Sinder Insurance Group Exam

When an employee is terminated, which statement about a group term life conversion is true?

Policy proceeds will be paid if the employee dies during the conversion period

Which of these describe a participating insurance policy?

Policyowners are entitled to receive dividends

Which Long Term Care insurance state is true?

Pre-existing conditions must be covered after the coverage has been in force for six months

Which of these statements accurately describes the Wavier of Premium provision in Accident and Health policy?

Premiums are waived after the insured has been totally disabled for a specified time period

The individual who provides general medical care for a patient as well as the referral for specialized care is know as a:

Primary Care Physician

According to Indiana law, which party is responsible for determining the appropriateness of a Long Term Policy presented to a potential Applicant?

Producer

The percentage o an individual's Primary Insurance Amount (PIA) determines the benefits paid in which of the following programs?

Social Security Disability Income

Which statement is TRUE regarding a group accident and health policy issued to an employer?

The employer receives the policy and each is issued a cerficate

A policy of adhesion can only be modified by whom?

The insurance company

Basic Hospital and Surgical policy benefits are:

lower than the actual expenses incurred

Which of the following statements BEST describes what the Legal Actions provision if an Accident and Health policy requires?

must wait 60 days after

P is a producer who is licensed in Indiana, but a resident of Michigan in Indiana, P is considered to be a(n) _________ producer.

nonresident

Deductibles are used in health policies to lower:

overuse of medical services

Who has the tight to change a revocable beneficiary?

policyowner

A(n) ______ beneficiary may be changed by the policy owner WITHOUT the consent of the beneficiary.

revocable

The insuring clause

states the scope and limits of the coverage

When a life insurance application is completed, a Policy Summary must be given to the applicant. The Policy Summary MUST include

the premium cost for basic coverage applied for

Under the ACA, consumers must have health insurance as of January 1, 2014 that contains Mimimum Essential Coverage (MEC). Individuals who are exempt from this law include:

those who cannot afford or have religious objections

Group Life policies in Indiana are required to contain a conversion privilege that allows for conversion:

to an individual policy for a stated period of time

K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?

$20,000 death benefit

S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary?

$50,000

Indiana's Long Term Care Partnership Program requires a Producer to have:

15 hours of additional education after they receive their license

How many days is a temporary producer's license vaild?

180

What year was the McCarran-Feguson Act enacted?

1945

Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated:

1970- Fait Credit Reporting Act

In Indiana, what is the maximum percentage of controlled business a producer may write in a twelve-month period?

25%

An insurer that terminates a producer's appointment must notify the Commissioner with ____ days of the date of termination.

30

N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent projection. and be paid-up at retirement. Which of these should N purchase?

30 paid life

At the very least, an admitted insurance company shall be examined once every ___ years.

5

An IRA owner can start making withdrawls and NOT be subjected to a tax penalty beginning at what age?

59 1/2

A policy loan is made possible by which of these life insurance policy features?

Cash value provision

N, age 50, recently brought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?

Fixed Deferred

Which Unfair Competition Practice involves a producer suggesting that an insurance policy is like a share of stock?

Misrepresentation

Which of these life products is NOT considered interest-sensitive?

Modified Whole Life

Which of the following is NOT an unfair claim settlement practice?

Needing written documentation of claim details

Which statement is true regarding a minor beneficiary?

Normally, a guardian is required to be appointed in the Beneficiary clause of the contract

An example of unfair discrimination would be:

Offering different terms of coverage to different policyowners having the same risk classification

What is a Medicare?

A hospital and medical expense insurance program

What is Indiana's definition of Life insurance replacement?

A transaction in which a new policy is brought and an old policy is terminated

C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased on her life, which of these statements would be true?

ABC is the policyowner, C is the insured, and ABC is the beneficiary

Which of the following is NOT a required provision in a group life policy?

Accidental Death and Dismemberment

A policyowner may generate taxable income from which of the following Dividend Options?

Accumulation at Interest

At what point may a producer sell insurance for an insurer?

After being properly appointed by the insurer

Under which of the following circumstances will the benefits under COBRA continuation coverage end?

All group health plans are terminated by the employer

Which of the following statements is CORRECT regarding the tax treatment of a lump-sum payment paid to a life insurance policy's primary beneficiary?

All proceeds are income tax free in the year they are received

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 is the initial source of underwriting for an insurance policy?

Application containing statements from the insured

At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?

At the time of application

Which of these actions does NOT constitute life insurance policy replacement?

Convert term coverage to whole life policy

K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

Daughter

Credit life insurance is typically issued with which of the following types of coverage?

Decreasing Term

How are Roth IKR distributions normally taxed?

Distributions are received tax-free

Under a trustee group life policy, who would be eligible for a certificate of coverage?

Employee

P owns a $25,000 LIfe Policy that pays the face amount to him.....What kind of policy does P own?

Endownment at age 70

"A producer does not have the authority to change a policy or waive any of its provisions". The health provision that best describes this statement is called the

Entire Contract

Which pf the following is NOT included in the policy face?

Exclusions

What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years?

Family Maintenance Policy

This type of deductible provision wavies the deductible for all family members after some of them have satisfied individual deductibles within the same year:

Family maximum deductible

Taking receipt of premiums and holding them for the insurance company is an example of:

Fiduciary responsibility

The payments on Q's annuity are no less than $250 quarterly. Which of the following annuities does Q own?

Flexible Installment Deferred

A life insurance application may be rejected on the basis of all of these factors EXCEPT

Gender

The purpose of the ______ Period clause is to avoid an unintentional lapse of a life insurance policy.

Grace

Which of the following is a requirement to be eligible for a group life policy in Indiana?

Group must be formed for a purpose other than obtaining insurance

T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide?

Income that cannot be outlived by the owner

What would be an accurate definition of "controlled business"?

Insurance business that is written on the producer's own life , property, or interests

The clause in an Accident and Health policy which defines the benefit amounts the insurer will pay is called the:

Insuring clause

A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need?

Irrevocable

Which of the following statements is CORRECT about the Indiana Life and Health Insurance Guaranty Association?

It protects Indiana insurance policyowners in the even an insurance company becomes insolvent

Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements?

Legal Purpose (Insurable Interest)

An insured's inability to perform two or more activities of daily living ay trigger which type of life policy rider?

Long term care

J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained in an accident. J's age, as stated on the application five years ago, was found to be understated by ten years. Which of the following actions will the insurance company take?

The insurer will adjust the benefit to what the premiums paid would have purchased at the insured's actual age

What type of reinsurance contract involves two companies automatically sharing their risk exposure?

Treaty

Which of the following Life insurance policies combine term insurance with an investment element?

Universal Life

A return of premium life insurance policy is:

Whole life and Increasing term

Variable Whole Life Insurance can be described as:

both an insurance and securities product

Insurance contracts are know as ___ because certain future conditions or acts must occur before any claims can be paid.

conditional