Stimulation Test #12

A brain surgeon has an accident and develops tremors in her right arm. Which disability income policy definition of total disability will cover her for all losses?

"own occupation" - less restrictive than other definitions

An insured's disability income policy includes an additional monthly benefit rider. For how many years can the insured expect to receive payment from the insurer before Social Security benefits begin?

1

Which of the following disability income policies would have the highest premium?

15 day waiting period/10 year benefit period

A client has a new individual disability income policy with a 20 day probationary period and a 30 day elimination period. Ten days later, the client breaks their leg and is off work for 45 days. how many days of disability benefits will the policy pay?

15 days

A property and casualty agent has been licensed for 7 years. How many continuing education hours must the agent complete this licensing period?

24

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?

5

At what age may an individual make withdrawals from an HSA for nonhealth purposes without being penalized?

65

Which of the following is NOT true regarding an annuity certain?

Benefits stop at the annuitants death

In order to be paid for his or her services, a Life and Disability Insurance Analyst must do which of the following?

Disclose the fee in writing to, and have it approved by the client in advanced

All of the following are dividend options EXCEPT

Fixed period installments

Which of the following annuity riders ensures that the owner will receive from an annuity at least the amount paid for the annuity?

Guaranteed Lifetime Withdrawal

Which of the following annuity riders ensures investors will receive a set amount of income annually?

Guaranteed Minimum Income Benefit

What is one way in which HMOs are different from traditional health insurance policies?

HMOs encourage preventive care

Which of the following is true regarding the annuity period?

It may last for the lifetime of the annuitant

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?

Life income with period certain

An insured is covered under a Medicare policy that provides a list of network healthcare providers that the insured must use to receive coverage. In exchange for this limitation, the insured is offered a lower premium. Which type of Medicare policy does the insured own?

Medicare SELECT

If a life insurance policy develops cash value faster than a seven-pay whole life contract, it becomes a/an

Modified endowment contract

What is the initial period of time specified in a disability income policy that must pass, after the policy is in force, before a loss can be covered?

Probationary period

All of the following entities regulate variable life policies EXCEPT

The Guaranty Associations

Your client has a Social Supplement (SISI) rider on his disability policy. After he becomes disabled, he receives payments from the company. Shortly thereafter, he also begins receiving Social Security benefit payments. Which of the following will happen?

The SIS payment will be reduced dollar for dollar by the Social Security benefit payment

An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. This results in a long hospitalization period. Which of the following is true?

The group plan will not pay because the employee was injured at work

A licensee is NOT required to comply with continuing education requirements in the state of California if which conditions are met?

The licensee has been in good standing for 30 continuous years and is at least 70 years old

Which of the following is TRUE regarding an indeterminate premium whole life policy?

The premium can be raised up to a guaranteed maximum rate

Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe?

adhesion

Which of the following would qualify as an implied warranty in an insurance contract?

an oral representation by the applicant

What is another term for the general enrollment period for Medicare Part B?

annual enrollment period

Which of the following is a short-term annuity that limits the amounts paid to a certain fixed period or until a certain fixed amount is liquidated?

annuity certain

The Commissioner MAY deny an application for license for any applicant who

any of these

If the information is used only for identification and not for underwriting purposes, which of the following information about the applicant may be listed on a life insurance application?

birthplace

Which of the following features of the Indexed Whole life policy is NOT fixed?

cash value growth

Making use directly or indirectly of any methods of marketing which fail to disclose in a conspicuous manner that a purpose of the method of marketing is solicitation of insurance and that contract will be made by an insurance agent or insurance company is known as

cold lead advertising

The term "administrator" under California Insurance Codes refers to any person who

collects any charge or premium from or who adjusts or settles claims on life and health insurance policies or annuities

Which of the following is the term for the specific dollar amount that must be paid by an HMO member for a service?

copayment

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called

cost of living rider

Which component increases in the increasing term insurance?

death benefit

Group disability income Insurance premiums paid by the employer are

deductible by the employer as an ordinary business expense

Group disability income insurance premiums paid by the employer are

deductible by the employer as an ordinary business expense

If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT

erase the incorrect answer and record the correct answer

What does "level" refer to in level term insurance?

face amount

Which policy component decreases in decreasing term insurance?

face amount

When an employee terminates coverage under a group insurance policy, coverage continues in force

for 31 days

If a policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

guaranteed insurability rider

Which of the following types of LTC is NOT provided in an institutional setting?

home health care

In which of the following cases would a credit disability policy be issued?

if an individual is in debt to a specific creditor, payments will be made for him/her until the return to work

In an optionally renewable policy, the insurer has which of the following options?

increase premiums

Which of the following principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?

indemnity

The Patient and Affordable Care Act Includes all of the following provisions EXCEPT

individual tax deduction for premiums paid

Which of the following policy components contains the company's promise to pay?

insuring clause

The continuing eduction requirement for the California Partnership for LTC policies

is part of an agents regular continuing education requirements

Which of the following is true of a PPO?

its goal is to channel patients to providers that discount services

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

joint and survivor

Issuance of health policies to insureds with chronic or ongoing conditions could result in all of the following EXCEPT

lower overall costs and premiums

Carson Refinery offers group Accidental Death and Dismemberment insurance to its workers on a contributory basis. Assuming at least 75% of the eligible employees participate in the plan, an employee would have the priviliege of

naming his/her own beneficiary

Bethany studies in England for a semester. While she is there, she is involved in a train accident that leaves her disabled. If Bethany owns a general disability policy, what will be the extent of benefits that she receives?

none

Under a pure life annuity, an income is payable by the company

only for the life of the annuitant

Which of the following statements is INCORRECT concerning Medicare Part B coverage?

part b coverage is provided free of charge when an individual turn age 65

Which of the following applies to partial disability benefits?

payment is limited to a certain period of time

An individual buys a flexible premium deferred life annuity with 20 year period certain. What would his beneficiary receive if he dies 5 years after beginning the annuity

payments for 15 years

All of the following are characteristics of group life insurance EXCEPT

premiums are determined by the age, sex, and occupation of each individual certificate holder

In which of the following instances would the premium be tax deductible?

premiums paid by an employer on a $30,000 group term life insurance plan for employees

Which of the following is true regarding the regulation of providers?

providers must be under the jurisdiction of either the Dept. of Insurance or other governmental agencies

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

purchase a single premium policy for a reduced face amount

The price of insurance for each exposure unit is known as

rate

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?

reinstatement provision

An insurance agents responsibilities include all of the following EXCEPT

represent the client

The interest earned on policy dividend is

taxable

Written binders provide insurance before the policy is actually issued. The time period between the issuance of the binder and the policy's effective date is called

temporary term

The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?

the annuitant must be a natural person

What happens if a nonmember physician is utilized under the Point of Service plan?

the attending physician will be paid a fee for service, but the member patient will have to pay a higher coinsurance amount

An employer offers group life insurance to its employees for the amount of $10,000. Which of the following is true?

the cost of coverage is a deductible expense by the employer

Which of the following is TRUE regarding the insurance amount in a credit life policy?

the creditor can only insure the debtor for the amount owed

What determines the penalty for surrendering a market value adjusted annuity prematurely?

the current interest rate at the time of surrender

When an insured receives a written binder,

the insured's coverage will be effective immediately

Which of the following is true regarding an application for a large amount of insurance?

the insurer might require a medical examination by a professional

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

the insurer will pay the full death benefit from the group policy to the beneficiary

Which of the following statements is true regarding coinsurance?

the larger the percentage that is paid by the insured, the lower the required premium will be

Which of the following definitions would make it easier to qualify for total disability benefits?

the more liberal "own occupation"

Under an extended term nonforfeiture option, the policy cash value is converted to

the same face amount as in the whole life policy

An insured has choses joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

the surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive

An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?

they are tax deductible

How are employer contributions to Health Reimbursement Accounts treated in regards to taxation?

they are tax deductible

The insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pay valid claims. In the forming of an insurance contract, this is referred to as

utmost good faith

Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE?

withdrawals are not taxable