Pretest questions

all of the following long-term care coverages would allow an insured to receive care at home EXCEPT

skilled care

what is the period of coverage for events such as death or divorce under COBRA

36 months

if an insurance company offers medicare supplement policies, it must offer which of the following plans?

A

What is the benefit of choosing extended term as a nonforfeiture option

It has the highest amount of insurance protection

all of the following are nonforfeiture options EXCEPT

interest only

which of the following is correct regarding credit life insurance?

it insures the life of a debtor

what percentage of individually-owned disability income benefits is taxable

0%

the commissioner of insurance issues a cease and desist order and immediately receives a request for the charges to be reviewed in a hearing. within what number of days must the hearing be held?

10

the insurers are allowed to disclose the HIV-related test result to all the following EXCEPT

Another insurer

all of the following would be qualified as a dependent under a dependent care flexible spending account, EXCEPT

Jeremy who had to have both legs amputated, but has learned how to take care of himself and to get around in a wheelchair

Insurance that would pay for hiring a replacement for an important employee who becomes disabled is called

Key employee disability insurance

after filing a claim, an insured tells the insurer that there is more than one insurance policy in force. that insurer sets aside the claim until it hears what the other company will pay. the insurer's action will be classified as?

unfair

Under the Physical Exam and Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending?

unlimited

Insurers may change which of the following on a guaranteed renewable health insurance policy?

rates by class

any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice is known as

rebating

all of the following are to be included in the application for a certificate of authority to act as an HMO except

records of previous insurers

An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?

revocable

a medical expense policy that establishes the amount of benefits 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 known as

usual, customary and reasonable

which two terms are associated directly with the way an annuity is funded

Single payment or periodic payments

Which of the following is true of a PPO?

The person does not need to choose a primary care physician to coordinate care

how many pairs of glasses in a 12-month period will a vision expense insurance plan cover

one

Underwriting is a major consideration when an insured wishes to replace her current policy for all of the following reasons EXCEPT

Premiums always stay the same

the medical information bureau (MIB was created to protect

insurance companies from adverse selection by high risks persons

what type of care is respite care

relief for a major care giver

which policy component decreases in decreasing term insurance

face amount

which of the following is the closest term to an authorized insurer?

admitted

when an insured purchased her disability income policy she told the agent she was 30 years old when in fact she was 37 if the policy contains the optional misstatement of age provision

amounts payable under the policy will reflect the insured'

Who can make a fully deductible contribution to a traditional IRA?

an individual not covered by an employer-sponsored plan who has earned income

in texas, the commissioner of insurance is

appointed by the governor

which of the following is NOT required to be stated in the outline of coverage provided with a long-term care policy?

basic information about supplementary policies

according to the provisions of the patient protection and affordable care act, all of the following are required preventive care services except?

cervical cancer for all women starting at age 40

a waiver of premium provision may be included with which kind of health insurance policy

disability income

what is the goal of the HMO

early detection through regular checkups

which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?

fraternal benefit society

how long is a newborn covered without notification to the insurer?

from the moment of birth, and the insurer must be notified within 31 days

as it pertains to group health insurance, COBRA stipulates that

group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense

An insured becomes disabled at age 22 and can no longer work. She meets the definition of total disability under Social Security. What other requirement must the insured have met to receive Social Security disability benefits?

have accumulated 6 work credits in the past 3 years

in long-term care(LTC) policies, as the benefit lengthens the premium

increases

an insured has endured multiple surgeries and hospitalizations for an illness during the summer months. her insurer no longer bills her for medical expenses. what term best describes the condition she has met?

stop-loss limit

which of the following disability income policies would have the highest premium

15-day waiting period / 10-year benefit period

anyone who violates the insurance code of texas may be fined up to

25,000

which of the following persons is required to hold a producer license

a person who negotiates insurance contracts

all of the following information must be disclosed to the viator prior to the execution of a viatical settlement contract except

availability of stranger-originated life insurance(STOLI)

a father purchases a life insurance policy on his teenager daughter and adds the payor benefit rider. in which of the following scenarios will the rider waive the payment of premium

if the father is disabled for more than 6 months

which of the following is NOT true regarding the accumulation period of an annuity

it would not occur in a deferred annuity

Which of the following settlement options in life insurance is known as straight life?

life income

which of the following is considered a presumptive disability under a disability income policy

loss of two limbs

under an individual disability policy the minimum schedule of time in which claim payments must be made to an insured is

monthly

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

mutual

what is the purpose of COBRA

to provide continuation of coverage for terminated employees

a policyowner has a health insurance policy with his wife listed as the primary beneficiary. he would like to change the primary beneficiary to his sister. which of the following is true?

unless the policy designated the current beneficiary as irrevocable, the policyowner can make the change at any time

An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize?

viatical settlement

which of the following applies to partial disability benefits

payment is limited to a certain period of time

An agent explains the details of a life insurance policy to a client. The agent does not realize, however, that the state has recently rewritten two of the provisions. As a result, the agent inadvertently misrepresents the policy, making it more attractive than it really is. What best describes this situation?

there is no misconduct

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

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

which of the following is correct concerning the taxation of premiums in a key person life insurance policy

premiums are not tax deductible as a business expense

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

telling a client that his first premium will be waived if he purchases the insurance policy today

Under the ACA, health insurance can no longer be underwritten based on which of the following factors?

the applicant's health condition

Who is the owner and who is the beneficiary on a Key Person Life Insurance Policy?

the employer is the owner and the beneficiary

An insured is involved in a car accident. In addition to general, less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will he receive Presumptive Disability benefits?

no benefits

which of the following information will be stated in the consideration clause of a life insurance policy

the amount of premium payment

which of the following is TRUE regarding variable annuities?

the annuitant assumes the risks on investment