income versus the other options given

rank from lowest to highest the amount of monthly income that would result from the following annuity settlement options

life with refund option, life with 10 years certain, straight life. the larger the guarantee of payments or returned monies, the lower the guaranteed income. the more risk the annunit takes during the annuity period, the higher the monthly income

which of the following is the default settlement option for life insurance policy proceeds

lump sum if the policy owner or the beneficiary hasnt preselected the method of payment of claims, the automatic mode of settlement is cash in a single lump sum payment

unfair trade practices

making maliciously critical statement about the financial condition of another insurer misrepresentation pertinent facts about coverage offering special favors not specified in the policy Not: discriminating against a group of individuals because they resent a poor risk

under the ACA, which classification applies to health plans based on the benefits and the amount of covered costs

metal level classification plans are classified into 4 metal level determined y how much of a persons expected health care costs are covered. The plans are bronze, silver, gold, and platinum

disregarding all other variables, rank the initial premium paid by the insured for the insurance policies listed below from lowest to highest

modified whole life, ordinary whole life, single premium whole life modified allows the insured to pay a lower premium than traditional/ordinary for the first few years.

under individual disability income policy, the MINIMUM schedule for payment of benefits to the insured is

monthly

an insurance company that is owned by the policyholders is called

mutual insurer

premium payments for personally owned disability income policies are

not tax deductible

under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive

nothing; the payments will cease this payment will cease at death, regardless of the amount of principal that hasn't been paid out

each individual and group health insurance policy must provide coverage for low dose screening mammograms for determining the presence of breast cancer. how must coverage must be provided for women age 40 to 49

one biennial mammogram

which statement best describes "agreement" as it relates to insurance contracts

one party accepts the exact terms of the other party's offer

an insured had paid only part of her total number of IRA premiums before she died. What effect will this have on the insured's estate

only the premiums paid will be included in the estate

which renewability provision allows an insurer to terminate a policy for any reason, and to increase the premiums for any class of insured

optionally renewable

an individual owns a participating whole life policy and uses her policy dividends to buy more of the same type of coverage to herself. she has chosen the

paid-up additions option paid up additions are the same type of insurance as the base plan

which of the following reasons for an early distribution of funds from a qualified retirement plan would incur a 10% penalty

participant's debt

all of the following are covered under part a except

physician services are covered hospitilizations skilled nursing facilities hospice care

in iowa, which of the following provisions is not required to be included on the first page of medicare supplement policy

pre existing conditions limitations

all of the following are examples of risk retention except

premiums

which is NOT consideration on the part of the insured

promise to submit timely claims

which of the following is not consideration on the part of an insured

promise to submit timely claims

what is the main purpose of insurance regulation

protect the public

which of the following would be most likely to start a tax-sheltered annuity

public school teachers a tax sheltered annuity is a special tax favored retirement plan available only to certain groups of employees, such as nonprofit, educational, religious, etc

an agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. the agent is guilty of

rebating

when an applicant makes a material statement on the insurance application, the statement is considered to be a

representation

ltc coverage may be provided by each of the following EXCEPT

rider to medicare

an annuity would normally be purchased by an individual who wants to

secure income for retirement

what type of plans are HMO

service

an individual receives a lumpsum inheritance. he'd like to use the money to create a lifetime income since he will be retiring soon. he purchases an annuity and wishes to receive payments beginning in two months. what'd be buy

single premium immediate annuity

which benefit is based on the persons primary insurance amount (PIA)

social security disability

an applicant buys a non qualified annuity, but dies before the starting date. for which of the following beneficiaries would the contract's interest not be taxable

spouse

which of the following may not be included in an insurance company advertisement

stating that the insurers policies are covered by the state guaranty association

an insured has endured multiple surgeries and hospitalizations for an illness during the summer months. her insurer no longer bills her for medical expenses what term best describes the condition she has met

stop loss limit

an insurer is issued a cease and desist order for misrepresentation. what is the insurer required to do to comply with the order

stop the action in violation cease and desist order means that the person must stop the improper action in violation

a group blanket health policy is best suited to cover

students in a public school group blanket health insurance policies are meant to cover members of a group or association without evidence of insurability. coverage is usually limited to loss from specific causes

which of the following best describes taxation during the accumulation period of an annuity

taxes are deferred the interest accumulated in an annuity is the tax base, but the taxes are deferred during the accumulation period

a 403(b) tax sheltered annuity is available for

teachers and nonprofit organizations

example of apparent authority

the agent accepts a premium payment after the end of a grace period

for the purpose of insurance, risk is defined as

the chance of loss

which of the following statements concerning group health insurance is correct

the employer is the policy owner the employer receives the master policy; each employee receives a certificate of insurance. all employees have the same coverage under the master contract

which of the following best represents what is meant by life insurance creates an immediate estate

the face value is payable to the beneficiary upon he death of the insured

in a group policy, who receives a certificate of insurance

the individual insured

a person is enrolled in part a of medicare and not part b. three months into coverage, he applies for a medicare supplement policy.

the insurer may deny coverage

a person enrolled in part a of medicare and not part b. three months into coverage, he applies for medicare supplement policy. which of the following is true

the insurer may deny coverage the insured must be enrolled in both A & B to qualify for open enrollment for medicare supplement plans

which of he following is not characteristic of insurable risk

the loss must be catastrophic

which of the following is NOT covered under plan a in medigap insurance

the medicare part a deductible

in an adjustable life policy all of the following can be changed by the policy owner except

the type of investment

which of the following is true regarding taxation of accelerated benefits paid under life insurance policy

they are received tax free

what is the purpose of settlement options in life insurance

they determine how death proceeds will be paid settlement options are methods used to pay the death benefits to a beneficiary upon the insured's death or to pay the endowment benefit if the insured lives to the endowment date

which provision states that the insurance company must pay medical expense claims immediately

time of payment of claims

what is the purpose of the agent's report in the application process

to provide additional information about the applicant to the underwriters

an agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a lfie insurance policy has committed an illegal practice known as

twisting

which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another

twisting

which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another

twisting twisting is the misrepresentation that persuades an insured to his or her detriment, to cancel, lapse, or switch policies from one to another

which of the following statements regarding BOE are not true

usually limited to 6 months

how soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company

within 90 days or as soon as reasonably possible, but not exceed 1 year

how is the state insurance guaranty association funded

by its members - authorized insurers

insured received $50,000 from a $100,000 AD&D policy as a result of the loss of an arm. this benefit is considered

capital sum

in any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the

company an agents license authorizes him or her to represent an insurance company, not the insured

a health insurance plan that covers all accidents and sickness that are not specifically excluded from the policy is referred to as

comprehensive plan

if $100,000 of life insurance proceeds were used in a settlement option that paid $13,000 per year for 10 years, which of the following would be taxable annually

$3,000 in this settlement arrangement, $10,000 per year would be income tax free (as principal) and $3,000 per year would be income taxable (as interest)

if an employer provider LTC group disability insurance for its employees, what percentage of monthly wages are lower-paid employees eligible to collect

66 2/3%

how can long term care benefits be received tax free by an individual

LTC benefits are always received tax free

when insurer negotiate contracts with health care providers or physician to provide health care services to subscribes at a favorable cost, it is called

PPO

the advantage of a qualified plans to employers is

Tax-deductible contributions

who acts on behalf of the principal

agent

which of the following is not a personal use of life insurance

an individual buys insurance to fund a buysell agreement

who can make a fully deductible contribution to a traditional IRA

an individual under the age of 70 1/2 who has earned income

if an insurer makes a statement that its policies are guaranteed by the existence of the insurance guaranty association, that would be considered

an unfair trade practice

which type of authority is based on the actions or words of the agent

apparent apparent authority is the appearance or the assumption of authority based on the actions, words, or deeds of the agent

employer contributions made to a qualified plan

are subject to vesting requirements

a universal life policy may be surrendered for its cash value

at any time

a life policy contains a guaranteed insurability ride. when can the policy owner purchase additional insurance on the policy

at specified ages or dates without evidence of insurability

which provision may be added to a permanent life policy, at no cost, that insures that the policy will not lapse as long as there is cash value

automatic premium loan option

which of the following is not true regarding an annuity certain

benefits stop at the annuitant's death