Accidental life and health

What is the maximum the Guaranty Association will be liable for in regard to insurance for a single life ? A. $ 50,000 B. $ 150,000 C. $ 300,000 D. $ 500,000

$ 300,000

Rodger violated the Consumer Credit Model Act twice in 60 days . What is the maximum monetary fine Rodger will pay ? A. $ 100,000 B. $ 50,000 C. $ 30,000 D. $ 75,000

30,000

Decreasing Term Insurance used with Consumer Credit , may not exceed more than what time ? A. 15 days from the time the loan expires B. 10 days from the time the loan expires C. 20 days from the time the loan expires D. 30 days from the time the loan expires

A. 15 days from the time the loan expires

After John was in a car accident , he was confined to a Skilled Nursing Facility . How many days will Medicare pay for John's full benefits ? A. 20 days B. 10 days C. 15 days D. 3 days

A. 20 days

What is the maximum amount of medical expenses that may be deducted by a self employed proprietor ? A. 50 % of their annual earned income B. 75 % of their annual earned income C. 100 % of their annual earned income D. 75 % of their total cost

A. 50 % of their annual earned income

Lines Sue cancelled her Credit Health policy and only received a refund of her unearned premium amount . When did Sue cancel her policy ? A. After the first 30 days B. After the first 15 days C. After the first 10 days D. After the first week

A. After the first 30 days

Sue cancelled her Credit Health policy and only received a refund of her uneared premium amount . When did Sue cancel her policy ? A. After the first 30 days B. After the first 15 days C. After the first 10 days D. After the first week

A. After the first 30 days

Where would the full name and address of an insurer , the debtor's name and debt amount be required in regard to Credit Insurance A. Credit Life and Health Certificate B. Credit Life and Health Assignment C. Credit Life and Health Regulation Document D. Credit Life and Health Insuring Agreement

A. Credit Life and Health Certificate

Jack and Jill are identical twins that applied for coverage . Both have similar lifestyles , but Jill is a little more financially stable than Jack . Jill was charged a higher rate than her brother . What does this describe ? A. Discrimination B. Class Rating C. Rebating D. Twisting

A. Discrimination

What policy provision contains the application , printed contract and all aspects of a policy ? A. Entire Contract B. Total Contract C. Whole Contract D. Complete Contract

A. Entire Contract

Who has the authority to make changes to a policy? A. Executive officer of the company B. Agent and policyholder C. Policyholder D. Agent

A. Executive officer of the company

According to the ACA , what term refers to an individual's current Health coverage that is kept in force ? A. Grandfathered B. Rescinded C. Benchmarked D. Preventive

A. Grandfathered

What is an agent's ability to act beyond the authority granted in their agency agreement ? A. Implied Authority B. Apparent Authority C. Express Authority D. Standard Authority

A. Implied Authority

Course Under the terms of which type of receipt , will an approved policy , with its premium , be effective ? A. Insurability Conditional Receipt B. Unconditional Receipt C. Guaranteed Receipt D. Approved Receipt

A. Insurability Conditional Receipt

Which of the following is a feature of a Whole Life insurance policy ? A. It has cash value that may be borrowed against B. It has flexible premiums C. It has an adjustable death benefit D. It has a revocable beneficiary attachment

A. It has cash value that may be borrowed against

When can it be disclosed by UVA Company that their policy is guaranteed because of the Delaware Guaranty Association ? A. It may never be disclosed B. Only when granted permission from the Fraud Prevention Association ' C. By written permission from the Insurance Counsel D. By written permission from the Delaware Commission

A. It may never be disclosed

If John dies before his annuity payout start date what will happen to his interest earned? A. It's taxable B. It's taxable for the initial year C. It's not taxable D. It's taxable for the beneficiary

A. It's taxable

What is the manner in which companies and producers conduct their business called ? A. Market Conduct B. Personal Business C. Business Standards D. Professional Courtesy

A. Market Conduct

Sherry is a 38 year old with a guaranteed insurability rider attached to her policy. What does she need to increase her benefit amount? A. Nothing B. Credit report C. Bank statement D. State income tax form

A. Nothing

Quiz Which term represents having experienced knowledge of selling insurance products ? A. Professional B. Industrious C. Confident D. Fiduciary

A. Professional

An owner has no rights to renewal under which kind of health policy ? A. Term B. Guaranteed C. Conditional D. Pure

A. Term

Which of the following will occur if a Board of Directors is not selected within the first 60 days of the Life and Health Guaranty Association ? A. The Commissioner may appoint the initial members B. There will be a vote by the members C. There will be decision by the Governor of Delaware D. The Commissioner will elect them by majority vote

A. The Commissioner may appoint the initial members

What is a basic ground concept about level premiums? A. The early years are charged more than what is needed B. Level premiums are not changed due to age of an insured C. Level premiums build cash the first 3 years after issue D. Level premiums are paid every 31 days

A. The early years are charged more than what is needed

) Under a Health Insurance policy , benefits other than death benefits , that have not otherwise been assigned , will be paid to : A. The insured B. Creditors C. Beneficiary of the death benefit D. The spouse of the insured

A. The insured

Jason became disabled and immediately wrote his insurance company regarding his disability. What mandatory provision states that claims must be paid to him immediately upon his written proof of loss to his insurance company? A. Time of payment of claims B. Legal claims C. Disability claims D. Medical action claims

A. Time of payment claims

From the following descriptions , which one would be a good example of a Limited Pay Life insurance policy ? A. Whole Life insurance policy where the premiums are paid up after 20 years B. Term Life insurance policy where premiums are paid up after 10 years C. Whole Life insurance policy where the premiums are paid out over a 10 year period of time D. Term insurance covering a mortgage

A. Whole Life insurance policy where the premiums are paid up after 20 years

An Industrial Life Insurance Policy has a face amount that is : A. $ 3,000 or less B. $ 1,000 or less C. $ 2,500 or less D. $ 5,000 or less

B. $ 1,000 or less

ALTC policy covers how many consecutive days of coverage ? A. 24 days B. 12 days C. 30 days D. 45 days

B. 12 days

How long must a qualified employee work to be covered under a small employer's plan ? A. 20 hours of part time work B. 30 hours of full time work C. 50 hours of full time work D. 45 hours of full time work

B. 30 hours of full time work

What is the time an insured is prevented from filing a law suit against an insurer ? A. 10 days and not longer than one year from the date of proof of loss B. 60 days and not longer than three years from the date of proof of loss C. 20 days and not longer than three years from the date of proof of loss D. 15 days and not longer than five years from the date of proof of loss

B. 60 days and not longer than three years from the date of proof of loss

Changes may only be made to a policy with : A. Verbal permission from the executive officer B. A written agreement between the client and the company C. Only the company's authorization D. Permission from the Commissioner

B. A written agreement between the client and the company

Which of the following is an unfair trade practice of churning ? A. An agent makes false statements about policy benefits B. An agent induces an insured to replace their policy , so the agent can make a commission C. An agent makes critical statements about the financial condition of a company D. An agent misrepresents the terms of a contract

B. An agent induces an insured to replace their policy , so the agent can make a commission

When may a Universal Life policy be surrendered for its cash value? A. After 3 years B. At any time it's targeted value is reached C. Within 2 years of developing cash value D. Never, it's only pure death protection

B. Anytime

Boycott , coercion and intimidation are illegal . What are they intended to restrict ? A. Premium rates B. Fair trade C. Illegal inducements D. Claims practices

B. Fair trade

What was established to conduct fraud investigations ? A. Investigative Consumer Fraud Bureau B. Insurance Fraud Prevention Bureau C. The Life and Health Guaranty Bureau D. Privacy Bureau

B. Insurance Fraud Prevention Bureau

What was established to conduct fraud investigations ? A. Investigative Consumer Fraud Bureau B. Insurance Fraud Prevention Bureau C. The Life and Health Guaranty Bureau D. Privacy Bureau

B. Insurance Fraud Prevention Bureau

In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT : A. The length of coverage B. The type of investment C. The premium payment period D. The amount of insurance

B. The type of investment

Jan bought 2 policies from N & G insurer . Her benefits have exceeded her maximum benefit amount . Which of the following will be the action of N & G ? A. N & G will cancel the policies B. There will be a pro rata benefit reduction C. N & G will cancel 2 policies D. N & G will pay the benefits using a Split Dollar formula

B. There will be a pro rata benefit reduction

_______ annuities are invested insecurities, hopefully maintaining a constant purchasing power, as a protection against inflation A. Separate B. Variable C. General D. Guaranteed

B. Variable

What is the maximum fine that can be imposed on an agent that was found guilty of fraud ? A. $ 25,000 B. $ 3,000 C. $ 10,000 D. $ 50,000

C. $ 10,000

Sam obtained a $ 100,000 loan . How much Consumer Credit protection should Sam acquire ? A. $ 100,000 plus $ 50 to cover his surcharge B. Any amount that he can afford C. $ 100,000 D. Any amount that exceeds $ 100,000

C. $ 100,000

What is the maximum the Life and Health Insurance Guaranty Association will pay for Health benefits ? A. $ 50,000 B. $ 200,000 C. $ 100,000 D. $ 500,000

C. $ 100,000

What must agents always express when selling insurance products A. Loyalty to their insured B. Equal standards for an insured and insurer C. A high degree of professionalism D. A standard appointment with an insured

C. A high degree of professionalism

Which kind of insurers are members of the Delaware Life and Health Guaranty Association ? A. Only Foreign insurers B. Only Domestic and Foreign insurers C. Admitted insurers D. Insolvent Insurers

C. Admitted insurers

All of the following are true EXCEPT: A. Notice of claim should be within 20 days B. Written notification of a claim can be presented to an insurer C. And insured must notify an insurer of a claim on forms prescribed by the insurer D. Notification Regarding clean to an agent is the same as giving notice to an insurer

C. An insured must notify an insurer of a claim on forms prescribed by the insurer

Which element of contract formation requires that an applicant for insurance have the legal capacity to make a contract ? A. Consideration B. Agreement C. Competent parties D. Legal object

C. Competent parties

Harry is very ill and he wants insurance protection to pay his outstanding loan balance if he should become disabled . What type of protection would be best for Harry ? A. Increasing Term B. Level Term C. Consumer Credit D. Disability and Death Protection

C. Consumer Credit

Contracts that are prepared and submitted on a " take it or leave it " basis , are classified as : A. Unilateral Contracts B. Aleatory Contracts C. Contracts of Adhesion D. Binding Contracts

C. Contracts of Adhesion

What covers the life of a debtor when an outstanding loan balance is due ? A. Industrial Life B. Increasing Life C. Credit Life D. Guaranty Life

C. Credit Life

What association protects policyholders from an insurance company's insolvency ? A. Delaware Insurance Fund B. Delaware Fraud Association C. Delaware Life and Health Insurance Guaranty Association D. Delaware Insolvency Association

C. Delaware Life and Health Insurance Guaranty Association

An insurer may not refer to any document that is not contained in a contract . Which mandatory state provision contains this information ? A. Legal Action B. Free Look C. Entire Contract D. Contestability

C. Entire Contract

What term relates to an agent properly collecting and submitting a client's premium to their insurer ? A. General B. Apparent C. Fiduciary D. Standard

C. Fiduciary

The Time Limit on Certain Defenses states that if an insured had a condition when their policy was issued , their condition would not be covered during which time ? A. First year B. First 3 years C. First 2 years D. First 3 months

C. First 2 years

When an insurer will not refuse to renew or cancel a policy, but will increase the policy's premium, describes which type of policy? A. Conditional B. Specified Renewable C. Guaranteed Renewable D. Term

C. Guaranteed Renewable

An individual's premium will not be increased by which of the following riders? A. Payor rider B. Premium rider C. Impairment rider D. Indemnity rider

C. Impairment rider

If an insured dies without naming a beneficiary then were will their proceeds be distributed ? A. Continent beneficiary B. Secondary beneficiary C. Insured's estate D. Primary beneficiary

C. Insured's estate

Karen has an Annuity Certain , and dies shortly after the payments start but before a certain period of time has elapsed . What will happen to her remaining money ? A. It will remain with her company B. It will be paid to her beneficiary in one lump sum C. It will be paid to the beneficiary for the rest of the certain period D. It will be paid to her tertiary beneficiary

C. It will be paid to the beneficiary for the rest of the certain period

Amy and John will receive a set amount from their annuity until one dies . What type of annuity did they buy ? A. Survivorship B. Limited Life C. Joint Life D. Period Certain

C. Joint Life

Which of the following describes an annuity's tax deferred growth? A. Non qualified B. Permanently taxed C. Not taxed during an annuity's growth D. Taxed at retirement

C. Not taxed during an annuity's growth

Which of the following will not be contractually guaranteed in Janets whole life insurance policy? A. Nonforfeiture benefit options B. Premiums are fixed C. Partial withdrawal features beyond a surrender charge period D. Cash value will eventually replace the death benefit

C. Partial withdrawal features beyond a surrender charge period is not a guaranteed feature of a whole life policy

Which Renewability provision are you most likely to see on a Travel Accident policy ? A. Non - Cancellable B. Conditionally Renewable C. Period of time D. Optionally Renewable

C. Period of time

What is the primary reason that Survivorship Life insurance policies are purchased ? A. To pay a large lump sum to the survivor B. To pay a large funeral expense C. To pay estate taxes D. To pay off a mortgage

C. To pay estate taxes

Representations are : A. Always untrue B. False until proven true C. True to the best of one's knowledge D. Guaranteed

C. True to the best of one's knowledge

What makes an insurance contract to be considered an Aleatory contract ? A. The insurance company relies on valid critical information of an applicant B. The contract is based on one party C. Unequal values are given by both parties D. The contract has conditions that vary by situation

C. Unequal values are given by both parties

Who approves the board members of the Life and Health Guaranty Association ? A. The qualified members of the association B. The Domestic insurers C. The Commissioner D. The Governor

Commissioner

Health Harry is very ill and he wants insurance protection to pay his outstanding loan balance if he should become disabled . What type of protection would be best for Harry ? A. Increasing Term B. Level Term C. Consumer Credit D. Disability and Death Protection

Consumer Credit

The Delaware Guaranty Association is liable for the lesser amount of which total net cash value for Life Insurance ? A. $ 50,000 B. $ 300,000 C. $ 150,000 D. $ 100,000

D. $ 100,000

If an insured pays their premium monthly , how many days after their premium is due will their policy remain in force ? A. It will lapse immediately B. 14 days C. 31 days D. 10 days

D. 10 days

If an insured pays their premium monthly , how many days after their premium is due will their policy remain in force A. It will lapse immediately B. 14 days C. 31 days D. 10 days

D. 10 days

Valerie forgot to pay her monthly Health Insurance premium . How long will she be given to submit her premium payment before her policy lapses ? A. 31 days B. 20 days C. 15 days D. 10 days

D. 10 days

Tom pays his Health premium semi - annually . What is his grace period ? A. 10 days B. 15 days C. 20 days D. 31 days

D. 31 days

Ethics An insurance company was fined $ 50,000 for insurance fraud . How many violations did the company commit A. 3 B. 2 C. 10 D. 5

D. 5

Kyle sold a policy to his sister . Later he gave his sister the commission he earned from the policy . What is this called ? A. Twisting B. Churning C. Rebating D. An Unfair Trade Practice

D. An Unfair Trade Practice

Bob has an Equity Indexed Life policy and his friend William has a Variable Life policy . What is the advantage of Bob's policy over his friend's policy ? A. Bob's policy contains a minimum guaranteed face amount B. Bob can choose his investments C. Bob's cash value can be borrowed against D. Bob's policy has a minimum guaranteed rate of return

D. Bob's policy has a minimum guaranteed rate of return

What is the special feature of a Guaranteed Renewable policy ? A. It allows one to renew their policy up to a certain age specified in their policy and their premium will remain constant B. It allows an insured to renew their policy annually C. It allows an insured to renew their policy until age 60 D. It allows an insured to renew their policy to a certain age and the insurer will increase their premium

D. It allows an insured to renew their policy to a certain age and the insurer will increase their premium

Which of the following is not covered under Medicare Part A ? A. Home Health Care B. Skilled Nursing Facility Care C. Medicare Hospice D. Outpatient Care

D. Outpatient Care

The consideration clause states the insurer shall: A. Pay the premium B. State only the amount of the premium C. Identify the right to renew a policy D. Pay according to the contracts terms

D. Pay according to the contracts terms

Which of the following is not associated with a Universal Life policy? A. Universal life is a combination of term insurance and a separate savings account joined in a single contract B. The insurance company has the right to adjust the interest rates C. The policy has cash value D. The targeted premium pays for expenses and any excess is returned to the policy owner

D. Targeted premium pays for expenses and any excess is return to the policy owner

Bob purchased two Health policies . Later he submitted a claim to both of his insurance companies and each company paid the full claim amount . Which of the following will apply to this situation ? A. Nothing will happen because it is legal and an advantage for Bob B. The extra claim amount will apply to reduce Bob's premium C. Each company will automatically pay part of each claim D. The excess payment amount will be recovered from Bob

D. The excess payment amount will be recovered from Bob

During the replacement of an individual health insurance policy , who must sign a replacement form ? A. The insurer B. The agent and the existing insurer C. The replacing insurer D. The insured and the agent

D. The insured and the agent

A probationary period refers to: A. Benefit period. B. Income period C. Conditional period D. Waiting period

D. Waiting period

William submitted a notice of claim to his ensure. Due to the fact that he didn't have a claim form he hand wrote a letter with the nature and extent of his loss and send it to the insurer. Which of the following would be correct? A. William must send proof of his loss to the commissioner B. His hand-written letter will not be valid C. His claim will not be paid because he didn't fill out a claim form D. William was compliant in following his claim

D. William was compliant

When must an insurer provide claim forms to an insured ? A. Within 7 days B. Within 5 days C. Within 10 days D. Within 15 days

D. Within 15 days

John is an agent that obtained an application and premium from his client . What authority was represented by his actions ? A. Expressed B. Implied C. Fiduciary D. Apparent

Expressed

What term relates to an agent properly collecting and submitting a client's premium to their insurer ? A. General B. Apparent C. Fiduciary D. Standard

Fiduciary

This authority involves training an agent to sell insurance . What is it called ? A. Assumed B. Implied C. Apparent D. Acquired

Implied

( wrong ) If an insured dies without naming a beneficiary , then were will their proceeds be distributed ? A. Continent beneficiary B. Secondary beneficiary C. Insured's estate D. Primary beneficiary

Insured's estate

Wilson's Disability policy lapsed . He filed a reinstatement application and paid his premium and he was later reinstated . Three days after his reinstatement , he was hospitalized for a sickness . How much would his Disability policy pay for his hospitalization ? A. The full amount of his costs B. 50 % of the amount since he was hospitalized for the sickness C. Nothing D. The total indemnity

Nothing