License Exam
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 penalty for IRA distributions that are below the required minimum for the year?
50%
Benefit periods for individual short-term disability policies will usually continue from
6 months to 2 years
Legal actions to recover on a policy can begin how many days after written proof of loss is furnished?
60 days
According to the PPACA rules, what percentage of health care costs will be covered under a bronze plan?
60%
most policies will pay the accidental death benefits as long as the death is caused by the accident and occurs within
90 days
Under the uniform required provisions, proof of loss under a health insurance policy should normally be filed within
90 days of a loss
Most LTC plans have which of the following features? Variable premiums Open enrollment Guaranteed renewability No elimination period
Guaranteed renewability
In a market value adjusted annuity
The owner is guaranteed a fixed interest rate for a specific period of time
Which of the following determines the cash value of a variable life policy? The policy's guarantees The premium mode The performance of the policy portfolio The company's general account
The performance of the policy portfolio
All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT: The employer pays a bonus to a selected employee to fund the policy It is considered a nonqualified employee benefit The policy is owned by the company Any type of insurance policy may be used
The policy is owned by the company
which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?
insurer's guaranteed minimum rate of interest
Under which of the following disability income plans would the benefits be subject to income tax? Partnership buy-out Group Individual Key person
Group
Which of the following would be a typical maximum benefit offered by major medical plans? $500,000 $1 million $10 million $50,000
$1 million
To qualify for the role of an insurance adviser, an applicant must post a single surety bond in the amount of
$1,000
an employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. the employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage?
$102
What is the maximum period that an insurer would pay benefits in accordance with an Additional Monthly Benefit Rider?
1 year
Which of the following is NOT true of Section 1035 Policy Exchanges? It is an IRS Code which permits like kind exchanges of property It is typically used when exchanging or replacing a less competitive life policy with a more competitive life policy Any exchange made under Section 1035 of the Internal Revenue Code must be completed within 30 days It requires an absolute assignment of the existing policy to the replacing company who surrenders the contract and issues a replacement policy
Any exchange made under Section 1035 of the Internal Revenue Code must be completed within 30 days
How often must the Commissioner examine domestic insurers?
Once every 5 years
Which type of dental care would cover the cost of fillings?
Restorative
To sell variable life insurance policies, an agent must receive all of the following EXCEPT FINRA registration A securities license A life insurance license SEC registration
SEC registration
which of the following is a feature of a variable annuity? securities license is not required benefit payment amounts are not guaranteed payments into the annuity are kept in the company's general account
benefit payment amounts are not guaranteed
who makes up the Medical Information Bureau
insurers
Before he died, an annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity. He was also the insured under a $50,000 paid-up whole life policy that named his wife as the primary beneficiary. Considering both contracts, how much will the annuitant's spouse receive in benefits?
$50,000
an insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?
$50,000
An insured is covered under 2 group health plans - under his own and his spouse's. he had suffered a loss of $2,000. After the insured paid the total of $500 in deductibles and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer?
$500
What is the maximum period that an insurer would pay benefits in accordance with an Additional Monthly Benefit rider?
1 year
For how many days of skilled nursing facility care will Medicare pay benefits?
100
An insured was involved in an accident and could not perform her current job for 3 years. If the insured could reasonably perform another job utilizing similar skills after 1 month, for how long would she be receiving benefits under an "own occupation" disability plan?
2 years
the relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to their average income over what period of time
2 years
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
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 days
How many hours of continuing education must a producer complete every 2 years?
24
The relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to their average income over the last
24 months
The Medicare supplement renewal commissions paid in the third year must be as high as the commission of which year?
2nd
A broker requests a hearing with the Commissioner. Within how many days of the request must the hearing be held?
30
What is the maximum age for qualifying for a catastrophic plan?
30
If an insurer accepts applications from a nonappointed producer, the insurer must either reject the applications or appoint the producer within how many days?
30 days
What is the period of coverage for events such as death or divorce under COBRA?
36 months
how long must producers maintain records of continuing education completion?
4 years
How long is an open enrollment period for Medicare supplement policies?
6 months
In order for costs to be covered under a dental plan, what is the minimum interval that must pass between routine dental exams?
6 months
what is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
An insured wants to take legal action against her insurer. How long after she submits a proof of loss statement must she wait in order to file the lawsuit?
60 days
How many days after the completion of an examination must the Commissioner prepare a final report of its results?
60 days
Which of the following statements about occupational vs nonoccupational coverage is TRUE? Individual disability policies never cover nonoccupational injuries Only group disability income policies can be written on an occupational basis Disability insurance can be written as occupational or nonoccupational Group medical expense policies and individual medical expense policies always cover both occupational and nonoccupational injuries
Disability insurance can be written as occupational or nonoccupational
All of the following may be excluded from coverage in a Major Medical Expense policy, EXCEPT Emergency surgery custodial care cosmetic surgery coverage provided under workers compensation
Emergency Surgery
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 Benefits received by the employee are free from federal income tax Premiums paid by the employer are deductible as a business expense Employee paid premiums may be deducted if certain conditions are met
Employee benefits are tax deductible the year in which they were received
Which nonforfeiture option has the highest amount of insurance protection?
Extended term
An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?
Fraud
Life insurance death proceeds are
Generally not taxed as income
A Universal Life insurance policy has two types of interest rates that are called
Guaranteed and Current
Which of the following is INCORRECT concerning taxation of disability income benefits? If the employer paid the premiums, income benefits are taxable to the insured as ordinary income If the insured paid the premiums, any disability income benefits paid to the employee are not taxable If paid by the individual, the premiums are tax deductible
If paid by the individual, the premiums are tax deductible
Insurance companies in Maryland must submit forms to the Insurance Commissioner in duplicate. What is the one exception to this rule?
If the forms are filed electronically
Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?
Implied
Life income joint and survivor settlement option guarantees
Income for 2 or more recipients until they die
What is the tax consequence of amounts received from a Traditional IRA after the money was left in the tax-deferred account by the beneficiary?
Income tax on distributions and no penalty
Annually renewable term policies provide a level death benefit for a premium that
Increases annually
A Return of Premium term life policy is written as what type of term coverage?
Increasing
What type of insurance would be used for a Return of Premium rider?
Increasing Term
The type of term insurance that provides increasing death benefits as the insured ages is called
Increasing term
The premium is guaranteed for an initial period and then the insurer can charge up to a maximum premium charge in what type of policy?
Indeterminate premium
An insured has a life insurance policy with a face amount of $500. He pays a premium each week to the agent who sold him the policy. What kind of policy does the insured have?
Industrial life
An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of report is that?
Inspection Report
an insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies, and habits. what type of a report is that?
Inspection report
What is surplus lines insurance?
Insurance placed with an unauthorized insurer
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 best describes a misrepresentation? Making a deceptive or untrue statement about a person engaged in the insurance business Making a maliciously critical statement that is intended to injure another person Discriminating among individuals of the same insuring class Issuing sales material with exaggerated statements about policy benefits
Issuing sales material with exaggerated statements about policy benefits
What is NOT a benefit of a POS plan? With the Point-of-Service plan the employees do not have to make a decision between the HMO or PPO plans that lock them in It allows guaranteed acceptance of all applicants It allows the employee to use an HMO provided doctor It allows the employee to use a doctor not covered under the HMO
It allows guaranteed acceptance of all applicants
Which of the following is true regarding health insurance?
It could provide payments for loss of income
Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option? It does not guarantee that the entire principal amount will be paid out It is a life contingency option The beneficiary receives the remainder of the principal amount upon the annuitant's death Payments can be made in installments and as a single cash refund
It does not guarantee that the entire principal amount will be paid out
Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option? It is a life contingency option The beneficiary receives the remainder of the principal amount upon the annuitant's death Payments can be made in installments and as a single cash refund It does not guarantee that the entire principal amount will be paid out
It does not guarantee that the entire principal amount will be paid out
What is the benefit of choosing extended term as a nonforfeiture option?
It has the highest amount of insurance protection
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? Fixed amount Life income Single life Life with period certain
Life income
Which of the following is NOT true regarding policy loans?
Money borrowed from the cash value is taxable
After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive? Payments for life Yearly premium waiver and income Monthly premium waiver and monthly income Percentage of medical costs paid by the insurer
Monthly premium waiver and monthly income
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
Which of the following organizations defends a state's rights to oversee the insurance industry? Office of Insurance Commissioner National Association of Insurance Commissioners National Conference of Insurance Legislators Insurance Guaranty Association
National Conference of Insurance Legislators
Which of the following is NOT true regarding the needs approach method of determining the value of an individual's life? Coverage is based on the predicted needs of that family The death of an insured must be premature It must be assumed that the death of the insured will occur immediately Need is predicted using the number of years until the insured's retirement
Need is predicted using the number of years until the insured's retirement
Attempting to determine how much insurance a family would require based upon their financial objectives is known as
Needs approach
Which of the following best describes gross annual premium? Basic insurance rates plus commissions Expense premium Net premium plus expenses Annual loading
Net premium plus expenses
After a brief emergency room visit, an insured discovered that his plan required a larger copayment for an out-of-network provider than for a local, in-network provider. Under the PPACA provisions, this is
Not permitted
Death benefits payable to a beneficiary under a life insurance policy are generally
Not subject to income taxation by the federal government
medicare part A services do NOT include which of the following? Post hospital skilled nursing facility care Hospitalization Hospice care Outpatient hospital treatment
Outpatient hospital treatment
Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?
Paid-up option
Prior to purchasing a Medigap policy, a person must be enrolled in?
Parts A and B of Medicare
All of the following are true regarding rebates EXCEPT Dividends are not considered to be rebates Rebates are allowed if it's in the best interest of the client Rebates are only allowed if specifically stated in the policy Rebating can be anything of economic value, given as an inducement to buy
Rebates are allowed if it's in the best interest of the client
All of the following are true regarding rebates EXCEPT Rebates are allowed if it's in the best interest of the client Rebates are only allowed if specifically stated in the policy Rebating can be anything of economic value, given as an inducement to buy Dividends are not considered to be rebates
Rebates are allowed if it's in the best interest of the client
The policyowner 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
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 is NOT provided by an HMO? Services Financing Patient care Reimbursement
Reimbursement
Which of the following is an example of a peril covered in an accident and health insurance policy? Sickness Alcoholism Smoking
Sickness
Which of the following applicants would NOT qualify for a Keogh Plan? Someone who works 400 hours per year Someone who has been employed for more than 12 months Someone who is over 25 years of age Someone who works for a self-employed individual
Someone who works 400 hours per year
All of the following are beneficiary designations EXCEPT Primary Specified Tertiary Contingent
Specified
The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the
Spendthrift clause
An applicant buys a nonqualified annuity, but dies before the starting date. For which of the following beneficiaries would be the interest accumulated in the annuity NOT be taxable? Dependents Annuitant Spouse Charitable organization
Spouse
Which of the following is monitored by ERISA? Stock profit-sharing plans Cash bonus plans Cash profit-sharing plans Severance pay of less than 2 years
Stock profit-sharing plans
Which of the following would provide an underwriter with information concerning an applicant's health history? The inspection report the medical information bureau a medical examination the agent's report
The Medical Information Bureau
Which of the following is NOT covered under Plan A in Medigap insurance? The 20% Part B coinsurance amounts for Medicare approved services The first 3 pints of blood each year The Medicare Part A deductible Approved hospital costs for 365 additional days after Medicare benefits end
The Medicare Part A deductible
A 60-year old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following are true? No taxes are due since the plan participant is over age 50 1/2 There is a 10% early withdrawal penalty The amount distributed is subject to ordinary income tax The amount of the distribution is reduced by the amount of a 20% withholding tax
The amount of the distribution is reduced by the amount of a 20% withholding tax
A 60-year old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?
The amount of the distribution is reduced by the amount of a 20% withholding tax
Which of the following is NOT a characteristic of a group long-term disability plan? The benefit can be up to 50% of one's yearly income The elimination period is the same as in the short-term plan's benefit period The benefit period may be to age 65 The benefit can be up to 66 and 2/3% of one's monthly income
The benefit can be up to 50% of one's yearly income
Which of the following statements about group life is correct? The premiums are higher than in an individual policy because there is no medical exam The group sponsor receives a Certificate of Insurance The policy can be converted to an individual term insurance policy The cost of coverage is based on the ratio of men and women in the group
The cost of coverage is based on the ratio of men and women in the group
What determines the penalty for surrendering a market value adjusted annuity prematurely?
The current interest rate at the time of surrender
An insured submitted a notice of claim to the insurer, but never received claims forms. He later submits proof of loss and explains the nature and extent of loss in a hand-written letter to the insurer. Which of the following would be true? The insured must submit proof of loss to the Department of Insurance The insured was in compliance with the policy requirements regarding claims The claim most likely will not be paid since the official claims form was not submitted The insurer will be fined for not providing the claims forms
The insured was in compliance with the policy requirements regarding claims
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen? The insurer will pay a reduced death benefit to the beneficiary The insurer will pay the death benefit minus one month's premium The insurer will pay nothing because the employee has terminated his group insurance and hasn't started the individual one The insurer will pay the full death benefit from the group policy to the beneficiary
The insurer will pay the full death benefit from the group policy to the beneficiary
For Maryland resident insured under a long-term care policy, the one-time long-term care insurance tax premium pays what amount?
The lesser of the premiums paid or $500
For Maryland residents insured under a long-term care policy, the one-time long-term care insurance tax credit pays what amount?
The lesser of the premiums paid or $500
Which of the following is NOT a characteristic of an insurable risk? The loss must be measurable The loss exposure must be large The loss must be catastrophic The loss must be due to chance
The loss must be catastrophic
An insurer wishes to compare the information given in an insurance application with previous insurance applications by the same applicant 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 general requirements of a qualified plan EXCEPT The plan must be permanent, written and legally binding The plan must provide an offset for social security benefits The plan must be communicated to all employees The plan must be for the exclusive benefits of the employees and their beneficiaries
The plan must provide an offset for social security benefits
A producer was found guilty of violating several regulations of the Insurance Code. The Commissioner has issued a cease and desist order. Which of the following is true regarding the producer's liabilities to his clients? The producer still has to fulfill his liabilities to the client The company will take over producer's liabilities The producer's liabilities will be transferred to the Commissioner The producer will be relieved from all of his license obligations and liabilities
The producer still has to fulfill his liabilities to the client
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive
An HSA holder who is 65 years old decides to use the money in the account for a nonhealth expense. Is there tax/fee?
There will be a tax
How are contributions to a tax-sheltered annuity treated with regards to taxation?
They are not included as income for the employee, but are taxable upon distribution
Which of the following is NOT true regarding nonprofit health service plans in this state? They are regulated by the federal government They are exempt from taxation They must provide individual with affordable health insurance They must contribute to the improvement of the overall health status of the residents
They are regulated by the federal government
Which of the following is TRUE about nonforfeiture values? Policyowners do not have the authority to decide how to exercise nonforfeiture values They are required by state law to be included in the policy They are optional provisions A table showing nonforfeiture values for the next 10 years must be included in the policy
They are required by state law to be included in the policy
An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?
They are tax deductible
Under a SIMPLE plan, which of the following is TRUE regarding taxation on both contributions and earnings? Employer's matching contribution can be 50% of employee's salary 75% of employee's contributions are taxed They are tax deferred until withdrawn Taxes must be paid in full
They are tax deferred until withdrawn
When employees are actively at work on the date coverage can be transferred to another insurance carrier, what happens to coinsurance and deductibles?
They carry over from the old plan to the new plan
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
The Waiver of Cost of Insurance rider is found in what type of insurance?
Universal Life
When would a 20-pay whole life policy endow?
When the insured reaches age 100
all of the following are true regarding key employee disability income insurance EXCEPT
benefits are taxable to the employer
Which of the following is NOT true regarding an annuity certain? benefits stop at the annuitant's death, it will pay until a fixed amount is liquidated, there are no life contingencies, it is a short-term annuity
benefits stop at the annuitant's death
when an insurer offers services like preadmission testing, second opinions regarding surgery, and preventative care, which term would best apply?
case management provision
When applying for an individual life insurance policy, an applicant states that he went to the doctor for nausea, but fails to mention that he was also having severe chest pains. This is an example of
concealment
Which of the following provisions must be included on the first page of a Medicare supplement policy, which states the insurer's right to charge premium amounts?
continuation provision
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
The purpose of managed care health insurance plans is to
control health insurance claims expenses
If an employer health care plan is grandfathered, it is required to
cover dependent children to age 26
which component increases in increasing term insurance?
death benefit
group disability income insurance premiums paid by the employer are
deductible by the employer as an ordinary business expense
which of the following statements is correct concerning taxation of long-term care insurance?
excessive benefits may be taxable
the authority granted to an agent through the agent's contract is referred to as
express authority
what are considered basic services under a nonscheduled plan?
fillings, endodontics, oral surgery
how many pints of blood will be paid for by the medicare supplement core benefits?
first 3
what type of premium do both universal life and variable universal life policies have?
flexible
in disability income insurance, the own occupation definition of disability applies
for the first 2 years of a disability
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
which is TRUE about the cash surrender nonforfeiture option the policy remains active for some time after the policyholder opts for cash surrender the policyholder receives the original cash value of the policy funds exceeding the premium paid are taxable as ordinary income after the cash surrender, the insured is covered for a grace period of one month
funds exceeding the premium paid are taxable as ordinary income
What option allows the insured to periodically increase benefit levels without providing evidence of insurability?
guarantee of insurability
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
according to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to?
guaranteed surrender value
what is covered under part B of a Medicare policy?
home health care, lab services, physician expenses
Medicare Part A services include
hospitalization, hospice care, post hospital skilled nursing facility care
a lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. what type of annuity products are they likely to use to provide these benefits?
immediate annuity
which of the following entities has the authority to make changes to an insurance policy? insurer's executive officer department of insurance broker producer
insurer's executive officer
during partial withdrawal from a universal life policy, which portion will be taxed?
interest
what is true of Section 1035 Policy Exchanges?
it requires an absolute assignment of the existing policy to the replacing company who surrenders the contract and issues a replacement policy, is is an IRS code which permits like kind exchanges of property, it is typically used when exchanging or replacing a less competitive life policy with a more competitive life policy
which of the following is true of a PPO? claim forms are completed by members on each claim no copayment fees are involved its goal is to channel patients to providers that discount services the most common type of PPO is the staff model
its goal is to channel patients to providers that discount services
concerning medicare part b, it is
known as medical insurance, offers limited prescription drug coverage, provides partial coverage for medical expenses not fully covered by part a
insurance is a contract by which one seeks to protect another from
loss
which of the following is considered a presumptive disability under a disability income policy?
loss of two limbs
the premium of a survivorship policy compared with that of a joint life policy would be
lower
if a settlement option is not chosen by the policyowner or the beneficiary, which option will be used?
lump sum
which of the following statements is correct regarding medicare coverage of nursing home care?
medicare will cover nursing home care if it is part of the treatment for a covered illness
In health underwriting, it is appropriate to decline a risk based on
mental illness
an insured is involved in a car accident. in addition to general, 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 he receive presumptive disability benefits?
no benefits
in long-term care insurance, what type of care is provided with intermediate care?
occasional nursing or rehabilitative care
an insured's health claim internal appeal was denied. the insurer must do all of the following EXCEPT complete the appeal in 60 days after the service was received notify the insured how to obtain an outside review offer a payment plan notify the insured about the decision in writing
offer a payment plan
which of the following is the most common time for errors and omissions to occur on the part of an insurer?
policy delivery
based on human life value approach, which of the following is NOT used to calculate an individual's life value? predicted needs of the family after the insured's death insured's current and future income insured's annual expenses effect of inflation on income over time
predicted needs of the family after the insured's death
Based on the Human Life Value approach, what is NOT used to calculate an individual's life value?
predicted needs of the family over time
all of the following are examples of risk retention EXCEPT copayments self-insurance premiums deductibles
premiums
a medicare SELECT policy does all of the following EXCEPT? provide payment for full coverage under the policy for covered services not available through network providers; provide for continuation of coverage in the event that Medicare SELECT policies are discontinued due to the failure of the Medicare SELECT program; prohibit payment for regularly covered services if provided by non-network providers; make full and fair disclosure in writing of the provisions, restrictions, and limitations of the Medicare SELECT policy to each applicant
prohibit payment for regularly covered services if provided by non-network providers
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
which of the following insurance options would be considered a risk-sharing arrangement?
reciprocal
which of the following insurance options would be considered a risk-sharing arrangement? surplus lines reciprocal stock mutual
reciprocal
a domestic insurer issuing variable contract must establish one or more
separate accounts
when the insured initiates the cancellation of a policy, the unearned premium will be refunded on a
short rate basis
all of the following may participate in the SHOP marketplace in Maryland EXCEPT: a small employer with only part-time employees a nonprofit organization with 30 employees small employers based in Maryland small business based in adjacent states
small business based in adjacent states
Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insured's death? State education waiver viatical settlement estate conservation life insurance proceeds
state education waiver
a producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. this is a personal use of life insurance known as
survivor protection
all of the following statements are correct regarding credit life insurance:
the amount of insurance permissible is limited per borrower, premiums are usually paid by the borrower, benefits are paid to the creditor
all of the following statements about equity index annuities are correct EXCEPT the annuitant receives a fixed amount of return they have a guaranteed minimum interest rate the interest rate is tied to an index such as the Standard & Poor's 500 they invest on a more aggressive basis aiming for higher returns
the annuitant receives a fixed amount of return
which of the following is NOT a characteristic of a group long-term disability plan? the benefit can be up to 66 and 2/3% of one's monthly income the benefit can be up to 50% of one's yearly income the elimination period is the same as in the short-term plan's benefit period the benefit period may be to age 65
the benefit can be up to 50% of one's yearly income
An individual applied for an insurance policy and paid the initial premium. the insurer issued a conditional receipt. five days later the applicant had to submit to a medical exam. if the policy is issued, what would be the policy's effective date?
the date of the medical exam
which of the following is an example of a producer's fiduciary duty? a duty to base all transaction upon the principle of Utmost Good Faith the obligation to tell the truth to the best of one's knowledge the trust that a client places in a producer in regard to handling premiums an obligation to state every known fact about the policy the producer is selling
the trust that a client places in a producer in regard to handling the premiums
an HSA holder who is 65 decides to use the money in the account for a nonhealth expense. which of the following is true? there will be a tax there will be no taxes and no penalties there will be a tax and a 20% penalty there will be a 20% penalty
there will be a tax
an insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?
they are tax deductible
agents selling which of the following types of insurance are exempt from the state licensing requirement? whole life insurance health insurance travel insurance variable products
travel insurance
the waiver of cost of insurance rider is found in what type of insurance
universal life
the waiver of cost of insurance rider is found in what type of insurance?
universal life
which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
universal life
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce
without receiving written consent from insurance regulatory authority
If one takes Social Security retirement benefits at age 62, what needs to be done at age 65 to qualify for Medicare?
Nothing
if a producer's appointment is terminated, the insurer must update its appointment register with how many days?
30 days
in the event there is no beneficiary living at the time of death of an insured person, what is the maximum the Benefits Payment provision will pay to any person showing evidence of incurred funeral or other expenses incidental to the last illness or death of the insured person?
$2,000
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
$2,500
An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds
$50,000
When is the open enrollment period through Maryland Health Connection?
November 1 through January 31
what is the shortest possible elimination period for group short-term disability benefits provided by an employer?
0 days
Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to
10 years
In a noncontributory health insurance plan, what percentage of eligible employees must participate in the plan before the plan can become effective?
100%
in a noncontributory health insurance plan, what percentage of eligible employees must participate in the plan before the plan can become effective?
100%
what percentage of a company's employees must take part in a noncontributory group life plan?
100%
A temporary agent's license is valid for what time period?
15 months
To be eligible under HIPAA regulations, for how long should an individual converting to an individual health plan have been covered under the previous group plan?
18 months
Every small employer carrier must actively offer to small employers at least how many health benefit plans?
2 plans
Under a nonscheduled plan, what portion of the balance could an insured expect to pay for basic services?
20%
Which of the following would authorize the commingling of premiums with the agent's personal funds?
A letter of consent from the principal
How is emergency care covered for a member of an HMO?
A member of an HMO can receive care in or out of the HMO service area, but care is preferred in the service area.
What is the MIB?
A nonprofit organization that maintains underwriting information on applicants for life and health insurance
The term "illustration" in a life insurance policy refers to
A presentation of nonguaranteed elements of a policy
Which of the following best describes an independent producer?
A producer who works for themselves or other agents
Long term care coverage may be sold in all of the various ways EXCEPT Individual long term care As a part of a life insurance policy through the use of an endorsement As a part of a Medicare supplement policy by the use of an endorsement Group long term care
As a part of a Medicare supplement policy by the use of an endorsement
Which of the following produces evaluations of insurers' financial status often used by state departments of insurance? AM Best NAIC Consumer's guide SEC
AM Best
who produces evaluations of insurers' financial status often used by state departments of insurance?
AM Best
The two types of assignments are
Absolute and collateral
Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe?
Adhesion
What is a risk retention group?
An insurance organization that most often addresses a commercial casualty concern
A Universal Life policy is best described as a
Annually Renewable Term policy with a cash value account
All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT Funds accumulate on a tax-deferred basis Employee and employer contributions are not counted as income to the employee for income tax purposes At distribution, all amounts received by the employee are tax free Employer contributions are tax deductible as ordinary business expense
At distribution, all amounts received by the employee are tax free
When must an insurance company present an outline of coverage to an applicant for a Medicare supplement policy?
At the time of application
When must the Medicare Supplement Buyer's Guide be presented?
At the time of application
All of the following can be insurers EXCEPT Bankers Stock and Mutual companies Blue Cross/Blue Shield HMOs and PPOs
Bankers
Which of the following is TRUE about a class designation? It is not allowed It determines the succession of beneficiaries Beneficiaries are not identified by name Beneficiaries must be part of the insured's immediate family
Beneficiaries are not identified by name
Which of the following is a feature of a variable annuity? Payments into the annuity are kept in the company's general account Interest rate is guaranteed Securities license is not required Benefit payment amounts are not guaranteed
Benefit payment amounts are not guaranteed
Which of the following is not true of Disability Buy-Sell coverage? It is typically written to cover partners or corporate officers of a closely held business Premium payments are not deductible to the business The policies provide funds for the business organization to purchase the business interest of a disabled partner Benefits are considered taxable income to the business
Benefits are considered taxable income to the business
All of the following are true regarding Key Employee Disability Income insurance EXCEPT The employer owns the policy Benefits are paid to the employer to retrain a new person Premiums are not tax deductible for the employer Benefits are taxable to the employer
Benefits are not taxable to the employer
An insured is the recipient of an Accidental Death and Dismemberment (AD&D) policy purchased by his employer. The policy pays triple indemnity in case of accidental death. If the insured died as a result of an accident stipulated in the policy, how will the benefits paid be taxed?
Benefits received are considered income tax free
To be eligible for tax credits under the ACA, individuals must have income that is what percent of the Federal Poverty Level?
Between 100% and 400%
Which of the following options best depicts how the eligibility of members for group health insurance is determined? Eligibility is not determined, but simply accepted By the physical conditions of the applicants at the time of employment In such a manner as to establish individual selection as to the amounts of insurance By conditions of employment
By conditions of employment
After a person's employment is terminated, it is possible to obtain individual health insurance after losing the group health coverage provided by the employer. Which of the following is NOT true?
By law, the new, individual policy must provide the same benefits as the group insurance policy.
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
Cash option
A tax-sheltered annuity is a special tax-favored retirement plan available to
Certain groups of employees only
Which of the following must an insurer obtain in order to transact insurance within a given state? Producer's certificate Business entity license Insurer's license Certificate of authority
Certificate of authority
According to the provisions of the Patient Protection and Affordable Care Act, all of the following are required preventative care services EXCEPT Screenings for autism and behavioral disorders in children Cervical cancer exams for all women starting at age 40 diet counseling for adults Well-woman visits and counseling
Cervical cancer exams for all women starting at age 40
An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?
Common disaster
The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit tot he beneficiary if the policy is approved. This is an example of what kind of contract?
Conditional
Which of the following is NOT a characteristic or a service of an HMO plan? Providing care on an outpatient basis Contracting with insurance companies Providing free annual checkups Encouraging early treatment
Contracting with insurance companies
All of the following are true about group disability Income insurance EXCEPT The waiting period starts at the onset of the injury or sickness The longer the waiting period, the lower the premium Coverage applies both on and off the job Benefits are usually short term
Coverage applies both on and off the job
A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as
Critical Illness
A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as
Critical illness
An agent selling variable annuities must be registered with
FINRA
Which of the following is NOT fundable by annuities? Cash accumulation for any reason A person's retirement Estate liquidation Death benefits
Death benefits
Which of the following is NOT fundable by annuities? Cash accumulation for any reason A person's retirement Estate liquidation Death benefits
Death benefits
A 70-year old individual who bought a Medicare policy 2 months ago jut began kidney dialysis treatments this week. The individual is now applying for a Medicare supplement policy, which would begin in 8 months. What could the insurer do to avoid paying for the dialysis?
Declare a pre-existing condition
An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?
Deferred
Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled?
Disability buy-sell
Under which of the following employer-provided plans are the benefits taxable to an employee in proportion to the amount of premium paid by the employer?
Disability income
What is the difference between Medicare approved amount for a service or supply and the actual charge?
Excess charge
When an insurance agency published an advertising brochure, it emphasized 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? Defamation Twisting Rebating False financial statement
False financial statement
Medicaid provides all of the following benefits
Family planning services, home health care services, eyeglasses
Health coverage becomes effective when the
First premium has been paid and the application has been approved
What type of premium do both Universal Life and Variable Universal Life policies have
Flexible
What type of premium do both Universal Life and Variable Universal Life policies have?
Flexible
An association could buy group insurance for its members if it meets all of the following requirements EXCEPT Holds annual meetings Is contributory Has at least 50 members Has a constitution and by-laws
Has at least 50 members
Which of the following is INCORRECT concerning taxation of disability income benefits? If the employer paid the premiums, income benefits are taxable to the insured as ordinary income If the insured paid the premiums, any disability income benefits are tax-free If the benefits are for a permanent loss, the benefits paid to the employee are not taxable If paid by the individual, the premiums are tax deductible
If paid by the individual, the premiums are tax deductible
Which statement regarding insurable risks is NOT correct? An insurable risk must involve a loss that is definite as to cause, time, place and amount Insureds cannot be randomly selected Insurance cannot be mandatory
Insureds cannot be randomly selected
When a person applies for Medicare supplement insurance, whose responsibility is it to confirm that the applicant does not already have accident or sickness insurance in force?
Insurer
An association could buy group insurance for its members if it meets all of the following requirements
Is contributory, has a constitution and by-laws, holds annual meetings
How is the amount of Social Security disability benefits calculated?
It is based upon the worker's Primary Insurance Amount (PIA), which is calculated from their Average Indexed Monthly Earnings over their highest 35 years
What is franchise insurance?
It is health coverage for small groups whose numbers are too small to qualify for true group insurance
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date prior to the policy issue
Which of the following is TRUE regarding the annuity period?
It may last for the lifetime of the annuitant
Which of the following statements best describes the effect the Accelerated Benefit provision would have on the benefits paid to the beneficiary? It will reduce benefits by 70% It will increase the benefits paid to the beneficiary It will decrease the benefits paid to the beneficiary It will not affect the benefits paid to the beneficiary
It will decrease the benefits paid to the beneficiary
Which of the following statements is TRUE concerning the Accidental Death Rider? It is only available in group insurance It will pay double or triple the face amount It is also known as the triple indemnity rider This rider is only available to insureds over the age of 65
It will pay double or triple the face amount
Variable Whole Life insurance is based on what type of premium?
Level fixed
Which type of care is NOT covered by Medicare
Long-term care
In health underwriting, it would be inappropriate to decline a risk using any of the following factors:
Marital status, blindness, genetic characteristics
What type of benefit helps to pay for accidental injuries that are not severe enough to qualify as disabilities?
Medical Reimbursement Benefit
which of the following is NOT a service providers plan? Medicare, HMO, PPO, Blue Cross
Medicare
Medicare Advantage is also known as
Medicare Part C
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
Who is involved in completing the agent's report?
Only the agent
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
An insured purchased an individual life insurance policy with a face amount of $15,000. He pays a premium each month. What type of policy is that?
Ordinary life
Which document helps ensure that full and fair disclosure is provided to the recipient of a policy?
Outline of Coverage
An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called
Paid-up additions
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? Provide group coverage Pay dividends to the stockholder Require 80% participation Pay dividends tot he policyowner
Pay dividends to the policyowner
Which of the following riders would NOT cause the Death Benefit to increase? Cost of Living Rider Accidental Death Rider Payor Benefit Rider Guaranteed Insurability Rider
Payor Benefit Rider
An applicant wants to buy a policy that has a cash value element. Which type should she buy?
Permanent
After the elimination period, a totally disabled insured qualified and started receiving benefits from his disability income policy that has a waiver of premium rider. What will most likely happen to the premium paid into the policy during the elimination period?
Premiums will be refunded
A medical insurance plan in which the health care provider is paid a regular fixed amount for providing care to the insured and does not receive additional amounts of compensation dependent upon the procedure performed is called
Prepaid plan
Which of the following are the main factors taken into account when calculating residual disability benefits? Employee's full-time status and length of disability Present earnings and standard cost of living Present earnings and earnings prior to disability Earnings prior to disability and the length of disability
Present earnings and earnings prior to disability
When an insurer combines two periods of disability into one, the insured must have suffered a
Recurrent disability
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid-up
When an employee is still employed upon reaching age 65 and eligible for Medicare, which of the following is the employee's option? Wait until the next birthday to enroll Remain on the group health insurance plan and defer eligibility for Medicare until retirement Enroll in Medicare, while the company must provide additional retirement benefits Enroll in Medicare when eligible; otherwise, Medicare benefits will be forfeited
Remain on the group health insurance plan and defer eligibility for Medicare until retirement
To sell variable life insurance policies, an agent must receive all of the following EXCEPT a life insurance license SEC registration FINRA registration a securities license
SEC registration
When the insured initiates the cancellation of a policy, the unearned premium will be refunded on a
Short rate basis
All of the following information about a customer must be used in determining annuity suitability
Tax status, financial experience, annual income
What characteristic must an annuity have if it is used to accumulate funds in an IRA?
Tax-qualified
What type of insurance can be obtained through SGLI by members of the armed forces?
Term group life insurance
All of the following entities regulate variable life policies EXCEPT The SEC The Insurance Department The Guaranty Association Federal Government
The Guaranty Association
to what organization must all admitted insurers belong?
The Guaranty Association
Which of the following is NOT true regarding the annuitant? The annuitant receives the annuity benefits The annuitant must be a natural person The annuitant cannot be the same person as the annuity owner The annuitant's life expectancy is taken into consideration for an annuity
The annuitant cannot be the same person as the annuity owner
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
Which of the following describes the tax advantage of a qualified retirement plan? The earnings in the plan accumulate tax deferred Distributions prior to age 59 1/2 are tax deductible Employer contributions are deductible as a business expense when the employee receives benefits Employer contributions are not taxed when paid out to the employee
The earnings in the plan accumulate tax deferred
How do employer contributions to a Health Savings Account affect the insured's taxes?
The employer contributions are not included in the individual insured's taxable income
J transferred his life insurance policy to his son two years before his death. Which of the following is true?
The entire face value of the policy will be included in J's taxable estate.
In a group policy, who is issued a certificate of insurance?
The individual insured
Regarding the return of premium option for LTC policies, what happens to the premium if the policy lapses?
The insurer will return a percentage of the premiums paid
All of the following are true about variable products EXCEPT The cash value is not guaranteed Policyowners bear the investment risk The premiums are invested in the insurer's general account The minimum death benefit is guaranteed
The premiums are invested in the insurer's general account
Which of the following is correct about Medicare? Part B is available to the insured at no cost It is a federal program for welfare recipients The program provides complete medical care at no cost The program is divided into four parts (A-D)
The program is divided into four parts (A-D)
All of the following statements about Medicare supplement insurance policies are correct EXCEPT They cover the cost of extended nursing home care They cover Medicare deductibles and copayments They supplement Medicare benefits They are issued by private insurers
They cover the cost of extended nursing home care
Which of the following is true regarding limited health insurance policies? They cover every need of a health insurance policy holder They only cover specific accidents or diseases They cover all sickness or accidents that are not specifically excluded They are limited to those enrolled in a group health plan
They only cover specific accidents or diseases
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
Those who have been insured under the plan for at least 5 years
Why should the producer personally deliver the policy when the first premium has already been paid?
To help the insured understand all aspects of the contract
Which of the following is NOT a goal of risk retention? To increase control of claim reserving and claims settlements To fund losses that cannot be insured To minimize the insured's level of liability in the event of loss To reduce expenses and improve cash flow
To minimize the insured's level of liability in the event of loss
Social Security was created to provide all of the following benefits EXCEPT Unemployment income Survivor's benefits Disability income Retirement income
Unemployment income
Which of the following Life Insurance policies would be considered interest sensitive?
Universal life
An insured owes his insurer a premium payment. Since then, he incurs medical expenses. The insurer deducts the unpaid premium amount from the claim amount and pays the insured the difference. What provision allows for this?
Unpaid premium
Which of the following CANNOT insurance companies do when creating advertisement for their products issued in this state? Describe terms in simple language Use illustrations Use caveats as often as possible Eliminate footnotes
Use caveats as often as possible
Which of the following is a key distinction between variable whole life and variable universal life products?
Variable whole life has a guaranteed death benefit
Which of the following terms is used to describe a person, other than a viator, that enters into or effectuates a viatical settlement contract? Viatical settlement purchaser Viatical settlement broker Viatical settlement effectuator Viatical settlement provider
Viatical settlement provider
In forming an insurance contract, when does acceptance usually occur?
When an insurer's underwriter approves coverage
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
Which of the following statements regarding the taxation of Modified Endowment Contracts if FALSE? Distributions before age 50 1/2 incur a 10% penalty on policy gains Policy loans are taxable distributions Accumulations are tax deferred Withdrawals are not taxable
Withdrawals are not taxable
A hospital indemnity policy will pay
a benefit for each day the insured is in a hospital
in the employer choice option in the SHOP marketplace, what does the employer select?
a single insurer
in which medicare supplemental policies are the core benefits found?
all plans
while a claim is pending, an insurance company may require
an independent examination as often as reasonably required
Under HIPAA, which of the following is INCORRECT regarding eligibility requirements for conversion to an individual policy? an individual who was previously covered by group health insurance for 6 months is eligible; an individual who has used up COBRA continuation coverage is eligible; an individual who doesn't qualify for Medicare may be eligible; the gap of coverage for eligibility is a period of 63 or less days
an individual who was previously covered by group health insurance for 6 months is eligible
Employer contributions made to a qualified plan
are subject to vesting requirements
what are different ratings for Medicare Supplement Insurance policies
attained age, issue age, community
occasional visits by what medical professional will not be covered under LTC's home health care?
attending physician
all of the following are features and requirements of the living needs rider EXCEPT the remainder of the policy proceeds is payable to the beneficiary at the insured's death it provides funds for medical and nursing home expenses to a terminally ill insured diagnosis must indicate that death is expected within 3 years it is usually available at no additional charge
diagnosis must indicate that death is expected within 3 years
which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled?
disability buy-sell
what does "level" refer to in level term insurance?
face amount
What is annually renewable term insurance?
level term insurance
in which of the following instances would a premium be tax deductible? premiums paid by a mother on a son's policy premiums paid by an employer on the life of a key person premiums paid by an employer on a $30,000 group life insurance plan for employees premiums paid by an individual on their own life insurance
premiums paid by an employer on a $30,000 group term life insurance plan for employees
an applicant is considered to be high-risk but not so much that the insurer wants to deny coverage. Which of the following is NOT true? the insurer will issue a conditional coverage the insurer can increase the premium the insurer can add exclusions to the policy the insurer can rate-up the policy
the insurer will issue a conditional coverage
what happens if a deferred annuity is surrendered before the annuitization period?
the owner will receive the surrender value of the annuity
which of the following best describes what the annuity period is?
the period of time during which accumulated money is converted into income payments
Under an extended term nonforfeiture option, the policy cash value is converted to
the same face amount as in the whole life policy
under an extended term nonforfeiture option, the policy cash value is converted to
the same face amount as in the whole life policy
The paid-up addition option uses the dividend
to purchase a smaller amount of the same type of insurance as the original policy
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a
Executive bonus
All of the following are requirements of eligibility for Social Security disability income benefits
Fully insured status, waiting period of 5 months, inability to perform any gainful work.
all of the following are characteristics of a Major Medical Expense policy
blanket coverage, coinsurance, deductibles
all of the following are requirements for life insurance illustrations
they must differentiate between guaranteed and projected amounts, they may only be used as approved, they must identify nonguaranteed values
within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
One of the differences between group underwriting and individual underwriting is that there is little or no medical information required regarding plan participants in groups of
50 or more
How many eligible employees must be included in a contributory plan?
75%
Which of the following is a short-term annuity that limits the amounts paid to a certain fixed period or until a certain fixed amount is liquidated?
Annuity certain
Under what type of group life insurance policy may coverage be provided for eligible family members and dependents?
Any group approved by the Commissioner
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
As it pertains to group health insurance, COBRA stipulates that
Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense
A Medicare supplement plan must have at least which of the following renewal provisions?
Guaranteed renewable
In the event of a loss, business overhead insurance will pay for
Rent
Equity indexed annuities
Seek higher returns
what are features of a guaranteed renewable provision?
coverage is not renewable beyond the insured's age 65, the insured's benefits cannot be reduced, the insured has a unilateral right to renew the policy for the life of the contract`
a 70-year old individual who bought a Part B medicare policy 2 months ago just began kidney dialysis treatments this week. the individual is now applying for a medicare supplement policy, which would begin in 8 months. what could the insurer do to avoid paying for dialysis?
declare a pre-existing condition
what is the goal of the HMO?
early detection through regular checkups
based on Human Life Value Approach, what is used to calculate an individual's life value?
effect of inflation on income over time, insured's current and future income, insured's annual expenses
issue age policy premiums increase in response to?
increased benefits
all of the following are features and requirements of the Living Needs Rider
it is usually available at no additional charge, the remainder of the policy proceeds is payable to the beneficiary at the insured's death, it provides funds for medical nursing home expenses to a terminally insured
an employer's health care plan covers full-time employees only. after an employee's hours were reduced, the employee did not qualify for benefits but continued to receive services. when the health plan provider discovers the situation, they will
pay for the services received
an insurer wants to obtain information from investigators regarding an applicant for insurance. what must the insurer do in order to legally acquire this information?
present the insured with a Disclosure Authorization Notice
in respect to the consideration clause, what is consideration on the part of the insurer?
promising to pay in accordance with the contract terms
entities like municipalities, manufacturers, and hospitals typically seek insurance coverage from which type of insurers?
risk retention groups
the annuity owner dies while the annuity is still in the accumulation stage. what happens with the money?
the beneficiary will receive the greater of the money paid into the annuity or the cash value
all of the following are true regarding a decreasing term policy
the death benefit is $0 at the end of the policy term, the contract pays only in the event of death during the term and there is no cash value, the face amount steadily declines throughout the duration of the contract
an insured owns a life insurance policy. to be able to pay some of her medical bills, she withdraws a portion of the policy's of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. what type of policy does the insured most likely have?
universal life
an insurance company receives an application with some information missing and issues the policy anyway. what is this called?
waiver