L and H

purpose of risk retention

reduce expenses and improve cash flow increase control of claim reserving fund for losses that can't be insured

how is risk retention assumed

self insurance copayments deductibles

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

90 days but not to exceed 1 year

according to the entire contract provision a policy must contain

a copy of the original application for insurance

which statement best defines a multiple employer welfare arrangement

a joining together by employers to provide health benefits for employee

the term illustration in a life insurance policy refers to

a presentation of nonguaranteed elements of a policy

which of the following is the closest term to an authorized insurer

admitted

on a major medical insurance policy, the amount that the insured must pay on a claim before the insurer will pay is known as

deductible

which of the following may not be included in an insurance companies advertisement

that it's policies are covered by a state guaranty association

the annual contribution limit of a dependent care flexible spending account is set by

the IRS

in which of the following examples would a contract between an insurer and prospective insured be legal

the applicant has a prior felony conviction

an insured has a major medical policy with a $500 deductible and a coinsurance clause of 80/20. if he incurs medical expenses of $4,000 the insurer would pay

$2,800

at the time of intitial licensing what fee must a viatical settlement provider pay

$300

any licensed person whose activities affect interstate commerce and who knowingly make false material statements related to the business of insurance may be imprisoned for up to

10 years

once a viatical contract has been established how kind does the visitor have to rescind the contact

15 calendar days

HIPAA applies to groups of

2 or more

within how many days must a producer respond to an inquiry from the commissioner

30 days

which of the following statements is correct about HMO

HMO may pay for services not covered by Medicare

all of the following are true regarding the medical information bureau except

MIB reports are based upon information supplied by doctors and hospitals

which of the following is the closes term to an authorized insurer

admitted

which of the following best defines target premium in a universal life policy

the recommended amount to keep the policy in force throughout its lifetime

in an adjustable life policy all of the following can be changed by the policy owner except

the type of investment

which of the following is not true regarding equity indexed annuities

they earn lower interest rates than fixed annuities

which of the following is true regarding medicare supplement policies

they must be guaranteed renewable

which of the following is not a goal of risk retention

to minimize the insureds level of liability in the event of loss

what is the job of a viatical settlement broker

to negotiate contracts between viatical settlement providers and viators, on the behalf of the viators

which type of life insurance policy allows the policyowner to pay more or less than the planned premium

universal life

contracts in which the cash values accumulated based upon a specific portfolio of stocks

variable life insurance

a policyowner of a life insurance policy who is also the insured is diagnosed with a terminal illness, so he sells the policy to a viatical company in order to pay medical bills. what term best describes the policyowners role in this transaction

viator

what types of services may not be provided under the long term cares assisted living care

visits by an RN

which of the following is a statement that is guaranteed to be true and if untrue may breach an insurance contract

warranty

if a policy includes a free look period of at least 10 days, the buyers guide must be delivered to the applicant

with the policy

an individual has been contributing to a retirement account after taxes are taken out of his paycheck. his advisor told him. that he will be allowed to make contributions after age 70.5. the account owner does not have to pay taxes on the growth of his account. what type of retirement account is this

ROTH IRA

life insurance that has a guaranteed minimum and fixed benefits

fixed life insurance

an insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. the insured is still able to perform his current job. to what extent will he receive presumptive disability benefits

full benefits

all of the following actions by a person could be described as risk avoidance except

investing in the stock market

bob decides to sell his life insurance policy to a viatical settlement company. which of the following is true

it is the viatical settlement providers responsibility to inform the insurance company that the policy has been viaticated

which of the following is not considered a misrepresentation as it pertains to unfair trade practices

making comparison between different policies

a prospective insured receives a conditional receipt but dies before the policy is issued. the insurer will

pay the policy proceeds only if it would have issued the policy

in dental insurance what type of care will cover crowns

restorative

which of the following would not fall into the category of costs associated with death

the expense of vacation for surviving family members

which of the following entities established the DO NOT CALL registry

the federal trade commission

which of the folllowing would be required to be licensed as an insurance producer

a salaried employee who advertises and solicits insurance

an individual was just caught acting as an exclusive general agent- even though he is not properly licensed. assuming that this occurred in a single day what is the maximum penalty he faces

a third degree misdemeanor and a 1,000$ fine

the omnibus budget reconciliation act of 1990 requires that large group health plans must provide primary coverage for disabled individuals under

age 65 who aren't retired

what is a foreign insurer

an insurer with a home office in another state

in disability income insurance if an insured is considered disabled if they cannot perform any job they are surer for by prior education training or experience they fall under which definition of total disability

any occupation

an insurance contract must contain all of the following to be considered legally binding except

beneficiarys consent

an insured receives an annual life insurance dividend check: what term best describes this arrangement

cash option

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

consideration

when an insured makes truthful statements in the application for insurance and pays the required premium, it is also known as which of the following

consideration

which of the following includes information regarding a persons credit character reputation and habits

consumer report

which of the following is not an essential element of an insurance contract

counteroffer

all of the folllowing statements concerning accidental death and dismemberment coverage are correct except

death benefits are paid only if death occurs within 24 hours of an accident

which of the following is not a cost saving service in a medical plan

denial of coverage

the death benefit in a variable universal life policy

depends on the performance of a separate account

which of the following is not a term for the period of time during which the annuitant receives income?

depreciation period

a producer agent must do all of the following when delivering a new policy to the insured except

disclose commissions earned from the sale of the policy

an insured is hospitalized with a back injury. upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. this indicates that his policy is written with a 30 day

elimination period

an individual is purchasing a permanent life insurance policy with a face value of $25,000. while this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. which of the following options should be included in the policy

guaranteed insurability option

which of the following health care plans would most likely provide the insured with comprehensive health care coverage

health maintenance organization plan

which of the following is incorrect concerning taxation of disability income benefits

if paid by the individual, the premiums are tax deductible

which of the following statements about the reinstatement provision is true

if required the policyowner to pay all overdue premiums with interest before the policy is reinstated

which of the following statements best describes the effect the accelerated benefit provision would have on the benefits paid to the beneficiary

if will decrease the benefits paid

a man purchased a $90,000 annuity with a single premium. and began receiving payments 2 months after that. what type of annuity is it

immediate

in which of the following locations would skilled care most likely be provided

in an institutional setting

issue age policy premiums increase in response to which of the following factors

increased benefits

what do individuals use to transfer their risk of loss to a larger group

insurance

who makes up the medical information bureau

insurers

an individual's tendency to be dishonest would be indicative of a

moral hazard

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 this policy

mutual

policy that distributes its dividends to policy owners by cash payments

mutual life insurance "participating"

which of the following can surrender a deferred annuity contract

only the annuity owner

if someone wants to buy life insurance policy that will provide lifetime protection against premature death, what type of policy should that person buy

permanent

various forms of whole life insurance that remain in effect until age 100

permanent life insurance

which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years

policy summary

all of the following are examples of risk retention except

premiums

which of the following licensees is classified as a representative of the insurance company and not allowed to represent an insured or claimant

producer

a situation in which a person can only lose or have no change represents

pure risk

the risk of loss may be classified as

pure risk and speculative risk

another name for a substandard risk classification is

rated

if a court ordered payment for a loss that was not covered in the policy even if it was clearly worded, it would be an example of which legal concept

reasonable expectations

which of the following factors determines the amount of each installment paid in a life income option arrangement

recipients life expectancy and amount of principal

which is the appropriate action by the insurer if a prospective insured submitted an incomplete application

return the application to the applicant for completion

when the insured initiates the cancellation of. a policy, the unearned premium will be refunded on a

short rate basis

events in which a person has both the chance of winning or losing are classified as

speculative risk

which of the following statements about a suicide clause in a life insurance policy is true

suicide is excluded for specific period of years and covered thereafter

temporary life insurance provided for a specific period of time "pure"

term life insurance

a life insurance policy does not have a war clause. if the insured is killed during a time of war, what will the beneficiary receive from the policy

the full death benefit

the insured had his wife named as the beneficiary of his life insurance policy. to ensure that his wife had income for life after the insureds death he chose the life income settlement option. the amount of payments will be determined by taking into account all of the following except

the insureds age at death

which of the following is not a characteristic of an insurable risk

the loss must be catastrophic

an insurer wishes to compare the information given in an insurance application with previous insurance application by the same applicant but for different companies. what organization can help the insurer accomplish this

the medical information bureau

all of the following are true regarding a decreasing term policy except

the payable premium amount steadily declines throughout the duration of the contract

if an insured continually uses the automatic premium loan option to pay the policy premium

the policy will terminate when the cash value is reduced to nothing

the relation of earning to insurance provision allows the insurance company to limit the insureds benefits to his average income over a period of what time

2 years

an insured loses her left arm in an accident that is covered by her accidental death and dismemberment policy. what kind of benefit will she most likely receive from this policy

the capital amount in a lump sum

in insurance an offer is usually made when

the completed application is submitted

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 is not true regarding a variable universal life policy

the death benefit is fixed