insurance exam

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

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

When transacting business in this state an insurer formed under the laws of another country is known as a/an

Alien Insurer

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

An unfair trade practice

Disability income coverage specifies that the policy covers the insured if he is unable to perform any job for which he is qualified. In this case, the total disability is defined as

Any occupation- more restrictive than other definitions

All of the following qualify for Medicare Part A EXCEPT

Anyone who is willing to pay a premium

Concerning Medicare Part B, which statement is INCORRECT?

It is fully funded by Social Security taxes (FICA)

Which of the following is NOT true regarding policy loans?

Money borrowed from the cash value is taxable

An insured is involved in a car accident. In addition to less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will the insured receive Presumptive Disability benefits?

No benefits

Which of the following explains the policyowners rights to change beneficiaries, choose options, and receive proceeds of a policy

Owners rights

All of the following are characteristics of group life insurance EXCEPT

Premiums are determined by the age, sex and occupation of each individual certificate holder

In the case of producer solicitation, at what point must a long-term care Shopper's Guide must be presented to the applicant?

Prior to the time of application

In respect to the consideration clause, which of the following is consideration on the part of the insurer

Promising to pay in accordance with the contract terms

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

Purchase a single premium policy for a reduced face amount

When an insurer issues an individual health insurance policy that is guaranteed renewable, the insurer agrees

To renew the policy until the insured has reached age 65

What is the typical deductible for basic surgical expense insurance?

$0

What is the maximum allowed value of promotional gifts that an agent may give to a prospective insured

$100

A noncontributory group disability income plan has a 30 day elimination period and offers benefits of $2000 a month. If an employee is unable to work for 7 months due to a covered disability, the employee will receive

$12,000, all of which is taxable

In order for a debtor group to qualify for group life insurance, what should be the minimum number of participants joining the plan every year?

100

S is a sole business proprietor who owns a medical expense plan. What percentage of the cost of the plan may he deduct?

100%

How long must an insurer retain an advertisement for its long-term care policies

3 years

If a licensee changes his or her residence address, within how many days must the department be notified?

30 days

Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray?

50/50

How long does the initial enrollment period for Medicare Part B last

7 months

How long does the initial enrollment period for Medicare Part B last?

7 months

If a claim is made on a policy during the grace period, an insurer is allowed to deduct the overdue premium and to charge interest. What is the maximum allowed interest rate?

8%

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within

90 days of a loss

An investor buys a life policy on an elderly person in order to sell it for a life settlement. This is an example of

A STOLI policy

Which of the following statements is NOT true concerning insurable interest as it applies to life insurance

A debtor has an insurable interest in he life of a lender

The benefits for individual disability plans are based on

A flat amount

Employers can reduce health plan costs by coupling a HRA with

A high deductible health plan

Which of the following does the insuring clause NOT specify

A list of available doctors

Which of the following does the insuring clause NOT specify?

A list of available doctors

Which of the following individuals is eligible for a Health Savings Account?

A person insured under a high-deductible health plan

An individual has been diagnosed with Alzheimers disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits

A portion of the benefit up to a limit is tax free; the rest is taxable income

All of the following are correct about the required provisions of a health insurance policy EXCEPT

A reinstated policy provides immediate coverage for an illness

Which of the following Medicare supplement plans would be available to a reasonably healthy 91-year-old female

A-N

The two types of assignments are

Absolute and collateral

When the insured purchased his health policy he was a window washer. He has since changed occupations and now manages a library. If the insurer is notified of the insured's change of occupation, the insurer should

Adjust the benefit in accordance with the decreased risk

Which of the following is another term for an authorized insurer

Admitted

A 63-year-old man is planning to be employed until age 68. When will he be eligible for Medicare?

Age 65, regardless of his employment status

Which of the following is true regarding branch agency licensing

Agent in charge must be licensed

How can a new physician be added to the PPO's approved list?

Agree to follow the PPO standards and charge the appropriate fees

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?

Aleatory

What is reinsurance?

An agreement between a ceding insurer and assuming insurer

Under which condition would an employees group medical benefits be exempt from income taxes?

An employees group medical benefits are generally exempt from taxation as income

Under which of the following circumstances would an insurer pay accelerated benefits

An insured is diagnosed with cancer and needs help paying for her medical treatment

What is a foreign insurer

An insurer with a home office in another state

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

Application

Employer contributions made to a qualified plan

Are subject to vesting requirements

SIMPLE Plans require all of the following EXCEPT

At least 1,000 employees.

How often must domestic insurance companies be examined by the Chief Financial Officer In Florida

At least every 5 years

When must insurable interest exist in a life insurance policy?

At the time of the application

What document describes an insureds medical history, including diagnoses and treatments?

Attending Physicians Statement

A producer who fails to separate premium monies from his own personal funds is guilty of

Commingling

What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?

Common disaster clause

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

Consideration

An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the

Consideration Clause

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as

Contracts of adhesion

In a relative value system of determining coverage for a given procedure, what term describes the total amount payable per point

Conversion factor

in a relative value system of determining coverage for a given procedure, what term describes the total amount payable per point

Conversion factor

Items stipulated in the contract that the insurer will not provide coverage for are found in the

Exclusions

Failure of a licensee to maintain an appointment with an insurance company within 48 months after the date the license became effective will result in

Expiration of the license

An agent selling variable annuities must be registered with

FINRA

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?

Fair Credit Reporting act

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of

False advertising

If an insured is not required to pay a deductible, what kind of coverage does he/she have

First dollar

Another term used to describe "no deductible" is

First-dollar basis

How long must insurers maintain records of the information collected from senior consumers and other information used in making recommendations that were the basis for insurance transactions

For 5 years after the insurance transaction is completed by the insurer

An insured received a new life insurance policy 5 days ago, but after a closer inspection of the policy provisions, decides to return it to the insurer. What provision would allow the insured to return the policy for a full premium refund

Free look

Which is TRUE about the cash surrender nonforfeiture option

Funds exceeding the premium paid are taxable as ordinary income

What provision in a life insurance policy extends coverage beyond the premium due date?

Grace period

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance In the future without having to prove insurability. This rider is called

Guaranteed insurability

Which of the following is available to employers of all sizes?

HRAs

What are the 2 types of Flexible Spending Accounts?

Health Care Accounts and Dependent Care Accounts

Which of the following riders would NOT increase the premium for a policyowner

Impairment rider

Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be

Installments for a fixed period

Which of the following entities has the authority to make changes to an insurance policy

Insurers executive officer

An insured purchased a life insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash value could change from those shown in the policy at issue time. The policy is an

Interest sensitive whole life

A guaranteed renewable disability insurance policy

Is renewable at the insured option to a specified age

Which of the following does NOT describe hospice care?

It provides care to people with life expectancies of 1 to 2 years

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?

Life income with period certain

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Limited- pay life

If a settlement option is not chosen by the policy owner or the beneficiary, what option will be used by the insurer?

Lump sum

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices

Making comparisons between different policies

Which of the following statements is NOT correct regarding Medicare

Medicare advantage must be provided through HMOS

Which of the following statements is correct

Medicare will cover nursing home care if it is part of the treatment for a covered illness

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?

Misrepresentation

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

Using a class designation for beneficiaries means

Naming beneficiaries as a group

Which provision concerns the insureds duty to provide the insurer with reasonable notice in the event of loss

Notice of claim

What is the definition of a unilateral contract?

One-sided: only one party makes an enforceable promise

Under a pure life annuity, an income is payable by the company

Only for the life of the annuitant

When does Medicare cover nursing home care?

Only if it is part of treatment for a covered illness or injury

Don has both a basic expense and a major medical policy. He is injured in an accident, which requires several major surgeries. This quickly exhausts Don's basic expense policy. What must Don do before his major medical policy can pick up where the basic expense policy left off?

Pay a special deductible on his major medical policy

A participating insurance policy may do which of the following

Pay dividends to the policy owner

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

Another name for a substandard risk classification is

Rated

An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy. What is the agent guilty of?

Rebating

The Federal Fair Credit Reporting Act

Regulates consumer reports

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Replacement rule

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT

Signed waiver of premium

Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option

Size of each installment

Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles

Standard risk is representative of the majority of people

Which of the following types of annuities will generally provide the highest monthly income

Straight life

The transfer of an insured right to seek damages from a negligent party to the insurer is found in which of the following clauses?

Subrogation

All of the following would be different between qualified and nonqualified retirement plans EXCEPT

Taxation om accumulation

A customer with an existing life insurance contract is considering exchanging it for a newer contract. What Florida Insurance regulation should the customers insurance agent consult?

The Florida Replacement Rule

All of the follow entities regulate variable life policies EXCEPT

The Guaranty Association

An employee becomes insured under a PPO plan provided by his employer. If the insured decides to go to a physician who is not a PPO provider, which of the following will happen?

The PPO will pay reduced benefits

Which of the following statements about HRA's is TRUE

The account allows roll-over of unused balances at the end of the year at the employers discretion

Which of the following is TRUE regarding variable annuities

The annuitant assumes the risks on investment

Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner

The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?

The annuitant must be a natural person

All of the following statements about equity index annuities are correct EXCEPT

The annuitant receives a fixed amount of return

Which of the following is NOT the consideration in a policy

The application given to a prospective insured

How do employer contributions to a Health Savings Account affect the insured's taxes?

The employer contributions are not included in the individual insureds taxable income

Who determines the eligibility and contributions limits in a HRA?

The employer determines both

In a disability policy, the elimination (or waiting) period refers to the period between

The first day of a disability and the day the insured starts receiving benefits

Who bears all of the investment risk in a fixed annuity

The insurance company

The insuring clause of a disability policy usually states all of the following EXCEPT

The method of premium payment

Which of the following will vary the length of the grace period in health insurance policies

The mode of the premium payment

Which of the following statements regarding the Change of Beneficiaries provision is false

The policy owner has the right to change the beneficiaries in any case

If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?

The policy will be interpreted as if the insurer waived its right to have an answer on the application

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

An individual purchased a Medicare supplement policy in March and decided to replace it 2 months later. His history of coronary artery disease is considered a pre-existing condition. Which of the following is true

The pre-existing condition waiting period fulfilled in the old policy will be transferred to the new policy

All of the following are true about variable products EXCEPT

The premiums are invested in the insurers general account

How does a member of an HMO see a specialist?

The primary care physician refers the member

Which is true about a spouse term rider

The rider is usually level term insurance

All of the following are true regarding the guaranteed insurability rider EXCEPT

This rider is avaliable to all insureds with no additional premium

Which provision states that the insurance company must pay Medical Expense claims immediately

Time of Payment of Claims

An insured notifies the insurance company that he has become disabled. What provision states that claims must be paid immediately upon written proof of loss?

Time of payment of claims

What is the purpose of coinsurance provisions?

To help the insurance company to prevent overutilization of the policy

The paid-up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

Long-term care policies require that in addition to the applicant at least one person must be designated to the policy. What is the role of that designated person?

To receive notice of policy lapse or termination

Which type of life insurance policy allows the policy owner to pay more or less than the planned premium?

Universal life

Which of the following policies would have an IRS-required corridor or gap between the cash value and death benefit?

Universal life- Option A

When must an insurance company present an outline of coverage to an applicant for a medicare supplement policy

at the time of application

Which of the following is NOT covered by Medicare

cosmetic surgery

Applications to an insurer must include all of the following information, EXCEPT

credit history report

If an insured worker has earned 40 quarters of coverage, the worker's status under Social Security disability is

fully insured

In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost

is not covered

Which of the following statements is NOT correct. concerning the COBRA act of 1985

it requires all employers, regardless of the number or age of employees, to provide extended group health coverage

What is the term for how frequently a policy owner is required to pay the policy premium?

mode

Under an individual disability income policy, the minimum schedule of time in which claim payments must be made to an insured is

monthly

A rider attached to a life insurance policy that provides coverage on the insureds family members is called

other-insured rider

The interest earned on policy dividends is

taxable

Who chooses a primary care physician in an HMO plan?

the individual member

An insurer hires a representative to advertise its company at a local convention. The representative lies about the details of some of the policies, in an attempt to secure more business for the company. Who is responsible for the representative's claims?

the insurer

For variable products, underlying assets must be kept in

A separate account

What is a material misrepresentation

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain

A statement that is sufficiently clear to identify the insured and the nature of the claim

Which of the following insurance products will be subject to the regulation on life insurance solicitation?

A term life policy

Licensed life insurance agents are expected to be familiar with which of the following laws?

All

In which Medicare supplemental policies are the core benefits found?

All plans

In reference to the standard Medicare Supplement benefits plan, what does the term standard mean

All providers will have the same coverage options and conditions for each plan

When an insured purchased her disability income policy, she misstated her age to the agent. She told the agent that she was 30 years old, when in fact, she was 37. If the policy contains the optional misstatement of age provision

Amounts payable under the policy will reflect the insureds correct age

While a claim is pending, an insurance company may require

An independent examination as often as reasonably required

The current interest rate on an equity indexed annuity is often based on

An index like Standard & Poor's 500

The death protection component of Universal life insurance is always

Annually renewable term

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

Annuity Certain

Which statement accurately describes the Change of Beneficiary provision

Any policy that has a death benefit must also have a change of beneficiary provision

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?

Authorized

All of the following information about a customer must be used in determining annuity suitability EXCEPT

Beneficiaries age

Which of the following is TRUE about a class designation

Beneficiaries are not identified by name

Which of the following is TRUE about a class designation?

Beneficiaries are not identified by name

Which of the following is a feature of a variable annuity?

Benefit payment amounts are not guaranteed

Which of the following statements regarding Business Overhead Expense policies is NOT true

Benefits are usually limited to six months

Which of the following statements regarding Business Overhead Expense policies is NOT true?

Benefits are usually limited to six months

Which of the following is NOT true regarding an annuity certain

Benefits stop at the annuitants death

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

Buyers guide

In the event of a divorce, which of the following would allow a divorcee to continue receiving group health coverage under an insured spouse's plan for an additional 36 months?

COBRA

HMOs that contract with outside physicians to provide health care service to their subscribers compensate those providers on a

Capitation basis

Which of the following is true regarding inpatient hospital care for HMO members?

Care can be provided outside of the service area

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

Which of the following features of the Indexed Whole Life policy is NOT fixed

Cash value growth

To legally transact insurance in this state, an insurer must obtain which of the following?

Certificate of Authority

Which of the following must an insurer obtain in order to transact insurance within a given state

Certificate of authority

When a policy owner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals, this is called

Class designation

A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible?

Collateral assignment

Which of the following is the term for the specific dollar amount that must be paid by an HMO member for a service?

Copayment

Which of the following is NOT true regarding Basic Surgical Expense coverage?

Coverage is unlimited

The term "fixed" in a fixed annuity refers to all of the following EXCEPT

Death benefit

Which of the following authorities grants and revokes licenses

Department of Financial Services

Other than for a qualified life event, when can a change be made in benefits for a Flexible Spending Account (FSA)?

During the open enrollment period

What is the goal of the HMO?

Early detection through regular checkups

Which of the following is NOT covered by Health Maintenance Organizations?

Elective services

In disability income insurance, the time between the onset of an injury or sickness and when the benefits begin is know as the

Elimination period

Concerning group Medical and Dental insurance, which of the following statements is INCORRECT?

Employee benefits are tax deductible the year in which they were received

All of the following statements are true regarding tax-qualified annuities EXCEPT

Employer contributions are not tax deductible

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

How long must insurers maintain records of the information collected from senior consumers and other information used in making recommendations that were the basis for insurance transactions?

For 5 years after the insurance transaction is completed by the insurer

The agent in charge of an agency must hold which of the following licenses?

General lines

Life insurance death proceeds are

Generally not taxed as income

The automatic premium loan provision is activated at the end of the

Grace period

What kind of policy issues certificates of insurance to insureds?

Group insurance

What are the 2 types of Flexible Spending accounts?

Health Care Accounts and Dependent Care Accounts

What are the three basic coverages for medical expense insurance

Hospital, surgical, medical

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

Life income joint and survivor settlement option guarantees

Income for 2 or more recipients until they die

The benefits received by the business in a Disability Buy-Sell policy are

Income tax free

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the

Incontestability clause

The Medical Information Bureau (MIB) was created to protect

Insurance companies from adverse selection by high risk persons

Which of the following entities can legally bind coverage

Insurer

Which of the following best describes a misrepresentation

Issuing sales material with exaggerated statements about policy benefits

What is the main purpose of the Seven-pay test

It determines if the insurance policy is an MEC.

Which of the following is NOT true regarding a Certificate of Authority

It is issued to group insurance participants

In which of the following situations is it legal to limit coverage based on marital status

It is never legal to limit coverage based on marital status

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?

It is only taxable if the cash value exceeds the amount paid for premiums

In the underwriting process, it was determined that the applicant for life insurance is in poor health and has some dangerous habits. Which of the following is true concerning the policy premium

It will likely be higher because the applicant is a substandard risk

Every insurer marketing Long-Term Care insurance must establish marketing procedures to ensure all of the following EXCEPT

LTC politieel are marketed effectively to prospective insureds

Variable Whole Life Insurance is based on what type of premium?

Level fixed

Which of the following settlement options in life insurance is known as straight life?

Life income

Which of the following is NOT true regarding policy loans

Money borrowed from the cash value is taxable

Which of the following premium modes would result in the highest annual cost for an insurance policy?

Monthly

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

Premium payments for personally-owned disability income policies are

Not tax deductible

Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive

Nothing; the payments will cease

Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the

Notice regarding replacement

Which of the following documents must be provided to the policy owner or applicant during policy replacement

Notice regarding replacement

An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company obligated to do?

Offer the supplement policy on a guaranteed issue basis

Which of the following explains the policyowners right to change beneficiaries, choose options, and receive proceeds of a policy?

Owners rights

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

Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?

Part A and B of medicare

An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?

Pay a reduced death benefit

An insured purchased a life policy in 2010 and died in 2020. The insurance company discovers that the insured has misstated information in her insurance history on the application. What should the insurer do?

Pay the death benefit

Which of the following is another term for the accumulation period of an annuity?

Pay-in period

Which of the following applies to partial disability benefits

Payment is limited to a certain period of time

Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner

Payment of claims

Which of the following riders would NOT cause the Death Benefit to increase?

Payor Benefit rider

Which of the following provisions is mandatory for health insurance policies

Physical examination and autopsy

Which of the following individuals must have insurable interest in the insured?

Policyowner

Regarding the taxation of Business Overhead policies,

Premiums are deductible and benefits are taxed

Which of the following describes taxation of individual disability income insurance premiums and benefits?

Premiums are not tax deductible, and benefits are not taxable

Which of the following is NOT among the goals of a medicare supplement application

Presuming the applicant is eligible for Medicaid, based on the nature of the policy

An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?

Profit sharing plan

A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?

Proof of insurability is not required

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Rebating

What method do insurers use to protect themselves against catastrophic losses?

Reinsurance

Todd has been informed that he has a hernia which requires repair. When Todd researches the cost, he learns that his insurance plan will cover 200 points worth of surgical expenses. Each point represents $10, which means that $2000 of his surgery will be covered by his insurance plan. What system is Todd's insurance company using?

Relative Value

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

Rent

If an employer decides to change its life insurance policy to a similar one with a different insurer, which of the following describes the extent that replacement regulations will be exercised

Replacement regulations will not apply in this situation

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

Required a premium increase each renewal

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 consumers complaint

Which of the following is NOT covered under Part B of a Medicare policy?

Routine dental care

To sell variable life insurance policies, an agent must receive all of the following EXCEPT

SEC registration

Which of the following best details the underwriting process for life insurance?

Selection, classification and rating of risks

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a

Settlement option

An employee has group life insurance through her employer. After 5 years, she decides to leave the company and work independently. How can she obtain an individual policy?

She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan

Which of the following determines the length of time that benefits will be received under the Fixed-amount settlement option?

Size of each installment

An insurance agent B likes to add additional coverages to applicants policies and charge them for such converges without their knowledge. This agent is guilty of

Sliding

Which benefit is based on the persons Primary Insurance Amount PIA

Social security disability benefit

Which of the following would be considered a non qualified retirement plan?

Split- dollar plan

When an employee covered under a health reimbursement account changes employers, the HRA

Stays with the employer

Which of the following types of insurers is owned by stockholders

Stock

Which of the following terms describes the specified dollar amount beyond which the insured no longer participates in the sharing of the expenses

Stop-loss limit

Which of the following groups would most likely be covered under a blanket accident policy

Students at a public school

Health plan issuers are prevented from collecting genetic information for underwriting purposes or limited in their requests for genetic tests by

The Genetic information and nondiscrimination act

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?

The balance of the loan will be taken out of the death benefit

How will a life insurance beneficiary designation naming a spouse be changed by divorce?

The beneficiary designation will be voided

An employer offers group life insurance to its employees for the amount of $10,000. Which of the following is true?

The cost of coverage is a deductible expense by the employer

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customers associates, friends, and neighbors provide the reports data

Which of the following dates must be contained a policy summary

The date the summary was prepared

Which of the following dates must be contained in the policy summary?

The date the summary was prepared

If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?

The death benefit will be smaller

Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to

The insured

An insured had $500 left in his Health Reimbursement Account when he quit his job. What happens to that money?

The insured can have access to the $500 at his previous employers discretion

An insured purchased a noncancellable health insurance policy 1 year ago. Which of the following circumstances would NOT be a reason for the insurance company to cancel the policy

The insured is in an accident and incurs a large claim

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 years expenses to next year, which will help satisfy next years deductible

Which of the following is correct regarding selecting a primary care physician in a PPO claim

The insured may choose medical providers not found on the preferred list

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

The insured may choose to convert to term or permanent individual coverage

Under a SIMPLE plan, which of the following is TRUE regarding taxation on both contributions and earnings?

They are tax deferred until withdrawn

Which of the following is true regarding taxation of accelerated benefits under a life insurance policy?

They are tax free to terminally ill insured

Which of the following statements is most correct concerning the changing go an irrevocable beneficiary?

They can be changed only with the written consent of that beneficiary

All of the following are requirements for life insurance illustrations EXCEPT

They must be part of the contract

What is the purpose of a disclosure statement in life insurance policies

To explain features and benefits of a proposed policy to the consumer

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?

Unilateral

In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?

Unilateral

What kind of policy allows withdrawals or partial surrenders?

Universal life

Which of the following types of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount

Universal life

All of the following are TRUE regarding the convertibility option under a term insurance policy EXCEPT

Upon conversion, the death benefit of the permanent policy will be reduced by 50%

A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor fo similar training and experience in that geographic area is known as

Usual, customary and reasonable

Which of the following products requires a securities license?

Variable annuity

Which of the following types of policies allows for a flexible premium and a variable investment component

Variable universal life insurance

Manny has been injured in an accident. Although she is still receiving benefits from her policy, she does not have to pay premiums. Her policy includes

Waiver of Premium rider

Social Security Supplement (SIS) or Social Security Riders would provide for the payment of income benefits in each of the situations below EXCEPT

When the amount payable under Social Security is more than the amount payable under the rider

When is the earliest a policy may go into effect?

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

Under what condition are group disability income benefits received by an employee NOT taxable as income?

When the benefits received are equal or less than the employees percentage of the contribution

The main difference between immediate and deferred annuities is

When the income payments begin

When would a 20-pay whole life policy endow

When the insured reaches age 100

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

Within 90 days or as soon as reasonably possible, but not to exceed 1 year

Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?

twisting

The continuation of coverage provision allows terminated employees to continue coverage under a group health insurance plan for up to

18 months

What is the maximum elimination period in long-term care policies issued in Florida?

180 days

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

In order to maintain an insurance license, an agent licensed for less than 6 years will need to satisfy Floridas continuing education requirement of

24 hours every 2 year period

Relation of Earnings to Insurance provision allows the insurance company to limit the insureds benefit to his/her income over the last

24 months

In this state, long-term care benefits may be triggered by inability to perform how many activities of daily living?

3

In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?

5

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

The inflation protection feature in long-term care policies issued in this state must provide protection at what percent annually

5%

An insured decides to surrender his $100,000 Whole Life policy. The premiums paid into the policy added up to $15,000. At policy surrender, the cash surrender value was $18,000. What part of the surrender value would be income taxable?

$3000

An insured under a group health plan has a dependent child who has an intellectual disability. When the child was enrolled in the insureds policy, the insurer offered coverage at a much higher rate than for other dependents. Which of the following is true?

This is considered an illegal discrimination

Coverage of a newborn includes all of the following EXCEPT

Transportation costs of up to $3000 if medically necessary

An agent has been convicted of a crime punishable by a 1-year imprisonment. Within how many days must the agent notify the department of insurance?

30 days

All of the following are duties and responsibilities of producers at the time of the application EXCEPT

Change any incorrect statements on the application by personally initialing next to the correct statement

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

During which illness-related disabilities are excluded from coverage


Ensembles d'études connexes

Plains Indian War (unit 2, lesson 4)

View Set

Lab 2-2: Working with Oracle VM VirtualBox 5

View Set

Geography - Netherlands, Belgium, Luxembourg, Austria, Hungary, Switzerland, Romania

View Set

Chapter 10 Concept Videos (LO10-1; LO10-2; LO10-3; LO10-4)

View Set

Chest Radiography Problem Solving

View Set