Final exam insurance
V is insured under an individual Disability Income policy with a 30-day Elimination period. On July 1, he is involved in an accident and temporarily disabled. He returns to work on December 1. How many months of benefit are payable?
4 months
S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations?
36
Which of these is NOT a reason for a business to buy key person life insurance?
A pension deficiency if the key employee dies
Before a life policy is issued, which of these contract elements is necessary?
A signed application by the prospect
All are true statements regarding the underwriting process, EXCEPT:
AIDS and HIV virus exams can be conducted in a discriminatory fashion
How long does the coverage normally remain on a limited-pay life policy?
Age 100
Accidental Death coverage is provided to commercial airline passengers in which of the following types of policies?
Blanket Accident policy
Which of the following BEST describes a Hospital Indemnity policy?
Coverage that pays a stated amount per day of a covered hospitalization
Insurance issued on a debtor to cover outstanding balances on installment loans is called
Credit life
S is the policyowner of a Major Medical policy. The premiums are paid monthly and due on the 1st of each month. S fails to make September's payment and is hospitalized October 15th. When S files the claim for this hospitalization, the insurer will likely
Deny the claim
T purchased a $100,000 single premium, Straight Life annuity 5 years ago. He has received monthly payments since the inception of the annuity. If T dies, the insurance company
Does not have to make any further payments
S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?
Full benefits are payable under the Master contract
X is insured with a Disability Income policy that provides coverage until age 65. This policy allows the insurer to change the premium rate for the overall risk class assigned. Which of these renewability features does this policy contain?
Guaranteed renewable
The type of annuity that must be purchased with one monetary deposit is called a(n):
Immediate annuity
What is being delivered during a policy delivery?
Insurance contract to the proposed insured
Which of these arrangements allows one to bypass insurable interest laws?
Investor-Originated Life Insurance
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?
at future dates specified in the contract with no evidence of insurability required
Insurance contracts are known as because certain future conditions or acts must occur before any claims can be paid.
conditional
T is given a receipt after completing a life insurance application and paying the initial premium. Under this situation, T's coverage is
conditional, depending on the insurer's underwriting guidelines
Alaska's 10-day free-look period for life insurance policies begins at the
date of delivery
A producer who makes a false statement intended to malign another insurance company is committing the illegal act of
defamation
A -- is the signed document that starts the free-look period.
delivery receipt
Why would the Director examine the records of an insurance company?
determine the solvency of the company
M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect, EXCEPT:
free-look period has expired
Which of the following provisions specifies how long a policyowner's health coverage will remain in effect if the policyowner does not pay the premium when it is due?
grace period
In life insurance, the needs approach is used mostly to establish:
how much life insurance a client should apply for
Who does a producer represent during the course of an insurance transaction?
insurer
An insurance company normally has 2 years to contest information provided on an accident and health application. This 2 year period begins on the date that the:
insurer dates the policy
Defamation occurs when a producer makes a false statement intended to
malign another insurer
Which type of insurance company allows their policyowners to elect a governing body?
mutual
With Optionally Renewable Health policies, the insurer may:
review the policy annually and determine whether or not to renew it
A noncontributory group term life plan is characterized by:
the entire cost of the plan is paid for by the employer
The amount of coverage on a group credit life policy is limited to:
the insured's total loan value
Insured losses are covered immediately after a health policy is reinstated when
the losses result from accidental injuries
What is the primary factor that determines the benefits paid under a disability income policy?
wages
If a 10-Year Term Life policy contains a Renewability provision, the policy will renew
without evidence of insurability
Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy?
Issue the policy with an altered Time of Payment of Claims provision
A whole life insurance policyowner does not wish to continue making premium payments. Which of the following enables the policyowner to sell the policy for more than its cash value?
Life settlement contract
Under a Guaranteed Renewable health insurance policy, the insurer
May cancel the policy for nonpayment only
If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses?
Medicare Supplement
If a Medicare Supplement policy involves replacement, it must be verified on a question located
On the application
In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy?
Owner's Rights
doctors and hospitals in a designated area contract with an insurer to provide services at a prearranged cost to the insured?
PPO
What must the policyowner provide to the insurer for validation that a loss has occurred?
Proof of Loss
The provision that can be used to put an insurance policy back in force after it has lapsed due to nonpayment is called:
Reinstatement
Any changes made on an insurance application requires the initials of whom?
applicant
What is the authority given to a producer to transact business on behalf of the insurer.
appointment
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son?
Revocable
An immediate annuity consists of a:
Single Premium
Which mode of payment is NOT used by health insurance policies?
Single Premium
The percentage of an individual's Primary Insurance Amount (PIA) determines the benefits paid in which of the following programs?
Social Security Disability Income
Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party?
Subrogation
What is the underlying concept regarding level premiums?
The early years are charged more than what is needed
What is the basic function of an annuity?
The systematic liquidation of accumulated funds
is the act of replacing existing life insurance with a new life insurance policy based upon incomplete or incorrect representations.
Twisting
What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled?
Waiver of premium rider
A Cost of Living rider gives the insured
additional death benefits
