Exam final
An employee is insured by a group major medical plan that is provided through her employer. The employer contributes 75% of the premium and the employee contributes the remaining 25%. If the insured received a benefit from this policy in the amount of $1,000, how much of this benefit would be taxed as income?
0.00
Once an insurer receives a claim, within how many days must the insurer provide claim forms to the insured?
10
An underwriter is reviewing 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 Physician's Statement
What type of an interest rate is guaranteed in universal life policies?
Contract interest
Which of the following is guaranteed under a variable whole life insurance policy?
Minimum death benefit
If an insurance company issues a policy even though some questions on the application were unanswered, when can the insurer get the answers to those questions?
Never; the insurer has waived its right to those answers by issuing the policy
Only the agent is involved in completing the agent's report. The agent's statement is
Not included in the "entire contract".
Under a group medical policy, prescription drug plans are
Optional benefits
The Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT
Purchase of a new home.
All of the following are true of the Survivorship Life policy EXCEPT
The premium is based on the age of each insured
Which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy
An Accidental Death Rider
Which of the following riders provides for the payment of part of the policy death benefit if the insured is diagnosed with a terminal illness that will result in death within 2 years?
Living Needs Rider
An Equity Indexed Annuity will grow based upon
Performance of a recognized index
An agent's first-year commission CANNOT exceed what percentage of the renewal commission for servicing a Medicare Supplement policy in its second year?
200%
Which of the following documents used in the underwriting process contains specific medical details about an applicant?
Attending Physician's Statement (APS)
An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as
Twisting
An insured has an individual disability income policy with a 30-day elimination period. He becomes disabled on June 1st for 15 days. When will he collect on his disability income payments?
He won't collect anything.
According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT
If an applicant is declined for an insurance policy, he or she has no right to know what was in the report.
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
To attain fully insured status under Social Security, an individual must have earned how many credits?
40 credits
Under the long-term care marketing regulations, which of the following questions would a producer NOT have to ask the applicant in order to determine if the purchase is suitable?
How much are you able to pay in premiums?
All of the following are characteristics of group health insurance plans EXCEPT
The parties that hold a group health insurance contract are the employees and the employer.
Which of the following is the primary source of information that an insurer uses to evaluate an insured's risk for life insurance?
Insurance application
All of the following must sign an application for health insurance EXCEPT the
Insurer
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.
According to the law of agency, insurance producers represent
Insurers
An agent received some inaccurate information, and, as a result, he publicly misstated the financial condition of another entity 12 times over a period of 3 months. If this fact is revealed, the agent may face a fine up to
10,000
An applicant completes an application for a disability policy and pays the initial premium. The producer gives the applicant a conditional receipt. Insurance coverage for the applicant will become effective when
The insurance company accepts the risk.
Key person insurance can provide protection for all of the following economic losses to a business EXCEPT
pay the death benefit to the estate of the insured
In the event of lapse, long term care insurance policies should include a provision that provides for reinstatement of coverage. This option is available within
5 months termination
When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?
Extended term
J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?
Fixed Amount
Which of the following is a correct statement about annuities?
Fixed annuities do not provide protection against inflation.
Which of the following policies can be described as a flexible premium adjustable life policy?
Universal Life
Which of the following types of insurance is investment based, has a level fixed premium, and a nonguaranteed cash value?
Variable Whole Life
Which of the following is true regarding a joint life annuity?
payments stop at the first death.
All of the following information needs to be included on an application for life insurance EXCEPT
Health insurance policies in force.
An insured wants to cancel her health insurance policy. Which portion of the contract would explain cancellation rights?
Renewability provision
All of the following are true regarding the federal Fair Credit Reporting Act EXCEPT
Reports may be sent to anyone who requests one.
Which of the following terms relates to disability income insurance?
Residual
Variable insurance and variable annuities are regulated by
SEC, FINRA and Departments of Insurance.
