Readiness Exam
If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?
immediately
All of the following must sign an application for health insurance except the
insurer
What advantage does the recurrent disability provision provide to the insured under the disability income policy?
it eliminates the imposition of an elimination period for a separate disability
On an Accidental Death and Dismemberment (AD&D) policy, the death beneffit payable is known as the
principal sum
Which of the following best describes the type of care provided by HMO's ?
Preventative
Medicare Part A services do NOT include which of the following?
Private duty nursing
If an insured is injured while commiting an illegal act and the insureds health policy contains the illegal oppupation provison, what percentage of the claim will be paid?
0
Core benefits are included in all medicare supplemental policies. Which percentage of part B coinsurance is required?
20%
The affordable care act mandated that the insurer provide coverage for adult children of the insured up to the age of
26
A medicare policy supplement policy must have a free look period of at least?
30 days
An IRA contribution can be made from which of the following?
Cash
In a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT?
Cash surrender values
Which of the following is NOT a typical type of Long Term Care coverage?
Child day care
An insured and his spouse recently had a child. Which of the following riders would allow the couple to insure the child for a limited period of time at a specified amount?
Children's term rider
Policy delivery refers to the delivery of the
Completed insurance policy to the policyowner
Under what circumstances will the contigent beneficiary receive death benefits?
If the primary beneficiary dies before the insured
Which of the following is NOT a medicaid qualifier
Insurability
What happens to the copy of the application for health insurance once the policy is issued?
It becomes part of the entire contract
What does the application of contract of adhesion mean?
Since the insured does not participate in preparing the contract, any ambuities would be resolved in favor of the insured
the family term rider incorporates
Spouse term and children's term
Which of the following types of insurance is investment based, has a level fixed premium, and nonguaranteed cash value?
Variable whole life
What guarantees that the information explained in the insurance contract is true?
Warranty
A whole life policy that will generate immediate cash value is a
single premium policy
Which risk classification is representative of the majority of people in a certain age group and with similar lifestyles?
standard
A retail shop owner is insured under a business overhead expense policy that pays a maximum monthly benefit of $2,500. His actual monthly expenses are $3,000. If the owner becomes disabled, the monthly benefit payable under his policy will be
$2,500
An insurer must notify the consumer in writing that an investigative consumer report has been requested within how many days of the initial request?
3 days
*Policy loan requests, except for loan requests for payment of due premiums, may be deferred for a period of up to
6 months
What is the purpose of the impairment rider in a health insurance policy?
?To exclude coverage for a specific impairment?
A subscriber has been treated for a medical condition by his primary care physician for 3 months with experimental remedies without significant health improvement before being referred to a specialist. Which of the following types of plans does the subscriber have?
A gatekeeper HMO plan to control the costs
Which of the following terms is used to define the period of time during which an annuitant makes payments into an annuity?
Accumulation period
An individual is approaching retirement age and is concerned about having proper coverage should he have to be placed in a long term care (LTC) facility. His agent told him that LTC policies would provide necessary coverage at all of the following levels EXCEPT?
Acute
Which statement below is incorrect regarding the type of term insurance that fits best with the applicants needs?
Applicants who may require a larger death benefit in the future should buy convertible term insurance
In whole life insurance, when is the policy cash value scheduled to equal the face amount?
At the insureds age 100
An underwriter is revewing an applicant with an extensive medical history. Which of the following would give the underwriter a better understanding of how the applicant has been treated for various illnesses?
Attending physicians statement
an applicant gives her agent a completed application and the initial premium. What can the agent issue her that acknowledges the initial premium payment?
Conditional receipt
Which of the following provisions gives an employee the right to exchange group insurance for an indivdual policy within a certain number of days from termination of employment?
Conversion provision
An employee dies having 6 quarters of coverage during the previous 13-quarter period. What status of coverage does the employee have under Social Security?
Currently insured
Which of the following is NOT a standard exclusion in life insurance policies?
Disability
All of the following are features of a health insurance plan purchase on the health insurance marketplace except?
Dollar limits on essential benefits
The Uniform Provision Law that prevents an insurance company from altering its agreement with a policyholder by referring to documents or other items not contained in the policy is called the
Entire contract provision
The stop loss feature on a major medical policy is intended to
Establish maximum amount of out of pocket expenses that an insured will have to pay for a medical expense in a calendar year
Which federal act defines rules pertaining to protected heath information?
HIPAA
In order for an alumni association to be eligible to purchase group health insurance for its members, all of these statements must be true EXCEPT when the association
Has been active for five years minimum
An insured has an individual disability income policy with a 30 day elimination period. He becomes disabled on June 1 for 15 days. When will he collect on his disability income payments?
He wont collect anything
All of the following information needs to be included on an application for life insurance except
Health insurance policies in force
Life insurance can provide which of the following?
survivor protection
Which of the following is NOT true regarding a noncancellable policy?
Insurer can increase the premium above what is stated in the policy if claims experience is greater than expected
ALl of the following statements are true regarding an Ordinary (Straight) Life policy EXCEPT?
It does not have a guaranteed death benefit
Which of the following best described a major medical expense policy?
It provides catastrophic medical coverage beyond basic benefits on a usual customary and reasonable basis
Which of the following time periods is the general enrollment period for medicare part b?
Jan 1 - March 31 each year
When comparing a joint life policy to two individual life policies of the same amount of the same insured, which condition is true?
Joint life has a lower premium than the total of the two individual policies
An annuitant pays the annuity premium on the 14th of each month. Which of the following best describes this arrangement?
Level
All of the following are excluded from coverage in an individual health insurance policy except?
Mental illness
Which of the following would qualify as a suspicious transaction and would require the filling of an SAR?
Multiple wire transfers from the account in the amount of $5000
Dividends received on participating life insurance policies are
Not taxable because they are a return of unused premiums
Which dividend option will increase the death benefit?
Paid up additions
An equity indexed annuity will grow based upon?
Performance of a recognized index
Ed is covered under a health plan provided by his employer. He was told that his insurance would pay the majority of the covered expenses if he would choose to see a provider in his plan's list. If Ed chose to be treated by a provider who was not on the list, his portion of the bill would be greater. Ed is covered under a/an
Preferred Provider Plan
The manner and/or frequency that the policyowner pays the policy premium is called
Premium mode
Which of the following is a provision found in life insurance policies?
Reinstatement
Which of the following optional provisions allows insurers to limit benefits to an insured's average income over the last 2 years
Relation of Earnings to insurance
Which of the following individuals would be a likely candidate to purchase a deferred annuity?
Someone who wants to grow retirement funds tax deferred
Whole responsibility is it to ensure that the application for health insurance is completed and accurate?
The agent's
An insured needs ongoing treatment for a diabetic condition. Under PPACA, which of the following is correct?
The condition must be covered under the insureds plan.
A man is an attorney when he applies for a health policy. He decides to become a professional bungee jumper. He files a claim. What should happen?
The insurance company will pay the claim according to the benefits avaialble if the correct premium has been paid
Which of the following statements concerning the medical information bereau is correct?
The medical information bureau assists underwriters in evaluating and classifying risks
Which of the following bears the investment risk in a variable life insurance policy?
The policyowner
When a settlement option is chosen at death, how are the monthly income payments taxed?
The principal portion is generally income tax free while the interest portion is taxed as ordinary income.
Which of the following is true regarding taxation of accelerated benefits paid under a life insurance policy?
They are considered taxable income
What is the purpose of a buy-sell agreement?
To allow the business buyout in case of the owner's death
Because of an injury, an insured has been unable to work for 9 months. He paid the policy premium for his life insurance for the first 6 months of disability, but didnt have to pay anything for the remaining 3 months, yet the policy remained in force. the policy includes
Waiver of premium rider
If the policy summary for a life insurance policy is not given when the application is taken, when must the policy summary be given to the policyowner?
When the policy is delivered
Under the mandatory uniform provision notice of claims, written notice of a claim must be submitted to the insurer within what time parameters?
Within 20 days
The entire contract includes all of the following except?
a buyers guide
the benefits for group disability plans are based on
a percentage of the workers income
which of the following statements is not true regarding health insurance policy provisions?
all additional provisions written by insurers are cataloged by their respective states
which of the following is considered a field underwriter ?
an agent
All of the following could qualify as a group for the purpose of purchasing group health insurance excpet?
an association of 35 people
The corridor deductible applies between
basic and major medical coverage
A whole life policy is surrendered for a reduced paid up policy. The cash value in the new policy will
continue to increase
an individual has a $200,000 convertible term life insurance policy. if he chooses, he can
convert to a whole life policy for the same face amount without proof of insurability
HMO members pay a small fee when they see their primary care physician. This fee is called a
copay
To be valid, an insurance policy must have all of the following except?
countersigniture
a limited health insurance policy that will pay a lump sum to an insured diagnosed with a heart attack, stroke, or renal failure is known as
critical illness insurance
In this state the owner gets a free look of a specified number of days from?
delivery of the policy
In the event one of two business partners becomes disabled and unable to work, what type of arrangement would help the nondisabled parner to buy the disabled partners business interest?
disability buy sell
which of the following best describes pure life annuity?
it provides the highest monthly benefits
Contributions to Roth IRA are
not tax deductible
Which of the following medicare parts provides prescription drugs benefit?
pard d
an insured purchased a health insurance policy with a renewability clause that states the policy is guaranteed renewable. this means that as long as the required premiums are paid, the policy will continue until the insured
reaches age 65
Insureds have the right to do which of the following if they have NOT received the proper claim forms within 15 days of their notice to the insurer of a covered loss under a medical policy?
submit the description in their own words on a plain sheet of paper.
Who is obligated to make sure all questions are answered and all necessary signatures are collected on the application?
the agent
In life insurance, which of the following is NOT required to have an insurable interest in the insured?
the beneficiary.
all of the following are consideration in an insurance policy except?
the cash value in the policy
all of the following are true about key person insurance except
the death benefit is taxable to the business
Under the Payment of Claims provision, to whom will the insured's benefits be paid if the insured is deceased?
the insureds primary beneficiary
which of the following is true regarding a joint life annuity?
the payments stop at the first death
Which of the following statements is incorrect regarding the definition of total disability?
total disability is the inability to perform partial duties of any occupation for which a person is suited by reason of education, training, or experience.
Which method of dealing with risk is applied when insurance is purchased?
transfer
What does basic medical expense cover?
x ray charges
