Life & Health
What is the maximum allowed value of promotional gifts that an angent may give to a prospective insured
$100
A partnership buy-sell agreement in which each partner purchases insurance on the life of each of the other partners is called a
Cross purchase plan
What is a qualified plan
Qualified retirement plan is approved by the IRS Designed for the exclusive benefit of the employees and their beneficiaries. Have tax advantages
Which nonforfeiture option provides coverage for the longest period of time
Reduced paid-up
A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?
60
In a replacement situation, all of the following must be considered EXCEPT
Assets
How are state Insurance Guaranty Associations funded?
By their members - authorized insurers
Underwriting is a major consideration when an insured wishes to replace her currently policy for all of the following reasons EXCEPT
Due to age or health, the policy may change dramatically
Traditional IRA's are for individuals with _____?
Earned income
If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT
Erase the incorrect answer and record the correct answer.
An agent selling variable annuities must be registered with
FINRA
Are policy loans from the cash value income taxable?
No
Third party contract?
Policies written for minors or for businesses
All of the following are correct about the required provisions of a health insurance policy EXCEPT
Proof of loss forms must be sent to the insured within 15 days of notice of claim
How will a life insurance beneficiary designation naming a spouse be changed by divorce
The beneficiary designation will be voided.
When Linda suffered a broken hip, she notified her agent, in writing, within 12 days of the loss. However, her agent did not notify the insurance company until 60 days after the loss. Which of the following statements correctly explains how this claim would be handled?
The insurer is considered to be notified since the notification to agent equals notification to the insurer.
If an angent is in the military, which is true?
They cannot sell a policy to another active military person who is of a lower rank.
Which of the following is NOT true regarding Equity Indexed Annuities
They earn lower interest rates than fixed annuities.
How soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company?
Within 90 days or as soon as reasonably possible, but not to exceed 1 year
What is the term for how frequently a policyowner is required to pay the policy premium
mode
All of the following are activities of daily living EXCEPT
A. Speaking B. Dressing C. Eating D. Transferring A - Speaking
What is an MEC
An overfunded life insurance policy Failed the 7- pay test
Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?
Attending physician Home health care is care provided in one's home and could include occasional visits to the person's home by registered nurses, licensed practical nurses, licensed vocational nurses, or community-based organizations like hospice. Home health care might include physical therapy and some custodial care such as meal preparations.
A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?
Automatic premium loan
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
An insurance producer just sold an insurance policy to his sister. What kind of business is this?
Controlled
A single rider that provides coverage on every family member is called
Family rider
Regarding long-term care coverage, as the elimination period gets shorter, the premium
Increases
What is the initial period of time specified in a disability income policy that must pass, after the policy is in force, before a loss can be covered?
Probationary period
The insuring clause of a disability policy usually states all of the following EXCEPT
The method of premium payment
Which of the following statements is most correct concerning the changing of an irrevocable beneficiary?
They can be changed only with the written consent of that beneficiary.
An insurance advertisement exaggerates the benefits of an insurance policy, due to human error at the insurer's advertising agency. Who will the Department of Insurance hold responsible for the exaggeration?
insurer
Survivor Protection
life insurance can provide the funds necessary for the survivors of the insured to be able to maintain their lifestyle in the event of the insured's death
A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is know as
usual, customary, and reasonable
The Florida Health Insurance Coverage Continuation Act requires insurers that sell health plans to small employers to offer in those plans a right to elect to continue coverage, without providing evidence of insurability, to employees who lose their coverage and are unable to replace it. The premium rate for this coverage may NOT exceed
115% of the regular group rate
In this state, long-term care benefits may be triggered by inability to perform how many activities of daily living?
3
A specified dollar amount beyond which the insured no longer participated in the sharing of expenses
A "stop-loss limit"
Under the mandatory uniform provision notice of claim, the first notice of injury or sickness covered under an accident and health policy must contain
A statement that is sufficiently clear to identify the insured in the nature of the claim
Which of the following Medicare supplement plans would be available to a reasonably healthy 91-year-old female?
A-N
Traditional IRA (Individual Retirement Account)
Allows individuals with earned income to make tax deductible contributions regardless of age
What is reinsurance?
An agreement between a ceding insurer an assuming insurer
An applicant for an insurance agent's license must
Complete a prelicensing education course
What type of premium do both Universal Life and Variable Universal Life policies have?
Flexible
Which term describes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses?
Nonforfeiture values
Which document helps ensure that full and fair disclosure is provided to the recipient of a policy?
Outline of Coverage
An angent appointment has been denied. Which of the following is true?
State taxes may be refunded upon a written request
Which of the following groups would most likely be covered under a blanket accident policy?
Students at a public school
Also known as "second to die" or "last survivor"
Survivorship Life
Which of the following dates must be contained in a policy summary?
The date the summary was prepared
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 insured's 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 insurer's age at death
What is a life settlement?
The owner sells an existing life policy to a 3rd party
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 five years
All of the following are dividend options EXCEPT
a)Reduction of premium .b)Paid-up additions. c)Fixed-period installments. d)Accumulated at interest
Roth IRA
A form of individual retirement account authorized by federal law that allows a taxpayer to contribute after-tax dollars to the account so that earnings are not taxed when withdrawn.
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
Underwriting a group health insurance plan that is paid for by the employer requires all of the following EXCEPT
Individual members of the group may select the level of benefits for their own coverage.
Who is a Viator
Insured who has a terminal illness
Which of the following does NOT describe hospice care
It provides care to people with life expectancies of 1 to 2 years
Which of the following is true concerning the accidental death rider?
It will pay double or triple the face amount
The death benefit is paid upon the first death only
Joint Life Policies
The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called
Joint and survivor
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 a
Legal actions
A 65-year-old enrolls for benefits under Medicare Part B and submits an application for a Medicare supplement policy two months later. For which of the following reason may the insurer deny the application?
Material misrepresentation
Certain conditions, such as dismemberment or total and permanent blindness, will automatically qualify the insured for full disability benefits. Which disability policy provision does this describe
Presumptive disability
An angent transacts business for Insurer A and Insurer B, both selling life insurance. And for Insurer C, selling health insurance. How many appointments must the agent hold?
Three - one for each insurer
Which of the following is the best reason to purchase life insurance rather than annuities?
To create an estate
What is the purpose of a disclosure statement in life insurance policies
To explain features and benefits of a proposed policy to the consume
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
a)Stocks, securities, or bonds. b)An offer to share in commissions generated by the sale. c)Dividends from a mutual insurer. d)An offer of employment.
All of the following entities regulate variable life policies EXCEPT
a)The SEC. b)The Insurance Department. c)The Guaranty Association. d)Federal government
Which of the following is true regarding the agent's appointments?
A person may hold several appointments at one time.
All of the following individuals may qualify for Medicare health insurance benefits EXCEPT
A retired person age 50.
Which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance
Return of Premium Rider
Achieved by using increasing term insurance.
Which is true about the cash surrender nonforfeiture option?
Funds exceeding the premium paid are taxable as ordinary income.
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
Which of the following is INCORRECT concerning taxation of disability income benefits?
If paid by the individual, the premiums are tax deductible.
During replacement of life insurance, a replacing insurer must do which of the following?
Obtain a list of all life insurance policies that will be replaced
Which of the following entities can legally bind coverage
Insurer
All of the following information about a customer must be used in determining annuity suitability EXCEPT
a)Financial experience .b)Annual income. c)Beneficiary's age. d)Tax status.
Which of the following statements is correct?
a)Medicare will cover nursing home care if it is part of the treatment for a covered illness. b)Care needed because of aging is covered by Medicare but not by Medicare supplements. c)Care needed because of aging is covered by Medicare. d)Medicare does not pay for nursing home care in any case
In health insurance, if a doctor charges $50 more than what the insurance company consider as usual customary and reasonable the extra cost
Is not covered
Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?
Insuring clause
A long-term care insurance shopper's guide must be provided in the format developed by which of the following
NAIC
Which of the following provisions is mandatory for health insurance policies?
Physical examination and autopsy
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
Universal life The policyowner has the flexibility to increase the amount of premium going into the policy and to later decrease it again. In fact, the policyowner may even skip paying a premium and the policy will not lapse as long as there is sufficient cash value at the time to compensate for the nonpayment of premium.
If an insurance company offers Medicare supplements policies, it must offer which of the following plans?
Medicare Part A
Can an employer receive a tax deduction for any contributions made to a non qualified plan?
No -non qualified plans do not qualify for any tax treatment under the IRS rules
Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option
Size of each installment
Contracts that are owned by someone other than the insured are known as ______?
Third party ownership Ex: parent buying a policy for child
In order for a debtor group to qualify for group life insurance, what should be the minimum number of participants joining the plan every year?
100
What is the official name for the social security program?
Old-Age, Survivors, and Disability Insurance (OASDI)
With respect to the consideration clause, which of the following would be considered consideration on the part of the applicant for insurance?
Payment of premium
Which of the following is among the regulations set forth by the Florida Replacment Rule
Providing a written comparison and summary statement
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must
Respond to the consumer's complaint.
An insured wants to name her husband as the beneficiary of her health policy. She also wished to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?
Revocable
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice
The inflation protection feature in long-term care policies issued in this state must provide protection for inflation at what percent annually?
5%
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 when attached to a permanent life insurance policy, allows the policy owner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members?
Term Rider
All of the following are requirements for life insurance illustrations EXCEPT
a)They must differentiate between guaranteed and projected amounts. b)They must be part of the contract. c)They may only be used as approved. d)They must identify nonguaranteed values.
Which of the following authorities grants and revoked licenses?
Dept of Financial Services
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?
10 days
At what age are individuals become INELIGIBLE for Healthy Kids coverage?
19
COBRA applies to employers with at least
20 employees
In order for an employee to be considered eligible for small group insurance, he/she must work at least how many hours per week?
25
If a licensee changes his or her residence address, within how many days must the department be notified?
30 days
Medicare supplement policies by law, must provide a free look provision of
30 days
An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds
50,000
Modified Endowment Contract (MEC)
Any cash value policy that builds cash value faster than a Seven-Pay Whole Life Contract and therefore loses the tax advantages of life insurance.
To legally transact insurance in this state, an insurer must obtain which of the following?
Certificate of Authority
The provision that provides for the sharing of expenses between the insured and the insurance company is
Coinsurance
All of the following are the general qualifications for an angent's license EXCEPT
Have a high school diploma
Which of the following is true about premium on the children's rider in a life insurance policy?
It remains the same no matter how many children are added to the policy.
Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs?
Metal level classification
Is evidence of insurability required if switching from group insurance to individual life insurance?
No, not required
Which provision concerns the insured's duty to provide the insurer with reasonable notice in the event of a loss.
Notice of claim
An insured has health insurance that covers them at work and at home. This policy was written on what basis?
Occupational
If an employer decides to change its life insurance policy to a similar one with a different insurer, which of the following describes the extent that replacement regulations will be exercised
Replacement regulations will not apply in this situation.
