gurantee exam
maximus civil penalty for willfully violating the Fair Credit and Reporting act
$2500
an elimination period may not have to be satisfied for a disability in which of the following
an insured suffers a relapse of a prior disability within 6 months of the initial covered disability
a distribution from an employer sponsored retirement plan from an IRA is eligible for a tax free rollover if it is reinvested in an IRA within
60 days
Most LTC plans have which of the following features?
Guaranteed renewability
long term care insurance is designed to provide coverage for at least
12 months
under notice of claim provision, written notice of a claim may be submitted to the insurer within what time?
20 days
Which is NOT true about beneficiary designations?
The beneficiary must have insurable interest in the insured.
The paid-up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
what is true of both the fixed period and fixed amount settlement options
both guarantee that the principal and interest will be fully paid out
in order for an alumni association to be eligible to purchase group health insurance for its members
- must be organized for reasons other than buying insurance -must have at least 100 members -must have a constitution, by laws and hold at least annual meetings -must be active for 2 years
under legal actions provision, an insured is prevented from bringing a lawsuit against the insurer to recover on a health policy prior to
60 days after written proof of loss has been submitted - not later than 3 years
the stop loss feature on a major medical policy is intended to
establish a maximum out of pocket expense that an insured will have to pay for medical expense in a calendar year
cash value guarantees in a whole life policy are called
nonforfeiture values
a core medicare supplement policy (plan A) will cover all but
part a deductible
what happens to the face amount of a whole life policy once the insured reaches the age of 100?
the face amount is paid to the insured
What is the initial period of time specified in a disability income policy that must pass, after the policy is in force, before a loss can be covered?
Probationary period
Individual and group accident and sickness policies that cover family members of the insured must also provide for newborns, from the moment of birth, with all health insurance benefits applicable to
children until 31 days
Which of the following are the authorities that an agent can hold?
expressed and implied
when a whole life policy is surrendered for its nonforfeiture value what is the automatic option?
extended term
the owner of a whole life policy with an accidental death rider intentionally kills himself after having the policy for 18 months. what is the insurance company's course of action?
deny any payment of death benefit
the guaranteed purchase option is also known as
future increase option
all of the following could qualify as a group for group health insurance except
an association of 35 people
Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
paid up option
If an agent changes his residence address, within how many days must the agent notify the Commissioner of the change?
30 days
all of the following exclude coverage in an individual health insurance policy except
mental illness
which statement is an accurate description of life insurance policy dividends?
they are not taxable and not guaranteed- since original premium was paid with after tax dollars
annually renewable term insurance
- premium increases each year -death benefit level -may be guaranteed renewable each year without proof of insurability
Group health insurance is characterized by
-A master contract. -Lower administrative costs. -Conversion privilege.
With the paid-up option, the insurer can accumulate dividends at interest and then use them, in addition to interest and the policy's cash value, to pay
the policy earlier than planned. This is different from paid-up additions, in which the dividends are used to buy additional policies that increase the face amount of the original policy.
according to the common disaster clause, if the insured and primary beneficiary are killed in the same accident at the same time what will be assumed
the primary beneficiary died before the insured
Which of the following entities is responsible for determining whether an advertisement might mislead or deceive a person of average education and intelligence?
The Commissioner
Which dividend option will increase the death benefit
paid up additions
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
Regarding the taxation of Business Overhead policies,
Premiums are deductible and benefits are taxed
When a policy is to be replaced, replacing insurers must maintain copies of the replacement notice, all required written communications, the applicant's signed statement regarding replacement and a replacement register in their home office for at least 3 years, or
until the conclusion of the next regular examination by the Insurance Department, whichever is later.
What is the advantage of reinstating a policy instead of applying for a new one?
The original age is used for premium determination
when the owner of a participating whole life policy uses the dividends to provide more life insurance coverage, which of the following dividend options is being used?
paid-up additions
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
When a policy is replaced, replacing insurers must maintain a replacement register regarding that policy until the conclusion of the next regular examination by the Insurance Department or for
3 years
An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?
Guaranteed insurability option
Which statement accurately describes group disability income insurance?
The extent of benefits is determined by the insured's income
When would a 20-pay whole life policy endow?
When the insured reaches age 100
A whole life policy is surrendered for a reduced paid up policy. The cash value in the new policy will
continue to increase
what does an annuity protect the owner against
living longer than expected
all of the following are true of annually renewable term insurance except
proof of insurability must be provided at each renewal
insureds have the right to do which of the following if they have not received the proper claims form within 15 days of their notice to the insurer of a covered loss under a major medical policy?
submit the description in their own words on a plain sheet of paper
all of the following are true of survivorship life policy except
the premium is based on the age of each insured
an employee is covered under COBRA. his former premium was 100, now its 102, what is the extra 2 dollars for
to cover the employers administrative costs. max 102%
when an insured terminated membership in a group policy , the insured can convert to
whole life without proof of insurability
advertisement does not include what
material prepared by the insurer for training new agents
when may HIV related tests be provided to the MIB?
only if the individual isn't identiified
Which of the following is NOT a feature of a noncancellable policy?
The insurer may terminate the contract only at renewal for certain conditions.
Probationary period is the period of time after a policy is in effect before claims arising out of an illness are covered. This is to prevent
adverse selection, persons waiting until they have been exposed to a cause of loss before purchasing coverage.
The premiums paid for BOE insurance are tax deductible to the business as a business expense. However,
the benefits received are taxable to the business as received.
a major medical policy would exclude coverage for all of the following except
drug addiction
what is the purpose of a benefit schedule
to state what and how much is covered by the plan
dividends received on participating life insurance policies are
not taxable because they are a return of unused premiums
What required provision protects against unintentional lapse of the policy?
Grace period
all of the following are required for HIV texting except
if HIV is present the person may be rated but they can't be declined
in which of the following scenarios would a producer be allowed to obtain insurance from an unauthorized user?
if there are no authorized users for a specific type of coverage in a state
The insurance company cannot cancel a noncancellable policy, nor can the premium
be increased beyond what is stated in the policy. The insured has the right to renew the policy for the life of the contract; however, the guarantee to renew coverage usually only applies until the insured reaches age 65.
Individual and group accident and sickness policies that cover what kinds of losses must also provide for newborns, from the moment of birth, with all health insurance benefits applicable to children?
losses that happen to family members
an equity indexed annuity will grow based upon
performance of a recognized index
which of the following terms relates to disability income insurance
residual benefit
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
feature of a noncancellable policy
-The insured has the right to renew the policy for the life of the contract. -The premiums cannot be increased beyond the amount stated in the policy. -The guarantee to renew coverage usually applies until the insured reaches certain age.
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 the illegal practice of
twisting
an employee that becomes ineligible for group coverage because of termination of employment or change in status must excercise extension of benefits under COBRA
within 60 days
To attain currently(partially) insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?
6
Group long-term plans provide monthly benefits usually limited to
60% of the individual's income
which of the following is not a medicaid qualifier?
insurability
Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
Universal life
the benefits from a business overhead expense policy are
limited to covered expenses and taxable to the business