9-9 l&h
An individual was just caught acting as an exclusive general agent - even though he is not properly licensed. Assuming that this occurred in a single day, what is the maximum penalty he faces?
A third-degree misdemeanor and a $1,000 fine
An insured misstates her age at the time the life insurance application is taken. This misstatement may result in
Adjustment in the amount of death benefit.
The term "fixed" in a fixed annuity refers to all of the following EXCEPT
Death benefit
Which of the following authorities monitors the financial strength of insurers?
Department of Insurance
How often must the Commissioner examine rating organizations?
Every 5 years
If an insurer changes a form that it uses to transact insurance, it must do which of the following?
File the form with the Commissioner for approval
Which is TRUE about the cash surrender nonforfeiture option?
Funds exceeding the premium paid are taxable as ordinary income.
All of the following are licensing requirements for a business entity, EXCEPT
Having all employees complete continuing education courses once every 2 years.
Fixed annuities provide all of the following EXCEPT
Hedge against inflation.
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
What is NOT a benefit of a POS plan?
It allows guaranteed acceptance of all applicants.
All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT
It is a life contingency option.
Which of the following best describes annually renewable term insurance?
It is level term insurance.
Which of the following is NOT a type of whole life insurance?
Level term
According to the PPACA metal levels classification, if a health plan is expected to cover 90% of the cost for an average population, and the participants would cover the remaining 10%, what type of plan is that?
Platinum
Another name for a substandard risk classification is
Rated.
What provision can reduce the disability benefit based upon the insured's current income?
Relation of earnings to insurance
A domestic insurer issuing variable contracts must establish one or more
Separate accounts.
Which of the following is true about the requirements regarding HIV exams?
The applicant must give prior informed written consent.
The primary beneficiary of her husband's life policy found that no settlement option was stated in the policy on the date of her husband's death. Who will select the settlement option in this case?
The beneficiary
Which of the following statements concerning group health insurance is CORRECT?
The employer is the policyholder.
Who bears all of the investment risk in a fixed annuity?
The insurance company
All of the following are true about variable products EXCEPT
The premiums are invested in the insurer's general account.
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.
Which of the following statements is most correct concerning the changing of an irrevocable beneficiary?
They can be changed only with the written consent of that beneficiary.
Regarding Medicare SELECT policies, what are restricted network provisions?
They condition the payment of benefits.
An insured's 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
Which of the following is a feature of a variable annuity?
Benefit payment amounts are not guaranteed.
All of the following statements describe a MEWA EXCEPT
MEWAs are groups of at least 3 employers.
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
Misrepresentation.
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.
Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the
Notice Regarding Replacement.
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
Payor Benefit
Disability income policies can provide coverage for a loss of income when returning to work only part-time after recovering from total disability. What is the benefit that is based on the insured's loss of earnings after recovery from a disability?
Residual disability
Which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments
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.
Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of
Twisting.
How soon after the due date should the insurer pay the agent appointment fees?
Within 30 days
All of the following statements about Medicare supplement insurance policies are correct EXCEPT
They cover the cost of extended nursing home care.
Which of the following is NOT true regarding Equity Indexed Annuities?
They earn lower interest rates than fixed annuities.
Within how many days must a producer respond to an inquiry from the Commissioner?
30 days
When an insurer offers services like preadmission testing, second opinions regarding surgery, and preventative care, which term would best apply?
Case management provision
Concerning group Medical and Dental insurance, which of the following statements is INCORRECT?
Employee benefits are tax deductible the year in which they were received.
What is the purpose of the rehabilitation benefit in disability insurance?
To cover the expenses of retraining the insured to return to work
The paid-up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
Which of the following Life Insurance policies would be considered interest sensitive?
Universal life
Once it has been reasonably proven that a person has knowingly violated the Insurance Code regarding unfair methods of competition, the Department may impose a civil penalty of
$5,000 for each violation.
An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This would indicate that his policy was written with a 30-day
Elimination period.
Following hospitalization because of an accident, Bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many days?
20
A producer has successfully completed 52 hours of continuing education (CE). How many hours can the producer apply to her current reporting period, and how many hours can she carry toward the next reporting period?
24 hours will be applied to the current reporting period, and 24 can be applied to the period immediately following.
How much inpatient care must be provided, following a vaginal delivery, by health insurance policies that provide maternity benefits?
48 hours
Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray?
50/50
When is the insurability conditional receipt given?
When the premium is paid at the time of application
