SC INSURANCE FINAL
Small employers who are sponsored by an insurer to provide group benefits to its employees are called
MEWA (multiple employer welfare association)
the double indemnity provision in a life insurance policy pertains to an insured's death caused by:
an accident
an insurer formed according to the legal requirements of another country is considered:
an alien insurer
an individual most likely will have an insurable interest in insuring a person's life if:
an economic interest exists for the continuance of the insured's life
which of the following is a valid reason for an insurer to refuse the issuance of an insurance policy?
applicant's health condition
An insured has a health plan that pays established amounts in accordance with a list of injuries, surgical procedures, or other losses. This list is called a:
benefit schedule
how are health plans classified according to the affordable care act?
bronze, silver, gold, platinum
which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive?
endowment policy
one of the most important considerations when replacing health insurance would be the:
exclusions on a new policy
an example of an unfair claim settlement practice is:
failing to provide reasonable basis for the denial of a claim upon request
which of these is NOT a qualifying event for medicare?
falling below the federal poverty level
a spouse and a child can be added to the primary insured's coverage as what kind of rider?
family term
The purpose of Medicare Supplement Insurance is to address gaps in Medicare coverage, which can include:
medicare in-hospital deductible
Shirley has a Medigap policy, which is designed to pay costs associated with:
medicare parts A & B
Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended term insurance option. When the term insurance expires:
the protection ends
who were Keogh plans designed to provide pension benefits for?
the self-employed
how does one become eligible for part d: prescription drug coverage?
they must have medicare coverage
If an employee contributes 50% toward the disability plan premium provided by an employer, what would be considered the taxable income of a $1,000 monthly disability benefit?
$500
within _____ days after policy delivery, an individual life insurance policy can be returned for a 100% premium refund
10 (free look period)
sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of:
100% of costs
south carolina requires that licensee completes _____ hours of continuing education on the subject of ethics every reporting period
3
a life insurance REPLACEMENT transaction gives the policyowner the right to return the policy for a 100% refund within ______ days of policy delivery
30
within ______ days after policy delivery, both medicare supplement and long-term care policies can be returned for a 100% premium refund
30
Erica is 35 years old and owns an IRA. At what age can she begin to receive distributions without a tax penalty?
59 1/2
an insurer may exclude preexisting conditions on a medicare supplement policy for __________ months
6
an insurer may legally defer payment of a cash surrender value for up to
6 months
during the course of an insurance transaction, which of the following is NOT a duty of the producer? A. highlight the protections guaranteed by the guaranty association B. be fair and honest C. do not misrepresent the provisions of the policy D. submit premiums collected to the insurer in a timely manner
A. highlight the protections guaranteed by the guaranty association
which of the following factors is NOT taken into account when determining an applicant's life insurance needs? A. social security B. automobile C. savings D. pension
B. automobile
all of the following are typically included in a life insurance policy illustration EXCEPT: A. premium of the policy B. names of the beneficiaries C. interest charged for policy loans D. cash surrender value in 20 years
B. names of the beneficiaries
all of the following are typically included in a life insurance policy illustration except: A. premium of the policy B. names of the beneficiaries C. interest charged for policy loans D. cash surrender value in 20 years
B. names of the beneficiaries
all of the following are functions of an insuring clause except: A. States the conditions under which the policy will pay B. Outlines the kind of benefits provided C. Primarily describes the free-look period D. Provides the policy's scope and limits of coverage
C. Primarily describes the free-look period
All of the following are included as part of a contract in the entire contract provision EXCEPT the: A. riders B. application C. changes made by the producer D. policy
C. changes made by the producer
all of the following are elements of an insurance policy except: A. definitions B. other insurance C. claim forms D. conditions
C. claim forms
an underwriter can acquire information from all of the following sources except: A. medical information bureau B. consumer reports C. physician's statements D. genetic testing
D. genetic testing
which of the following are the premium payments for a universal life policy NOT used for? A. death benefits B. cash value C. loading costs D. separate account investments
D. separate account investments
a producer does NOT have fiduciary responsibility to? A. applicants B. insureds C. insurers D. the SC guaranty association
D. the SC guaranty association
which of these is NOT a characteristic of the accelerated death benefit option? A. The face amount and policy premium are not affected by the payment B. Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness C. There may be a dollar limit on the maximum benefit D. The benefit can be offered as a rider at a specific extra cost or maybe at no cost
D. the benefit can be offered as a rider at a specific extra cost or maybe at no cost
An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called?
coinsurance
life insurance policies will normally pay for losses arising from:
commercial aviation
A waiver of premium rider allows an insured to waive premium payments if the insured is:
completely and permanently disabled
field underwriting performed by the producer involves?
completing the application and collecting the initial premium
In which of the following processes will the insurer oversee the insured's hospital stay to confirm everything is going according to schedule and that the insured will be released as planned?
concurrent review
a life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called:
guaranteed insurability rider
a health insurance policy that allows an insurer to change the policyowner's premiums but NOT cancel the policy is called:
guaranteed renewable policy
disability income plans which require that the insurer can never change or alter premium rates are usually considerd:
non-cancelable
A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called:
nonforfeiture option
Richard owns an insurance policy that is renewable only at the option of the insurance company. His policy is considered to be:
optionally renewable
Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes?
taxable income
Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue?
accumulation at interest option
Which disability policy provision would address any concerns of the value of the benefits decreasing over time?
cost of living benefit
what does restorative dental treatment cover?
crowns, fillings, implants, etc.
an example of a tax-qualified retirement plan would be:
defined contribution plan
which entity is responsible for regulating continuing education requirements in SC?
department of insurance
a medicare supplement policy is:
designed to fill in the gaps of part A and part B medicare
a life insurance policyowner was injured in an automobile accident which results in a total and permanent disability. which rider would pay a monthly amount because of this disability?
disability income rider
how often must an insurance producer's license in south carolina be renewed?
every two years
a dependent child may remain on a parent's health insurance plan beyond the limiting age if the child:
has a mental/physical handicap and remains dependent on the parent
An insurer is REQUIRED to offer which of the following to each long-term care applicant at the time of purchase?
inflation protection
in regards to a life insurance contract, which is NOT true regarding the concept of insurable interest?
insurable interest can be established sufficiently by sentimental attachment alone
all long-term care policies sold in South Carolina are REQUIRED to pay the SAME daily benefit amount for 'at home' care as compared to:
the daily amount paid for nursing home care
law of large numbers
the larger the number of units that are individually exposed to an event, the greater the likelihood that the actual results of that exposure will equal the expected results
a whole life insurance policy accumulates cash value that becomes:
the policy loan value which the insured may borrow against
What is the primary factor that determines the benefits paid under a disability income policy?
wages
a renewable term life insurance policy allows the policyowner the right to renew the policy:
without proof of insurability
Coordination of Benefits regulation applies to all of the following plans EXCEPT? A. Group vision plan B. Preferred Provider Organization plan C. Self-funded group health plan D. Group health plan
B. preferred provider organization plan
Tyler purchased a Disability Policy with a waiver of premium Rider on April 1. he is the same old on May 1. on June 1, he receives proof of permanent and total disability and submits a claim. he begins receiving benefits on June 15. when are his premiums waived?
May 1. premiums are waived beginning at the date of disability
How soon can the benefit payments begin with a deferred annuity?
a minimum of 12 months after date of purchase
what is NOT considered to be a nonforfeiture option in a whole life insurance policy?
interest only
what is the purpose for having an accelerated death benefit on a life insurance policy?
it allows for cash advances to be paid against the death benefit if the insured becomes terminally ill
How do insurers predict the increase of individual risks?
law of large numbers
which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them?
life annuity certain
Which type of plan would be most appropriate for an individual on Medicare and concerned that Medicare will NOT pay for charges exceeding the approved amount?
medicare supplement plan F
a policyowner suffers an injury that renders him incapable of performing one or more important job duties. any decrease in income resulting from this injury would make him eligible for benefits under which provision?
partial disability
a provision that allows a policyowner to withdraw a policy's cash value interest free is:
partial surrender
decreasing term life insurance is often used to?
provide coverage for a home mortgage
what is the purpose of a disability income benefit
provide money for living expenses
an insurance producer is best described as someone who:
sells, solicits, or negotiates insurance contracts for compensation on behalf of an insurer
Jonas has disability insurance through his employer. The employer pays 75% of the premium, and Jonas pays the other 25%. What is Jonas's tax liability for any benefits paid from the disability plan?
taxes must be paid on 75% of the benefits received
