Questions Missed: Life & Health Examfx
Children's riders attached to whole life policies are usually issued as what type of insurance?
Term
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
An applicant for a health insurance policy returns a completed application to her agent, along with the check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point?
Neither approved the application nor issued the policy
Death benefits payable to the beneficiary under a life insurance policy are general
Not subject to income taxation by the Federal Government
An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?
Pay a reduced death benefit
Underwriting is a major consideration when the insured wishes to replace their current policy for all reasons EXCEPT
Premiums always stay the same
All the following are characteristics of group life insurance EXCEPT
Premiums are determined by age, sex, and occupation of each individual certificate holder
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
An agent commingled $500 of insurance premiums collected with new applications with his personal funds. The agent could be found guilty of a
Misdemeanor
Transacting insurance without a license in this state in considered a
Misdemeanor
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
Level term
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single premium policy for a reduced face amount
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid-up
The policy owner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?
Reduction of premium
The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?
Reduction of premium
Whenever agents submit applications to insurers, they must also submit statements, signed by the applicant and agent, disclosing the involvement or lack of involvement of
Replacement
It would be considered unfair discrimination...information as a rating factor to determine insurability?
Sexual orientation
In the state, what is the maximum fine for transacting insurance without a license
$1,000
An insured owns a general disability policy and is injured during a war, rendering him disabled. What extent of benefits will he recieve?
0%
The relation of earnings provision allows the insurance company to limit the insured's benefit to their average income over the last
24 months
An insured recently discovered that the interest rate on his policy loan increased again. Which is the shortest amount of time that could have passed since the last change in the insured's interest rate?
3 months
Authorized insurance companies are examined by the Commissioner at least once every
5 years
How long is the waiting period for benefits to be paid in a long-term care policy or rider?
90 days
A willful violation of an agent's fiduciary responsibility that involved funds exceeding $1,000 will be considered
A felony
If an applicant intends to replace any existing accident and sickness policy with a Medicare supplement policy, what must the agent furnish to the applicant
A notice regarding replacement
The term "illustration" in a life insurance policy refers to
A presentation of nonguaranteed elements of a policy
Which of the following is required to be licensed as an insurance producer?
A salaried full-time employee who advertises and solicits insurance
Which of the following is NOT covered under a long-term care policy
Acute care in a hospital
Which of the following premium payment modes will incur the lowest overall payment?
Annual
Which of following is true regarding inpatient hospital care for HMO members?
Can be provided outside of the service area
All of the following are duties and responsibilities of producers at the time of the application EXCEPT
Change any incorrect statement on the application by personally initiating next to the corrected statement
Which of the following reports will provide the underwrite with the information about an insurance applicant's credit
Consumer report
The provision in a health insurance policy that ensures that the insurer cannot refer to any document that is not contained in the contract is the
Entire contract clause
Who may contribute to a Keogh (HR-10) plan?
Self-employed plumber
Which of the following is INCORRECT concerning a noncontributory group plan?
The employees receive individual policies
Which of the following statements is correct regarding a whole life policy?
The policyowner is entitled to policy loans
Which of the following is TRUE about non forfeiture values?
They are required by state law to be included in the policy
All of the following statements about Medicare supplement insurance policies are correct EXCEPT
They cover the cost of extended nursing home care
All of the following are requirements for life insurance illustrations EXCEPT
They must be part of the contract
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
A unfair trade practice
Which of the following would be considered an unfair claims settlement practice?
Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered
Which of the following would NOT be a violation of state insurance regulations?
Agent C uses her licenses to write only business other than controlled
An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must then initial that change?
Applicant
Employer contributions made to a qualified plan
Are subject to vesting requirements
A business owner was trying to obtain a bank loan...then decided to use their $250,000 life insurance policy to secure the loan. Which provision makes this possible?
Collateral assignment
What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?
Common Disaster Clause
Which of the following is NOT a characteristic or a service of an HMO plan?
Contracting with insurance companies
What is an important feature of a dental expense insurance plan that is not typically found in a medical plan?
Diagnostic and preventive care
In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost
Is not covered
The provision which prevents the insured from bringing any legal action against the company for at least 60 days after the proof of loss is known as
Legal actions
Which of the following would NOT be considered a purpose of life insurance solicaiton regulations in Georgia?
Help buyers choose most qualified insurance producers
A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. What type of annuity is it?
Immediate
Which of the following best describes the concept the insured pays a small amount of premium for a large amount of risk?
Aleatory
Assuming that all the following people are covered by a High Deductible Health Plan and are not claimed as dependents on anyone's tax returns, which would NOT be eligible for a Health Savings Account?
Amanda is 67 and covered by a basic medical expense policy
Which of the following is TRUE regarding coverage for mammography in accident and sickness policies in this state?
An annual mammogram for women over age 50 must be included
Under which condition would an employee's group medical benefits be exempt from income taxes?
An employee's group medical benefits are generally exempt from taxation as income
If more than one family member covered under the same major medical policy is injured in the same accident, the family only has to pay one deductible. This is due to the
Common accident provision
An applicant for an individual health policy failed to complete the application properly...has not met the conditions specified in the
Consideration Clause
The gatekeeper of an HMO helps
Control specialist costs
All of the following are true about group disability income insurance EXCEPT
Coverage applies both on and off the job
Social Security disability definition includes all of the following EXCEPT
Disability expected to last for at least 6 months
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured's habits and lifestyle
Which type of hospital policy pays a fixed amount each day that the insured is in the hospital?
Indemnity
The provision that prevents the insured from brining any legal actions against the company for at least 60 days after proof of loss is known as
Legal actions
Which Universal Life option has a gradually increasing cash value and a level death benefit?
Option A
Insurers usually do not reimburse claimants for 100% of income lost due to disability. What is the reason for insurer limitations on coverage amounts?
To provide an incentive for the insured to return to work
According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT
Unearned premiums are retained by the insurance company
Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value?
Variable universal life
Which of the following riders would NOT cause the Death Benefit to increase?
Payor Benefit Rider
Which of the following policy components contains the company's promise to pay?
Insuring clause
All of the following are examples of transacting insurance in Georgia EXCEPT
Placing advertisements for an insurer
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
Interest only option
A guaranteed renewable disability insurance policy
Is renewable at the insured's option to a specified age
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
Which of the following is TRUE regarding the annuity period?
It may last for the lifetime of the annutiant
All of the following statements about equity index annuities are correct EXCEPT
The annuitant receives a fixed amount of return
Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to
The insured
The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT
The insured's age at death
Which if the following is NOT a feature of a noncancellable policy?
The insurer may terminate the contract only at renewal for certain condtions
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date earlier than the date of the issuance of the policy issue
Which of the following is an example of a limited-pay life policy?
Life Paid-up at Age 65