Insurance exam
when a whole life policy lapses or surrender prior to maturity, the cash value can be used to
purchase a single premium policy for reduced face amount
Which of the following is TRUE regarding variable annuities
The Annuitant assumes the risks on investment
which of the following describes the taxation of an annuity when money is withdrawn during the accumulation phase
was John amounts our taxed on last in first out basis
in all healthcare plans under the affordable healthcare act how many essential benefit categories are there?
10
The Pregnancy discrimination Act specifically prohibits pregnancy discrimination by employers with the minimum of how many employees?
15
A person buys a individual long-term care policy and is not satisfied with the provisions. Within how many days will insured be able to return the policy for a full premium refund
30-days
How long is open enrollment period for medicare supplement policies
6 months
which of the following is an example of a producer's fiduciary responsibilities
A producer promptly farting premiums to the insurance company
Which of the following is NOT an allowable 1035 exchange?
A whole life insurance policy exchanged for a term insurance policy
All of the following statements concerning accidental death and dismemberment coverage are correct EXCEPT
Death benefits are only paid if death occurs within 24 hours of an accident
What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense plan?
Diagnostic and Preventive care
The primary purpose of licensing is to
Ensure high standards to the insuring public
Which of the following is used to determine the annuity amounts that are not taxable?
Exclusion ratio
what does "level" refer to in level term insurance?
Face amount
What type of premium do both Universal Life and Variable Universal Life policies have?
Flexible
A new employee who meets HIPPA eligibility requirements must be issued health coverage on what basis?
Guaranteed
Which of the following is excluded in a dental insurance plan?
Lost dentures
How many pints of blood will be paid for by Medicare supplement core benefits
The first three
All of the following statements are true regarding installments for fixed amount except
The payment will stop when the annuiltant dies
All of the following are true of a key person insurance except
The plan is funded by permanent insurance only
Under extended term nonforfeiture option the policy cash value is converted to
The same face amount as in th whole life policy
Which of the following is true regarding inpatient hospital care for HMO Members
care can be provided outside of the service area
What does "liquidity" refer to in a life insurance policy
cash vales can be borrowed at any time
which of the following is another name for primary care physician in an HMO
gatekeeper
Which type of life insurance policy allows the policyowner to pay more or less then the planned premium?
universal life
Which of the following must the patient pay under Medicare part B?
20% of covered charges above the deducible
If a telemarketer wants to make an unsolicited sales call to a potential customer, what is the earliest time the telemarketer can call the prospect's residence?
8 am
When an insurer offers services like preadmission testing, second opinions regarding surgery and preventative care which term would best apply
Case management provision
A man works for a company A and his wife works for company beat their spouses are covered by healthcare plans through their respective companies that also covered the other spouse if the husband files a claim,
The insurance through his company is primary
an agent is in the process of replacing the insured current health insurance policy with a new one. which of the following would be proper action?
The old policy should stay enforced until the new policy is issued
Are insurance company underwriters allowed to discriminate?
Yes, but not unfairly
if a company has a simplified employee pension plan what type of plan is it
a qualified plan for small businesses
The two types of assignments are
absolute and collateral
Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?
any form of life insurance
which of the following types of agent authority also called perceived authority?
apparent
Which of the following is an example of peril covered in accident and health insurance policy
sickness
All of the following are beneficiary designations except
specified
which of the following is NOT true regarding the annuitant?
the annuitant cannot be the same person as the annuity owner
in circumstances that would warrant licensed suspension the commissioner may instead decide to put the license on probation. what is the maximum number of months that a probation could last
24
An insured receives a annual life insurance dividend check. Which escribes this arrangement?
Cash Option
In disability income insurance, the own occupation definition of disability applies
For the first 2 years of disability
Which of the following refers to "own occupation" disability
Insured is unable to perform duties of the occupation for which they were educated and trained
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
Level Term
All of the following statements describe a MEWA EXCEPT:
MEWA are groups of a least 3 employers
Which of the following is NOT true regarding policy loans
Money borrowed from the cash value is taxable
Death benefits payable to a beneficiary under a life insurance policy are generally
Not subject to income taxation by the federal government
A applicant wants to buy a policy that has a cash value element. Which type should she buy?
Permanent
A guaranteed renewable health insurance policy allows the
Policyholder to renews the policy to a stated age, with the company having the right to increase premiums on the entire class
Insurance is the transfer of
Risk
which of the following is not the consideration in a policy
The application given to a prospective insured
Who guarantees a conventional fully-insured group plan
The insurer
twins, brother and sister, each purchased a retirement annuity. when they retired at the same time, each selected the life income option. both have similar lifestyles and are in good health which of the following is true respect to their monthly annuity payment?
The man's payment will be larger
In a life settleent contract, Whom does the life settlement broker represent?
The owner
the waiver of cost of insurance rider is found in what type insurance?
Universal Life
All of the following are true of the federal tax advantage of the qualified plan EXPECT
add distribution all amounts received by the employee or tax-free
under HIPAA which of the following is incorrect regarding an eligibility requirements for conversion to an individual policy?
an individual who has previously covered by a group health insurance for 6 months is eligible
under the age discrimination an employment act retiree health benefits offered to employees under the age of 65 must value
at least the same benefit amount offered by social security
what document describes an insured medical history includes diagnoses and treatments
attending physician statement
to be eligible for tax credits under the ACA individuals must have an income that is what percentage of the federal property level?
between 100% and 400%
in comparsion to a policy that uses the accidental means definition, a policy that uses the accidental bodily injury definition would provide a coverage that is
broader in general
which of the following provides affordable health insurance for Utah residents who are considered uninsurable
comprehensive health insurance pool act
and insured is admitted to the hospital for surgery on a herniated disc. The insurance company monitors the treatment and progress in order to make sure that everything proceeds according to the insurers schedule this is called
concurrent review
an individual has borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments what type of life insurance policy would be best suited for the situation
decreasing term
what does the following is true regarding the Spend thrift clause in the life insurance policies?
it can protect the policies proceeds from the creditors of the beneficiary
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
in an individual long-term care insurance plan, they insured is able to deduct the premium from taxes. what income taxation will be imposed on the benefits received
no tax
which type of dental care would cover operative treatment of the mouth
oral surgery
an employer has sponsored a qualified retirement plan for its employees where the employer will contribute money wherever a profit is realized. what is this called?
profit sharing plan
which of the following is monitored by ERISA
stock profit sharing plans
your client is planning to retire. she has accumulated $100,000 in retirement annuity, and now wants to select the benefit option that will pay the largest monthly amount as long as she lives. as her agent you should recommend
straight life
who guarantees a conventional fully insured group plan
the employer
What do long-term care policies offer to policyholders to account for inflation?
they offer the option purchasing coverage that raises benefit levels accordingly
which of the following is the best reason to purchase life insurance rather than annuity
to create an estate
What is the purpose if establishing target premium for a universal life policy?
to keep the policy in force
Applicants for producer, broker, or consultant licenses must show the Commissioner they satisfy all the following requirements EXECPT
Are a citizen of the United states of America
An insured is receiving hospice care. His insurer will pay for painkillers but not for an operation to reduce the size of a tumor. What term best fits this arrangement?
cost-containment
which of the following is not true regarding a non-qualified retirement plan
it needs IRS approval
Alll of the following are ways in a MAjor Medical policy premium is determined EXECPT
the average age of the group
A producer is helping a married couple determine the financial needs of their children in the event one or both should I prematurely. this is a personal use of a life insurance known as
survivor protection
which of the following is NOT true regarding the accumulation periods of annuity
it would not occur in a deferred annuity
Which of the following is INCORRECT concerning taxation of disability income benefits?
it's paid by the individual the premiums are tax deductible
an HSA holder who is 65 years old decides to use the money in the account for non-health expenses which of the following is true?
there will be tax
How are employer contributions to Health Reimbursement Accounts treated in regards to taxation?
they are tax dedectible
if someone wants to buy a life insurance policy that will provide a lifetime protection against premature death, what type of life insurance policy should that person buy?
permanent
which of the following is not among the goals of Medicare supplement application
presuming the applicant is eligible for Medicaid based on the nature of the policy
a Medicare Select policy does all of the following except
prohibit payment for regularly covered services if provided by non-network providers
When a carrier decides to discontinued a health insurance plan for a small employer, the carrier is required to do which of the following?
provide a written notice of plan cancellation to employer an all insured 30 days prior to cancellation
An applicant buys a nonqualified annuity, but dies before the starting date. For which of the following beneficiaries would the contract's interest NOT be taxable?
spouse
to be eligible under HIPAA regulations for how long should an individual converting to an individual healthcare plan have been covered under a previous group plan?
18 months
All of the following are true regarding rebates EXCEPT:
Rebates are allowed if it is in the best interest of the client
ALL Of the following would be different between a qualified and nonqualified retirement plan EXCEPT?
Taxation on accumulation
Which of the following statements is TRUE about a policy assignments
it transfers rights of ownership from the owner to another person
when benefits are paid directly to the insured under a health insurance policy, the policy provides benefits on what type of basis?
reimbursement
which of the following life insurance policies allows a policy order to take out a loan from the policies cash value?
variable universal life
to sell variable life insurance policies and agent must received all of the following except
SEC registration
Which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments
The annuitant dies while the annuity is still in accumulation stage. which of the following is true?
The beneficiary will receive the greater of the money paid into the annuity or the cash value
A husband and wife insured under group health insurance plans at their own places of work and as dependents under their spouse's coverage. I f one of them incurs hospital expenses, how will those expenses likely be paid?
The benefits will be coordinated
What happens if a deferred annuity is surrendered before the annuitization period?
The owner will receive the surrender value of the annuity
