Missed Questions Assessment #1
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid
For 20 years or until death, whichever occurs first
Regarding long term care coverage, as the elimination period gets shorter, the premium
Gets higher
Which of the following best describes annually renewable term insurance?
It is level term insurance
Individual and group health policies in this state will cover which of the following procedures for women?
A mammogram every year for women age 50 and older
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
Dividends from a mutual insurer
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?
Replacement rule
What is the purpose of the insurability provision in group life policies issued in this state?
To allow the insurer to require proof of insurability from individual insured
The act of trying to discourage a policyholder from dropping his/her existing policy is called
Conservation effort
Two attorneys operate their practice as a partnership. They want to start a program through their practice that will provide retirement benefits for themselves and three employees. They would likely choose
HR-10 (Keogh Plan)
All of the following are among the Director's broad powers EXCEPT
Have interest in insurance companies regulated by the Department
What are the 2 types of Flexible Spending Accounts?
Health Care Accounts and Dependent Care Accounts
Who is responsible for covering the expenses associated with the examination of domestic insurers?
The examined insurer
An individual has been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits?
A portion of the benefit up to a limit is tax-free; the rest is taxable income
The term "illustration" in a life insurance policy refers to
A presentation of non-guaranteed elements of a policy
In a long-term care policy, pre-existing condition limitations
Must appear as a separate paragraph and be clearly labeled
Which of the following explains the policyowner's right to change beneficiaries, choose options, and receive proceeds of a policy?
Owner's Rights
All of the following are required provisions in group health policies in this state EXCEPT
Pre-existing conditions exclusions
Which of the following is NOT covered under Plan A in Medigap Insurance?
The Medicare Part A deductible
Which of the following is NOT a feature of a guaranteed renewable provision?
The insurer can increase the policy premium on an individual basis
A 71 year old female recently purchased a life insurance policy with graded death benefits. If the policy has graded death benefits for three years, which of the following must be true?
The third year of the policy must have a death benefit equal to 65% of the total face amount
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called
Credit life
A producer completed an insurance transaction in 2007. When can the producer dispose of the records for this transaction?
2010 (3 yrs)
Which policy component decreases in decreasing term insurance?
Face amount
Which of the following statements is NOT correct concerning the COBRA Act of 1985?
It requires all employers, regardless of the number or age of employees, to provide extended health coverage
Which of the following settlement options in life insurance is known as straight life?
Life income
All of the following are true regarding the guaranteed insurability rider EXCEPT
This rider is available to all insureds with no additional premium
Which of the following disability income policies would have the highest premium?
15-day waiting period / 10-year benefit period
Which of the following would be considered an illegal inducement to purchase insurance?
Confirming future dividends in a life insurance proposal
Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is
Monthly
The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as
The policy contains sufficient cash value to cover the cost of insurance
A producer's license last for how many years before it needs to be renewed?
2
How long is the free look period on a Medicare supplement policy?
30 days
Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within
90 days of a loss
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
Which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance
What document describes an insured's medical history, including diagnoses and treatments?
Attending Physician's Statement
All of the following statements are correct regarding credit life insurance EXCEPT
Benefits are paid to the borrower's beneficiary
Which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments
Which of the following statements regarding Business Overhead Expense policies is NOT true?
Benefits are usually limited to six months
Which of the following entities has the authority to make changes to an insurance policy?
Insurer's executive officer
Which of the following statements about the reinstatement provision is true?
It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated
In the event of loss, after a notice of claim is submitted to the insurer, who is responsible for providing claims forms and to which party?
Insurer to the insured
If a company has Simplified Employee Pension plan, what type of plan is it?
A qualified plan for a small business
The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the
Insuring clause
State law specifically prohibits using illegal inducements in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT
Inviting prospective clients to the grand opening of the company's new office
In a group health policy, a probationary period is intended for people who
Join the group after the effective date
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 documents provides a disclosure of a Medicare supplement policy?
Outline of coverage
Which of the following is correct regarding the taxation of group medical expense premiums and benefits?
Premiums are tax deductible and benefits are not taxed
All of the following are differences between individual and group health insurance EXCEPT
Individual insurance does not require medical examinations, while group insurance does require medical examinations
A producer has submitted a new application to his insurer; however, 30 days later there was still no coverage available for the applicant. What must the producer do?
Inform the applicant in writing
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
What is the maximum amount a person guilty of an unfair method of competition or an unfair or deceptive act or a prohibited practice may be fined in any 12 month period?
$100,000
In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5
The death protection component of Universal Life Insurance is always
Annually Renewable Term
Which of the following best describes fixed-period settlement option?
Both the principal and interest will be liquidated over a selected period of time
Insurers may change which of the following on a guaranteed renewable health insurance policy?
Rates by class
A child with phenylketonuria (PKU) will have its physician-recommended foods covered by a health insurance policy, provided the child is under what maximum age?
6 years old
Which of the following is the required number of participants in a contributory group
75%
Which of the following in NOT a characteristic or a service of an HMO plan?
Contracting with insurance companies
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
The customer's associates, friends, and neighbors provide the report's data
An insured purchased a non-cancellable health insurance policy 1 year ago. Which of the following circumstances would NOT be a reason for the insurance company to cancel the policy?
The insured is in an accident and incurs a large claim
All of the following benefits are available under Social Security EXCEPT:
Welfare benefits
A domestic insurer issuing variable contracts must establish one or more
Separate accounts
All of the following are general requirements of a qualified plan EXCEPT
The plan must provide an offset for social security benefits
Which of the following is NOT allowed in credit life insurance?
Creditor requiring that a debtor buys insurance from a certain insurer
Which of the following is NOT true regarding policy loans?
Money borrowed from the cash value is taxable
Which of the following statements is true regarding LTC insurance?
Every policy must offer nonforfeiture benefits to the applicant
The automatic premium loan provision is activated at the end of the
Grace period
All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT
Upon conversion, the death benefit of the permanent policy will be reduced by 50%
In a survivorship life policy, when does the insurer pay the death benefit?
Upon the last death
