Texas life and health stimulated Exam
All of the following are correct about the required provisions of a health insurance policy except
A reinstated policy provides immediate coverage for an illness.
What is a deductible in a health insurance policy
A specified dollar amount that the insured must pay before the insurer pays any policy benefits.
To which of the following situations does the replacement regulations apply
A whole life policy re-issued with reduction in cash value
Not covered under long-term care policies
Acute care
Group health insurance is categorized by all of the following except
Adverse selection
How can a new physician be added to the PPO's approved list
Agree to follow the PPO standards and charge the appropriate fees
Which Medicare supplement policies are the core benefits found
All plans
Which of the following individuals is eligible for a health savings account
Allison is insured by a High Deductible Health Plan (HDHP)
All of the following are true of federal tax advantages of a qualified plan except
At distribution, all amounts received by the employee are tax free.
Premium increases as a result of age
Attained age
Unfair or deceptive acts in connection with the sale of insurance except ?
Attempting to settle a claim in which liability is clear
Occasional visits by which of the following medical professionals will not be covered under the long-term cares home healthcare
Attending physician
What are Usual reasonable and customary changes based on?
Average charge for a given procedure in the specific geographic area
Which of the following is a feature of a variable annuity
Benefit payment amounts are not guaranteed
And insured who has an accidental death and dismemberment policy loses her left arm in an accident what type of benefit will she most likely receive from this policy
Capital amount lump sum
Provisions provide sharing of expenses between the insured and the insurance company
Coininsurance
"Take it or leave it " bases classifies as
Contracts of adhesion
Which of the following is true about credit life insurance
Creditor is the policyowner.
What is another name for interest sensitive whole life insurance
Current assumption life
purpose of seven pay test
Determines of the insurance policy is a MEC
Long-term care coverage may be available as any of the following options except
Endorsement to a health policy
If an insured is not required to pay a deductible what kind of coverage does he or she have
First dollar
In which of the following situations with Social Security disability benefits not cease
The individual son gets a part-time job to help support the family
What is not a feature of a noncancelable policy
The insurer may terminate the contract only at renewal for certain conditions
All of the following are true statements regarding the accumulation of interest option except
The interest is not taxable since it remains inside the insurance policy.
Information concerning the applicants health history
The medical information bureau "MIB"
Which of the following determines the cash value of a variable life insurance policy
The performance of the policy portfolio
Which of the following determines the cash value of variable life policy
The performance of the policy portfolio
Under the accidental death and dismemberment coverage what type of benefit will be paid to the beneficiary in the event of the insures accidental death
The principal sum
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy
Which of the following is not true regarding partial disability
This is a form of insurance that covers part-time workers.
When insured notifies insurance company he's disabled what provision says claims must be paid immediately upon written proof of loss
Time payment of claims
The purpose of managed care health insurance plans is to
To control health insurance claims expenses
What is the main purpose of the regulation on a life insurance policy illustrations
To help customers make educated decisions in buying life insurance
The paid up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
All of the following are true regarding the convertibility option under a term life insurance policy except
Upon conversion, the death benefit of the permanent policy will be reduced by 50%
What is the name of a clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military
War or military service
An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?
When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health
A rider that is usually level term
Spouse term rider
Basic surgical expense covers
Surgeons anesthesiologist and operating room
A producer is helping a married couple determine the financial need of their children in the event one or bullshit die what is it called
Survivor protection
Policy called "second to die" ?
Survivorship
Which of the following information will be stated in the consideration clause of a life insurance policy
The amount of premium payment
The initial amount of credit life insurance may not exceed
The amount to be repaid under the contract
Which of the following is not true regarding the Annuitant
The annuitant cannot be the same person as the annuity owner.
The president of a company is starting an annuity and decides that his corporation will be the annuitant which of the following statements is true
The annuitant must be a natural person.
Upon the death of the insured the primary beneficiary discovers that the insured shows the interest only settlement option what does this mean
The beneficiary will only receive payments of interest earned on the death benefit
Labs due to nonpayment of premium within how many days with the policy be automatically reinstated once the outstanding premium is paid
45 days
Insurance commissioner may exam the affairs of an insurer as often as necessary but not less than once every
5 years
No one's license has been revoked can receive another license in Texas for
5 years
And insured has a primary group health plan and an excess plan each covering losses up to $10,000 the insured suffered a loss of $15,000 disregarding any copayments or deductibles how much will the excess plan pay
5,000
Which of the following statements is not true concerning insurable interest as it applies to life insurance
A debtor has an insurable interest in the life of a lender.
A straight life policy has what type of premium
A level annual premium for the life of the insured
Brain surgeon develops tremors in right arm which disability income policy will cover her for all losses
"Own occupation less restrictive " than other definitions
Ensures long-term care policy is scheduled to pay a fixed amount of coverage of 120 per day the long-term care facility only charged $100 per day how much will the insurance company pay
120 a day
An insurer must acknowledge receipt of notice of claim within how many days
15 days
What is a penalty tax for non-qualified distributions from a health savings account
20%
If an HMO policy is canceled for nonpayment of the amount due under the contract , how long of a notice must the insurer give the insured?
30 days
The commissioner of insurance issues a cease and desist order to an agent the agent wishes to contest the chargers in court how many days after the order was issued does the agent have to make the request?
30 days
Conversion to an individual whole life policy is permit without evidence of insurability within how many days of the termination of employment
31 days
How long must a producer maintain records of continuing education course completion
4 years
Non-qualified Retirement Plan
Split - dollar plan
And individuals purchasing a permanent life insurance policy with face value of 25,000 he wants to be sure that the additional coverage will be available in the future which of the following will be included in the
Guaranteed insurability option
Stranger oriented life insurance policies are in direct opposition to the principle of
Insurable interest
A life insurance policy has a legal purpose of both of which of the following elements exist
Insurable interest and consent
Y was issued a conditional receipt on August 14 August 22 Y died
Issue the policy and pay the face value to the beneficiary
Which of the following best describes a misrepresentations
Issuing sales material with exaggerated statements about policy benefits
Why is an equity indexed annuity considered to be a fixed annuity
It has a guaranteed minimum interest rate.
What is the benefit of choosing extended term as a non-forfeiture option ?
It has the highest amount of insurance protection
Which of the following is not true regarding a certificate of authority
It is issued to group insurance participants.
Which of the following best describes annually renewable term insurance
It is level term insurance
Which statement is not true regarding straight life policy
Its premium steadily decreases over time, in response to its growing cash value.
The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called
Joint and survivor
An individual covered under group life insurance policy may convert the policy to any of the following except
Level term
Example of limited pay life policy
Life Paid-up at Age 65
All of the following statements concerning Medicaid are correct except
Medicaid is a state funded program that provides health care to persons over age 65, only
If a dental plan is integrated it is combined with what type of plan
Medical
All of the following are grounds for cancellation of an HMO plan except
Misstatement of age in the application
The Medicare part a deductible
Not covered under plan A in Medigap
Premiums are taxed or non-taxed
Not tax
Traditional IRA contributions are tax deductible based on which of the following
Owner's income
Probation period and group health
Period of time that labs before employees eligible for health coverage
A guaranteed renewable health insurance policy allows the
Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class.
Which of the following is correct concerning the taxation of premiums in a key person life insurance policy
Premiums are not tax deductible as a business expense.
Taxation of premiums in a key person life insurance policy are
Premiums are not tax-deductible as business expense
What is the initial period of time specified in a disability income policy that must pass after the policy is enforced before a loss can be covered
Probationary period
The paid up option uses the dividend to
Purchase a smaller amount of the same type of insurance as the original policy
And insured pays 1200 annually for her life insurance premium the insured applies this year's $300 worth of accumulated dividends to the next year's premium that's reducing it to 900 what option does this describe
Reduction of premium
Todd has a hernia 2000 of a surgery will be covered what system is Todd's insurance company using
Relative value
What health policy provisions describe the insurance right to cancel coverage
Renewability provision
The regulations regarding replacement apply to which of the following
Renewable term
An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?
Revocable
Stop loss limited is
Specific dollar amount beyond which the insured no longer participates in the sharing of expenses
A universal life insurance policy is best described as an
annually renewable term policy with a cash value account
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
conditions
A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as
critical illness
The dividend option in which the policy owner uses dividends to purchase a term policy for one year is referred to as
one-year term option
An insured committed suicide one year after his life insurance policy was issued. The insurer will
refund the premiums paid
Interest earned on policy dividends is
taxable
All of the following are true regarding a decreasing term policy except
the payable premium amount steadily declines throughout the duration of the contract