IA Life and Health
An unintentional violation of Iowa insurance law could lead a producer to a fine of up to ____ per violation
$1,000
If an insurer receives a cash payment in excess of________, it must report this act as stated by the USA Patriot Act
$10,000
Before a life policy is issued, which of these contract elements is necessary?
A signed application is necessary by the prospective
Which of the following types of policies pays a benefit if the insured goes blind
AD&D
The option that provides an additional death for a limited amount of time at the lowest possible cost is called a (n)
Accidental Death and Dismemberment + Rider (AD&D)
In an insurance contract, the insurer is the only way who makes a legally enforceable promise. What kind of contract is this
Adhesion
When an insurance application is taken by a producer, which of these statements is true?
Any changes made on the application required the applicant's initials
To be eligible for social security disability benefits an employee must be unable to perform
Any occupation
Which of the following is a requirement to attain an Iowa resident producer license
At least 18 years old
When is a group health policy required to provided coverage for a newborn child
At the moment of Birth
Which of the following types of health coverage frequently uses a deductible
Basic surgical policy
All of the following statements about major medical benefits are true except
Benefits have no maximum limit
Each life insurance applicant in Iowa is expected to be
Buyer's guide and policy summary
A policy loan is made possible by which of these insurance policy features
Cash value provision
Which of the actions is taken when a policyowner uses a life insurance policy as collateral for a bank loan
Collateral assignemnt
Which of the following reimbursements its insureds for covered medical expenses?
Commercial insurers
Insurance contracts are known as ____ because certain future conditions or acts must occur before any claims can be paid.
Conditional
Which of the following consists of an offer, acceptance, and consideration
Contract
A universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned, expense charges and the
Cost of insurance
Which of these statement is not true regarding health coverage for a newborn
Coverage is limited to only congenital defects
Dividends payable to a policyowner are
Declared by the insurance company
A(n) ____ term life policy is normally used when covering an insured's mortgage balance
Decreasing
Which of the following is NOT included in the policy face
Exclusions
Long term care policies will usually pay for eligible benefits using which of the following methods
Expense incured
All of these are characteristics of an Adjustable Life policy EXCEPT
Face amount can be adjusted using policy dividends
An insurance application MUST be informed of an investigation regarding his/her reputation and character according to the:
Fair Credit Reporting Act
What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained
Fair Credit Reporting Act
Which of the following id a requirement to be eligible for a group life policy in Iowa
Group must be formed for purpose other than obtaining insurance
What is the required renewability status of all medicare supplement policies
Guaranteed renewable
In regard to representations or warranties, which of these statements is TRUE?
If material to the risk, false representation will void a policy
All of the following statements regarding a tax-sheltered annuity (TSA) are true except
Income derived from the TSA is received income tax-free
A policy if adhesion can only be modified by whom
Insurance company
Who makes the legally enforceable promises in a unilateral contract?
Insurance company
If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of?
Insured
All of these statements about the Waiver of Premium provision are correct EXCEPT
Insured must be eligible for social security disability for claim to be accepted
Which of these arrangements allows one to bypass insurable interest laws?
Investor-Originated Life Insurance
Strange originated life insurance (STOL I )has been found to be in violation of which of the following contractual elements?
Legal Purpose (Insurance Interest)
Under Iowa, which of the following provisions is NOT required in a medicare supplement policy
Limitation on prexisting conditions for up to 12 months
____ can be defined as "making an unfair comparison of two insurance policies"
Misrepresentation
A policyowner is allowed to pay premiums more than once a year under which provision
Mode of premium
Which of these is NOT to be a right given to a policyowner
Modify a provision in the insurance contract
Which of the following statement is correct about accelerated death benefits
Must have a terminal illness to qualify
What does Medicare part A &B cover
Part Acovers: Hospitalization, Part B covers: Doctor's services,
The insured and insurance company will share the cost of covered losses under which health policy feature
Payment of claims provision
The underwriting process involves all of these except for
Policy loan
Which of these describe a participating insurance policy
Policyowners are entitled to receive dividends
What is the purpose of the time of payment of claims provision
Prevent delayed claim payments made by the insurer
___ is the act of offering application something of an inducement to purchase and insurance policy
Rebating
Group life policies in Iowa Are required to contain a conversion privilege that allows for conversion
To individual policy for a stated period time
Replacement can be defined as
exchanging an existing policy for a new policy
After an isnured gives notice of loss, what must he/she do if the insurer does not furnish forms
file written proof of loss
Medicare part B does NOT cover
inpatient hospital services
Dividends paid from a life insurance policy are
issued by the insurer
Which type of plan normally includes hospice benefits?
managed care plans
Which of the following is true about a qualified retirement that is "top heavy"
more than 60% of plan assets are in key employee accounts
Which of these is NOT considered to be an element of an insurance contract?
negotiating
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
When a policy pays dividends to its policyholders, it is said to be
participating
Insurance policies are considered aleatory contracts because
performance is conditioned upon a future occurrence
Who elects the governing body of a mutual insurance company?
policyholders
What is the consideration given by an insurer in the consideration clause of a life policy
promise to pay a death benefit to an named beneficiary.
A major medical policy typically
provides benefits for reasonable and necessary medical expenses, subject to policy limits
A major medical policy typically:
provides benefits for reasonable and necessary medical expenses, subject to policy limits
An example of misrepresentation is
providing incorrect, misleading, incomplete, or materially untrue information in the license application
Statement made on an insurance application that are believed to be true to the best of the applicant's knowledge is called
representation
The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called
reserves
A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as
risk retention group
A long-term care lapse notice most be delivered to both the applicant and
secondary addresses
Which of the following services is NOT included under hospitalization expenses coverage
surgical fees
Before holding a hearing regarding an agent's unfair or deceptive practice, the Insurance Commissioner MUST give how many days notice?
10 days
A non-contributory plan requires _______ participation of all eligible employees
100%
What is the maximum social Securities Disability benefit amount an insured can receive?
100% of the insured's primary Insurance (PIA)
An insurer must provided an insured with claim forms within ____ days after receiving notice of a loss
15 days
What year was the McCarran-Ferguson Act enacted?
1945
Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated
1970- Fair Reporting Act
A life policy loan in Iowa cannot charge a fixed rate of interest higher than
8%
Which of the following is considered to be a misrepresentation
A producer guaranteeing a policy's dividends
Which of theses individuals would require continuing education
Resident producer
Which of theses factors does not influence an applicant's need for life insurance
Self-maintenance expenses
Which of the following is NOT considered rebating
Sharing commission with an agent licensed in the same line of business
Which of the following BEST describe a warranty?
Statement believe to be true to the best of one's knowledge
What type of life policy covers two people and pays upon the death of the last insured
Survivorship
Which of these situations is NOT considered to be a replacement?
Term coverage is converted to an individual permanent plan with the same insurer
Which of the following statements correct regarding an employer/employee group health plan
The employer receives a master policy and the employee receive certificates
All of these statements about Equity Indexed Life Insurance are correct EXCEPT
The premiums can be lowered or raised based on investment performance
Medicare is intended for all of the following groups EXCEPT
Those enrolled as a full-time student.
How does a typical Variable Life Policy investment account grow?
Through mutual funds, stocks and bonds
Which accident and health policy provision addresses preexisting conditions
Time limit on certain defenses
What is the elimination period of an individual disability policy?
Time period a disabled person must wait before benefits are paid
What type of reinsurance contract involves two companies automatically sharing their risk exposure?
Treaty
ABC Insurance Company failed to accept a void proof of loss statement, this is considered to be a(n)
Unfair Claim practices
All of the following are considered to be typical characteristics describing the nature of an insurance contracts, EXCEPT
Unilaterally
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act?
Upon completion of the application
Which of these is considered a statement that is assured to be true in every respect
Warranty
Which situation does NOT require a producer to provide assuitability statement to the annuity company?
When a producer discusses annuities in general with a client, but no specific recommendations is made
At what point does an informal agreement become a binding contract
When consideration is provided by one of the parties to the contract
A nonprofit incorporated society that does not have capital stock and operated for the sole benefit of its members is known as
a fraternal benefit society
A contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of
adhesion
Medicaid was designed to assist individuals who are
below a specific income limit
Life and health insurance policies are
unilateral contracts