Simulation Exam missed

a producer has been notified by the Commissioner to stop using an unapproved trade name. How many days does the producer have to change the trade name before having to pay am additional fine?

10 days

what is a penalty tax for nonqualified distributions from a health savings account?

20%

Existing and replacing life insurers me required to keep copies of all summaries, notices, and statements used in sale transactions until the conclusion of their next examination by the Division of lnsurance, or for a period of at least ____________.

5 years

Insurer examinations must occur no less frequently than every

5 years

which of the following statements is CORRECT concerning the relationship between Medicare and HMOs?

HMOs may pay for services not covered by Medicare

which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation?

Human life Value approach (HLVA)

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

a Louisiana Insurance company ran an advertisement in June 2008. When could the company discard the file on the advertisement?

June 2012

a policyowner is reading a statement on the first page of his health insurance policy which says "this is a limited policy." What is the name of this statement?

Limited Policy Notice

Using a class designation for beneficiaries means

Naming beneficiaries as a group

the purpose of insurance regulation is to

Promote the public welfare.

the Gramm-Leach-Bliley Act was passed to

Protect private customer information filed with a financial institution.

a health insurance policy clause that prevents an insurance company from denying payment of a claim after a specified period of time is known as the

Time Limit on Certain Defenses clause

which type of life insurance policy allows the policyowner to pay more or less than the planned premium?

Universal Life

this state provided for a temporary license for all of the following EXCEPT

a producer's retirement

all of the following are correct about the required provisions of a health insurance policy EXCEPT

a reinstated policy provides immediate coverage for an illness

When the insured purchased his health policy he was a window washer. He has since changed occupations and now manages a library. If the insurer is notified of the insured's change of occupation, the insurer should

adjust the benefit in accordance with the decreased risk

In which Medicare supplemental policies are the core benefits found?

all plans

Under HIPAA, which of the following is INCORRECT regarding eligibility requirements for conversion to an individual policy?

an individual who was previously covered by group health insurance for 6 months is eligible

All of the following qualify for Medicare Part A EXCEPT

anyone who is willing to pay a premium

all of the following statements are correct regarding credit life insurance EXCEPT?

benefits are paid to the borrowers beneficiary

The First Street Church plans to sponsor a summer camp for the youth of their congregation. They would like to purchase insurance that would pay benefits should one of the youth get injured while participating in the camp activities. The type of policy they would likely need is a/an

blanket

A man bought an individual health insurance policy for himself. Which of the following roles does he now legally have?

both subscriber and insured

what does "liquidity" refer to in a life insurance policy?

cash values can be borrowed at any time

what is the contract provision that allows the insurer to nonrenew health coverage if certain events occur?

conditionally renewable

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

consideration

all of the following are features and requirements of the Living Needs Rider EXCEPT?

diagnosis must indicate that death is expected within 3 years

which of the following will NOT be considered unfair discrimination by insurers?

discriminating in benefits and coverages based on the insured's habits and lifestyle

all of the following could be considered rebates if offered to an insured in the state of insurance EXCEPT

dividends from a mutual insurer

which of the following is considered to be a morale hazard?

driving recklessly

in Louisiana, the Commissioner of Insurance is

elected by the voters of the State for a period of four years

An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)

equity indexed annuity

In the Executive Bonus plan, who is the owner of the policy, and who pays the premium?

executive is the owner, and the executive pays the premium

Which nonforfeiture option has the highest amount of insurance protection?

extended term

Circulating deceptive sales material to the public is what type of Unfair Trade Practice?

false advertising

when an insurance agency published an advertising brochure, it emphasized the company's financial stability and sound business practices. In reality, its financial health is terrible, and the company will soon have to file for bankruptcy. Which of the following terms best describes the advertisement?

false financial statement

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

family term rider

an insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. what term best describes this act?

fraud

which provision allows the policyholder a period of time, while coverage is in force, to examine a health insurance policy and determine whether or not to keep it?

free look period

what provision in an insurance policy extends coverage beyond the premium due date?

grace period

Bill made his living as an insurance producer at one time but is no longer licensed. Under which of the following circumstances would it be acceptable for him to accept a commission?

if he receives a deferred commission from insurance that he transacted while he was licensed

What type of annuity can be purchased with a single premium and provides benefit payments immediately?

immediate

Guarantee of insurability option in long-term care policies allows the insured to

increase benefit levels without providing proof of insurability

which statement regarding insurable risks is NOT correct?

insureds cannot be randomly selected

which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?

insurers guaranteed minimum rate of interest

which of the following is NOT true regarding the needs approach method of determining the value of an individual's life?

need is predicted using the number of years until the insured's retirement

Attempting to determine how much insurance a family would require based upon their financial objectives is known as

needs approach

Your client uses $50,000 in inheritance money to purchase a single premium immediate annuity. How soon can he begin receiving income payments?

no later than 1 year from the time of purchase

on a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

not taxable since the IRS treats them as a return of a portion of the premium paid

Medicare Part A services do NOT include which of the following?

outpatient hospital treatment

An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?

pay a reduced death benefit

an insured purchases a health policy in 2000 and submits a claim in 2005. The insurance company discovers at that time that the insured misstated the information about his health condition. What will the insurer most likely do?

pay the full benefit

Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?

principal sum

which of the following would not be a violation of Louisiana Insurance Regulation?

producer C uses her license to write only business other than controlled

Pertaining to insurance, which of the following is an example of a producer's fiduciary responsibility?

promptly forwarding premiums to the insurance company

which of the following would be a violation of life policy illustration regulation?

providing a customer with an incomplete illustration

When benefits are paid directly to the insured under a health insurance policy, the policy provides benefits on what type of basis?

reimbursement

which of the following is NOT provided by an HMO?

reimbursement

when an employee is still employed upon reaching age 65 and eligible for Medicare, which of the following is the employee's option?

remain on the group health insurance plan and defer eligibility for Medicare until retirement

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

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

required a premium increase each renewal

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must

respond to the consumer's complaint

The Ownership provision entitles the policyowner to do all of the following EXCEPT

set premium rates

which types of life insurance policy generates immediate cash value?

single premium

all of the following are beneficiary designations EXCEPT

specified

which of the following policies would be classified as a traditional level premium contract?

straight life

which of the following statements about a suicide clause in a life insurance policy is true?

suicide is excluded for a specific period of years and covered thereafter

A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then

the benefit is received tax free

in a group policy, who is issued a certificate of Insurance?

the individual insured

what is the advantage of reinstating a policy instead of applying for a new one?

the original age is used for premium determinations

which of the following best describes what the annuity period is?

the period of time during which accumulated money is converted into income payments

all of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

the policy is owned by the company

which of the following best defines target premium in a universal life policy?

the recommended amount to keep the policy in force throughout its lifetime

In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT

the type of investment

on a disability income policy that contains the "own occupation" definition of total disability, the insured will be entitled to benefits if they cannot perform

their regular job

which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds?

vacation travel expenses