insurance

An employee insured under a group health plan has been paying a $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100, if the employee leaves the company, what would be his maximum monthly premium for COBRA coverage?

$102

Who's eligible for Medicare?

65 or older, those with kidney failure, those entitled to social security disability income benefits for over 2 years

What are the four required elements of an insurance contract?

Agreement, consideration, Competent parties, legal purpose

Which statement accurately describes the change of beneficiary provision?

Any policy that has a death benefit must also have a Change of Beneficiary provision.

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested, when does the policy coverage become effective.

As of the application date

An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?

Capital amount in a lump sum

What is the difference between a deductible and coinsurance?

Coinsurance = percentage Deductible = specific dollar amount

What provision in group health policies prevents duplication of benefits and over insurance?

Coordination of benefits

What is not a term for the period of time during which the annuitant or the beneficiary receives income?

Depreciation Period

In a disability policy, the probationary period refers to the time

During which illness-related disabilities are excluded from coverage.

The insurance policy, together with the policy application and any added riders form what is known as..

Entire Contract

Can you name mandatory provisions required in all health insurance policies?

Entire contract, grace period, reinstatement, change of beneficiary, claims, legal action

What two parts make up a life insurance application?

General information and medical information

What do fixed annuities provide?

Guaranteed Interest Retirement funds Tax advantage

When would life insurance death benefits be tax free?

If paid as a lump sum to the beneficiary

A guaranteed renewable health insurance policy allows the?

Insured to continue coverage as long as premiums are paid

What are the three basic types of term life insurance?

Level, increasing, decreasing

Which of the following products will protect an individual from out living their money?

Longevity Annuities

What plans fill the gaps in medicare coverage?

Medicare supplement policies or medigap

Can you name some unfair trade practices that producers should avoid?

Misrepresentation, rebating, defamation, unfair discrimination

What term refers to the frequency of premium payment?

Mode of premium payment

Can anyone qualify for social security disability benefits?

No, they must meet requirements

What renewability options apply to individual health insurance policies?

Noncancellable, cancellable, guaranteed renewable

Which provision concerns the insured's duty to provide the insurer with reasonable notice in the event of a loss?

Notice of Claim

Hospital indemnity/ hospital confinement indemnity policy will provide payment based on

Number of days spent in hosptal

With respect to the consideration clause, which of the following would be considered consideration on the part of the applicant for insurance?

Payment of premium

In a life settlement contract, whom does the life settlement broker represent?

Policy owner

In which of the following instances would the premium be tax deductible?

Premiums paid by an employer on a $30,000 group term life insurance plan for employees

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?

Representation adhesion

Which of the following is called a "second to die" policy

Survivorship life

Whose responsibility is it to make sure that an insurance application is complete and accurate?

The agent

Which of the following information will be stated in the consideration clause of a life insurance policy?

The amount of premium payment

When an insurer begins underwriting procedures for an applicant what will be the main source for its underwriting information?

The application

An applicant signs an application for $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant dies the following day, which of the following is true?

The beneficiary will receive the full death benefit if it is determined that the applicant qualified for the policy.

Who is the owner and who is the beneficiary on a Key Person Life Insurance Policy?

The business

In group life insurance, who receives the master contract?

The employer

An insured purchased a noncancellable health insurance policy 1 year ago. What circumstance would NOT be a reason for the insurance company to cancel the policy?

The insured is in an accident and incurs a large claim

What is necessary in order to be eligible to receive benefits from a long term care policy?

The insured must be unable to perform some activities of daily living (ADL) includes bathing, dressing, toileting, transferring, continence, and eating

An agent is in the process of replacing the insured's current health insurance policy with a new one. Which of the following would be a proper action?

The old policy should stay in place until the new one is issued.

Which of the following determines the cash value of a variable life policy?

The performance of the policy portfolio.

Whom do insurance agents represent?

Their Insurer

Which of the following is the best reason to purchase life insurance rather than annuities?

To create an estate

What are different classifications of disability?

Total, Partial, Recurrent, and residual

Can you give some examples of qualified retirement plans?

Traditional IRA, Roth IRA, SIMPLE, SEP and 401k

According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT

Unearned premiums are retained by the insurance company.

How does a warranty differ from a representation?

Warranties are 100% true Representations are true to the best of one's knowledge

What happens when a policy is surrendered for its cash value?

When a policy is surrendered, you'll lose coverage and no longer be responsible for paying insurance premiums.

When is the earliest a policy may go into effect?

When the application is signed and a check is given to the agent

When would a whole life insurance policy mature?

When the insured dies or turns age 100, whichever is sooner

If a policy includes a free- look period of at least 10 days, the buyer's guide may be delivered to the applicant

With the policy

How soon following the occurrence of a covered loss must an insured submit written proof such loss to an insurance company?

Within 90 days

Which of the following is not typically excluded from life policies?

death due to plane crash for fare-paying passenger

Which is true regarding HMO coverage

it is divided into geographic territories

Which of the following statements concerning Medicare Part B is correct?

it pays for physician services, diagnostic tests and physical therapy

In the event of a loss, business overhead insurance will pay for

ongoing business expenses of a small business owner while they are disabled and unable to work. - ongoing business expenses, such as rent. - Salary of employees other than the owners

Which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home?

Accelerated death benefit rider

Which of the following is a short-term annuity that limits the amounts paid to a certain fixed period or until a certain fixed amount is liquidated?

Annuity Certain

Who must be licensed as a insurance producer?

Anyone who solicits insurance and receives commissions

An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, then leaves. What did he forget to do?

Ask her to sign a statement of good health.

A small hardware store owner is involved in a car accident that renders him totally disabled for half a year. Which type of insurance would help him pay for expenses of the company during the time of his disability?

Business overhead expense policy

In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to

Contingent beneficiary

Certain conditions, such as dismemberment or total and permanent blindness, will automatically qualify the insured for full disability benefits. Which disability policy provision does this describe?

Presumptive disability

Which of the following policies would be classified as a traditional level premium contract?

Straight life

What does basic medical expense coverage not cover?

Surgeons' services

Who is an annuitant?

The person on whose life expectancy the annuity is written and who receives benefits from the annuity

An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?

Common disaster

Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?

Life expectancy

When must insurable interest exist in life insurance?

At the time of application

Which of the following is not an enrollment period for Medicare part a applicants?

Automatic Enrollment

A man is injured while robbing a convenience store, how does his major medical policy handle the payment of his claim?

Claim is denied if his policy contains the Illegal Occupation provision