Guaranteed Exam Missed Questions#1

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

Continue to increase

Life Insurance Advertising Rule 13 is considered which of the following types of rules?

Disclosure

Which of the following statements is incorrect regarding group health insurance?

Each individual must be accepted into or rejected by a group policy

Regarding health insurance, all of the following are tax deductible EXCEPT

Employee paid group disability insurance

A core Medicare(part A) Supplement policy will cover all of the following expenses EXCEPT

Part A deductible

Regarding the PPACA health care tax credit, which of the following is true?

Persons receiving Medicaid are not eligible

According to the Life Insurance Solicitation Rule 24, what would be defined as cost?

The difference between what the insured pays and what he gets in return

T or F: A producer must complete continuing education hours for each line of authority.

True

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

Assignment

Regulations regarding AIDS & HIV allow for what?

Companies must make a "take it or leave it" approach with regard to an applicant who tests positive for AIDS antibodies

Regarding the Consideration clause, what is NOT correct

Consideration of the insurer and insured must be equal

The benefits in medical expense insurance are

Received income tax free by the individual

If a cash settlement is chosen, when must the benefit be paid?

no later than 2 months after the receipt of proof of death

What are the features of a health insurance plan purchased on the health insurance marketplace

1. coverage for pre-existing conditions 2. guaranteed renewability 3. coverage for emergency services

Which rider pays a death benefit to a beneficiary 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 individuals may act as a producer without a license?

An insurance company president who is solely responsible for the administration of the company

Which provision may be added to a permanent life policy, at no cost, that insures the policy will not lapse so long as there is cash value?

Automatic Premium Loan Option

Regulations regarding AIDS & HIV allow for

Companies must make a "take it or leave it" approach with regard to an applicant who tests positive for AIDS antibodies.

In how many states can an Indiana resident producer hold a license?

Only one

What does the application of "Contract of Adhesion" mean?

Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured

Which of the following is a daily nursing and rehabilitative care that can only be provided by medical personnel, under the direction of a physician?

Skilled care

What type of insurance is a level-fixed premium, investment-based product that can be described as a combination of decreasing term insurance and an investment fund?

Variable Life

T or F: Social Security benefits will cease when an individual turns 65

False

Which of the following would NOT trigger the payment of Accelerated Death Benefits?

Being permanently disabled

An employee dies having 6 quarters of coverage during the previous 13 quarter period. What status of coverage does the employee have under Social Security?

Currently Insured

Which of the following is NOT true regarding a cease and desist order?

It applies only to individual producers.

All of the following statements are true regarding an Ordinary (straight) Life policy EXCEPT

It does NOT have a guaranteed death benefit

A man is an attorney when he applies for a health policy. He decides to become a professional bungee jumper. He files a claim. What should happen?

The insurance company will pay the claim according to the benefits available if the correct premium had been paid.

Which of the following is NOT true regarding term health coverage?

The owner may renew the policy for a specified term

Which of the following would NOT be eligible for coverage under key person?

The owner of a shop

With Adjustable Life, what CANT the owner change?

The insured

What best defines "agreement" as it relates to insurance contracts?

One party accepts the exact terms of the other parties offer

What does not have to be included on the first page of a Medicare supplement policy?

Premium rates

What allows someone living with a life threatening condition to sell their existing life insurance policy and use the proceeds before their death?

A Viatical Settlement

How long is the grace period for an individual life insurance policy?

1 month (31 Days)

Under what conditions would life insurance be taxable by the federal government?

If there is a transfer for value

Which of the following is NOT a Medicaid Qualifier?

Insurability

A graded-premium life insurance policy is a modified form of

Whole Life

How does insurance distribute the financial consequences of individual losses?

It transfers the risk to all persons insured

An insured becomes severely disabled. The insured owns a Whole Life policy. Is it possible for the policy to include a Waiver of Costs rider, and if so, what insurance costs would be waived?

No; It is not possible for this waiver to be included in a whole-life policy.