Life & Health

Annually Renewable Term policy with a cash value account

A Universale Life insurance policy is best described as a/an

Estoppel

ABC insurance company receives an incomplete application and issues the policy anyway. Six months later ABC realizes the missing information. What term is used that prevents ABC from forcing the policy owner to answer further questions?

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

All of the following are characteristics of group life insurance EXCEPT

Beneficiary's consent

An insurance contract must contain all of the following to be considered legally binding EXCEPT

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

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

Not tax deductible

Premium payments for personally-owner disability income policies are

Hospital, Surgical, Medical

What are the three basic coverages for medical expense insurance?

Defamation

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?

Premiums are tax deductible and benefits are not taxed

Which of the following is correct regarding the taxation of group medical expense premiums and benefits?

75%

Which of the following is the required amount of participants in a contributory group plan?

Coercion

A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of

A producer's retirement

A temporary license may be obtained for all the following situations EXCEPT

Always representing the insured

An agent is acting ethically in all of the following situations EXCEPT

Permanent

An applicant wants to buy a policy that has a cash value element. What type should she buy?

Conditional

An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?

Lloyd's association

An insurance organization that does not issue insurance policies but provides a meeting place for underwriters to conduct business is known as a

Donut Hole

An insured has Medicare Part D coverage. He has reached his initial benefit limit and must now pay 50% of his prescription drug costs. What is the term for this gap in coverage?

Pay a lower renewal premium by proving insurability

An insured has a Level Term Life Insurance policy that is guaranteed renewable and also includes a re-entry provision. The re-entry provision would allow the insured to rent the policy and

The insured was in compliance with the policy requirements regarding claims

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?

Attending Physician Statement

An underwriter is reviewing the medical questions in the application and needs further information due to a medical situation the applicant had in the past. What will the underwriter require?

Increases annuity

Annually renewable term policies provide a level death benefit for a premium that

30 visits for the treatment of mental conditions each year

Assuming they are provided by a prescribed physician, which of the following claims is NOT covered under an association policy

65

At what age may an individual make withdrawals from an HSA for non health purposes without being penalized?

Is not covered

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

Handling insurer funds in a trust capacity

In insurance transactions, fiduciary responsibility means

The completed application is submitted

In insurance, an offer is usually made when

In an institutional setting

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

Increased benefits

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

Attending physician

Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?

Set premium rates

The Ownership provision entitles the policy owner to do all of the following EXCEPT

One-year term option

The dividend option in which the policy owner uses dividends to purchase a term policy for on year is referred to as

Control specialist costs

The gatekeeper of an HMO helps

The original age is used for premium determination

What is the advantage of reinstating a policy instead of applying for a new one?

30 days

What is the duration of the free-look period for Medicare supplement policies?

5 months

What is the elimination period for Social Security disability benefits?

Both a life insurance license and a securities license

What license or licenses are required to sell variable annuities?

Medical Reimbursement Benefit

What type of benefit helps to pay for accidental injuries that are not sever enough to qualify as disabilities?

It is reduced to the amount of what the cash value would buy as a single premium

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?

The annuitant cannot be the same person as the annuity owner

Which of the following is NOT true regarding the annuitant?

It is a pool of companies issuing health coverage

Which of the following is true about the organization of ICHIA?

That its policies are covered by a state Guaranty Association

Which of the following may NOT be included in an insurance company's advertisement?

Optionally Renewable

Which renewability provision allows an insurer to terminate a policy for any reason, and to increase the premiums for any class of insured?

The surrender value should be equal to 100% of the premium paid, minus any prior withdrawals and surrender charges

A deferred annuity is surrendered prior to annuitization. Which of the following best describes the nonforfeiture value of the annuity?

Insurable interest and consent

A life insurance policy has a legal purpose if both of which of the following elements exist?

This rider is available to all insureds with no additional premium

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

The date of medical exam

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?

Guaranteed insurability option

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?

Residual Disability

Disability income policies can provide coverage for a loss of income when returning to work only part-time after recovering from total disability. What is the benefit that is based on the insured's loss of earnings after recovery from a disability?

A Modified Endowment Contract

If a life insurance policy develops cash value faster than a seven-pay whole life contract, it is

Ancestry

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's

$50,000

If the Commissioner issues a cease and desist order, but the producer continue the same activities, the producer can face a fine up to which of the following amounts per violation?

Limited to 25% of a producer's annual commission income

In Indiana controlled business is

Any form of life insurance

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?

Promptly forwards premiums to the insurance company

Pertaining to insurance, what is the definition of fiduciary responsibility?

The amount to be repaid under the contract

The initial amount of credit life insurance may NOT exceed

24 months

The relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over the last

Insuring clause

The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the

The insured

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

Consideration

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

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

When is the earliest a policy may go into effect?

Payor Benefit

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Premiums are not tax deductible, and benefits are not taxable

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

Denial of coverage

Which of the following is NOT a cost-saving service in a medical plan?

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

Which of the following is NOT among the goals of a Medicare supplement application?

The Medicare Part A deductible

Which of the following is NOT covered under Plan A in Medigap insurance?

A person who applied for Medicaid 90 days prior to applying for the Association policy

Which of the following would NOT be eligible for a health insurance policy from the Indiana Comprehensive Health Insurance Association?

Noncancellable and guaranteed renewable

Which renewal provision must be included in a long-term care policy issued to an individual?

Payment of premium

With respect to the Consideration Clause, which of the following would be considered consideration on the part of the applicant for insurance?

The client is converting from an existing term policy to whole life

You know that your client is currently insured under a life policy, but you are making a sale presentation to that client for a new life policy. You must provide the client with the Important Notice Regarding the Replacement of Life Insurance and a copy of the sale proposal under all of the following situations EXCEPT

Lower the insured's premium

When an applicant purchased a life insurance policy, the agent dated the application 4 months prior. When asked by the applicant, the agent said he was allowed to backdate policies up to 6 months if it would

Disability Income

A Waiver of Premium provision may be included with which kind of health insurance policy?

Separate Accounts

A domestic insurer issuing variable contracts must establish one or more

Cervical cancer exams for all women starting at age 40

According to the provisions of the Patient Protection and Affordable Care Act, all of the following are required preventive care services EXCEPT

Sharing commissions with another licensed producer

All of the following may result in suspension or denial of an insurance license EXCEPT

AIDS treatment

All of the following would NOT be considered eligible expenses under an ICHIA policy EXCEPT

Taxation on Accumulation

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

Adjust the claim benefit to reflect the insured's true age

An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued?

$200,000

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?

The child may not be covered

An insured was pregnant when she applied for an individual accident and health sickness insurance policy. When will her insurance benefits extend to the newborn?

$120 a day

An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged a $100 per day. How much will the insurance company pay?

Conditions

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

Employee benefits are tax deductible this year in which they are received

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

Hazards

Events or conditions that increase the chances of an insured loss occurring are referred to as

5 days

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

The annuitant will receive the higher of either the guaranteed minimum rate or current rate

In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the investment?

Master policy

In group insurance, what is the policy called?

Both are properly licensed or the recipient is not involved with the sale of said insurance

In life insurance, producers are permitted to share or split commissions, providing that

Need

The primary eligibility requirement for Medicaid benefits is based upon

Legal actions

The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as

Absolute and collateral

The two types of assignments are

Metal level classification

Under the Affordable Care Act,which classification applies to health plans based on the amount of covered costs?

The producer must conduct a reasonable investigation to determine if a replacement will take place

Under the Replacement Regulation, Rule 16.1, which of the following statements would best describe the producer's duties?

Fixed amount

Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits?

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

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

Disability Buy-Sell

Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled?

Life income with period certain

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?

Ask questions that relate to whether the applicant has been diagnosed with AIDS or HIV

Which of the following are life or health insurance companies allowed to do under Rule 39, which regulates the use of AIDS and HIV queries and information?

They earn lower interest rates than fixed annuities

Which of the following is NOT true regarding Equity Indexed Annuities

Benefit payment amounts are not guaranteed

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

The producer

Which of the following is a legal representative of a specific insurance company?

Telling a client that his first premium will be waived if he purchased the insurance policy today

Which of the following is an example of a producer being involved in an unfair trade practice of rebating?

The hearing must be held within 30 days of the written demand

Which of the following is true regarding a hearing upon the nonrenewable of a producer's license?

The benefit may be triggered by a terminal illness

Which of the following is true under Rule 48: Accelerated Death Benefits?

Cost comparison methods

Which of the following is used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are competitively priced?

Funeral director insurance

Which of the following limited lines producer's licenses would require life producer's relicensing education and examination?

Universal Life - Option A

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

Annual

Which of the following premium payment modes will incur the lowest overall payment?

Continuation Provision

Which of the following provisions must be included on the first page of a Medicare supplement policy, which states the insurer's rights to change premium amounts?

Impairment rider

Which of the following riders would NOT increase the premium for a policy owner?

A period of time the insured must wait before benefits start

Which of the following statements best defines elimination periods?

Buy-sell agreements are normally funded with a life insurance policy

Which of the following statements concerning buy-sell agreements is true?

Withdrawals are not taxable

Which of the following statements regarding the taxation of Modified Endowment Contacts is FALSE?

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?

Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered

Which of the following would be considered an unfair claims settlement practice?

Every company is required to establish marketing procedures

Which types of insurance companies marketing long-term care insurance coverage must establish procedures to assure that any comparison of policies by its agents will be fair and accurate?

30 days

A licensed produced must inform the Commissioner of a change of residential or business address within what timeframe?

They are not included as income for the employee, but are taxable upon distribution

How are contributions to a tax-sheltered annuity treated with regards to taxation?

Guaranteed insurability rider

If a life policy allows the policy owner to make periodic additions to the face amount at the standard rates, without proving insurability, the policy includes a

Permanent

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

Prepaid plan

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

Reciprocity

A producer licensed in another state wants to become a non-resident producer in Indiana. The other state gives the same privileges to Indiana producers as it does to its own producers. Indiana, therefor, extends the licensing privileges to the prospective producer of the other state. What is this called?

Annually Renewable Term

All other factors being equal, the least expensive first-year premium payment is found in

Lower

All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

There will be a tax

An HSA holder who is 65 years old decided to use the money in the account for a non health expense. Which of the following is true?

When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health

An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?

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

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

Premiums

All of the following are examples of risk retention EXCEPT

Federal Deposit Insurance Corporation (FDIC)

Which of the following is NOT a government-funded insurance program?

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

The paid-up addition option uses the dividend

The Commissioner

What authority is responsible for examining the operations of insurance companies in this state?

Increasing Term

What type of insurance would be used for the Return of Premium Rider?

November 1 - January 31

When is the annual open enrollment for state insurance exchanges?

Coverage for catastrophic medical expenses

Which of the following is NOT true of basic medical expense plans?