Additional L&H questions

What type of insurance would be used for a Return of Premium rider? a)Decreasing Term b)Annually Renewable Term c)Increasing Term d)Level Term

c)Increasing Term

The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the a)Consideration clause. b)Probationary period. c)Insuring clause. d)Incontestability clause.

c)Insuring clause.

In a group health policy, a probationary period is intended for people who a)Have additional coverage through a spouse. b)Want lower premiums. c)Join the group after the effective date. d)Have a pre-existing condition at the time they join the group.

c)Join the group after the effective date.

What is the typical deductible for basic surgical expense insurance?a)$0 b)$100 c)$200 d)$500

a)$0

A licensed producer must inform the Commissioner of a change of name within a)2 weeks. b)30 days. c)90 days. d)1 year.

b)30 days.

Under which circumstance can a producer receive a commission and a consultant's fee for the same transaction? a)When a producer holds a valid consultant's license. b)When the transaction is approved by the Commissioner. c)Under no circumstances: producers cannot be consultants d)A producer makes a disclosure about the compensation arrangements prior to the transaction.

d)A producer makes a disclosure about the compensation arrangements prior to the transaction.

Todd has been informed that he has a hernia which requires repair. When Todd researches the cost, he learns that his insurance plan will cover 200 points worth of surgical expenses. Each point represents $10, which means that $2000 of his surgery will be covered by his insurance plan. What system is Todd's insurance company using? a)Basic Surgical b)Point-based medical c)Conversion factor d)Relative value

d)Relative value

In a life settlement contract, whom does the life settlement broker represent? a)The insurer b)The beneficiary c)The life settlement intermediary d)The owner

d)The owner

Within what timeframe should an applicant or a producer request a hearing before the Commissioner regarding the notice of denial or nonrenewal of a license? a)Within 63 days after the application for license is mailed b)Within 30 days after the license is denied c)Within 30 days after the application for renewal is received by the Commissioner d)Within 63 days after the notice of denial is mailed

d)Within 63 days after the notice of denial is mailed

When health care insurers negotiate contracts with health care providers or physicians to provide health care services for subscribers at a favorable cost, it is called a)Preferred Provider Organization (PPO). b)Managed care. c)Indemnity plans. d)Point of Service Plans (POS).

a)Preferred Provider Organization (PPO).

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? a)Premiums are not tax deductible as a business expense. b)Premiums are tax deductible by the key employee. c)Premiums are tax deductible as a business expense. d)Premiums are taxable to the employee.

a)Premiums are not tax deductible as a business expense.

Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to a)The spouse of the insured. b)The insured. c)Creditors. d)Beneficiary of the death benefit.

b)The insured.

What is the purpose of COBRA? a)To protect the insureds against insolvent insurers b)To provide continuation of coverage for terminated employees c)To provide coverage for the dependents d)To provide health coverage for people with low income

b)To provide continuation of coverage for terminated employees

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within a)30 days of a loss. b)60 days of a loss. c)90 days of a loss. d)20 days of a loss.

c)90 days of a loss.

The term "illustration" in a life insurance policy refers to a)Pictures accompanying a policy. b)Charts and graphs. c)A presentation of nonguaranteed elements of a policy. d)A depiction of policy benefits and guarantees.

c)A presentation of nonguaranteed elements of a policy.

What happens when a policy is surrendered for its cash value? a)The policy can be reinstated by paying back all policy loans and premiums. b)The policy can be converted to term coverage. c)Coverage ends and the policy cannot be reinstated. d)Coverage ends but the policy can be reinstated at any time.

c)Coverage ends and the policy cannot be reinstated.

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called a)Waiver of cost of insurance. b)Payor benefit. c)Waiver of premium. d)Guaranteed insurability.

c)Waiver of premium.

A producer agent must do all of the following when delivering a new policy to the insured EXCEPT a)Explain the policy provisions, riders, and exclusions. b)Collect any premium due. c)Explain the rating procedures if the policy is rated differently than applied for. d)Disclose commissions earned from the sale of the policy.

d)Disclose commissions earned from the sale of the policy.

Who is the owner and who is the beneficiary on a Key Person Life Insurance policy? a)The employer is the owner and the key employee is the beneficiary. b)The key employee is the owner and beneficiary. c)The key employee is the owner and the employer is the beneficiary. d)The employer is the owner and beneficiary.

d)The employer is the owner and beneficiary.

All of the following individuals may qualify for Medicare health insurance benefits EXCEPT a)A person under age 65 who is receiving Social Security disability benefits. b)A retired person age 50. c)A healthy person age 65. d)A person age 45 who has a permanent kidney failure.

a retired person age 50

The term "illustration" in a life insurance policy refers to a)A presentation of nonguaranteed elements of a policy. b)A depiction of policy benefits and guarantees. c)Pictures accompanying a policy. d)Charts and graphs.

a)A presentation of nonguaranteed elements of a policy.

If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following? a)Adjust the benefit in accordance with the increased risk b)Cancel the policy c)Increase the premium d)Exclude coverage for on-the-job injury

a)Adjust the benefit in accordance with the increased risk

A business entity may be licensed as an insurance producer if a)An employee who holds a producer's license is designated as a compliance officer. b)A business entity is a brokerage firm. c)A business entity is in good standing with the Commissioner of Insurance. d)All employees of the business entity are licensed as insurance producers.

a)An employee who holds a producer's license is designated as a compliance officer.

The classification Small Employer means any person actively engaged in a business that on at least 50% of its working days during the preceding year employed a)At least 2 and not more than 50 persons. b)At least 5 and not more than 75 persons. c)At least 10 and not more than 100 persons. d)At least 3 and not more than 25 persons.

a)At least 2 and not more than 50 persons.

If an applicant for a life insurance policy is found to be a substandard risk, the insurance company is most likely to a)Charge a higher premium. b)Require a yearly medical examination. c)Lower its insurability standards. d)Refuse to issue the policy.

a)Charge a higher premium.

A waiver of premium provision may be included with which kind of health insurance policy? a)Disability income b)Basic medical c)Hospital indemnity d)Dread disease

a)Disability income

An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's premium, thus reducing it to $900. What option does this describe? a)Flexible Premium b)Reduction of Premium c)Accumulation at Interest d)Cash option

b)Reduction of Premium

What is the number of credits required for fully insured status for Social Security disability benefits?a)4 b)10 c)30 d)40

d)40

In reference to the standard Medicare Supplement benefits plans, what does the term standard mean? a)Coverage options and conditions comply with the law, but will vary from provider to provider. b)All plans must include basic benefits A-N. c)Coverage options and conditions are developed for average individuals. d)All providers will have the same coverage options and conditions for each plan.

d)All providers will have the same coverage options and conditions for each plan.

You know that your client is currently insured under a life policy, but you are making a sale presentation to that client for a new life policy. You must provide the client with the Important Notice Regarding the Replacement of Life Insurance and a copy of the sale proposal under all of the following situations EXCEPT a)The client is exchanging her whole life policy for a reduced paid-up. b)The client will have to borrow almost 50% of the existing policy's cash value to purchase the new policy. c)The new policy will have a lower cash value. d)The client is converting from an existing term policy to whole life.

d)The client is converting from an existing term policy to whole life.

Which of the following is INCORRECT concerning a noncontributory group plan? a)They help to reduce adverse selection against the insurer. b)They require 100% employee participation. c)The employer pays 100% of the premiums. d)The employees receive individual policies.

d)The employees receive individual policies.

Which of the following determines the cash value of a variable life policy? a)The company's general account b)The policy's guarantees. c)The premium mode d)The performance of the policy portfolio

d)The performance of the policy portfolio

Which of the following is NOT true of life settlements? a)They could be used for a key person coverage. b)They could be sold for an amount greater than the current cash value. c)They involve insurance policies with large face amounts. d)The seller must be terminally ill.

d)The seller must be terminally ill.

What is the purpose of a fixed-period settlement option? a)To settle the insurance company's liability b)To provide a guaranteed income for life c)To provide a guaranteed amount of money each month d)To provide a guaranteed income for a certain amount of time

d)To provide a guaranteed income for a certain amount of time

Which of the following will be EXEMPT from continuing education requirements? a)A limited lines credit producer b)A 65-year-old insurance producer who has been licensed for over 20 years c)A producer who is licensed in more than one line of authority d)An attorney in good standing

a)A limited lines credit producer

If a company has a Simplified Employee Pension plan, what type of plan is it? a)A qualified plan for a small business b)The same as a 401(k) plan c)The same as an IRA, with the same contribution limits d)An undefined contribution plan for large businesses

a)A qualified plan for a small business

Which of the following is NOT true regarding a business entity? a)Business entity does not need an insurance license. b)It may be licensed as an insurance producer. c)It must have a designated individual producer to be responsible for the business entity's compliance with the insurance laws. d)Business entities may act as insurance producers.

a)Business entity does not need an insurance license.

All of the following are dividend options EXCEPT a)Fixed-period installments. b)Accumulated at interest c)Reduction of premium. d)Paid-up additions.

a)Fixed-period installments.

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? a)No benefits b)Full benefits c)Partial benefits d)Full benefits until the blindness lifts

a)No benefits

According to agency law, the producer always represents the a)Public. b)State Insurance Department. c)Insurance company. d)Client.

c)Insurance company.

When would a 20-pay whole life policy endow? a)When the insured reaches age 100 b)At the insured's age 65 c)After 20 payments d)In 20 years

a)When the insured reaches age 100

The minimum number of credits required for partially insured status for Social Security disability benefits is a)4 credits. b)6 credits. c)10 credits. d)40 credits.

b)6 credits.

When a person applies for Medicare supplement insurance, whose responsibility is it to confirm that the applicant does not already have accident or sickness insurance in force? a)Agent b)Insurer c)State government d)Active physician

b)Insurer

Under the Replacement Regulation, Rule 16.1, which of the following statements would best describe the producer's duties? a)The producer must make sure that the applicant has received all required forms. b)The producer must conduct a reasonable investigation to determine if a replacement will take place. c)The producer must notify the existing company of the replacement. d)The producer must provide an applicant with a copy of the Important Notice Regarding Replacement of Life Insurance.

b)The producer must conduct a reasonable investigation to determine if a replacement will take place

An insured notifies the insurance company that he has become disabled. What provision states that claims must be paid immediately upon written proof of loss? a)Legal Actions b)Time of Payment of Claims c)Incontestability d)Physical Exam and Autopsy

b)Time of Payment of Claims

Which of the following is the best reason to purchase life insurance rather than annuities? a)To liquidate a sum of money over a lifetime b)To create an estate c)To liquidate a sum of money over a period of years d)To create regular income payments

b)To create an estate

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy? a)$20,000 b)$25,000 c)$50,000 d)The face amount will be determined by the insurer.

c)$50,000

Which of the following statements would best describe the difference between viatical settlements and accelerated death benefits? a)Viaticals are determined by morbidity, but Accelerated Death benefits use mortality tables. b)Viaticals use mortality tables, but Accelerated Death benefits are determined by morbidity. c)Viaticals are funded by a third party, and Accelerated Death benefits are provided by the insurer that issued the original policy. d)Viaticals are provided by the insurer that issued the original policy, and Accelerated Death benefits are funded by a third party.

c)Viaticals are funded by a third party, and Accelerated Death benefits are provided by the insurer that issued the original policy.

All other factors being equal, the least expensive first-year premium payment is found in a)Increasing Term. b)Decreasing Term. c)Level Term. d)Annually Renewable Term.

d)Annually Renewable Term.

In a relative value system of determining coverage for a given procedure, what term describes the total amount payable per point? a)Relative value b)Translation factor c)Practical value d)Conversion factor

d)Conversion factor

Which of the following is NOT a feature of a guaranteed renewable provision? a)The insured has a unilateral right to renew the policy for the life of the contract. b)Coverage is not renewable beyond the insured's age 65. c)The insured's benefits cannot be reduced. d)The insurer can increase the policy premium on an individual basis.

d)The insurer can increase the policy premium on an individual basis.

Which of the following is NOT true regarding Equity Indexed Annuities? a)The insurance company keeps a percentage of the returns. b)They have guaranteed minimum interest rates. c)They are less risky than variable annuities. d)They earn lower interest rates than fixed annuities.

d)They earn lower interest rates than fixed annuities.

Which of the following riders would NOT increase the premium for a policyowner? a)Impairment rider b)Payor benefit rider c)Waiver of premium rider d)Multiple indemnity rider

a)Impairment rider

Which of the following is NOT true of a major-medical health insurance policy? a)It usually has a maximum benefit amount. b)The benefits are subject to deductibles. c)It is designed to cover hospital and medical expenses of a catastrophic nature. d)It is designed to pay on a first dollar of expense basis.

d)It is designed to pay on a first dollar of expense basis.

A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible? a)Collateral assignment b)Insurable interest c)Modification clause d)Ownership provision

a)Collateral assignment

If an insured is not required to pay a deductible, what kind of coverage does he/she have? a)First dollar b)Corridor c)Major medical d)Comprehensive

a)First dollar

Which of the following types of LTC is NOT provided in an institutional setting? a)Home health care b)Custodial care c)Skilled nursing care d)Intermediate care

a)Home health care

A Health insurance policy lapses but is reinstated within an acceptable timeframe. How soon from the reinstatement date will coverage for accidents become effective? a)Immediately b)After 14 days c)After 21 days d)After 31 days

a)Immediately

Which of the following entities has the authority to make changes to an insurance policy? a)Insurer's executive officer b)Department of Insurance c)Broker d)Producer

a)Insurer's executive officer

Which of the following is TRUE regarding the annuity period? a)It may last for the lifetime of the annuitant. b)During this period of time the annuity payments grow interest tax deferred. c)It is also referred to as the accumulation period. d)It is the period of time during which the annuitant makes premium payments into the annuity.

a)It may last for the lifetime of the annuitant.

All of the following could be reasons for issuing a temporary producer's license EXCEPT a)Licensing of new insurance producers after the business has been transferred. b)Training of new personnel after the producer becomes disabled. c)Servicing of the existing accounts until the producer returns from the Armed Forces. d)The sale of the insurance business due to the death of the producer.

a)Licensing of new insurance producers after the business has been transferred.

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it? a)Limited-pay Life b)Variable Life c)Adjustable Life d)Graded Premium Life

a)Limited-pay Life

All of the following are the most common variations in a Long-Term Care policy EXCEPT a)Number of family dependents. b)The amount paid for nursing home care. c)Number of days of confinement covered. d)Number of home health visits covered.

a)Number of family dependents.

An insured pays her Major Medical Insurance premium annually on March 1. Last March she forgot to mail her premium to the company. On March 19, she had an accident and broke her leg. The insurance company would a)Pay the claim. b)Hold the claim as pending until the end of the grace period. c)Deny the claim. d)Pay half of her claim because the insured had an outstanding premium.

a)Pay the claim.

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled? a)Payor Benefit b)Jumping Juvenile c)Juvenile Premium Provision d)Waiver of Premium

a)Payor Benefit

A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability? a)Proof of insurability is not required. b)Medical exam c)Her parents' federal income tax receipts d)Medical exam and parents' medical history

a)Proof of insurability is not required.

If a producer allowed his or her license to lapse, which of the following would NOT be true? a)The producer must take a written examination within 12 months of the lapse for the license to be reinstated. b)The producer will have to pay a penalty of 3 times the usual renewal rate before the license can be reinstated. c)The Commissioner may waive the penalty is the renewal fee is received within 30 days of the expiration. d)The producer must have completed CE requirements prior to the lapse for the license to be reinstated.

a)The producer must take a written examination within 12 months of the lapse for the license to be reinstated.

According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT a)Unearned premiums are retained by the insurance company. b)The insurer must provide the insured a written notice of the cancellation. c)Claims incurred before cancellation must be honored. d)An insurance company may cancel the policy at any time.

a)Unearned premiums are retained by the insurance company.

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have? a)Universal life b)Adjustable life c)Term life d)Limited pay

a)Universal life

Can an individual who belongs to a POS plan use an out-of-network physician? a)Yes, and they may use any preferred physician, even if not part of the HMO b)No c)Yes, but they must use the POS physician first d)Yes, but they must use the HMO physician first

a)Yes, and they may use any preferred physician, even if not part of the HMO

An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy? a)7 days b)10 days c)31 days d)60 days

b)10 days

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? a)10 days b)15 days c)25 days d)45 days

b)15 days

A candidate applying for which of the following licenses will NOT be required to pass a written examination? a)An insurance consultant b)A nonresident producer c)A surplus lines producer d)An insurance producer

b)A nonresident producer

An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued? a)Pay the full amount of a claim because the contestable period has ended b)Adjust the claim benefit to reflect the insured's true age c)Deny any claims and cancel the policy d)Deny paying a claim based on misrepresentation

b)Adjust the claim benefit to reflect the insured's true age

If a death benefit from a life insurance policy is not paid out in a timely manner, when does the interest begin to accrue? a)60 days after the death of the insured b)After 30 days from the date the benefit is due c)Immediately d)After 2 months from the date the proof of death is received

b)After 30 days from the date the benefit is due

Which of the following is NOT true regarding a business entity? a)Business entities may act as insurance producers. b)Business entity does not need an insurance license. c)It may be licensed as an insurance producer. d)It must have a designated individual producer to be responsible for the business entity's compliance with the insurance laws.

b)Business entity does not need an insurance license.

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as a)Binding contracts. b)Contracts of adhesion. c)Unilateral contracts. d)Aleatory contracts.

b)Contracts of adhesion.

Which of the following best describes the MIB? a)It is a rating organization for health insurance. b)It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. c)It is a government agency that collects medical information on the insured from the insurance companies. d)It is a member organization that protects insured against insolvent insurers.

b)It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.

An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium? a)It will increase each year during the next 5 years as the face amount increases each year. b)It will increase because the insured will be 5 years older than when the policy was originally purchased. c)It will remain the same for the new 5-year term. d)It will decrease for the new 5-year term since the insured is now a lesser risk to the company.

b)It will increase because the insured will be 5 years older than when the policy was originally purchased.

If a life insurance policy develops cash value faster than a seven-pay whole life contract, it becomes a/an a)Nonqualified annuity. b)Modified endowment contract. c)Accelerated benefit policy. d)Endowment.

b)Modified endowment contract.

The coverage provided by a disability income policy that does not pay benefits for losses occurring as the result of the insured's employment is called a)Workers compensation. b)Nonoccupational coverage. c)Unemployment coverage. d)Occupational coverage.

b)Nonoccupational coverage.

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured? a)Option A b)Option B c)Corridor option d)Variable option

b)Option B Under Option B the death benefit includes the annual increase in cash value so that the death benefit gradually increases each year by the amount that the cash value increases. At any point in time, the total death benefit will always be equal to the face amount of the policy plus the current amount of cash value.

Which type of retirement account does not require the owner to start taking distributions at age 72? a)Traditional IRA b)Roth IRA c)Nonqualified IRA d)Standard IRA

b)Roth IRA

Which of the following policies would be classified as a traditional level premium contract? a)Variable Universal Life b)Straight Life c)Adjustable Life d)Universal Life

b)Straight Life

All of the following entities regulate variable life policies EXCEPT a)The Insurance Department. b)The Guaranty Association. c)Federal government. d)The SEC.

b)The Guaranty Association.

A husband and wife are insured under group health insurance plans at their own places of employment, and as dependents under their spouse's coverage. If one of them incurs hospital expenses, how will those expenses likely be paid? a)The insured will have to select a plan from which to collect benefits b)The benefits will be coordinated. c)Neither plan would pay. d)Each plan will pay in equal shares.

b)The benefits will be coordinated.

Who bears all of the investment risk in a fixed annuity? a)The annuitant b)The insurance company c)The owner d)The beneficiary

b)The insurance company

A policy with a 31-day grace period implies a)The policy benefits must be paid within 31 days after a claim is submitted. b)The policy will not lapse for 31 days if the premium is not paid when due. c)The policyholder may return the policy for a full refund within 31 days. d)The policy is incontestable after 31 days of delivery.

b)The policy will not lapse for 31 days if the premium is not paid when due.

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to a)3 years. b)5 years. c)10 years. d)12 years.

c)10 years.

To qualify for group health insurance coverage with a small employer, the employee must work how many hours a week? a)15 b)20 c)30 d)40

c)30

Long-term care coverage may be available as any of the following options EXCEPT a)Individual long-term care. b)Endorsement to a life policy. c)Endorsement to a health policy. d)Group long-term care.

c)Endorsement to a health policy.

All of the following violations may result in an agent's imprisonment EXCEPT a)Knowingly obtaining information about a consumer under false pretenses. b)Engaging in the business of insurance after being convicted of breach of trust. c)Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction. d)Embezzling funds from the insurer.

c)Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.

A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that? a)Second-to-Die b)Family Income Policy c)Joint Life Policy d)Survivorship Life Policy

c)Joint Life Policy

Which of the following settlement options in life insurance is known as straight life? a)Life with period certain b)Fixed amount c)Life income d)Single life

c)Life income

Under which of the following organizations are the practicing providers compensated on a fee-for-service basis? a)Blue Cross/Blue Shield b)Open panel c)PPO d)HMO

c)PPO

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use? a)Reduction of premium b)Accumulation at interest c)Paid-up option d)One-year term

c)Paid-up option

Which of the following must be present in all Medicare supplement plans? a)Outpatient drugs b)Plan C coinsurance c)Plan A d)Foreign travel provisions

c)Plan A

The Federal Fair Credit Reporting Act a)Regulates telemarketing. b)Prevents money laundering. c)Regulates consumer reports. d)Protects customer privacy.

c)Regulates consumer reports.

Whose responsibility is it to determine if all of the questions on an application have been answered? a)The applicant b)The beneficiary c)The agent d)The insurer

c)The agent

An insured was pregnant when she applied for an individual accident and health sickness insurance policy. When will her insurance benefits extend to the newborn? a)Within 30 days of filing the appropriate application b)Within 48 hours of filing the appropriate application c)The child may not be covered d)At the moment of birth

c)The child may not be covered

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? a)The group plan will pay a portion of the employee's expenses. b)The group plan will pay depending on the employee's recovery. c)The group plan will not pay because the employee was injured at work. d)The group plan will pay.

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

Which of the following will vary the length of the grace period in health insurance policies? a)The length of time the insured has been insured b)The term of the policy c)The mode of the premium payment d)The length of any elimination period

c)The mode of the premium payment

Which of the following statements is correct regarding a whole life policy? a)The policy premium is based on the attained age. b)The death benefit may increase or decrease during the policy period. c)The policyowner is entitled to policy loans. d)Cash values are not guaranteed.

c)The policyowner is entitled to policy loans.

What do long-term care policies offer to policyholders to account for inflation? a)They automatically increase premiums to account for inflation. b)They pay a dividend that increases every 7 years. c)They offer the option of purchasing coverage that raises benefit levels accordingly. d)They do not account for inflation.

c)They offer the option of purchasing coverage that raises benefit levels accordingly.

Which characteristic does NOT describe managed care? a)Shared risk b)Preventive care c)Unlimited access to providers d)High-quality care

c)Unlimited access to providers

How many consecutive months of coverage (other than in an acute care unit of a hospital) must LTC insurance provide in this state? a)24 b)36 c)6 d)12

d)12

What is the waiting period on a Waiver of Premium rider in life insurance policies? a)30 days b)3 months c)5 months d)6 months

d)6 months

Which of the following is NOT true regarding coverage for adopted children? a)Coverage for adopted children is the same as for other dependents. b)Premium must be received by the insurance company no later than 31 days from the date of adoption for the coverage to continue. c)Adopted children are automatically covered for 31 days without a premium payment. d)Adopted children are covered for an unlimited period of time.

d)Adopted children are covered for an unlimited period of time.

Long-term care insurance policies must cover which of the following? a)All mental disorders b)Treatment of alcoholism c)Injuries caused by an act of war d)Alzheimer's disease

d)Alzheimer's disease

An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must then initial that change? a)Executive officer of the company b)Insured c)Agent d)Applicant

d)Applicant

An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the a)Insuring Clause. b)Pre-existing Conditions Clause. c)Eligibility Clause. d)Consideration Clause.

d)Consideration Clause.

Insured A recently purchased an individual health policy. Insured B purchased the same policy, but did so as the result of a direct response solicitation. Which of these two insureds has a longer free look period? a)Insured A b)Both have the same free look period c)Neither has a free look period d)Insured B

d)Insured B

Which of the following programs expands individual public assistance programs for people with insufficient income and resources? a)Medicare b)Social Security c)Unemployment compensation d)Medicaid

d)Medicaid

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? a)Capital sum b)Double the amount of the death benefit c)Refund of premiums d)Principal sum

d)Principal sum

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? a)Out-of-Pocket Limit b)Maximum Loss Threshold c)Maximum Loss d)Stop-Loss Limit

d)Stop-Loss Limit

Which of the following would help prevent a universal life policy from lapsing? a)Face amount b)Adjustable premium c)Corridor of insurance d)Target premium

d)Target premium