insurance comprehensive exam

D has an accidental death and dismemberment policy with a $200,000 principal sum and a $100,000 capital sum. While mowing the lawn, D cut off a finger. How much will the policy pay?

$0

Z suffers a total and permanent disability. The policy he has requires a premium payment of $100 per month. He is on claim for 100 months. Initially, how much did Z have to pay before the waiver of premium benefit on his policy started?

$600

The mortality rate is based on mortality tables which show life expectancy and the death rate per _______ people living in the U.S.

1,000

If a producer's license lapses in Illinois, how long do they have to reinstate it without a new examination?

12 months

in Illinois, how many days may a producer hold a premium before depositing it into a premium fund trust account?

15

Notice of claim is required within _____ days of loss.

20 days

Which of the following Whole Life insurance policies has the highest annual premium payment per $1,000 of coverage for a 35-year-old, all other factors being equal?

20-Pay Ordinary Whole Life

W has a health insurance policy with an 80/20 coinsurance, a $1,000 deductible. If in January W goes into the hospital for an overnight stay, the bill coming to $2,000, what will W pay?

200

To be considered fully insured under Social Security, a worker generally needs how many quarter credits?

40

A Long-Term Care plan may deny coverage for pre-existing conditions for no more than how many months after the effective date of coverage?

6

A qualified Long-Term Care Policy may exclude losses incurred from preexisting conditions for no longer than ______ months from the effective date of coverage.

6

Generally, an insurer may defer the granting of a policy loan for up to ______ months.

6

If the insured is receiving regular disability income payments, the insurer can require notice of continuance of claim every ______ months.

6

The Legal Actions provision preserves the insured's right to bring suit against their own insurer, but the insured must wait at least _____ days after filing a proof of loss before pursuing this action.

60

Which of the following is not a disclosure requirement for accelerated benefits?

A description of the accelerated benefit's cash values

An annuity that is purchased with contributions made as often and in whatever amounts the owner wishes, subject only to the insurer's minimums and maximums, is called:

A flexible premium annuity

Which of the following statements is true with respect to the Illinois Health Insurance Portability and Accountability Act (HIPAA)?

A group health plan may impose a pre-existing condition exclusion for a period of not more than 18 months

In Illinois, which of the following is true of Limited Health Service Organizations?

A person soliciting LHSO coverage must hold either a limited insurance representative's license or a health producer's license

Which of the following types of riders would require signed acceptance by the insured if it was added after the base policy is issued?

A rider to reduce coverage under the policy

Which of the following disclosures must be supplied to an applicant for an accelerated benefits policy?

A statement that benefit payments may be taxable

A/an_______is a personal statement submitted by the producer to the insurer regarding the applicant's financial condition and any personal knowledge of the applicant.

Agent's Report

A Child Rider that is added to an insured's permanent policy includes which of the following features?

All children (beyond 14 or 15 days of age) are covered, and the rider may be converted to permanent coverage at a specified age without evidence of insurability

What will cause the time period of the fixed amount settlement option to be extended?

An increase in interest credited

Which of the following must be supplied to an applicant whose policy is being replaced?

An outline of coverage

When are LTC premiums deductible for an employer?

Any time premiums for employee policies are paid by the employer

The nonforfeiture option that, if exercised, terminates all coverage is:

Cash Surrender

Which of the following is a Managed Care Provision used by insurers to monitor hospital stays?

Concurrent Review

Which of the following is not a Mandatory Uniform Provision?

Conformity with State Statutes

Insurers include provisions in contracts to help reduce unnecessary claims and the overpayment of claims. Which of the following is not one of those provisions?

Consideration Clause

Which statement would be considered inaccurate regarding the underwriting of a group plan?

Contributory plans require 100% employee participation

The outline of coverage for an LTC policy must be provided:

During the initial solicitation

Which product should you recommend for a client who wishes to keep pace with inflation while protecting capital?

Equity-indexed annuity

Right to Examine is the same as:

Free Look Period

If the insured dies while the _______ period is in effect, the death benefit paid is the face amount, minus the premiums due.

Grace

Which of the following is not a standard or requirement for an illustration?

Have the only the guaranteed elements labeled

_______________ is the process of selection, classification and rating, and determining if someone is insurable.

Home office underwriting

Optional uniform provisions found in health insurance policies are designed to protect the:

Insured

All of the following are true regarding the Life and Health Insurance Guaranty Association, except:

It covers HMOs

What is an impairment rider?

It excludes specific conditions that normally would cause the entire policy to be declined

A product designed to provide coverage for necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services provided in a setting other than an acute care unit of a hospital is called:

Long-Term Care

Precertification, Mandatory Second Surgical Opinion, and Concurrent Review are provisions in health insurance policies known as:

Managed Care Provisions

H has an individual standalone vision plan, in addition to his health insurance. During an annual examination, it is discovered that H has cataracts. Which plan will cover the cost of the treatment for cataracts?

Medical expense insurance

Which of the following is true concerning the Benefit Period of a LTC Policy?

Once the elimination period has been satisfied, it is how long benefits will be payable

Which of the following is not provided under Part A of Medicare?

Outpatient Medical Treatment

When buying a $25,000 life insurance policy on his daughter, a father wanted to make sure the premium would be paid, even if he became disabled, so he also purchased a:

Payor Rider

An insurer has the right to request a physical exam or an autopsy to determine its liability to pay benefits. This request may be made under which provision?

Physical Exam & Autopsy

Monte has a health care plan that provides benefits as an HMO if he stays within the network and provides benefits like an indemnity plan if he goes outside the network. Monte is covered under a:

Point-of-Service Plan

Which of the following best describes the general tax rules regarding individual disability health insurance plans?

Premiums are not deductible, the benefits are not taxable

Case managers do all of the following, except:

Providing the necessary care

The main purpose of requiring a Gatekeeper is to:

Reduce costs within the plan

At the time of policy delivery, the producer has been informed there is a change in the insured's health status. If the premium has not been collected, the producer should: A Return the policy to the ins

Return the policy to the insurer for further underwriting

If the producer discovers that the applicant is not in good health at time of a life insurance policy delivery. If the initial premium has not been paid, it is the producer's responsibility to:

Return the policy to the insurer for further underwriting

Basic expense policies typically cover all of the following, except:

Routine vision (optometry) or dental care expenses

Which of the following is not true of an examination by the Director?

The Department must pay the costs associated with an examination

To eliminate the use of life insurance as a short-term, tax-free savings vehicle, what tax law change took place?

The Modified Endowment Contract (MEC) rules were put into place

Which of the following are included in Part I of a Health Insurance Application?

The gender of the applicant

Which of the following is correct with respect to annuity suitability?

The insurer or agent must make reasonable efforts to obtain a consumer's suitability information before the annuity is purchased, exchanged, or replaced

Index Life, Variable, and Variable Universal all have which of the following characteristics in common?

The overall policy performance has something to do with the stock market in general

With a Current Assumption Whole life policy, what can happen if the cash values increase too quickly?

The policy could mature sooner than expected

All of the following regarding revocable beneficiaries is true, except:

The policyowner can change a revocable beneficiary at any time

Which of the following statements about policy dividends is TRUE?

There are several dividend options to choose from

A partial withdrawal is permitted on which of the following policies?

Universal Life

In the event total disability continues beyond a specified period of time, future premiums will not be required to be sent in to the insurer for the duration of the disability. This optional rider is called the _________ rider.

Waiver of premium

When the life insurance policy's cash value equals the face amount of the policy and the proceeds are paid to the policyowner, this is known as the policy's _________.

endowment

The only way a death benefit can be 100% income tax-free is to be paid out __________.

in a lump sum

The ______________ clause is the insurance company's promise to pay the policy's death benefit to the named beneficiary, after receiving due proof of death of the insured, as long as the policy is in force.

insuring clause

Which clause in a contract would state that Jim is covered by XYZ insurer for a monthly benefit of $2,000 in the event of disability?

insuring clause

When there is enough cash value within a life policy to pay the premium, the Automatic Premium Loan provision prevents the policy from:

lapsing

All of the following are Optional Uniform Provisions, except:

legal actions

Bill is a retired military officer suffering from complications caused by Agent Orange exposure during his military service. He incurs $54, 510 in medical expenses during hospitalization at the local Veterans Administration Hospital. The private health insurance he now owns will likely pay:

nothing

Medicaid is a federal program that is administered by the _______ government.

state

If the insurer issues a health insurance policy without an initial premium, the producer must obtain a signed:

statement of good health