Guaranteed Exam 1

If a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?

Prior to performance of the test

The manner and/or frequency that the policyowner pays the policy premium is called

premium mode

Which of the following would benefit the most from straight life immediate annuity?

A 60-year old man who needs as much retirement income as possible

What is it called when a doctor accepts the Medicare approved amount?

Assignment

Which of the following is NOT a Medicaid qualifier?

Insurability

AN insurer can decide to not renew an optionally renewable policy

On premium due dates

Which of the following best describes a rebate?

a producer returning part of her commission to her client, as an inducemet to buy

Insured's have the right to do which of the following if they have not received the proper claim within 15 days of their notice to the insurer of a covered loss under a major medical policy?

Subit the description in their own words on aheet of paper

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

A policy reissued with a reduction in cash value

An insured recently received his major medical insurance policy. Only 20 days after the policy issue, while recreational rock climbing, the insured suffered a fall that required hospitalization, surgery and physical therapyto repair his broken leg. Which of the following is true?

Both a deductible and coinsurance payments will be required.

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

If an insured is not entirely satisfied with a policy issued, the insured may return it to the insurance company and receive a refund of the entire premium paid, at which of the following times?

Within 10 days of when the policy was delivered

How long it the period of time in which a licensee must renew his her license

90 day

If a producer returning allows his license to lapse, within what time period may the producer reinstate the same license

2years

Which of the following best describes pure life annuity?

It provides the highest monthly benefits

WIth respect to the entire contract clause in health policies, who has the authority to make changes to an existing policy?

Only an executive officer of the company

What is another term for a health insurance policy subscriber?

Participant

In a variable life insurance policy, all of the following assests are healf in the insurance company general account except

cash surrender values

The presumptive disability provision assumes that the insured is totally disabled upon loss of all of the following except

feeling

If an insured dies, and it is discovered that the insured misstated his/her age or gender, th life insurance company will

Adjust the death benefit to what the premium would have purchased at actual age or gender

Conrad receives 50000from a 100000 accidental death and dismemberment policy as a result of the loss of his left arm in an accident.

Conrad has received the Amount

J is receiving a fixed amount benefit from his late wife's insurance policy. He was told that if he dies before all the benefits are paid, the remaining amount will go to the cintigent beneficiary. Which settlement option did J choose?

Fixed amount

Under HIPAA portability, which of the following are NOT protected under required benefits?

Groups one or more

A medicare supplemet plan must have at least which of the following renewal provisions?

Guaranteed renewable

what does the Guaranty Association guard against?

Insurer insolvency

When acting as a field underwriter a producer is

Seeking Credible information about an applicant for health insurance

All of the following are general requirements of a qualified plan EXCEPT

The plan must be temporary

All of the following are true of survivorship life policy EXCEPT

The premium is based on the age of each insured

All of the following could qualify as a group for the purpose of purchasing group health insurance except

an association of 35 people

A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will

Continue to increase

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?

Extended term

Which of the following best describes a presumptive disability?

One that is severe enough that the insured automatically qualifies for full disability benefits

Carlos's health insurance policy pays benefits according to a list which indicates the amount that is payable under each type of covered treatment or procedure. Coarlos policy provides coverage on a

Scheduled basis

What is the purpose of benefit schedule

To state what is covered in the plan

If the commissioner issues a cease and desist order, that means the insurer must

stop committing a particular violation

an employee that becomes ineligible for group coverage because of termination of employment or change in status must exercise extention of benefits under COBRA

within 60days

Guanteeing future dividends is considered to be a unfair or deceptive act known as

Misrepresentaion

An individual was denied coverage under social security because his disability did not meet the strict definition of total disability used by social security. Which of the following would provide disability income coverage?

SIS rider

Which annuity is purchased with a single payment and begins annuity payments within the first year?

SPIA

Which of the following is considered a field underwriter

agent

An annuity owner receives the same guaranteed payment every month. What type of annuity is it

fixed

What is the only difference between blanket insurance and group health insurance?

The insured members are not named

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

The Guaranteed Insurability Rider allows the owner to purchase additional amount of life insurance without proof of insurability al all of the following EXCEPT

Purchase of a new home

Life insurance creates an immediate estate. Which of the following best explains this statement?

The face value of the policy is payable to the beneficiary upon the death of the insured

Who is considered a nonresident agent?

An agent who resides in another state, but is licensed to write insurance in this state