Insurance Exam
If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following?
Adjust the benefit in accordance with the increased risk
Your customer doesn't mind paying a higher premium as long as he gets a life insurance product that would allow for a faster growth of the cash value. What kind of policy would you recommend?
An endowment policy
What can the consumer report not include
Ancestry
What is the minimum required benefit for a mammography screening for women age 40 insured under a health plan in this state?
Annually
In a replacement situation, all of the following must be considered EXCEPT
Assets.
What is it called when the doctor accepts the medicare approved amount?
Assignment
Which of the following best describes fixed-period settlement option
Both the principle and interest will be liquidated over a selected period of time
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?
Buyer's Guide
What describes the relationship between pricipal sum and capital sum
Capital sum is a % of the principal sum
What is the minimum civil penalty the Commissioner may impose on a producer who violates a cease and desist order?
$100
In the event of insolvency, what is the maximum obligation to the oklahoma life and insurance guarntee
100,000
If a producer allows his or her license to lapse, what is the maximum time period during which a producer can reinstate the license without having to retake the examination?
12 months
How old must an individual be to contract life insurance on somebody elses life
15
Following hospitalization because of an accident, Bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many days?
20
An individual who has been honorably discharged from military service may reinstate prior individual health insurance policy within how many days
30
If a new individual long-term care policyholder is not satisfied with a new policy, within how many days can the insured return the policy for a full premium refund?
30
What is the maximum period of coverage for most short term limited duration insurance policies
36 months
within how many days of the application must the replacing insurer notify the office of the replaced insurer
5 Days
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
What is the max number of employees for a small employer in this state?
50
In order to maintain coverage under COBRA, how soon from termination of employment must an employee exercise extension benefits?
60 days
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
Conditions
Which of the following is NOT a characteristic or a service of an HMO plan?
Contracting with insurance companies
If an employee terminates her employment, which of the following provisions would allow her to continue health coverage under an individual policy, if requested within 31 days?
Conversion
Under PPACA what must be covered?
Diabetic condition
Which of the following best describes an insurance company that has been formed under the laws of this state?
Domestic
When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?
Equal to the original policy for as long as the cash values will purchase.
According to the small employeer health insurance and reform act
Every filing must be made at least 30 days prior to the date the small employer carrier intends to impalement rates.
An important face about the financial status of an insurer was deliberately withheld. which of the following terms best describes this action
False financial statement
When an insurance company published an advertising brochure, it empasized the company's financial stability and sound business practices. In Reality, its financial health is terrible, and the company will soon have to file for bankruptcy. Which of the following terms best describes the advertisement
False financial statement
Which of the following entities is not an but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization
Fraternal benefit society
The automatic premium loan provision is activated at the end of the
Grace period.
Which of the following terms best describe the coverage provided by term policies, as compared to any other form of protection
Greatest
If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a
Guaranteed insurability rider.
A Health insurance policy lapses but is reinstated within an acceptable timeframe. How soon from the reinstatement date will coverage for accidents become effective?
Immediately
A valid certificate of authority is required by the Commissioner in order for an insurer to transact business in Oklahoma. Some exceptions apply to insurance transactions for which a Certificate of Authority is not required. Which of the following are permitted without a Certificate of Authority?
Investigation of claims by an insurer which has relocated in another state
Which of the following is correct about a group health insurance policy?
It cannot exclude newborn children from coverage
Why is an equity indexed annuity considered to be a fixed annuity
It has a guaranteed minimum interest rate
Which of the following best describes annually renewable term insurance?
It is level term insurance.
which of the following is TRUE regarding the annuity period
It may last the lifetime of the annuitant
If a retirement plan or annuity is qualified, this means
It satisfies the IRS requirements for favorable tax treatment
Which of the following is true of a PPO?
Its goal is to channel patients to providers that discount services.
Variable whole life insurance is based on what type of premium
Level fixed
which rider added to life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home
Long term care
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report
Must be informed of the source of the report.
An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?
Mutual
A long-term care insurance shopper's guide must be provided in the format developed by which of the following?
NAIC
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the
One-year term option
An insured pays her Major Medical Insurance premium annually on March 1. Last March she forgot to mail her premium to the company. On March 19, she had an accident and broke her leg. The insurance company would
Pay the claim.
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
Payor Benefit
Which of the following riders would NOT cause the Death Benefit to increase?
Payor Benefit Rider
An insured has dental coverage provided under a Comprehensive (nonscheduled) Dental Plan. Which service provided by the plan would NOT require the insured to pay a deductible or copayment?
Preventive care
Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?
Principal sum
All of the following information must be included on a producer's license EXCEPT
Producer's personal phone number.
Which of the following describes attachments made to policies that either add or modify coverage?
Riders
to sell variable life insurance policies, an agent must receive all of the following EXCEPT
SEC registration
variable insurance and variable annunites are regulated by
SEX, FINRA and Department of insurance
If an individual is denied coverage under social secuirty what rider can be added
SIS rider
Which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payment
Which of the following insurers are owned by stockholders?
Stock
Which is NOT required of an applicant for an insurance license in Oklahoma?
Submitting a bond to the Department of Insurance
All of the following are unfair claims settlement practices EXCEPT
Suggesting negotiations in settling the claim.
What policy does not offer a policy loan option
Term life
Who is responsible for paying producer appointment fees?
The appointing insurer
All of the following criteria may be utilized by a small employer carrier to determine the class of business applicable to any small employer EXCEPT
The criteria are related to the health status or claim experience of a small employer
Which of the following is included on the certificate for credit life insurance?
The effective date and termination date
Insured Z's health insurance policy year begins in January. His policy contains a carry-over provision. In November, he has a small claim which is less than his deductible. Which of the following is true?
The insured may carry over the amount of this year's expenses to next year, which will help satisfy next year's deductible.
When Linda suffered a broken hip, she notified her agent, in writing, within 12 days of the loss. However, her agent did not notify the insurance company until 60 days after the loss. Which of the following statements correctly explains how this claim would be handled?
The insurer may deny the claim since it was not notified within the required 20-day time frame.
A policy must meet all of the following minimum benefit standards to be advertised or issued for delivery as a Medicare supplement policy except
The policy cannot deny a claim for losses incurred more that 12 months before the effective date of coverage due to preexisting conditions
A policy with a 31-day grace period implies
The policy will not lapse for 31 days if the premium is not paid when due.
How must a replacing producer respond to an applicant wishing to replace existing life insurance?
The producer must provide the applicant with a notice regarding replacement
An insurer would like to add a provision to its individual health insurance policies. This particular provision would be consistent with uniform provisions. Which of the following is TRUE?
The provision would be allowed, as long as it is approved by the state.
All of the following statements about Medicare supplement insurance policies are correct EXCEPT
They cover the cost of extended nursing home care.
Which of the following is true concerning employer group dental plans
They seldom contain conversion privilege
What is the purpose of coinsurance provisions?
To help the insurance company to prevent overutilization of the policy
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
Universal life
What is not required to have a separate account of the Oklahoma Life and Health insurance Guaranty Association
Variable products
In forming an insurance contract, when does acceptance usually occur?
When an insurer's underwriter approves coverage
Guarantee insurability rider allows the owner to purchase additional insurance without proof of insurability for
approx 3 years between ages of 25 and 40, birth of a child and marriage
A whole life policy is surrendered for a reduced paid-up policy. The cash value in the new policy will
continue to increase
The patient protection and affordable health care act includes all of the following provisions except
individual tax deductions for premium paid
All of the following are nonforfeiture options except
interest only
As an insurers field underwriter, a producer has all of the following responsibilites except
issuing policies on behalf of the insurer
Which of the following statements is TRUE about a policy assignment?
it transfers rights of ownership from the owner to another person.
Which statement best describes the agreement as it relates to insurance contracts
one party accepts the exact terms of the other partys offer
Which dividend option will increase the death benefit?
paid-up additions
what is the difference between straight life policy and a 20-pay whole life policy
premium payment period
How do premiums in variable universal life policies vary from those in variable life whole life policies
premiums are flexible
If life insurance company uses HIV testing as part of its underwriting, when must an applicant be notified of the procedure
prior to performance of the test
What is not true of of annually renewable term insurance
proof of insurability must be provided at each renewal
In order to get a non resident lisense in another state the, the agent must
prove to the commisioner that he or she is a resident in another state
once the official benefit limit in medicare part D is reached, how is the beneficiary affected?
the beneficiary is responsible for a portion of prescription drug cost.
to send important documents to the insured through electronic mail services, all of the following must be met except
the insured must be made aware that chosing another method may affect the validity of the ducument
What is a requirement for replacement of health policies
the old policy must stay in force until the new policy is issued
The elimination period in a disability income policy is better known as
the period of time an insured must wait after the onset of an illness or injury before benefits begin
In the common disaster clause, if it is unclear who dies first between the insured and primary beneficiary what will be assumed
the primary benificary dies before the insured
the regulation of the insurance industry primarily rest with
the state
what happens if someone losses one limb from an accident
they will be paid the capital amount which is 50% of the principal amount
if the insured is not legally bound to any particular action in the insurance contract, this is an example of
unilateral
reguarding convertibility option under a term life insurance policy
upon conversion, the death benifit of the permanent policy will be reduced by 50%
What is the key distinction between variable whole life and universal life products
variable whole life has a guaranteed death benefit
If the policy summary for a life insurance policy is not given when the application is taken, when must the policy summary be given to the policyowner?
when the policy is delivered
who bears all of the investment risk in a fixed annuity
the insurance company
under the common accident provision, how many deductiples will be paid if more than one covered person is in the accident
1
Every 2 years an agent must complete how many CE hours on ethics?
3
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
Cash option
What are the two components of a universal policy
Insurance and cash account
An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?
Paid-up Option
An individual applied for an insurance policy and paid the initial premium. The insurer issues a condition reciept for a medical exam. When is the policies affective date?
The date of the medical exam
Which of the following is not a feature of a noncancelable policy
The insurer may terminate the contract only at renewal for a certain condition
When a whole life policy is surrendered for its nonforfeiture value. what is the automatic option
extended term
Which of the following is true regarding the accumulation period of an annuity
it is a period during which the payments into the annuity grow tax deferred
What is not considered a limited coverage policy
major medical expense insurance
In long term care insurance, what type of care is provided with intermediate care
occasional nursing or rehabilitative care
what defines the unfair trade practice of rebating
offering an inducement of something of value not specified in the policy
What does the application of contract of adheasion mean
since the insured does not partipate in preparing the contract, any ambiguities would be resolved in favor of the insured
Who is someone that would want to purchase a deferred annuity
someone who wants to grow a retirement funds tax deffered
In all health care plans under the Affordable Care Act (ACA) how many essential benefit categories are there
10
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?
10 days
To be eligible under HIPPA regulations, how long should an individual be converting to an individual health plan have been covered
18 months
If a producer receives an inquiry from the commissioner reguarding a claim the producer must respond within
20 calendar days
When an individual life insurance policy is being replaced by an insurer using an agent, the policyowner must be given an unconditional right to a full refund of premiums if the policy is returned within
20 days
What is the maximum age to qualify for a catastrophic plan?
30
How many days notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans
30 days
What is not a consideration in an insurance policy?
Cash Value of the policy
what is not a purpose of the regulation of medicare supplement insurance
increase commisions or discourage purchase of group insurance
the section of the health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the
insuring clause
skilled medical personnel to those who need occasional medical assistance or rehab care is provided by
intermediate care
What is not excluded from coverage in an individual health insurance policy
mental illness
How many days from the issuance of an emergency cease and desist would the order be considered final?
31 Days
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?
The capital amount in a lump sum
What best describes the fixed period settlement option?
both the principal and interest will be liquidated over a select period of time.
meets the insureds needs and is provided by nonmedical personal
custodial care
When the policy owner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?
fixed amount
Underwriting a group health insurance plan that is paid for by the employer requires all of the following EXCEPT
individual members may select the level of benefits in their own coverage
in the event of loss, who is responsible for providing claim forms
insurer to insured
What is not true to a survivorship life policy
the premium is based on the age of each insured
Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?
Part A and B of Medicare
An insured is covered by disability income policy that contains an accidental means clause jumps off a bus and breaks her ankle. What coverage will apply
No coverage will apply because accident could have been avoided
The classification "Small Employer" means any person actively engaged in a business that on at least 50% of its working days during the preceding year employed
No more than 50 eligible employees
The policy owner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. she has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?
Reduction of premium
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must
Respond to the consumer complaint
