Montana life and health final exam
Under the USA patriot act insurers are required to report receipt of cash payments in excess of ?
10,000
An insurer must provide an insured with claim forms within __ days after receiving notice of a loss.
15
In Montana the minimum age for purchasing insurance is?
15
Which of the following types of policies will provide the most rapid growth of cash value?
20 pay life
In Montana what is the biennial continuing education requirement?
24 hrs
The premium charges for limited lines credit insurance is excessive if the insurer does not pay out at least ? Of premiums earned
50%
Producers must report insurance fraud to the commissioner within ? Days
60
Cash value loans may charge a maximum interest of?
8%
How long is a temporary license in effect for?
90 days
Which statement is true regarding a variable whole life policy ?
A minimum guaranteed death benefit is provided
What is whole life insurance?
A policy that is guaranteed to remain in effect for the insureds lifetime
What is term life insurance?
A policy that provides coverage at a fixed rate of payments for a limited period of time
Which of the following reimburses its insureds for covered medical expenses?
Commercial insurers
Insurance contracts are known as ? Because certain future conditions or acts must occur before any claims can be paid
Conditional
A ? May appraise an insurance policy?
Consultant
The combination of whole life and ? Term insurance is referred to as a family income policy
Decreasing
Which of these polices may not have the automatic premium loan provision attached to it?
Decreasing term
How are surrender charges deducted in a life policy with a rear end loaded provision?
Deducted when the policy is discontinued
Which of the following is not included in an annuity contract?
AD&D rider
When must a replacement notice be provided?
At the time of application
Any reciprocal insurer formed under federal tax laws must be operated by a ?
Attorney in fact
A ? Insurer is one permitted to do business in Montana
Authorized
What will an insurer do if an interest on a policy loan is not made on time?
Automatically add the amount of interest due to the loan balance
A whole life insurance policy owner does not have the right to?
Change the grace period
In an event of an illness a ? Policy would reimburse an insured for loss of earnings
Disability income
Which of these is true about the federal income tax treatment of life insurance?
Entire cash surrender value is taxable
Which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy?
Entire contract
Usual reasonable and customary and list of indemnities relates to an insurers ?
Explanation of benefits
S wants to open a tax exempt health savings account to qualify for this type of account federal law dictates that s must be enrolled in a ?
High deductible health plan
When 3rd party ownership is involved applicants who also happen to be stated primary beneficiary are required to have ?
Insurance interest in the insured
Which of the following combinations plans is designed to protect an insurer from an unpaid mortgage balance upon death
Joint life
Which settlement option pays a stated amount to an annuitant but no residual value to a beneficiary?
Life income
Pre hospitalization authorization is an example of?
Managed care
Which does not play a role in the underwriting of a life insurance policy?
Marital status
The provision that defines to whom the insurer will pay benefits to is called?
Payment of claims
Which of these is true concerning an individual straight life annuity is true?
Payments are made to an annuitant for life
A ? Provides unique information on the policy being sold
Policy summary
Which is correct about a guaranteed renewable health insurance policy is correct?
Premiums normally increase at time of renewal
A certificate of ? Is required to become a third party administrator
Registration
With optionally renewable health policies the insurer may ?
Review policy annually and determine whether or not to renew it
Which is not a duty of a third party administrator?
Sell Insurance
Pete the insured cancelled his credit life policy his unearned refund must be calculated using which method ?
Sum of years digits rule 78 if premium was paid with a single payment but pro rated if the premium was paid in level installments
Which of the following is not included in hospitalization expense coverage
Surgical fees
Credit life insurance must be sold as?
Term life
A ? Life policy offers the owner investments in products such as money market funds, long term bonds, and equities
Variable
Which policy is characterized by a flexible premium and death benefit and allows the policy owner control if the investment plans?
Variable universal life
The provision in a group health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as ?
Waiting period
What type of rider would be added to an accident and health policy if the policy owner wants to ensure the policy will continue if he/she ever becomes totally disabled?
Waiver of premium rider
When is the face amount paid under a joint life and survivor policy?
Upon death of the last insured
The amount of monthly disability benefits payable under social security is affected by which of the following factors?
Amount of the benefits available from other sources
What does an authorized insurer require?
Certificate of authority
A non contributory group term life plan is characterized by ?
The entire cost of the plan is paid for by the employer
A policy of adhesion may only be modified by who?
The insurance company
Which of the following is true about most blue cross blue shield organizations?
They are non profit organizations
A variable annuity has which of the following characteristics?
Underlying equity investments