Course Review (PASS PASS PASS)

The benefits for group disability plans are based on A)The employers net worth B)A percentage of the workers income

A percentage of the workers income

If an insured is injured while committing an illegal act and the insureds health policy contains the illegal occupation provision, what percentage of the claim will be paid? A) 0% B) 50&

0%

A temporary license in this state is valid for A) 90 days B) 180 days

180 days

What is the maximum amount of time an insurer may delay payment of a claim without having to pay an additional interest? A) 60 days B) 30 days

60 days

An insurer who transacts insurance in this state but whose article of incorporation are registered in Canada is considered what type of insurer? A) Foreign B) Alien

Alien

A loss resulting from which of the following would qualify for the accidental death rider coverage? A)A hazardous hobby B)An automobile accident

An automobile accident

When are the agents required to provide the outline of coverage to an applicant for individual long term care policy? A) Only upon the applicants request B) At the time of policy solicitation

At the time of policy solicitation

Conrad receives $50,000 from a $100,000 accidental death % dismemberment policy as a result of the loss of his left arm in an accident. Conrad has received the.. A)Principal Amount B)Capital amount

Capital Amount

Which of the following is NOT normally an excluded cause of disability in an individual disability income policy A)Suicide B)Complications from pregnancy

Complications from pregnancy

An applicant gives her agent a completed application and the initial premium. What can the agent issue her that acknowledges the initial premium payment? A) Conditional receipt B) Premium Receipt

Conditional Receipt

Which of the following best describes the difference between joint life and joint life survivor annuity payment options? A)Joint and survivor is a life contingency option. B)In joint life option, the benefits stop after the first death.

In joint life option, the benefits stop after the first death

Which of the following is NOT true regarding a deferred annuity? A) The annuity grows tax deferred B) Income payments begin within 1 year from the date of a purchase

Income payments begin within 1 year from the date of a purchase

All of the following must sign an application for health insurance EXCEPT the A) Insurer B) The proposed insured

Insurer

Which of the following is TRUE of level term insurance? A)The policy endows at age 100 B)It is temporary protection

It is temporary protection

Which of the following best describes pure life annuity? A) It provides the highest monthly benefits B) It continues payments to the beneficiary when the annuitant dies.

It provides the highest monthly benefits

In the event an annuitant dies during the accumulation period, and there is a beneficiary named in the annuity. Annuity benefits would be paid to the A) Named Beneficiary B) Annuitant's estate

Named Beneficiary

Which statements best describes agreement as it relates to insurance contracts? A) The intent of the contract must be legally acceptable to both parties B) One party accepts the exact terms of the other party's offer

One party accepts the exact terms of the other party's offer

Upon payment of a loss, the insured is obligated to surrender to the insurer the right to sue a negligent party. This is called? A) Entirety B) Subrogation

Subrogation

If an applicant's health is poorer than that of an average applicant, the policy may be issued... A) Substandard B) Preferred

Substandard

All of the following would be classified as limited insurance coverage EXCEPT A) Supplement Social Security Coverage B) Travel insurance policy

Supplement Social Security Coverage

An insurer is attempting to determine the insurability of an applicant and decides to obtain medical information from several different sources. Which entity must be notified of the investigation? A)The medical information bureau B)The applicant

The applicant

Which of the following would NOT be eligible for coverage under key person? A) The pharmacist in a drug store B) The owner of a shop

The owner of a shop

All of the following are true of the Survivorship Life Policy EXCEPT A) The premium would be lower than in a joint life policy B) The premium is based on the age of each insured

The premiums is based on the age of each insured

A Medicare supplement policy must have a free look provision for at least A) 10 days B) 30 days

30 days

Which of the following describes the relationship between the principal sum and a capital sum? A) A capital sum is a percentage of the principle B) The capital sum varies, while the principal sum does not

A capital sum is a percentage of the principal sum.

An individual has a $200,000 convertible term life insurance policy. If he chooses, he can A) Purchase an individual annuity for any face amount using the 1035 exchange privilege B) Convert to a whole life policy for the same face amount without proof of insurability

Convert to a whole life policy for the same face amount without proof of insurability

Which of the following statements regarding HIV testing is NOT true? A) Test results must be sent to the Department Of Insurance B) Testing may be waived at the discretion of the insurer.

Test results must be sent to the Department Of Insurance

Whose responsibility is it to ensure that the application for health insurance is complete and accurate? A) The agents B) The underwriter

The agents

Resident Agents must complete how many hours of continuing education every 2 years? A) 20 B) 24

24

How many continuing education hours must be completed on the subject of ethics every license renewal period? A) 5 B) 3

3

Which of the following would be TRUE of both the fixed period and fixed amount settlement options? A) Both guarantee payments for the life of the beneficiary B) Both guarantee that the principal and interest will be fully paid out

Both guarantee that the principal and interest will be fully paid out

Which act was introduced to reduce the cost of health care by utilizing preventative care? A) HIPPA B) HMO act of 1973

HMO act of 1973

In order for an alumni association to be eligible to purchase group health insurance for its members, all of these statements must be true EXCEPT when the association A) Has at least 100 members B) Has been active for the five year minimum

Has been active for the five year minimum

An illustration used in the sale of a life insurance policy must include a label stating? A) Life insurance illustration B) Representation of insurance

Life insurance illustration

Medicare part b covers all of the following EXCEPT A) Home health visits B) Long term care services

Long term care services

What is the purpose of a buy-sell agreement? A) To reimburse the business in case of a key employee's death B) To allow the business buyout in case of the owners death

To allow the business buyout in case of the owners death

In a noncontributory group policy A) 100% of eligible employees must be participate B) 75% of eligible employees must elect to join the plan

100% of eligible employees must participate.

Regarding the consideration clause, which of the following is NOT correct? A)Consideration of the insurer and insured must be equal. B)Consideration is defined as the exchange of values.

Consideration of the insurer and insured must be equal.

Which dividend option increases the death benefit? A) Reduced Paid Up B) Paid up additions

Paid-up additions

In group insurance, the primary purpose of the Coordination of benefits provision is to A)Prevent over insurance B)Ensure the payment of claims by all policies that are in effect at the time of the claim

Prevent over insurance

Under the Payment of Claims provision, to whom will the insured's benefits be paid if the insured is deceased? A) To any remaining debtors the insured owes B) The insured primary beneficiary

The insured primary beneficiary

Which entity has the option of including optional provisions in a health insurance policy? A) The policyholder B) The insurer

The insurer

All of the following are characteristics of group health insurance plans EXCEPT A)The parties that hold a group health insurance contract are the employees and the employer B)The cost of insuring an individual is less than what would be charged for comparable benefits under an individual plan.

The parties that hold a group health insurance contract are the employees and the employer

An employee that becomes ineligible for group coverage because of termination of employment or change in status, must exercise extension of benefits under COBRA A)Within 30 days B)Within 60 days

Within 60 days

The family term rider incorporates ? a) Key person whole life and dependents term c) Spouse term and children's term

Spouse term and children's term

Which of the following is true regarding coverage for chemical dependency treatment in group health insurance policies issued in this state? A) Benefits provided must be the same as for any other physical illness B) Coverage is optional and may be offered at the discretion of the insurer

Benefits provided must be the same as for any other physical illness

An Equity Indexed Annuity will grow based upon A)A rate of interest determined by the banking system B)Performance of a recognized index

Performance of a recognized index

Which of the following does NOT have to be included on the first page of a Medicare supplement policy? A) Continuation B) Premium rates

Premium rates

With Adjustable Life, the owner can change all of the following EXCEPT A)The length of time the coverage will last B)The insured

The insured

Group policies include an incontestability period that lasts A) 5 Years B) 2 Years

2 years

Core benefits are included in all Medicare supplemental policies. What percentage of Part B coinsurance is required? A) 15% B) 20%

20%

What is the maximum age that a disabled insured worker may receive Social Security disability benefits? A) 65 B) For life with no maximum age limit

65

Under a group health insurance plan, benefits may be extended to all of the following dependents EXCEPT A) A dependent parent living with the primary certificate holder B) A 27 year old married daughter who is attending college and lives with her parents

A 27 year old married daughter who is attending college and lives with her parents

If the policy summary for a life insurance policy is not given when the application is taken, when must the policy summary be given to the policyowner? A) When the policy is delivered B) Within 15 days of the application date

When the policy is delivered

Insured have the right to do which of the following if they have NOT received the proper claim forms within 15 days of their notice to the insurer of a covered loss under a major medical policy? A). Submit the description in their own words on a plain sheet of paper. B). Demand full payment immediately for the claim

Submit the description in their own words on a plain sheet of paper

An employee is covered under COBRA. His previous premium was $100 per month. His employee now collects $102 each month. Why does the employer collect an extra $2? A) To cover other employees who qualify to bypass premium payment B) To cover the employers administration costs

To cover the employers administration costs

What is the purpose of the Impairment rider in a health insurance policy? A) To provide disability coverage B) To exclude coverage for a specified impairment

To exclude coverage for a specified impairment

If a basic medical insurance plan's benefits are exhausted, what type of plan will then begin covering those losses? A) Supplementary major medical B) None, once benefits are exhausted for a given benefit period, the insurer is responsible for covering the remainder of the expenses

Supplementary Major Medical

If the insurance premiums were not tax deductible, what other taxation will this affect? A) Federal income tax B) Taxation of benefits

Taxation of benefits

Which of the following indicates the person upon whose life the annuity income amount is determined? A) Insured B) Annuitant

Annuitant

A limited health insurance policy that will pay a lump sum to an insured diagnosed with a heart attack, stroke, or renal failure is known as? A) Hospital Confined Indemnity B) Critical Illness Insurance

Critical Illness Insurance

Guaranteeing future dividends is considered to be an unfair or deceptive act known as A) Misrepresentation B) Rebating

Misrepresentation

An agent has created a new advertisement to help expand his business. Prior to use, the advertisement must be approved by A) The NAIC B) The insurers home office

The insurers home office

An insurer that operates for one or more social education, charitable, benevolent, or religious purposes for the benefit of its members is known as a A) Fraternal Insurer B) Mutual Insurer

Fraternal Insurer

The benefits from a business overhead expense insurance policy? A) Are received tax free B) Are limited to covered expenses and are taxable to the business

Are limited to covered expenses and are taxable to the business

Which provision may be added to a permanent life policy, at no cost, that insures that the policy will not lapse as long as there is a cash value? A) Past due premium option B) Automatic premium loan option

Automatic premium loan option

What type of life policies requires a non forfeiture provision? A) Cash value B) Renewable

Cash Value

An insured and his spouse recently had a child. Which of the following riders would allow the couple to insure the child for a limited period of time at a specified amount? A) Payor rider B) Children's term rider

Children's term rider

To obtain a Texas producer license, an applicant must do all of the following EXCEPT A) Submit Fingerprints B) Complete pre licensing training

Complete pre licensing training

The stop loss feature on a major medical policy is intended to A)Establish a maximum amount of out of pocket expense that an insured will have to pay for medical expense in a calendar year B)Establish a maximum amount of out of pocket medical expense for the life of the policy

Establish a maximum amount of out of pocket expense that an insured will have to pay for medical expense in a calendar year

J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose? A) Joint and Survivor B) Fixed amount

Fixed amount

When an agent delivered an insurance policy to the insured, he collected the initial premium as well as a document verifying that the insured had not had any injuries or illness since the application date. What is this document called? A) insuring clause B) statement of good health

statement of good health

When filling out an application for insurance, the applicant makes a mistake. If a fresh application were not available, what could the applicant do to properly correct the mistake? A) Nothing, a fresh application must be obtained B) Cross the incorrect answer out, write the correct one beside it and initial the answer

Cross the incorrect answer out, write the correct one beside it and initial the answer

All of the following are changes to health insurance plans introduced by the PPACA EXCEPT A) Requirement for preventive care without deductible or copays B) Full cost coverage for all medical expense

Full cost coverage for all medical expenses

Which of the following is NOT true regarding a noncancellable policy? A) Insured has the unilateral right to renew the policy for the life of the contract, and may discontinue paying premiums to cancel it B) Insurer can increase the premium above what is stated in the policy if claims experience is greater then expected

Insurer can increase the premium above what is stated in the policy if claims experience is greater then expected

Policy written on a third party ownership basis are usually written to cover which of the following? A) Policyowners who are not insured B) Policyowners minor children of business' associates

Policyowners minor children or business associate

Which of the following is a permissible reason for an insurance company to contest payments of a claim based on statements in the application A) The insurer has already paid out the expected amount of benefits for the year B) The application contains material misstatements

The application contains material misstatements

Once the initial benefit limit in Medicare Part D is reached, how is the beneficiary affected? A) The beneficiary is no longer responsible for prescription drug costs B) The beneficiary is then responsible for a portion of prescription drug costs

The beneficiary is then responsible for a portion of prescription drug costs

All of the following are true about key persons insurance EXCEPT A) The business is the applicant and owner B) The death benefit is taxable to the business

The death benefit is taxable to the business

Reports required by the Texas Department of Insurance based on complaints about unfair settlement practices must contain information about all of the following EXCEPT A) The total number of complaints C) The resident state of the claimants

The resident state of claimants

Medicare is a health insurance program for all the following individuals EXCEPT A) Those with permanent kidney failure B) Those with low income and low assets

Those with low income and low assets

What is the purpose of a disability buy sell agreement? A) To help the business meet overhead expenses in case of the owners disability B) To allow the business buyout in case of the owners disability

To allow the business buyout in case of the owners disability