guaranteed life insurance exam 1

Which dividend option will increase the death benefit?

paid up additions

If the insurance premiums were not tax deductible, what other taxation will this affect?

taxation of benefits

which of the following is NOT a characteristic of variable insurance and annuities

benefits are determines solely based on premium

What type of an interest rate is guaranteed in universal life policies?

contract interest rate

under the mandatory uniform provision notice of claim, written notice of a claim must be submitted to the insurer within what time parameters?

within 20 days

Because of the imposed blackout period, the surviving spouse will not receive social security benefits until?

he or she qualifies for retirement benefits

all of the following statements are true regarding an ordinary (straight) life policy except

it does not have a guaranteed death benefit

which of the following is NOT a characteristic of a Managed Care Plan?

risk retention

Under the Payment of Claims provision, to whom will the insured's benefits be paid if the insured is deceased?

the insured's primary beneficiary

all of the following are general requirements of a qualified plan except?

the plan must be temporary

an employee is insured by a group major medical plan that is provided through the 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$

all of the following are true of a Multiple Employer Trust (MET) except

the employee has the right to conversion upon leaving the group coverage

If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?

immediately

Guaranteeing future dividends is considered to be an unfair or deceptive act known as

misrepresentation

cash value gaurantees in a whole life policy are called

nonforfeiture values

all of the following statements about mutual insurance companies are correct except?

policy dividends issues by mutual companies are guaranteed and not taxable

which of the following does NOT need to be included on the first page of a Medicare supplement policies?

premium rates

if an insured purchased an insurance policy with a large deductible, what risk management technique is the insured exercising?

retention

Which of the following statements concerning the medical information bureau is correct?

the MIB assists underwriters in evaluating and classifying risks

all of the following are reasons for group insurance termination for dependents except?

the dependent reaches age 21

Core benefits are included in all Medicare supplemental policies. What percentage of Part B coinsurance is required?

20%

which of the following is NOT correct concerning taxation of disability income benefits?

if paid by the individual, the premiums are tax deductible

a insurer must notify the consumer in writing that an investigative consumer report report has been requested, within how many days of the initial request?

3 days

at what point would an automatic premium loan be generated?

following the grace period

which of the following is not a medicaid qualifier?

insurability

how often does the director conduct an examination of a domestic insurer?

once every 5 years

all of the following are characteristics of group health insurance plans except

the parties are the employees and the employers

the risk selection and classification process is known as

underwriting

variable life insurance is regulated by all of the following except?

The U.S department of treasury

while completing a life insurance application the applicant realizes that she should have answered a question differently . what should the agent do?

cross out the incorrect information, write in the correct answer and have the applicant initial the change

dividends received on participating life insurance policies are

not taxable because they are return of unused premiums

When may HIV-related test results be provided to the MIB?

only if the individual is not identified

an insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. which term describes what the agent as done?

misrepresentation

An insured needs ongoing treatment for a diabetic condition. Under PPACA, which of the following is correct?

the condition must be coved under the insureds pla\

What is the maximum fine the Director may impose on an insurer found guilty of involuntarily engaging in an unfair trade practice?

30,000 for all aggregate violations

what is the purpose of the gatekeeper in an HMO?

controlling costs

an employee is on an extended leave of absence when the employer group health plan changes from one carrier to another. Before the employee returns to work, what might the employee most likely notice?

limited coverage

which of the following could reduce the amount of the death benefit?

failure to repay a policy loan

what effect will the long term care (LTC) rider have on the death benefit of a life insurance policy if LTC benefits were paid to the insured?

reduce the death benefit

all of the following are used to keep costs down for dental insurance except?

limitation on the number of teeth that can be treated in a given year

what is the primary difference between medigap and medicare SELECT policies?

medicare SELECT policies contain restricted network provisions

which of the following is guaranteed under a variable whole life insurance policy?

minimum death benefit

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

an association of 35 people

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%

according to the payment of claims provision in group life policies issues in this state, if the insured dies during the conversion period, the death benefit

be payable as a claim under the group policy

which of the following best describes the difference between joint-life and joint and survivor annuity payment options?

in joint life option benefits stop after first death

which of the following statements is true of a combination dental plan?

it is a combination of scheduled and nonscheduled dental plan

which of the following bears the investment risk in a variable life policy?

the policy owner

which of the following is required to provide a notice of information practices to applicants and policyholders?

the producer

all of the following are true regarding the waiver of cost of insurance rider except?

the rider expires when the insured reaches age 60

what is the purpose of the surrender charge in a deferred annuity?

to compensate the company for loss of investment value

which distribution(s) from a Modefied Endowment Contract would be taxable as income at the time received to the extent the cash value of the contract immediately before the payment exceeds the investment in the contract?

both partial cash surrender and policy loan

a married couple purchased a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend?

payor benefit rider

an insured had a heart attack while jogging, but is expected to return to work in approximately 6 weeks. The insured's Disability income policy will

replace a percentage of his lost income