missed
annuity that the value reflects the investment experience of the assets supporting the contract?
a variable annuity
cost of coverage for group life
based on the ratio of men and women in the group
the primary beneficiary on a life insurance policy is deceased. upon the death of the insured, the benefit will
be paid to the contingent beneficiary
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
what kind of policy allows withdrawals or partial surrender
universal life
a life insurance policy that allows the policy owner to change the amount of the premium to be paid while the policy is in effect is called
universal life policy
what refers to "own occupation" disability
insured is unable to work to perform duties of the occupation for which his/her was educated and trained
which settlement option pays only the earnings on the death benefit?
interest only
the policy owner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. which settlement option should the policyowner choose?
interest only option
benefits under a credit life insurance policy are paid to the
lending institution lending the money in a credit transaction
variable whole life insurance is based on what type of premium
level fixed
when a whole life policy lapses or surrendered prior to maturity, the cash value can be used to
purchase a single premium policy for a reduced face amount
a uniform policy provision providing a time period during which all insurance benefits may be fully restores, if certain conditions are met
reinstatement
in dental insurance, what type of care will cover crowns?
restorative
if the policy owner wants to maintain complete control of a policy but name their spouse as a beneficiary, they would use which type of beneficiary designation?
revocable
what would help prevent a universal life policy from lapsing?
target premium
what types of insurance polices could be used to transfer the financial risk or the premature death of a key person in a business?
term life and universal life
if the insured chose the reduced paid up insurance nonforfeiture option,
the amount purchased will be as much as the cash value with purchase at the insured's current age
the initial amount of credit life insurance may NOT exceed
the amount to be repaid under the contract
if a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?
the balance of the loan will be taken out of the death benefit
in comparison to consumer reports, what describes a unique characteristic of investigative consumer reports?
the customer's associates, friends and neighbors provide the reports data
who bears all of the investment risk in a fixed annuity
the insurance company
under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to
the insured
what determines the cash value of a variable life policy?
the performance of the policy portfolio
what is a probationary period?
the period of time before a new group member is covered by the policy
if an insured continually uses the automatic premium loan option to pay the policy premium,
the policy will terminate when the cash value reduces to nothing
the greatest disadvantage to the "life income once" mode of life insurance settlement is
there is no refund of proceeds the the payee dies
what is the exception to the incontestability clause
time
what is the purpose of the buyer's guide?
to allow the consumer to compare the costs of different policies
on a life insurance policy, the face amount is
to be paid upon the death of the insured person
what is the purpose of establishing the target premium for universal life policy
to keep the policy in force
disability income benefits received are not subject to income taxes if the benefits are paid
under a policy for which the insured paid the premiums (after - tax)
the waiver of cost rider is found on what type of insurance
universal life
which policy is the owner able to pick investments
variable life
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 given to the agent
"coinsurance" in the medical field means that an insured person
will have to pay a portion of covered expenses
as a result of the federal law, OBRA, all Medicare Supplement (or Medigap) policies must
have the same core benefits
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
regarding an individual health care benefit plan, the OK Life + Health Guaranty Association would provide for a maximum amount of
$500,000
the required grace period on individual health insurance policies that are paid monthly is
10 days
when a producer ceases to maintain residency in this state, within how many days must the producer return the license to the commissioner?
10 days
following hospitalization because of an accident, Bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many days?
20
provides a constant amount of insurance for 20 years and then expires with no cash value
20 year level term policy
to be considered an eligible employee of a small employer, how many hours a week must a person work?
24 months
what is the maximum allowed amount of aggregate commissions earned by a producer on controlled business in a 12 - month period?
25%
the rejecting insurer must maintain copies of the notice, statement and notification to the rejected insurer for at least
3 years
most policies will pay the accidental death benefits as long as the death is caused buy accident and occurs within
90 days
what is the typical deductible for basic surgical expense insurance?
$0
income replacement contracts agree
to replace the insured's income up to a stated percentage if the insured suffers a loss due to a covered accident or sickness
the owner of a life insurance policy has the right to transfer all rights to another person
assignment clause
what benefit could create a double payment?
accidental death
level term insurance provides a level death benefit and a level premium during the policy term. if the policy renews at the end of a specified period of time. the policy premium will be
adjusted to the insured's age at the time of the renewal
an applicant for insurance misstates her age at the time her life insurance application is taken, this misstatement may result in
adjustment in the death benefit
upon reinstatement of an individual accident and health policy, sickness is covered
after 10 days
any life insurance policy that accumulates cash value must include a provision for policy loans after a certain period of time. in the state of oklahoma, that period of time is
after 3 full years of premium payments
the amount of a straight life policy is
amount paid to the beneficiary
the face amount of a straight life policy is
amount paid to the beneficiary
one of the non-forfeiture values in a whole life policy is the cash surrender value. the cash surrender value is
amount shown on the non-forfeiture table found in the whole life policy
decreasing term life insurance would be appropriate for?
an outstanding mortgage balance
hopsital care for HMO
can be provided outside of the service area
the gatekeeper of an HMO helps
control specialist costs
a health insurance policy lapses but is reinstated with an acceptable time frame. how soon from the reinstatement date will coverage for accidents become effective?
immediately
evan keel pays the premium on his individual disability policy with after tax dollars. loss of income benefits would be paid
income tax free
NOT provided by an HMO
reimbursement
NOT covered under Plan A in media insurance
the medicare part A deductible
insuring clause of a disability policy does NOT state
the method of premium payment
what is the name of the insured who enters a viatical statement?
viator
two components of a universal life policy
insurance and cash account
under OBRA, what is the maximum time an ineligible dependent, due to divorce, could continue on the group coverage?
36 months
if a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
COBRA stipulates that
Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense.
what licensee is NOT compensated directly related to the amount of insurance sold?
insurance consultant
according to Oklahoma law, the term "insurance agent" is synonymous with what term?
insurance producer
if an application for a life insurance policy is found to be a substandard risk, the insurance company is most likely to
charge higher premium
if the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?
a full death benefit
what is a modified endowment contract?
a life insurance policy that fails the IRS seven pay test, therefore, losing the tax
if life insurance is used to protect against premature death, what policy is used to protect against the risk of outliving your income?
annuity
combination plans - 2 types
basic and comprehensive
renewability clause allows the insurance company to terminable during the policy period
cancelable
an optional health insurance provision which allows the insurer to adjust the amount of benefits paid under certain situations or allow the insured to receive reduced premium is
change of occupation
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
what is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?
common disaster act
ABC Inc. offers life insurance to its employees. About 80% of eligible employees are covered. what type of group life plan does ABC Inc. have?
contributory
what is NOT allowed in credit life insurance
creditor requiring that a debtor buys insurance from a certain insurer
if an insured changes his payment from monthly to annually, what happens to the total premium?
decrease
an insured is hospitalized with a back injury. upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. this would indicate that his policy was written with a 30 day
elimination period
in a disability income policy, there is a period during which no benefits will be paid for illness of any kind. the term that describes this interim is the
elimination period
purpose of a discloser statement
explain features and benefits of proposed policy to the consumer
what does "level" refer to in term insurance
face amount
what are the factors that the insurer would use to calculate the fixed period settlement option?
face amount of the policy, the length of the fixed period, and the beneficiary's age
what describes a policy when the insured does not have to pay a deductible for the life of the policy?
first dollar coverage
what is the name of the minimum standard provision that required the insurer to pay claims after the premium is past due?
grace
a policy uniform provision that will keep a life insurance policy in force for a period of time after a premium payment is due
grace period
type of insurance that is most commonly used in credit life insurance
increasing term
regarding an individual loss of income disability policy which of the following optional benefit riders would provide the best coverage for an insured worried about the increased cost of living?
inflation benefit rider
a policy will pay the death benefit if the insured dies during the 20-year premium paying period, and nothing if death occurs after the 20-year period. what type of policy is this?
level term
a collateral assignment of a life insurance policy is a(n)
limited assignment under which the owner retains some rights
policies that must be delivered to the policy owner within 30 days of the date of the policy receipt
long term care policies
an individual or legal entity appointed by insurer to exercise supervision over the business of the insurer in Oklahoma is known as a/an
managing general account
term for how frequently a policy owner is required to pay the policy premium
mode
when may a producer change a policy or waive its provision according to the required "entire contract provision"?
never
what is the benefit to the insured of having recurrent disability coverage in a disability insurance policy
no new elimination period
renewability clause provides for guaranteed renewable and premium which can never be increased?
non cancelable
the equity built up in the life of a whole life insurance policy is called
non-forfeiture values
which renewal provisions must be included in a long time care policy issued to an individual?
noncanleable and guaranteed renewable
the dividend option in which the policy owner uses dividends to purchase a term policy for one year is referred to as the
one year term option
if the amount of the credit insurance is garter than the indebtedness, the additional amount is
paid to the survivors of the debtor
an insured has a level term insurance policy that is guaranteed renewable and also includes a re entry provision. the re entry provision would allow the insured to renew the policy and
pay a lower premium by proving insurability
don has 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 most 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 prospective insured receives a conditional receipt but dies before the policy is issued. the insurer will
pay the policy proceeds only if it would have issued the policy
what allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
payor benefit
who has the right to convert the existing term coverage to permanent insurance?
policy owner
surgical procedures will be paid under basic surgical expenses coverage according to the
policy's schedule of operations showing dollar amounts or unit values
what will be included in a policy summary?
premium amounts and surrender values
most agents try to collect the initial premium for submission with the application. when an agent collects the initial premium from the applicant, the agent should issue the applicant a
premium receipt